Key Takeaways from Powerfleet’s 2025 Financials

In less than 18 months, Powerfleet has gone from a mid-level fleet technology supplier focused mostly on asset tracking and the rental sector to a more fulsome systems provider that’s competing with top players for enterprise customers.

The reconstituted company appears to want to achieve a Samsara-like growth glidepath by pitching itself as an end-to-end systems integrator that gives fleets a “single pane of glass” of data to solve operational bottlenecks.

While Powerfleet may not be quite ready to take down the industry’s titan (Samsara), the company is now better equipped to compete with Geotab, Verizon Connect, Zonar Systems, and others. We might now view Powerfleet as a top five fleet tech supplier.

During its Q4 (ending March 31) and FY25 earnings call, Powerfleet reported business results that were better than expected considering the company has been merging the employees, IT systems, and administrative processes of four companies.

Powerfleet began its M&A activity in March 2023, when it acquired Movingdots. This was followed by acquisitions of MiX Telematics (October 2023) and FleetComplete (September 2024).

On June 16, Powerfleet (trading on Nasdaq as “AIOT”) reported total revenue of $362.5 million for fiscal year 2025, with approximately 75% derived from high-margin, recurring SaaS revenue – a 26% increase from the prior year. Good progress. This would suggest their annual recurring revenue (ARR) is approximately $271.9 million.

For context, Samsara closed out FY25 with $1.46 billion in ARR and 36% year-over-year growth in customers paying over $100,000.

Let’s look at six takeaways from Powerfleet’s business update:

1.    Powerfleet is now a formidable, global competitor to leading suppliers. Powerfleet’s subscriber base likely skews more global than U.S. with 2.8 million now, a 4X increase from 700,000 subs a year ago. The legacy MiX business brought 1M global subs from 120 different countries. Powerfleet offers robust direct and indirect channels, thanks to the robust indirect sales to wireless carriers by FleetComplete – the company said it is onboarding two enterprise telcos in N.A. and Europe.

2.    Powerfleet merged four legacy businesses with impressive speed. The company beat its own internal timelines for merging the three acquisitions with its legacy Powerfleet business.

3.    A truer measure of growth will come in Q1 of 2026. Comparisons with a year ago don’t reflect the acquisition of FleetComplete, so we need to wait until early 2026 to get more clarity on growth from the combined entity.

4.    Video and eCommerce are driving growth (Watch video for more analysis). Powerfleet reported a 20% increase in annualized growth selling A.I. video safety systems and 17% growth from its in-warehouse segment – GPS tracking for forklifts, cargo trailers, and connected vehicles supporting warehousing and distribution.

5.    Financial efficiency takes time to achieve. Powerfleet has significantly increased debt to finance the acquisitions. Its year-end adjusted net debt reached $229 million, which was essentially in line with an expected $235 million. Powerfleet increased adjusted gross margins by 7% to over 60% for the quarter.

6.    Operational alignment doesn’t need to sacrifice the growth engine. Powerfleet is projecting 20% growth and hoping to reach $430 million in annual revenue for FY2026 with about two-thirds coming from the FleetComplete business and one-third coming from organic growth, according to the company.

7.    An effective growth strategy needs clarity in go-to-market messaging. In the coming months, Powerfleet will need to develop a customer-focused go-to-market messaging strategy that communicates its key differentiators vs more established players.

In another eight months or so, we should have a better sense of Powerfleet’s progression toward higher-tier fleet technology supplier status. Check back with us then for more in-depth analysis.

The Write Way, Inc. provides strategic marketing services that focus on messaging and branding to B2B companies in various verticals to improve engagement with prospects and customers. Schedule a free strategy session to see if we can help.