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Jun 30
Powerfleet Q1 2025 Earnings Report
Delivered 38% YoY total revenue growth to $104.1M, driven by record-high services revenue share and strong adjusted EBITDA expansion in Q1 2026.
Key Takeaways
Powerfleet started FY2026 with strong revenue growth and margin expansion, led by a 6% sequential increase in services revenue to $86.5M, representing 83% of total revenue. Adjusted EBITDA rose 58% year-over-year to $21.6M, aided by cost savings and gross margin improvements.
Total revenue was $104.1M, up 38% YoY.
Services revenue rose 53% YoY and 6% QoQ to $86.5M, accounting for 83% of total revenue.
Adjusted EBITDA increased 58% YoY to $21.6M, with margins expanding to 21%.
Net loss narrowed to $10.2M from $22.3M a year ago.
Powerfleet
Powerfleet
Powerfleet Revenue by Segment
Revenue by Segment
Services Revenue
CapyFin.comProduct Revenue
CapyFin.com Forward Guidance
FY2026 revenue expected between $430M and $440M, up from prior $420M–$440M range, with adjusted EBITDA growth of 45%–55% and leverage ratio improvement to below 2.25x by FY end.
Positive Outlook
- Raised FY2026 total revenue guidance to $430M–$440M.
- Maintained adjusted EBITDA growth target of 45%–55% for FY2026.
- Expect leverage ratio to improve from 3.2x to below 2.25x by FY2026 end.
- Strong momentum in services revenue mix reaching 83% of total revenue.
- Continued expansion of gross margins through cost savings and operational efficiencies.
Challenges Ahead
- No specific EPS guidance provided.
- Product revenue declined YoY.
- Ongoing net losses despite improvement.
- Exposure to tariff headwinds and supply chain challenges.
- Execution risk in achieving full $18M annual savings from EBITDA expansion program.
Revenue & Expenses
Visualization of income flow from segment revenue to net income