AIOT Stock Forecast & Price Target

PowerFleet Inc. demonstrated significant financial improvement in Q3/25, reporting a total revenue increase of 45% to $106 million, with service revenue also rising by 45% to $81.7 million, which comprised 77% of total revenue. The company's adjusted EBITDA surged by 77% to $22.5 million, alongside an adjusted gross profit increase of 57% to $64.2 million, indicating robust operational efficiencies. Furthermore, consolidated adjusted gross margins improved by 480 basis points to 60.3%, reflecting the effective management of costs and enhanced profitability across both service and product segments.

PowerFleet Inc. has reported substantial losses and an accumulated deficit, indicating challenges in achieving consistent profitability, which may adversely impact its financial outlook. The company's elevated SG&A expenses, although slightly reduced as a percentage of revenue, remain significant, suggesting ongoing operational inefficiencies that could hinder future earnings. Additionally, a potential economic downturn poses a risk of decreased demand for fleet management services, coupled with competitive pressures that could negatively affect pricing, margins, and overall market share.