Powerfleet Reports Annual FY2025 Results: A Breakout Year of Strategic Transformation and Scaled Growth

Yahoo

16-06-2025

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, 2025Time: 8:30 a.m. Eastern time (5:30 a.m. Pacific time)Toll Free: 888-506-0062International: 973-528-0011Participant Access Code: 539753The 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 ContactsCarolyn Capaccio and Jody BurfeningLHA Investor [e-mail]
Powerfleet Media ContactJonathan [e-mail] [phone]
POWERFLEET, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Ended March 31,Year Ended March 31,2024202520242025Pro Forma CombinedConsolidatedPro Forma CombinedConsolidated
Revenues:Products
$ 17,793$ 21,866$ 67,665$ 85,584
Services
55,02981,772219,239276,931
Total revenues
72,822103,638286,904362,515
Cost of revenues:Cost of products
12,93518,15248,31661,961
Cost of services
21,32430,72379,636106,017
Total cost of revenues
34,25948,875127,952167,978
Gross profit
38,56354,763158,952194,537
Operating expenses:Selling, general and administrative expenses
41,36656,839151,839204,361
Research and development expenses
3,7334,90414,79316,061
Total operating expenses
45,09961,743166,632220,422
Loss from operations
(6,536)(6,980)(7,680)(25,885)
Interest income
627951,480926
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 stockholders
$ (20,373)$ (12,439)$ (36,245)$ (51,012)
Net loss per share attributable to common stockholders - basic and diluted
$ (0.19)$ (0.09)$ (0.34)$ (0.43)
Weighted average common shares outstanding - basic and diluted
106,894132,793106,894119,877
POWERFLEET, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)March 31, 2024March 31, 2025
Pro Forma
CombinedConsolidated
ASSETS
Current assets:
Cash and cash equivalents$ 51,091$ 44,392
Restricted cash86,1044,396
Accounts receivables, net55,00878,623
Inventory, net25,80018,350
Prepaid expenses and other current assets17,82623,319
Total current assets235,829169,080
Fixed assets, net48,30658,011
Goodwill121,713383,146
Intangible assets, net40,444258,582
Right-of-use asset11,22212,339
Severance payable fund3,7963,796
Deferred tax asset3,8743,934
Other assets19,09021,183
Total assets$ 484,274$ 910,071LIABILITIES
Current liabilities:
Short-term bank debt and current maturities of long-term debt$ 22,109$ 41,632
Accounts payable27,17441,599
Accrued expenses and other current liabilities33,58945,327
Deferred revenue - current12,23617,375
Lease liability - current2,6485,076
Total current liabilities97,756151,009
Long-term debt - less current maturities113,810232,160
Deferred revenue - less current portion4,8925,197
Lease liability - less current portion8,7738,191
Accrued severance payable4,5976,039
Deferred tax liability18,66957,712
Other long-term liabilities2,9803,021
Total liabilities251,477463,329Convertible redeemable preferred stock: Series A90,273—STOCKHOLDERS' EQUITY
Preferred stock——
Common stock63,8421,343
Additional paid-in capital200,218671,400
Accumulated deficit(78,516)(205,783)
Accumulated other comprehensive loss(17,133)(8,850)
Treasury stock(25,997)(11,518)Total stockholders' equity142,414446,592
Non-controlling interest110150
Total equity142,524446,742
Total liabilities, convertible redeemable preferred stock,and stockholders' equity$ 484,274$ 910,071
POWERFLEET, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)Year Ended March 31,
20242025
Pro Forma CombinedConsolidated
Cash flows from operating activities
Net loss$ (16,251)$ (50,987)
Adjustments to reconcile net loss to cash provided by (used in) operatingactivities:
Non-controlling interest5018
Gain on bargain purchase(1,800)—
Inventory write-downs2,1724,480
Stock-based compensation expense5,2149,362
Depreciation and amortization29,54847,494
Impairment of long-lived assets139—
Right-of-use assets, non-cash lease expense2,9195,007
Derivative mark-to-market adjustment—(504)
Bad debts expense7,5349,418
Deferred income taxes3,235(4,872)
Shares issued for transaction bonuses—889
Lease termination and modification losses—295
Other non-cash items6,3381,061
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 expenses9,731(12,162)
Lease liabilities(2,851)(4,558)
Accrued severance payable151,248Net cash provided by (used in) operating activities26,322(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—294Net 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 debt115,000125,000
Payment of long-term debt costs(1,081)(1,410)
Proceeds from exercise of stock options, net361,898
Cash paid on dividends to affiliates(5,320)—Net cash provided by financing activities88,218115,722Effect of foreign exchange rate changes on cash and cash equivalents(2,870)(2,657)
Net increase (decrease) in cash and cash equivalents, and restricted cash81,449(60,876)
Cash and cash equivalents, and restricted cash at beginning of the period55,746109,664Cash and cash equivalents, and restricted cash at end of the period$ 137,195$ 48,788Reconciliation of cash, cash equivalents, and restricted cash, beginningof the period
Cash and cash equivalents54,65624,354
Restricted cash1,09085,310
Cash, cash equivalents, and restricted cash, beginning of the period$ 55,746$ 109,664Reconciliation of cash, cash equivalents, and restricted cash, end of theperiod
Cash and cash equivalents51,09144,392
Restricted cash86,1044,396
Cash, cash equivalents, and restricted cash, end of the period$ 137,195$ 48,788Supplemental disclosure of cash flow information:
Cash paid for:
Taxes$ 3,381$ 4,283
Interest$ 2,414$ 15,335Noncash 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 withMovingdots acquisition$ 1,517$ —
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 31,2024202520242025Pro FormaCombinedConsolidatedPro FormaCombinedConsolidated
Net loss attributable to common stockholders
$ (20,373)$ (12,439)$ (36,245)$ (51,012)
Non-controlling interest
1215018
Preferred stock dividend and accretion
11,125—19,99425
Interest expense, net
9355,5603,19219,404
Other expense, net
55—87—
Income tax expense (benefit)
1,917(304)7,0144,517
Depreciation and amortization
8,36914,45229,54847,494
Stock-based compensation
1,3119245,2149,362
Foreign currency losses
4385021,4931,790
Restructuring-related expenses
3246,9691,06510,077
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, 2024contract assets (Fleet Complete)
—1,768—3,809
Net profit on fixed assets
(66)—(115)—
Contingent consideration remeasurement
(250)—(1,299)—
Acquisition-related expenses
7,17742814,31321,300
Integration-related expenses
—2,592—4,851
Non-recurring transitional service agreement costs
——482—
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 31,2024202520242025Pro FormaCombinedConsolidatedPro FormaCombinedConsolidated
Net loss
$ (9,248)$ (12,439)$ (16,251)$ (50,987)
Incremental intangible assets amortizationexpense as a result of MiX Telematics andFleet Complete business combinations
—5,201—14,752
Stock-based compensation (non-recurring/accelerated cost)
———4,693
Foreign currency losses
4385021,4931,790
Income tax effect of net foreign exchange(losses) gains
389(377)279(602)
Restructuring-related expenses
3246,9691,06510,077
Income tax effect of restructuring costs
—(53)(7)(207)
Derivative mark-to-market adjustment
—(29)—(504)
Acquisition-related expenses
7,17742814,31321,300
Integration-related expenses
—2,592—4,851
Non-recurring transitional service agreement costs
——482—
Income tax effect of non-recurringtransitional service agreement costs
(130)—(130)—
Contingent consideration remeasurement
(250)—(1,299)—
Non-GAAP net (loss) income
$ (1,300)$ 2,794$ (55)$ 5,163
Weighted average shares outstanding
106,894132,793106,894119,877
Non-GAAP net (loss) income per share - basic
$ (0.01)$ 0.02$ (0.001)$ 0.04
POWERFLEET, INC. AND SUBSIDIARIES
ADJUSTED GROSS PROFIT MARGINS
(In thousands)Three Months Ended March 31,Year Ended March 31,2024202520242025Pro FormaCombinedConsolidatedPro FormaCombinedConsolidated
Revenues:Products
$ 17,793$ 21,866$ 67,665$ 85,584
Services
55,02981,772219,239276,931
Total revenues
72,822103,638286,904362,515
Cost of revenues:Cost of products
12,93518,15248,31661,961
Cost of services
21,32430,72379,636106,017
Total cost of revenues
34,25948,875127,952167,978
Gross profit
$ 38,56354,763$ 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 amortization expense as a result of MiX Telematics and Fleet Completebusiness combinations
$ —$ 5,201$ —$ 14,752
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 31,2024202520242025Pro Forma CombinedConsolidatedPro Forma CombinedConsolidated
Total operating expenses
$ 45,099$ 61,743$ 166,632$ 220,422
Adjusted for once-off costsAcquisition-related expenses
7,17742814,31321,300
Integration-related costs
—2,592—4,851
Stock-based compensation (non-recurring/accelerated cost)
———4,693
Restructuring-related expenses
3244,4991,0656,7677,5017,51915,37837,611
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, 2024Powerfleet Inc.MiX TelematicsAdjustments toalign disclosurePro Forma Combined
Revenues:Products
$ 12,081$ 6,705$ (993)$ 17,793
Services
21,65932,37799355,029
Total revenues
33,74039,082—72,822
Cost of revenues:Cost of products
9,5134,690(1,268)12,935
Cost of services
8,02412,0321,26821,324
Total cost of revenues
17,53716,722—34,259
Gross profit
16,20322,360—38,563
Operating expenses:Selling, general and administrativeexpenses
21,83219,534—41,366
Research and development expenses
2,0181,715—3,733
Total operating expenses
23,85021,249—45,099
(Loss) income from operations
(7,647)1,111—(6,536)
Interest income
259368—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 commonstockholders
$ (19,640)$ (733)$ —$ (20,373)
Net loss per share attributable tocommon stockholders - basic and diluted
$ (0.55)$ (0.01)$ (0.19)
Weighted average common sharesoutstanding - basic
35,81371,081106,894
POWERFLEET, INC. AND MiX TELEMATICS
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Year Ended March 31, 2024Powerfleet Inc.MiX TelematicsAdjustments toalign disclosurePro FormaCombined
Revenues:Products
$ 49,313$ 21,600$ (3,248)$ 67,665
Services
85,311130,6803,248219,239
Total revenues
134,624152,280—286,904
Cost of revenues:Cost of products
36,91614,628(3,228)48,316
Cost of services
31,00345,4053,22879,636
Total cost of revenues
67,91960,033—127,952
Gross profit
66,70592,247—158,952
Operating expenses:Selling, general and administrativeexpenses
76,14475,695—151,839
Research and development expenses
8,6756,118—14,793
Total operating expenses
84,81981,813—166,632
(Loss) income from operations
(18,114)10,434—(7,680)
Interest income
3381,142—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-controllinginterest
(18,786)2,585—(16,201)
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 common stockholders
$ (38,830)$ 2,585$ —$ (36,245)
Net (loss) income per share attributableto common stockholders - basic
$ (1.09)$ 0.04$ (0.34)
Weighted average common shares outstanding - basic
35,69471,200106,894
POWERFLEET, INC. AND MiX TELEMATICS
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
March 31, 2024Powerfleet Inc.MiX TelematicsPro FormaCombined
ASSETSCurrent assets:Cash and cash equivalents
$ 24,354$ 26,737$ 51,091
Restricted cash
85,31079486,104
Accounts receivables, net
30,33324,67555,008
Inventory, net
21,6584,14225,800
Prepaid expenses and other current assets
8,1339,69317,826
Total current assets
169,78866,041235,829
Fixed assets, net
12,71935,58748,306
Goodwill
83,48738,226121,713
Intangible assets, net
19,65220,79240,444
Right-of-use asset
7,4283,79411,222
Severance payable fund
3,796—3,796
Deferred tax asset
2,7811,0933,874
Other assets
9,02910,06119,090
Total assets
$ 308,680$ 175,594$ 484,274
LIABILITIESCurrent liabilities:Short-term bank debt and current maturities of long-term debt
$ 1,951$ 20,158$ 22,109
Accounts payable
20,0257,14927,174
Accrued expenses and other current liabilities
13,98319,60633,589
Deferred revenue - current
5,8426,39412,236
Lease liability - current
1,7898592,648
Total current liabilities
43,59054,16697,756
Long-term debt - less current maturities
113,810—113,810
Deferred revenue - less current portion
4,892—4,892
Lease liability - less current portion
5,9212,8528,773
Accrued severance payable
4,597—4,597
Deferred tax liability
4,46514,20418,669
Other long-term liabilities
2,4964842,980
Total liabilities
179,77171,706251,477
Convertible redeemable preferred stock: Series A
90,273—90,273
STOCKHOLDERS' EQUITYPreferred stock
———
Common stock
38763,45563,842
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
38,531103,883142,414
Non-controlling interest
1055110
Total equity
38,636103,888142,524
Total liabilities, convertible redeemable preferredstock, and stockholders' equity
$ 308,680$ 175,594$ 484,274
POWERFLEET, INC. AND MiX TELEMATICS
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Year Ended March 31, 2024
Powerfleet Inc.MiX TelematicsPro Forma CombinedCash flows from operating activities
Net (loss) income
$ (18,836)$ 2,585$ (16,251)Adjustments to reconcile net (loss) income to cash providedby operating activities:
Non-controlling interest
50—50Gain on bargain purchase
(1,800)—(1,800)Inventory reserve
1,5576152,172Stock based compensation expense
4,1041,1105,214Depreciation and amortization
9,09820,45029,548Impairment of long-lived assets
—139139Right-of-use assets, non-cash lease expense
2,919—2,919Bad debts expense
2,3095,2257,534Deferred income taxes
(281)3,5163,235Other non-cash items
(55)6,3936,338Changes 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
8,7869459,731Lease liabilities
(2,851)—(2,851)Accrued severance payable, net
15—15
Net cash provided by operating activities
2,43423,88826,322
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 ofpreferred stock
(3,385)—(3,385)Proceeds from long-term debt
115,000—115,000Payment of long-term debt costs
(1,081)—(1,081)Proceeds from exercise of stock options, net
36—36Cash 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 cashequivalents
(1,135)(1,735)(2,870)Net increase (decrease) in cash and cash equivalents, andrestricted cash
84,575(3,126)81,449Cash and cash equivalents, and restricted cash at beginning ofthe period
25,08930,65755,746
Cash and cash equivalents, and restricted cash at end ofthe period
$ 109,664$ 27,531$ 137,195
Reconciliation of cash, cash equivalents, and restricted cash, beginning of the period
Cash and cash equivalents
24,78029,87654,656Restricted cash
3097811,090Cash, cash equivalents, and restricted cash, beginning of theperiod
$ 25,089$ 30,657$ 55,746
Reconciliation of cash, cash equivalents, and restricted cash, end of the period
Cash and cash equivalents
24,35426,73751,091Restricted cash
85,31079486,104Cash, 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$ 3,381Interest
$ 1,720$ 694$ 2,414
Noncash investing and financing activities:
Value of licensed intellectual property acquired in connection with Movingdots acquisition
$ 1,517$ —$ 1,517Preferred stock dividends paid in shares
$ 1,108$ —$ 1,108Issuance 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, 2024Powerfleet Inc.MiX TelematicsPro FormaCombined
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
601334935
Other expense, net
55—55
Income tax expense
3521,5651,917
Depreciation and amortization
1,9436,4268,369
Stock-based compensation
1,0282831,311
Foreign currency losses
43395438
Restructuring-related expenses
324—324
Impairment of long-lived assets
—139139
Net profit on fixed assets
—(66)(66)
Contingent consideration remeasurement
—(250)(250)
Acquisition-related expenses
6,0781,0997,177
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, 2024Powerfleet Inc.MiX TelematicsPro FormaCombined
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
1,9871,2053,192
Other expense, net
87—87
Income tax expense
5496,4657,014
Depreciation and amortization
9,09820,45029,548
Stock-based compensation
4,1041,1105,214
Foreign currency translation
(248)1,7411,493
Restructuring-related expenses
1,035301,065
Gain on Bargain purchase - Movingdots
(1,800)—(1,800)
Impairment of long-lived assets
—139139
Net profit on fixed assets
—(115)(115)
Contingent consideration remeasurement
—(1,299)(1,299)
Acquisition-related expenses
11,2183,09514,313
Non-recurring transitional service agreement costs
—482482
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, 2024Powerfleet Inc.MiX TelematicsPro FormaCombined
Net (loss) income
$ (8,515)$ (733)$ (9,248)
Foreign currency losses
43395438
Income tax effect of net foreign exchange losses
—389389
Restructuring-related expenses
324—324
Acquisition-related expenses
6,0781,0997,177
Non-recurring transitional service agreement costs
———
Income tax effect of non-recurring transitional service agreementcosts
—(130)(130)
Contingent consideration remeasurement
—(250)(250)
Non-GAAP net (loss) income
$ (2,070)$ 770$ (1,300)
Weighted average shares outstanding
35,81371,081106,894
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, 2024Powerfleet Inc.MiX TelematicsPro FormaCombined
Net (loss) income
$ (18,836)$ 2,585$ (16,251)
Foreign currency (gains) losses
(248)1,7411,493
Income tax effect of net foreign exchange losses
—279279
Restructuring-related expenses
1,035301,065
Income tax effect of restructuring costs
—(7)(7)
Acquisition-related expenses
11,2183,09514,313
Non-recurring transitional service agreement costs
—482482
Income tax effect of non-recurring transitional service agreement costs
—(130)(130)
Contingent consideration remeasurement
—(1,299)(1,299)
Non-GAAP net (loss) income
$ (6,831)$ 6,776$ (55)
Weighted average shares outstanding
35,69471,200106,894
Non-GAAP net (loss) income per share - basic
$ (0.19)$ 0.10$ (0.001)
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SOURCE Powerfleet