Powerfleet, Inc. (NASDAQ:AIOT) reported record revenue of $115.7 million for the second quarter of fiscal 2027, ended September 30, 2026, representing a 4% increase from $111.7 million a year earlier and 4% sequential growth.
The AI-powered asset management technology company reported operating profit of $1.4 million, while adjusted EBITDA increased slightly to $24.9 million from $24.8 million in the corresponding period last year.
Powerfleet also reaffirmed its full-year financial guidance and announced plans for a new device financing facility to support the deployment of its South African National Treasury contract.
Services Revenue Increases 7% as Net Loss Widens
Services revenue rose 7% year-on-year to $95.2 million from $89.3 million, accounting for 82% of total revenue compared with 80% previously.
Product revenue declined 8% to $20.5 million, while gross margin decreased to 53% from 56%.
The net loss attributable to common stockholders widened to $6.9 million from $4.3 million a year earlier.
Operating expenses increased 4% to $60.5 million, including higher selling, marketing and research and development expenditure.
At September 30, Powerfleet held $29.8 million in cash, cash equivalents and restricted cash, against total debt of $291.4 million and net debt of $261.6 million.
New Financing Facility to Support South African Contract
Powerfleet has reached an agreement in principle with Rand Merchant Bank for a device financing facility primarily supporting its South African National Treasury deployment.
Under the proposed arrangement, the bank would finance upfront equipment costs and receive repayment through contracted customer payments.
Powerfleet would retain its customer relationships and continue providing services. The facility remains subject to definitive documentation.
The company also introduced two AI-powered products, Unity Foresight and Unity Asset Intelligence, designed to expand predictive analytics and connected asset monitoring capabilities.
Fiscal 2027 Revenue Guidance Maintained at $468 Million to $473 Million
Powerfleet reaffirmed its fiscal 2027 revenue forecast of $468 million to $473 million, representing approximately 6% annual growth at the midpoint.
Adjusted EBITDA is expected to reach between $111 million and $114 million, with a margin of approximately 24%. The company also anticipates free cash flow of approximately $20 million.
Management expects revenue and profitability to increase during the second half of the financial year, supported by services growth, the South African contract and operational efficiencies.
Powerfleet continues to target an annualised fourth-quarter revenue run rate of approximately $495 million and an adjusted EBITDA margin of around 27% by the end of fiscal 2027.
The company’s financial outlook includes non-GAAP measures for which forward-looking reconciliations to comparable GAAP figures have not been provided.