Overview

• US AIoT SaaS provider's fiscal Q4 revenue rose 11%, beating analyst expectations

• Adjusted EBITDA for fiscal Q4 slightly beat consensus, up 42% year-over-year

• Company signed $100-120 mln South African government contract in the quarter, boosting future revenue pipeline

Outlook

• Powerfleet expects fiscal 2027 revenue of $485 mln to $490 mln, up about 10% year-over-year

• Company sees fiscal 2027 adjusted EBITDA of $122 mln to $125 mln, margin about 25%

• Powerfleet expects fiscal 2027 free cash flow of $30 mln to $35 mln

Result Drivers

• SERVICES REVENUE GROWTH - Q4 revenue was driven primarily by 14% growth in high-margin services revenue, which made up over 81% of total revenue

• GROSS MARGIN EXPANSION - Gross margin increased to 56.5%, reflecting a higher mix of services revenue and improved services margins

• COST SYNERGIES AND EXPENSE DISCIPLINE - Realized cost synergies and disciplined operating expense management contributed to improved profitability

Company press release: ID:nPn8vpm1ba

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q4 Revenue	Beat	$114.50 mln	$113.06 mln (6 Analysts)
Q4 EPS		-$0.02
Q4 Net Income		-$2.70 mln
Q4 Adjusted EBITDA	Slight Beat*	$26.40 mln	$26.18 mln (6 Analysts)
Q4 Gross Profit		$64.70 mln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the it services & consulting peer group is "buy"

• Wall Street's median 12-month price target for PowerFleet Inc is $10.00, about 137% above its June 12 closing price of $4.22

• The stock recently traded at 64 times the next 12-month earnings vs. a P/E of 74 three months ago

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