Powerfleet reported fourth-quarter fiscal 2026 revenue of $114.5 million, up 11% from $103.6 million a year earlier, as services revenue rose 14% to $92.9 million and accounted for more than 81% of total revenue.
Gross margin widened to 56.5% from 52.8% in the prior-year quarter, while gross profit increased to $64.7 million. Income from operations swung to a profit of $11.0 million from a $7.0 million loss a year earlier.
Net loss narrowed 78% to $2.7 million, or $(0.02) per share, from $12.4 million, or $(0.09) per share, in the fourth quarter of fiscal 2025.
Adjusted EBITDA climbed 42% to $26.4 million from $18.7 million, with margin expanding to 23.1% from 18.0%.
For the full year, revenue increased 22% to $443.8 million from fiscal 2025, with services revenue rising 30% to $359.8 million. Gross margin improved to 55.5% from 53.7%.
Full-year net loss improved 60% to $20.6 million, or $(0.15) per share, from $52.1 million, or $(0.43) per share, a year earlier. Operating cash flow moved to a positive $30.5 million from a use of $3.3 million in fiscal 2025.
Adjusted EBITDA for the year rose 44% to $97.0 million, with margin increasing to 22% from 18%. Adjusted net income increased 118% to $11.3 million, or $0.08 per share, from $5.2 million, or $0.04 per share.
Free cash flow improved by $17.8 million in the second half of fiscal 2026, shifting from a $13.7 million use of cash in the first half to $4.1 million of cash generation in the back half.
At March 31, 2026, Powerfleet had $36.5 million in cash and cash equivalents, $27.1 million of available borrowing capacity, and total liquidity of $63.6 million. Total debt stood at $280.0 million, and net debt was $239.2 million, with net debt to trailing 12-month adjusted EBITDA improving to 2.47x from 3.39x a year earlier.
The company said it signed its three largest individual contracts ever, including two contracts above $10 million in total contract value, and announced a South African National Treasury agreement expected to generate $100 million to $120 million over at least five years.
For fiscal 2027, Powerfleet projected revenue of $485 million to $490 million, adjusted EBITDA of $122 million to $125 million, and free cash flow of $30 million to $35 million. As a result of these announcements, the company's shares have moved -5.57% on the market, and are now trading at a price of $3.985. For the full picture, make sure to review Powerfleet's 8-K report.
