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Sep 30
Powerfleet Q2 2025 Earnings Report
Powerfleet reported its financial results for the second quarter ended September 30, 2025, with record revenue and strong performance across key financial and operational metrics.
Key Takeaways
Powerfleet achieved record total revenue of $111.7 million in Q2 FY26, marking a 45% year-over-year increase and 7.3% sequential growth. The company also reported a significant increase in gross profit to $62.6 million and improved adjusted EBITDA to $24.8 million, reflecting strong operating leverage and disciplined cost management.
Total revenue reached a record $111.7 million, an increase of 45% year-over-year and 7.3% sequentially.
Services revenue increased 57% in total and 12% organically year-over-year to $89.3 million.
Gross profit increased 51% year-over-year to $62.6 million, with a gross margin of 56%.
Adjusted EBITDA increased 23% sequentially and 71% year-over-year to $24.8 million, with an adjusted EBITDA margin of 22%.
Powerfleet
Powerfleet
Powerfleet Revenue by Segment
Revenue by Segment
Product Revenue
CapyFin.comServices Revenue
CapyFin.com Forward Guidance
Powerfleet is increasing its financial guidance for total revenue in FY26 to a range of $435 million to $445 million, up from the prior guidance of $430 million to $440 million. The company also updated its guidance for annual adjusted EBITDA growth and adjusted net debt to adjusted EBITDA leverage ratio.
Positive Outlook
- Increased FY26 total revenue guidance to $435-$445 million, up from $430-$440 million.
- Annual adjusted EBITDA growth of 45-55% on FY25 adjusted EBITDA of $67.1 million.
- Adjusted net debt to adjusted EBITDA leverage ratio expected to improve from 3.4x (March 31, 2025) to approximately 2.25x by March 31, 2026.
- Strong global traction across both direct and indirect channels, centered on differentiated safety and compliance solutions.
- Rapid realization of synergy programs driving meaningful bottom-line strength.
Challenges Ahead
- The $4.0 million FY25 adjusted EBITDA variance relates solely to invoiced recoveries, which are no longer added back to adjusted EBITDA.
- The company will no longer include an EBITDA adjustment for "Recognition of pre-October 1, 2024, contract assets (Fleet Complete)" in its adjusted EBITDA presentation.
- The company is unable to provide guidance for GAAP financial measures or a reconciliation of non-GAAP measures to GAAP due to the unpredictability of certain items.
- Potential variability of items like stock-based compensation, acquisition-related expenses, and restructuring charges could significantly impact future GAAP financial results.
- The updated adjusted net debt to adjusted EBITDA leverage ratio guidance is slightly less optimistic than prior guidance (from 3.2x to below 2.25x to approximately 2.25x).
Revenue & Expenses
Visualization of income flow from segment revenue to net income