Powerfleet Stock (AIOT): Strong Growth in AIoT SaaS

By Patricia Miller

Jun 16, 2025

3 min read

PowerFleet (NASDAQ: AIOT) grew revenue 26% in FY2025 with 75% now from SaaS. EBITDA surged 65% as margins improved. FY2026 outlook shows more upside.

#Powerfleet Latest

PowerFleet Inc (NASDAQ:AIOT) reported strong full-year results for FY2025, highlighting progress in its shift toward AIoT (Artificial Intelligence of Things) and a recurring revenue model. Shares of AIOT were up as much as 9.9% in pre-market trading following the results.

  • Revenue Growth: Total revenue rose 26% to $362.5M, driven by demand for connected services and recent acquisitions. About 75% of earnings now come from recurring SaaS revenue, providing more visibility and predictability.

  • Profitability Improving: Adjusted EBITDA increased 65% to $71M, with operating margins expanding by 500 basis points to 20%. In Q4, EBITDA rose 84% to $20.4M, showing continued momentum.

  • Strategic Focus Areas: Growth was supported by PowerFleet’s AI video and warehouse safety solutions, which management sees as key to future international expansion and subscriber growth.

  • Looking Ahead: Management is guiding for revenue growth of up to 25% in FY2026 and a 45–55% increase in adjusted EBITDA. Integration of recent acquisitions is expected to deliver an additional $18M in cost savings, pushing margins higher.

  • Global Footprint: PowerFleet continues to position itself as a global player in the AIoT space for mobile assets and industrial safety.

These results suggest PowerFleet is executing well on its transition to a software and data-driven model. The rise in recurring revenue and margin improvement point to a stronger foundation, especially for those looking at companies with long-term cash flow potential.

Analysts remain positive on PowerFleet, with multiple “Outperform” ratings and price targets ranging from $8 to $15, implying notable upside from current levels.

#What Investors Need to Know About Powerfleet

  • Powerfleet recorded a 26% increase in total revenues, reaching $362.5M.

  • Adjusted EBITDA grew by 65% to $71M, showing improved margins.

  • SaaS recurring revenue represents approximately 75% of total revenue.

  • Q4 revenue surged by 42% to $103.6M, reflecting robust demand.

  • The Unity platform drives growth in AI video and warehouse safety, supporting expansion.

#Powerfleet At A Glance

Powerfleet is a global leader in AIoT software-as-a-service for mobile assets. With over 30 years in the industry, it optimizes business operations through integrated data solutions. The company's emphasis is on enhancing safety, efficiency, and profitability for its customers.

#Competitive Landscape

Powerfleet operates in a competitive arena with various players in the AIoT space. Competitors include leading companies in software solutions such as Geotab, CalAmp, and Verizon Connect, all focusing on asset tracking and data integration services.

#Near-Term Catalysts and Risks

Powerfleet's future is promising, driven by strategic acquisitions and a strong focus on high-margin SaaS offerings. The real challenge lies in sustaining growth amid increasing competition and navigating market uncertainties. Investors should keep an eye on technological advancements and changes in customer preferences as potential risks and opportunities.

#Trading Powerfleet Stock

If you’re considering investing in Powerfleet, think about the company's solid growth trajectory supported by its SaaS model. With revenues on the rise and strong international expansion plans, this could be a good entry point for retail investors looking for exposure to the tech-driven asset management sector. Pay attention to quarterly earnings for further insights into performance.

#FAQ

Why should I invest in a technology stock?

Investing in technology stocks allows you to tap into one of the fastest-growing sectors. Technology is integral to innovation and drives change across industries, often leading to increased revenues and growth potential.

How does Powerfleet differentiate itself from competitors?

Powerfleet leverages its Unity platform to offer cohesive, data-driven insights that enhance asset management, giving it a unique edge in the AIoT space.

What are the main challenges faced by Powerfleet?

Powerfleet faces challenges such as rising competition, technological advancements, and changing market needs, which all require constant adaptation to maintain its growth momentum.

What financial metrics should I watch for Powerfleet?

Focus on recurring SaaS revenue growth, adjusted EBITDA margin expansion, and progress toward positive net income. Watch integration progress from acquisitions and any updated guidance each quarter.

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Important Notice And Disclaimer

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.