Powerfleet Reports Annual FY2025 Results: A Breakout Year of Strategic Transformation and Scaled Growth
Total revenue growth for fiscal 2025 of 26% to $362.5 million, with ~75% SaaS recurring revenue.
Annual adjusted EBITDA climbed 65% year-over-year to $71 million, with adjusted EBITDA margin expanding 500 basis points to 20%.
Q4 total revenue increased 42% year-over-year to $103.6 million, with Service revenue increasing 49% to $81.8m, while adjusted EBITDA grew 84% to $20.4 million.
Q4 total adjusted gross margin exceeded 60%, compared to 53% in the prior year.
Extended Conference Call to be Held at 8:30am ET; Slide Presentation Accessible Here
WOODCLIFF LAKE, N.J., June 16, 2025 /PRNewswire/ -- Powerfleet, Inc. (Nasdaq: AIOT) reported its financial results for the fiscal year and the fourth quarter ended March 31, 2025.
MANAGEMENT COMMENTARY
"Fiscal 2025 was a true milestone year for Powerfleet - a period in which we executed a bold reinvention strategy integrating two major acquisitions in just 12 months, achieved our organic growth and profitability metrics, and established Powerfleet as a global AIoT SaaS leader - with the Unity platform at the center of our customer value creation strategy," said Steve Towe, Powerfleet CEO.
"As we enter fiscal 2026, we do so as a stronger, more focused company, by proactively eliminating low-quality and non-strategic revenue from the acquired businesses. Our go-forward, high-quality revenue streams delivered strong organic growth year-over-year in FY25, with AI video growing more than 20% and in-warehouse safety solutions growing 17%. While we remain mindful of macroeconomic headwinds, we are confident in expanding our growth in FY26, particularly in the second half, driven by a strong, expanding pipeline and supported by the resilience of our international operations which grew organically by 13% in FY25."
Towe added, "With our Unity data highway as the central engine, we're ready to scale faster, deliver greater value to customers, and continue unlocking the full potential of the company within the dynamic market we serve."
FISCAL YEAR 2025 OPERATIONAL AND FINANCIAL HIGHLIGHTS
Powerfleet delivered an accelerated transformation of the business in FY25 - executing an aggressive M&A strategy and unlocking the foundation for scalable, high-margin growth.
Full Year Financial Performance Highlights: Pro Forma Basis Reflecting FY'24 MiX Combination Comparatives
-- Total revenue increased 26% to $362.5 million, with ~75% derived from
high-margin, recurring SaaS revenue - underscoring the successful pivot
to a subscription-first business model.
-- Adjusted EBITDA increased 65% year-over-year to $71 million, with
adjusted EBITDA margins expanding by 5% to 20%, reflecting disciplined
execution, cost synergy realization and operating leverage.
-- The combined business achieved $16 million in annualized cost synergies
during FY25, with $11 million flowing through to in-year adjusted EBITDA
performance.
Operational Scale and Reach
-- The subscriber base expanded 4x to 2.8 million, positioning Powerfleet
among the top three global AIoT SaaS providers.
-- Customer base multiplied to 48,000, including over half the Fortune 500
- across 8 verticals primed for cross-sell and upsell opportunities.
-- Sales coverage doubled across North America, Europe, and Australasia.
Indirect channel network has tripled to over 320 strategic alliances,
including leading global telcos, vehicle and asset OEMs, and insurance
partners.
Go To Market Momentum
-- 600+ midmarket and enterprise customer logos were added in FY25, across
key verticals such as logistics, food and beverage, automotive, and
industrials.
-- Accelerated double-digit organic growth in key strategic solution sets
of AI video and in-warehouse safety, alongside 13% year on year growth
in international operations.
-- Sales efforts continued to drive high-value wins, including a major Q4
Unity AI video safety partnership win with a large North American
student transportation company managing 9,000 drivers across 34 states,
-- Exiting the year with 50%+ of all new sales - high value AI video and
in-warehouse safety and compliance solutions, representing a significant
global sales motion shift year on year.
Technology and Innovation
-- Unity recognized as the #1 global solution and platform portfolio by ABI
Research, reflecting leadership in platform depth, AI maturity, and
usability.
-- Quadrupled Unity Data Highway-dedicated engineering headcount to over
400 full time employees, fueling platform innovation
-- Gained momentum and sales traction with device-agnostic, single pane of
glass solution
FOURTH QUARTER 2025 FINANCIAL RESULTS: PRO FORMA BASIS REFLECTING FY'24 MIX COMBINATION COMPARATIVES
Total revenue grew 42% year-over-year to $103.6 million, driven by the Fleet Complete acquisition and AI video solutions. Service revenue rose 49% to $81.8 million while product revenue grew 23% to $21.9 million,
Gross profit increased 42% to $54.8 million. On an adjusted basis, excluding the amortization of acquisition-related intangibles and post-acquisition inventory rationalization, gross profit rose by $24.0 million, or 62%, to $62.6 million. Adjusted service gross margin expanded significantly, increasing by 7.6 percentage points to 68.8%, after excluding $5.2 million in non-cash amortization.
Adjusted product gross margin also improved, rising to 28.7% from 27.3% in the prior year, after excluding $2.6 million in acquisition-related inventory write-offs. As a result, total adjusted gross margin exceeded 60%, compared to 53.0% in the prior year.
Operating expenses totaled $61.7 million, including $7.5 million in one-time transaction, integration, and restructuring costs, consistent with the level of one-time expenses incurred in the prior year. Excluding one-time items, adjusted operating expenses were $54.2 million, up from $37.6 million, with the increase primarily driven by the addition of Fleet Complete.
Adjusted EBITDA increased 84% to $20.4 million, up from $11.1 million in the prior year, reflecting contributions from the Fleet Complete acquisition, organic growth, gross margin expansion and cost synergies. Net loss attributable to common stockholders was $0.09 per share, compared to $0.19 per share in the prior year, reflecting improved financial performance and an increase in shares outstanding. After adjusting for one-time expenses and amortization of acquisition-related intangibles, adjusted net income was $0.02 per share, up from a loss of $0.01 per share in the prior year.
Net debt at quarter end was $225.0 million, consisting of $48.8 million in cash and $273.8 million total debt. Net debt, adjusted for $3.6 million in unsettled transaction costs, was $228.6 million, outperforming our year-end guidance of approximately $235 million by $6.4 million.
INVESTOR CONFERENCE CALL AND BUSINESS UPDATE
Powerfleet management will hold a conference call on Monday, June 16, 2025, at 8:30 a.m. Eastern time (5:30 a.m. Pacific time) to discuss results for the fourth quarter and fiscal year ended March 31, 2025, and provide a business update.
Date: Monday, June 16, 2025
Time: 8:30 a.m. Eastern time (5:30 a.m. Pacific time)
Toll Free: 888-506-0062
International: 973-528-0011
Participant Access Code: 539753
The conference call will be broadcast simultaneously and available for replay here. Additionally, both the webcast and accompanying slide presentation will be available via the investor section of Powerfleet's website at ir.powerfleet.com.
NON-GAAP FINANCIAL MEASURES
To supplement its financial statements presented in accordance with Generally Accepted Accounting Principles (GAAP), Powerfleet provides certain non-GAAP measures of financial performance. These non-GAAP measures include adjusted EBITDA, adjusted gross margin, adjusted gross profit, adjusted service margin, adjusted product margin, adjusted operating expenses, adjusted net income per share and net debt. Reference to these non-GAAP measures should be considered in addition to results prepared under current accounting standards, but are not a substitute for, or superior to, GAAP results. These non-GAAP measures are provided to enhance investors' overall understanding of Powerfleet's current financial performance. Specifically, Powerfleet believes the non-GAAP measures provide useful information to both management and investors by excluding certain expenses, gains and losses and fluctuations in currency rates that may not be indicative of its core operating results and business outlook. These non-GAAP measures are not measures of financial performance or liquidity under GAAP and, accordingly, should not be considered as an alternative to net income, gross margin, gross profit, total debt, cash flow from operating activities or earnings per share as an indicator of operating performance or liquidity. Because Powerfleet's method for calculating the non-GAAP measures may differ from other companies' methods, the non-GAAP measures may not be comparable to similarly titled measures reported by other companies. Reconciliation of all non-GAAP measures included in this press release to the most directly comparable GAAP measures can be found in the financial tables included in this press release.
ABOUT POWERFLEET
Powerfleet (Nasdaq: AIOT; JSE: PWR) is a global leader in the artificial intelligence of things (AIoT) software-as-a-service (SaaS) mobile asset industry. With more than 30 years of experience, Powerfleet unifies business operations through the ingestion, harmonization, and integration of data, irrespective of source, and delivers actionable insights to help companies save lives, time, and money. Powerfleet's ethos transcends our data ecosystem and commitment to innovation; our people-centric approach empowers our customers to realize impactful and sustained business improvement. The company is headquartered in New Jersey, United States, with offices around the globe. Explore more at www.powerfleet.com. Powerfleet has a primary listing on The Nasdaq Global Market and a secondary listing on the Main Board of the Johannesburg Stock Exchange (JSE).
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of federal securities laws. Powerfleet's actual results may differ from its expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Forward-looking statements may be identified by words such as "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "may," "will," "could," "should," "believes," "predicts," "potential," "continue," and similar expressions.
These forward-looking statements include, without limitation, our expectations with respect to our beliefs, plans, goals, objectives, expectations, anticipations, assumptions, estimates, intentions and future performance, as well as anticipated financial impacts of our transactions with MiX Telematics and Fleet Complete. Forward-looking statements involve significant known and unknown risks, uncertainties and other factors, which may cause our actual results, performance or achievements to be materially different from the future results, performance or achievements expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be forward-looking statements. Most of these factors are outside our control and are difficult to predict. The risks and uncertainties referred to above include, but are not limited to, risks related to: (i) future global economic and business conditions, including the effect of conflicts in certain geographies and the potential imposition of tariffs; (ii) integration of our, MiX Telematics' and Fleet Complete's businesses and the ability to recognize the anticipated synergies and benefits of the transactions with MiX Telematics and Fleet Complete; (iii) the commercial, financial, reputational and regulatory risks to our business that may arise as a consequence of operating across multiple geographies; (iv) disruptions in our global supply chain or failures by subcontractors; (v) the loss of any of our key customers or reduction in the purchase of our products by any such customers; (vi) reliance on third-party channel partner relationships; (vii) our inability to adequately protect our intellectual property; (viii) changes in technology or products, which may be more difficult or costly, or less effective, than anticipated; (ix) potential breaches of our information technology systems; (x) our ability to obtain additional capital to fund our operations; and (xi) such other factors as are set forth in the periodic reports filed by us with the Securities and Exchange Commission (SEC), including but not limited to those described under the heading "Risk Factors" in our annual reports on Form 10-K, quarterly reports on Form 10-Q and any other filings made with the SEC from time to time, which are available via the SEC's website at http://www.sec.gov. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove to be incorrect, actual results may vary materially from those indicated or anticipated by these forward-looking statements. Therefore, you should not rely on any of these forward-looking statements.
The forward-looking statements included in this press release are made only as of the date of this press release, and except as otherwise required by applicable securities law, we assume no obligation, nor do we intend to publicly update or revise any forward-looking statements to reflect subsequent events or circumstances.
Powerfleet Investor Contacts
Carolyn Capaccio and Jody Burfening
LHA Investor Relations
AIOTIRTeam@lhai.com
Powerfleet Media Contact
Jonathan Bates
jonathan.bates@powerfleet.com
+44 121 717-5360
POWERFLEET, INC. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Ended March 31, Year Ended March 31,
2024 2025 2024 2025
Pro Forma Consolidated Pro Forma Consolidated
Combined Combined
Revenues:
Products $17,793 $21,866 $67,665 $85,584
Services 55,029 81,772 219,239 276,931
Total revenues 72,822 103,638 286,904 362,515
Cost of revenues:
Cost of products 12,935 18,152 48,316 61,961
Cost of services 21,324 30,723 79,636 106,017
Total cost of revenues 34,259 48,875 127,952 167,978
Gross profit 38,563 54,763 158,952 194,537
Operating expenses:
Selling, general and administrative 41,366 56,839 151,839 204,361
expenses
Research and development expenses 3,733 4,904 14,793 16,061
Total operating expenses 45,099 61,743 166,632 220,422
Loss from operations (6,536) (6,980) (7,680) (25,885)
Interest income 627 95 1,480 926
Interest expense (1,410) (5,655) (4,521) (20,330)
Bargain purchase - Movingdots - 1,800
Other expense, net - (202) (266) (1,163)
Net loss before income taxes (7,319) (12,742) (9,187) (46,452)
Income tax (expense) benefit (1,917) 304 (7,014) (4,517)
Net loss before non-controlling interest (9,236) (12,438) (16,201) (50,969)
Non-controlling interest (12) (1) (50) (18)
Net loss (9,248) (12,439) (16,251) (50,987)
Accretion of preferred stock (9,996) (15,480)
Preferred stock dividend (1,129) (4,514) (25)
Net loss attributable to common $(20,373) $(12,439) $(36,245) $(51,012)
stockholders
Net loss per share attributable to $(0.19) $(0.09) $(0.34) $(0.43)
common stockholders - basic and
diluted
Weighted average common shares 106,894 132,793 106,894 119,877
outstanding - basic and diluted
POWERFLEET, INC. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
March 31, 2024 March 31, 2025
Pro Forma Consolidated
Combined
ASSETS
Current assets:
Cash and cash equivalents $51,091 $44,392
Restricted cash 86,104 4,396
Accounts receivables, net 55,008 78,623
Inventory, net 25,800 18,350
Prepaid expenses and other current assets 17,826 23,319
Total current assets 235,829 169,080
Fixed assets, net 48,306 58,011
Goodwill 121,713 383,146
Intangible assets, net 40,444 258,582
Right-of-use asset 11,222 12,339
Severance payable fund 3,796 3,796
Deferred tax asset 3,874 3,934
Other assets 19,090 21,183
Total assets $484,274 $910,071
LIABILITIES
Current liabilities:
Short-term bank debt and current maturities of long-term debt $22,109 $41,632
Accounts payable 27,174 41,599
Accrued expenses and other current liabilities 33,589 45,327
Deferred revenue - current 12,236 17,375
Lease liability - current 2,648 5,076
Total current liabilities 97,756 151,009
Long-term debt - less current maturities 113,810 232,160
Deferred revenue - less current portion 4,892 5,197
Lease liability - less current portion 8,773 8,191
Accrued severance payable 4,597 6,039
Deferred tax liability 18,669 57,712
Other long-term liabilities 2,980 3,021
Total liabilities 251,477 463,329
Convertible redeemable preferred stock: Series A 90,273
STOCKHOLDERS' EQUITY
Preferred stock
Common stock 63,842 1,343
Additional paid-in capital 200,218 671,400
Accumulated deficit (78,516) (205,783)
Accumulated other comprehensive loss (17,133) (8,850)
Treasury stock (25,997) (11,518)
Total stockholders' equity 142,414 446,592
Non-controlling interest 110 150
Total equity 142,524 446,742
Total liabilities, convertible redeemable preferred stock, $484,274 $910,071
and stockholders' equity
POWERFLEET, INC. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Year Ended March 31,
2024 2025
Pro Forma Consolidated
Combined
Cash flows from operating activities
Net loss $(16,251) $(50,987)
Adjustments to reconcile net loss to cash provided by (used in) operating
activities:
Non-controlling interest 50 18
Gain on bargain purchase (1,800)
Inventory write-downs 2,172 4,480
Stock-based compensation expense 5,214 9,362
Depreciation and amortization 29,548 47,494
Impairment of long-lived assets 139
Right-of-use assets, non-cash lease expense 2,919 5,007
Derivative mark-to-market adjustment (504)
Bad debts expense 7,534 9,418
Deferred income taxes 3,235 (4,872)
Shares issued for transaction bonuses 889
Lease termination and modification losses 295
Other non-cash items 6,338 1,061
Changes in operating assets and liabilities:
Accounts receivables (9,298) (14,048)
Inventory (601) 5,729
Prepaid expenses and other current assets (1,078) 5,474
Deferred costs (8,514) (8,437)
Deferred revenue (180) 1,748
Accounts payable and accrued expenses 9,731 (12,162)
Lease liabilities (2,851) (4,558)
Accrued severance payable 15 1,248
Net cash provided by (used in) operating activities 26,322 (3,345)
Cash flows from investing activities:
Acquisition, net of cash assumed (137,112)
Proceeds from sale of fixed assets 12
Capitalized software development costs (9,512) (13,782)
Capital expenditures (20,709) (20,008)
Deferred consideration paid
Repayment of loan advanced to external parties 294
Net cash used in investing activities (30,221) (170,596)
Cash flows from financing activities:
Repayment of long-term debt (14,116) (2,642)
Short-term bank debt, net (158) 19,551
Deferred consideration paid (1,955)
Purchase of treasury stock upon vesting of restricted stock (674) (2,836)
Repayment of financing lease (129)
Payment of preferred stock dividend and redemption of preferred stock (3,385) (90,298)
Proceeds from private placement, net 66,459
Proceeds from long-term debt 115,000 125,000
Payment of long-term debt costs (1,081) (1,410)
Proceeds from exercise of stock options, net 36 1,898
Cash paid on dividends to affiliates (5,320)
Net cash provided by financing activities 88,218 115,722
Effect of foreign exchange rate changes on cash and cash equivalents (2,870) (2,657)
Net increase (decrease) in cash and cash equivalents, and restricted cash 81,449 (60,876)
Cash and cash equivalents, and restricted cash at beginning of the period 55,746 109,664
Cash and cash equivalents, and restricted cash at end of the period $137,195 $48,788
Reconciliation of cash, cash equivalents, and restricted cash, beginning
of the period
Cash and cash equivalents 54,656 24,354
Restricted cash 1,090 85,310
Cash, cash equivalents, and restricted cash, beginning of the period $55,746 $109,664
Reconciliation of cash, cash equivalents, and restricted cash, end of the
period
Cash and cash equivalents 51,091 44,392
Restricted cash 86,104 4,396
Cash, cash equivalents, and restricted cash, end of the period $137,195 $48,788
Supplemental disclosure of cash flow information:
Cash paid for:
Taxes $3,381 $4,283
Interest $2,414 $15,335
Noncash investing and financing activities:
Common stock issued for transaction bonus
$ - $9
Shares issued in connection with MiX Combination
$ - $362,005
Shares issued in connection with Fleet Complete acquisition
$ - $21,343
Value of licensed intellectual property acquired in connection with $1,517
$ -
Movingdots acquisition
Preferred stock dividends paid in shares $1,108
$ -
Issuance of derivative on long-term debt $2,226
$ -
POWERFLEET, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO ADJUSTED EBITDA FINANCIAL MEASURES
(In thousands)
Three Months Ended March 31, Year Ended March 31,
2024 2025 2024 2025
Pro Forma Consolidated Pro Forma Consolidated
Combined Combined
Net loss attributable to common stockholders $(20,373) $(12,439) $(36,245) $(51,012)
Non-controlling interest 12 1 50 18
Preferred stock dividend and accretion 11,125 19,994 25
Interest expense, net 935 5,560 3,192 19,404
Other expense, net 55 87
Income tax expense (benefit) 1,917 (304) 7,014 4,517
Depreciation and amortization 8,369 14,452 29,548 47,494
Stock-based compensation 1,311 924 5,214 9,362
Foreign currency losses 438 502 1,493 1,790
Restructuring-related expenses 324 6,969 1,065 10,077
Gain on bargain purchase - Movingdots - (1,800)
Impairment of long-lived assets 139 139
Derivative mark-to-market adjustment - (29) (504)
Recognition of pre-October 1, 2024 - 1,768 3,809
contract assets (Fleet Complete)
Net profit on fixed assets (66) (115)
Contingent consideration remeasurement (250) (1,299)
Acquisition-related expenses 7,177 428 14,313 21,300
Integration-related expenses - 2,592 4,851
Non-recurring transitional service - 482
agreement costs
Adjusted EBITDA $11,113 $20,424 $43,132 $71,131
POWERFLEET, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP NET (LOSS) INCOME FINANCIAL MEASURES
(In thousands)
Three Months Ended March 31, Year Ended March 31,
2024 2025 2024 2025
Pro Forma Consolidated Pro Forma Consolidated
Combined Combined
Net loss $(9,248) $(12,439) $(16,251) $(50,987)
Incremental intangible assets amortization - 5,201 14,752
expense as a result of MiX Telematics and
Fleet Complete business combinations
Stock-based compensation (non- - 4,693
recurring/accelerated cost)
Foreign currency losses 438 502 1,493 1,790
Income tax effect of net foreign exchange 389 (377) 279 (602)
(losses) gains
Restructuring-related expenses 324 6,969 1,065 10,077
Income tax effect of restructuring costs - (53) (7) (207)
Derivative mark-to-market adjustment - (29) (504)
Acquisition-related expenses 7,177 428 14,313 21,300
Integration-related expenses - 2,592 4,851
Non-recurring transitional service - 482
agreement costs
Income tax effect of non-recurring (130) (130)
transitional service agreement costs
Contingent consideration remeasurement (250) (1,299)
Non-GAAP net (loss) income $(1,300) $2,794 $(55) $5,163
Weighted average shares outstanding 106,894 132,793 106,894 119,877
Non-GAAP net (loss) income per share - $(0.01) $0.02 $(0.001) $0.04
basic
POWERFLEET, INC. AND SUBSIDIARIES
ADJUSTED GROSS PROFIT MARGINS
(In thousands)
Three Months Ended March 31, Year Ended March 31,
2024 2025 2024 2025
Pro Forma Consolidated Pro Forma Consolidated
Combined Combined
Revenues:
Products $17,793 $21,866 $67,665 $85,584
Services 55,029 81,772 219,239 276,931
Total revenues 72,822 103,638 286,904 362,515
Cost of revenues:
Cost of products 12,935 18,152 48,316 61,961
Cost of services 21,324 30,723 79,636 106,017
Total cost of revenues 34,259 48,875 127,952 167,978
Gross profit $38,563 54,763 $158,952 $194,537
Product margin 27.3 % 17.0 % 28.6 % 27.6 %
Service margin 61.2 % 62.4 % 63.7 % 61.7 %
Total gross profit margin 53.0 % 52.8 % 55.4 % 53.7 %
Incremental intangible assets
$ - $5,201
$ - $14,752
amortization expense as a result of
MiX Telematics and Fleet Complete
business combinations
Inventory rationalization
$ - $2,570
$ - $3,310
Product margin 27.3 % 28.7 % 28.6 % 31.5 %
Service margin 61.2 % 68.8 % 63.7 % 67.0 %
Adjusted total gross profit margin 53.0 % 60.3 % 55.4 % 58.6 %
POWERFLEET, INC. AND SUBSIDIARIES
ADJUSTED OPERATING EXPENSES
(In thousands)
Three Months Ended March 31, Year Ended March 31,
2024 2025 2024 2025
Pro Forma Consolidated Pro Forma Consolidated
Combined Combined
Total operating expenses $45,099 $61,743 $166,632 $220,422
Adjusted for once-off costs
Acquisition-related expenses 7,177 428 14,313 21,300
Integration-related costs - 2,592 4,851
Stock-based compensation (non- - 4,693
recurring/accelerated cost)
Restructuring-related expenses 324 4,499 1,065 6,767
7,501 7,519 15,378 37,611
Adjusted operating expenses $37,598 $54,224 $151,254 $182,811
POWERFLEET, INC. AND MiX TELEMATICS
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Ended March 31, 2024
Powerfleet
Inc. MiX Telematics Adjustments to Pro Forma
align
disclosure Combined
Revenues:
Products $12,081 $6,705 $(993) $17,793
Services 21,659 32,377 993 55,029
Total revenues 33,740 39,082 72,822
Cost of revenues:
Cost of products 9,513 4,690 (1,268) 12,935
Cost of services 8,024 12,032 1,268 21,324
Total cost of revenues 17,537 16,722 34,259
Gross profit 16,203 22,360 38,563
Operating expenses:
Selling, general and administrative 21,832 19,534 41,366
expenses
Research and development expenses 2,018 1,715 3,733
Total operating expenses 23,850 21,249 45,099
(Loss) income from operations (7,647) 1,111 (6,536)
Interest income 259 368 627
Interest expense (708) (702) (1,410)
Other (expense) income, net (55) 55
Net (loss) income before income taxes (8,151) 832 (7,319)
Income tax expense (352) (1,565) (1,917)
Net loss before non-controlling interest (8,503) (733) (9,236)
Non-controlling interest (12) (12)
Net loss (8,515) (733) (9,248)
Accretion of preferred stock (9,996) (9,996)
Preferred stock dividend (1,129) (1,129)
Net loss attributable to common $(19,640) $(733)
$ - $(20,373)
stockholders
Net loss per share attributable to $(0.55) $(0.01) $(0.19)
common stockholders - basic and diluted
Weighted average common shares 35,813 71,081 106,894
outstanding - basic
POWERFLEET, INC. AND MiX TELEMATICS
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Year Ended March 31, 2024
Powerfleet
Inc. MiX Telematics Adjustments to Pro Forma
align
disclosure Combined
Revenues:
Products $49,313 $21,600 $(3,248) $67,665
Services 85,311 130,680 3,248 219,239
Total revenues 134,624 152,280 286,904
Cost of revenues:
Cost of products 36,916 14,628 (3,228) 48,316
Cost of services 31,003 45,405 3,228 79,636
Total cost of revenues 67,919 60,033 127,952
Gross profit 66,705 92,247 158,952
Operating expenses:
Selling, general and administrative 76,144 75,695 151,839
expenses
Research and development expenses 8,675 6,118 14,793
Total operating expenses 84,819 81,813 166,632
(Loss) income from operations (18,114) 10,434 (7,680)
Interest income 338 1,142 1,480
Interest expense (2,174) (2,347) (4,521)
Bargain purchase - Movingdots 1,800 1,800
Other expense, net (87) (179) (266)
Net (loss) income before income taxes (18,237) 9,050 (9,187)
Income tax expense (549) (6,465) (7,014)
Net (loss) income before non-controlling (18,786) 2,585 (16,201)
interest
Non-controlling interest (50) (50)
Net (loss) income (18,836) 2,585 (16,251)
Accretion of preferred stock (15,480) (15,480)
Preferred stock dividend (4,514) (4,514)
Net (loss) income attributable to $(38,830) $2,585
$ - $(36,245)
common stockholders
Net (loss) income per share attributable $(1.09) $0.04 $(0.34)
to common stockholders - basic
Weighted average common shares 35,694 71,200 106,894
outstanding - basic
POWERFLEET, INC. AND MiX TELEMATICS
CONDENSED
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
March 31, 2024
Powerfleet
Inc. MiX Telematics Pro Forma
Combined
ASSETS
Current assets:
Cash and cash equivalents $24,354 $26,737 $51,091
Restricted cash 85,310 794 86,104
Accounts receivables, net 30,333 24,675 55,008
Inventory, net 21,658 4,142 25,800
Prepaid expenses and other current assets 8,133 9,693 17,826
Total current assets 169,788 66,041 235,829
Fixed assets, net 12,719 35,587 48,306
Goodwill 83,487 38,226 121,713
Intangible assets, net 19,652 20,792 40,444
Right-of-use asset 7,428 3,794 11,222
Severance payable fund 3,796 3,796
Deferred tax asset 2,781 1,093 3,874
Other assets 9,029 10,061 19,090
Total assets $308,680 $175,594 $484,274
LIABILITIES
Current liabilities:
Short-term bank debt and current maturities of long-term debt $1,951 $20,158 $22,109
Accounts payable 20,025 7,149 27,174
Accrued expenses and other current liabilities 13,983 19,606 33,589
Deferred revenue - current 5,842 6,394 12,236
Lease liability - current 1,789 859 2,648
Total current liabilities 43,590 54,166 97,756
Long-term debt - less current maturities 113,810 113,810
Deferred revenue - less current portion 4,892 4,892
Lease liability - less current portion 5,921 2,852 8,773
Accrued severance payable 4,597 4,597
Deferred tax liability 4,465 14,204 18,669
Other long-term liabilities 2,496 484 2,980
Total liabilities 179,771 71,706 251,477
Convertible redeemable preferred stock: Series A 90,273 90,273
STOCKHOLDERS' EQUITY
Preferred stock -
Common stock 387 63,455 63,842
Additional paid-in capital 202,607 (2,389) 200,218
Accumulated deficit (154,796) 76,280 (78,516)
Accumulated other comprehensive loss (985) (16,148) (17,133)
Treasury stock (8,682) (17,315) (25,997)
Total stockholders' equity 38,531 103,883 142,414
Non-controlling interest 105 5 110
Total equity 38,636 103,888 142,524
Total liabilities, convertible redeemable preferred $308,680 $175,594 $484,274
stock, and stockholders' equity
POWERFLEET, INC. AND MiX TELEMATICS
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Year Ended March 31, 2024
Powerfleet
Inc. MiX Telematics Pro Forma
Combined
Cash flows from operating activities
Net (loss) income $(18,836) $2,585 $(16,251)
Adjustments to reconcile net (loss) income to cash provided
by operating activities:
Non-controlling interest 50 50
Gain on bargain purchase (1,800) (1,800)
Inventory reserve 1,557 615 2,172
Stock based compensation expense 4,104 1,110 5,214
Depreciation and amortization 9,098 20,450 29,548
Impairment of long-lived assets - 139 139
Right-of-use assets, non-cash lease expense 2,919 2,919
Bad debts expense 2,309 5,225 7,534
Deferred income taxes (281) 3,516 3,235
Other non-cash items (55) 6,393 6,338
Changes in operating assets and liabilities:
Accounts receivables (1,538) (7,760) (9,298)
Inventories (780) 179 (601)
Prepaid expenses and other current assets (564) (514) (1,078)
Deferred costs 481 (8,995) (8,514)
Deferred revenue (180) (180)
Accounts payable and accrued expenses 8,786 945 9,731
Lease liabilities (2,851) (2,851)
Accrued severance payable, net 15 15
Net cash provided by operating activities 2,434 23,888 26,322
Cash flows from investing activities:
Capitalized software development costs (3,540) (5,972) (9,512)
Capital expenditures (3,673) (17,036) (20,709)
Net cash used in investing activities (7,213) (23,008) (30,221)
Cash flows from financing activities:
Repayment of long-term debt (14,116) (14,116)
Short-term bank debt, net (5,708) 5,550 (158)
Deferred consideration paid - (1,955) (1,955)
Purchase of treasury stock upon vesting of restricted stock (128) (546) (674)
Repayment of financing lease (129) (129)
Payment of preferred stock dividend and redemption of (3,385) (3,385)
preferred stock
Proceeds from long-term debt 115,000 115,000
Payment of long-term debt costs (1,081) (1,081)
Proceeds from exercise of stock options, net 36 36
Cash paid on dividends to affiliates - (5,320) (5,320)
Net cash from (used in) financing activities 90,489 (2,271) 88,218
Effect of foreign exchange rate changes on cash and cash (1,135) (1,735) (2,870)
equivalents
Net increase (decrease) in cash and cash equivalents, and 84,575 (3,126) 81,449
restricted cash
Cash and cash equivalents, and restricted cash at beginning of 25,089 30,657 55,746
the period
Cash and cash equivalents, and restricted cash at end of $109,664 $27,531 $137,195
the period
Reconciliation of cash, cash equivalents, and restricted
cash, beginning of the period
Cash and cash equivalents 24,780 29,876 54,656
Restricted cash 309 781 1,090
Cash, cash equivalents, and restricted cash, beginning of the $25,089 $30,657 $55,746
period
Reconciliation of cash, cash equivalents, and restricted
cash, end of the period
Cash and cash equivalents 24,354 26,737 51,091
Restricted cash 85,310 794 86,104
Cash, cash equivalents, and restricted cash, end of the period $109,664 $27,531 $137,195
Supplemental disclosure of cash flow information:
Cash paid for:
Taxes $432 $2,949 $3,381
Interest $1,720 $694 $2,414
Noncash investing and financing activities:
Value of licensed intellectual property acquired in $1,517
$ - $1,517
connection with Movingdots acquisition
Preferred stock dividends paid in shares $1,108
$ - $1,108
Issuance of derivative on long-term debt $2,226
$ - $2,226
POWERFLEET, INC. AND MiX TELEMATICS
RECONCILIATION OF GAAP TO ADJUSTED EBITDA FINANCIAL MEASURES
(In thousands)
Three Months Ended March 31, 2024
Powerfleet
Inc. MiX Telematics Pro Forma
Combined
Net loss attributable to common stockholders $(19,640) $(733) $(20,373)
Non-controlling interest 12 12
Preferred stock dividend and accretion 11,125 11,125
Interest expense, net 601 334 935
Other expense, net 55 55
Income tax expense 352 1,565 1,917
Depreciation and amortization 1,943 6,426 8,369
Stock-based compensation 1,028 283 1,311
Foreign currency losses 43 395 438
Restructuring-related expenses 324 324
Impairment of long-lived assets - 139 139
Net profit on fixed assets - (66) (66)
Contingent consideration remeasurement - (250) (250)
Acquisition-related expenses 6,078 1,099 7,177
Adjusted EBITDA $1,921 $9,192 $11,113
POWERFLEET, INC. AND MiX TELEMATICS
RECONCILIATION OF GAAP TO ADJUSTED EBITDA FINANCIAL MEASURES
(In thousands)
Year Ended March 31, 2024
Powerfleet
Inc. MiX Telematics Pro Forma
Combined
Net (loss) profit attributable to common stockholders $(38,830) $2,585 $(36,245)
Non-controlling interest 50 50
Preferred stock dividend and accretion 19,994 19,994
Interest expense, net 1,987 1,205 3,192
Other expense, net 87 87
Income tax expense 549 6,465 7,014
Depreciation and amortization 9,098 20,450 29,548
Stock-based compensation 4,104 1,110 5,214
Foreign currency translation (248) 1,741 1,493
Restructuring-related expenses 1,035 30 1,065
Gain on Bargain purchase - Movingdots (1,800) (1,800)
Impairment of long-lived assets - 139 139
Net profit on fixed assets - (115) (115)
Contingent consideration remeasurement - (1,299) (1,299)
Acquisition-related expenses 11,218 3,095 14,313
Non-recurring transitional service agreement costs - 482 482
Adjusted EBITDA $7,244 $35,888 $43,132
POWERFLEET, INC. AND MiX TELEMATICS
RECONCILIATION OF GAAP TO NON-GAAP NET (LOSS) INCOME FINANCIAL MEASURES
(In thousands)
Three Months Ended March 31, 2024
Powerfleet
Inc. MiX Telematics Pro Forma
Combined
Net (loss) income $(8,515) $(733) $(9,248)
Foreign currency losses 43 395 438
Income tax effect of net foreign exchange losses - 389 389
Restructuring-related expenses 324 324
Acquisition-related expenses 6,078 1,099 7,177
Non-recurring transitional service agreement costs -
Income tax effect of non-recurring transitional service agreement - (130) (130)
costs
Contingent consideration remeasurement - (250) (250)
Non-GAAP net (loss) income $(2,070) $770 $(1,300)
Weighted average shares outstanding 35,813 71,081 106,894
Non-GAAP net income per share - basic $(0.06) $0.01 $(0.01)
POWERFLEET, INC. AND MiX TELEMATICS
RECONCILIATION OF GAAP TO NON-GAAP NET (LOSS) INCOME FINANCIAL MEASURES
(In thousands)
Year Ended March 31, 2024
Powerfleet
Inc. MiX Telematics Pro Forma
Combined
Net (loss) income $(18,836) $2,585 $(16,251)
Foreign currency (gains) losses (248) 1,741 1,493
Income tax effect of net foreign exchange losses - 279 279
Restructuring-related expenses 1,035 30 1,065
Income tax effect of restructuring costs - (7) (7)
Acquisition-related expenses 11,218 3,095 14,313
Non-recurring transitional service agreement costs - 482 482
Income tax effect of non-recurring transitional service - (130) (130)
agreement costs
Contingent consideration remeasurement - (1,299) (1,299)
Non-GAAP net (loss) income $(6,831) $6,776 $(55)
Weighted average shares outstanding 35,694 71,200 106,894
Non-GAAP net (loss) income per share - basic $(0.19) $0.10 $(0.001)
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SOURCE Powerfleet
