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

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 , /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 Relations[email protected] Powerfleet Media ContactJonathan Bates[email protected] +44 121 717-5360 POWERFLEET, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) Three Months Ended March 31, Year Ended March 31, 2024 2025 2024 2025 Pro Forma Combined Consolidated Pro Forma Combined Consolidated Revenues: Products $ 17,793 $ 21,866 $ 67,665 $ 85,584 Services 55,029 81,772 219,239 276,931 Total revenues 72,822 103,638 286,904 362,515 Cost of revenues: Cost of products 12,935 18,152 48,316 61,961 Cost of services 21,324 30,723 79,636 106,017 Total cost of revenues 34,259 48,875 127,952 167,978 Gross profit 38,563 54,763 158,952 194,537 Operating expenses: Selling, general and administrative expenses 41,366 56,839 151,839 204,361 Research and development expenses 3,733 4,904 14,793 16,061 Total operating expenses 45,099 61,743 166,632 220,422 Loss from operations (6,536) (6,980) (7,680) (25,885) Interest income 627 95 1,480 926 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 106,894 132,793 106,894 119,877 POWERFLEET, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except per share data) March 31, 2024 March 31, 2025 Pro Forma Combined Consolidated ASSETS Current assets: Cash and cash equivalents $ 51,091 $ 44,392 Restricted cash 86,104 4,396 Accounts receivables, net 55,008 78,623 Inventory, net 25,800 18,350 Prepaid expenses and other current assets 17,826 23,319 Total current assets 235,829 169,080 Fixed assets, net 48,306 58,011 Goodwill 121,713 383,146 Intangible assets, net 40,444 258,582 Right-of-use asset 11,222 12,339 Severance payable fund 3,796 3,796 Deferred tax asset 3,874 3,934 Other assets 19,090 21,183 Total assets $ 484,274 $ 910,071 LIABILITIES Current liabilities: Short-term bank debt and current maturities of long-term debt $ 22,109 $ 41,632 Accounts payable 27,174 41,599 Accrued expenses and other current liabilities 33,589 45,327 Deferred revenue - current 12,236 17,375 Lease liability - current 2,648 5,076 Total current liabilities 97,756 151,009 Long-term debt - less current maturities 113,810 232,160 Deferred revenue - less current portion 4,892 5,197 Lease liability - less current portion 8,773 8,191 Accrued severance payable 4,597 6,039 Deferred tax liability 18,669 57,712 Other long-term liabilities 2,980 3,021 Total liabilities 251,477 463,329 Convertible redeemable preferred stock: Series A 90,273 — STOCKHOLDERS' EQUITY Preferred stock — — Common stock 63,842 1,343 Additional paid-in capital 200,218 671,400 Accumulated deficit (78,516) (205,783) Accumulated other comprehensive loss (17,133) (8,850) Treasury stock (25,997) (11,518) Total stockholders' equity 142,414 446,592 Non-controlling interest 110 150 Total equity 142,524 446,742 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, 2024 2025 Pro Forma Combined Consolidated 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 interest 50 18 Gain on bargain purchase (1,800) — Inventory write-downs 2,172 4,480 Stock-based compensation expense 5,214 9,362 Depreciation and amortization 29,548 47,494 Impairment of long-lived assets 139 — Right-of-use assets, non-cash lease expense 2,919 5,007 Derivative mark-to-market adjustment — (504) Bad debts expense 7,534 9,418 Deferred income taxes 3,235 (4,872) Shares issued for transaction bonuses — 889 Lease termination and modification losses — 295 Other non-cash items 6,338 1,061 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 expenses 9,731 (12,162) Lease liabilities (2,851) (4,558) Accrued severance payable 15 1,248 Net cash provided by (used in) operating activities 26,322 (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 — 294 Net 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 debt 115,000 125,000 Payment of long-term debt costs (1,081) (1,410) Proceeds from exercise of stock options, net 36 1,898 Cash paid on dividends to affiliates (5,320) — Net cash provided by financing activities 88,218 115,722 Effect of foreign exchange rate changes on cash and cash equivalents (2,870) (2,657) Net increase (decrease) in cash and cash equivalents, and restricted cash 81,449 (60,876) Cash and cash equivalents, and restricted cash at beginning of the period 55,746 109,664 Cash and cash equivalents, and restricted cash at end of the period $ 137,195 $ 48,788 Reconciliation of cash, cash equivalents, and restricted cash, beginningof the period Cash and cash equivalents 54,656 24,354 Restricted cash 1,090 85,310 Cash, cash equivalents, and restricted cash, beginning of the period $ 55,746 $ 109,664 Reconciliation of cash, cash equivalents, and restricted cash, end of theperiod Cash and cash equivalents 51,091 44,392 Restricted cash 86,104 4,396 Cash, cash equivalents, and restricted cash, end of the period $ 137,195 $ 48,788 Supplemental disclosure of cash flow information: Cash paid for: Taxes $ 3,381 $ 4,283 Interest $ 2,414 $ 15,335 Noncash 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, 2024 2025 2024 2025 Pro FormaCombined Consolidated Pro FormaCombined Consolidated Net loss attributable to common stockholders $ (20,373) $ (12,439) $ (36,245) $ (51,012) Non-controlling interest 12 1 50 18 Preferred stock dividend and accretion 11,125 — 19,994 25 Interest expense, net 935 5,560 3,192 19,404 Other expense, net 55 — 87 — Income tax expense (benefit) 1,917 (304) 7,014 4,517 Depreciation and amortization 8,369 14,452 29,548 47,494 Stock-based compensation 1,311 924 5,214 9,362 Foreign currency losses 438 502 1,493 1,790 Restructuring-related expenses 324 6,969 1,065 10,077 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 7,177 428 14,313 21,300 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, 2024 2025 2024 2025 Pro FormaCombined Consolidated Pro FormaCombined Consolidated 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 438 502 1,493 1,790 Income tax effect of net foreign exchange(losses) gains 389 (377) 279 (602) Restructuring-related expenses 324 6,969 1,065 10,077 Income tax effect of restructuring costs — (53) (7) (207) Derivative mark-to-market adjustment — (29) — (504) Acquisition-related expenses 7,177 428 14,313 21,300 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 106,894 132,793 106,894 119,877 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, 2024 2025 2024 2025 Pro FormaCombined Consolidated Pro FormaCombined Consolidated Revenues: Products $ 17,793 $ 21,866 $ 67,665 $ 85,584 Services 55,029 81,772 219,239 276,931 Total revenues 72,822 103,638 286,904 362,515 Cost of revenues: Cost of products 12,935 18,152 48,316 61,961 Cost of services 21,324 30,723 79,636 106,017 Total cost of revenues 34,259 48,875 127,952 167,978 Gross profit $ 38,563 54,763 $ 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, 2024 2025 2024 2025 Pro Forma Combined Consolidated Pro Forma Combined Consolidated Total operating expenses $ 45,099 $ 61,743 $ 166,632 $ 220,422 Adjusted for once-off costs Acquisition-related expenses 7,177 428 14,313 21,300 Integration-related costs — 2,592 — 4,851 Stock-based compensation (non-recurring/accelerated cost) — — — 4,693 Restructuring-related expenses 324 4,499 1,065 6,767 7,501 7,519 15,378 37,611 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, 2024 Powerfleet Inc. MiX Telematics Adjustments toalign disclosure Pro Forma Combined Revenues: Products $ 12,081 $ 6,705 $ (993) $ 17,793 Services 21,659 32,377 993 55,029 Total revenues 33,740 39,082 — 72,822 Cost of revenues: Cost of products 9,513 4,690 (1,268) 12,935 Cost of services 8,024 12,032 1,268 21,324 Total cost of revenues 17,537 16,722 — 34,259 Gross profit 16,203 22,360 — 38,563 Operating expenses: Selling, general and administrativeexpenses 21,832 19,534 — 41,366 Research and development expenses 2,018 1,715 — 3,733 Total operating expenses 23,850 21,249 — 45,099 (Loss) income from operations (7,647) 1,111 — (6,536) Interest income 259 368 — 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 35,813 71,081 106,894 POWERFLEET, INC. AND MiX TELEMATICS CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) Year Ended March 31, 2024 Powerfleet Inc. MiX Telematics Adjustments toalign disclosure Pro FormaCombined Revenues: Products $ 49,313 $ 21,600 $ (3,248) $ 67,665 Services 85,311 130,680 3,248 219,239 Total revenues 134,624 152,280 — 286,904 Cost of revenues: Cost of products 36,916 14,628 (3,228) 48,316 Cost of services 31,003 45,405 3,228 79,636 Total cost of revenues 67,919 60,033 — 127,952 Gross profit 66,705 92,247 — 158,952 Operating expenses: Selling, general and administrativeexpenses 76,144 75,695 — 151,839 Research and development expenses 8,675 6,118 — 14,793 Total operating expenses 84,819 81,813 — 166,632 (Loss) income from operations (18,114) 10,434 — (7,680) Interest income 338 1,142 — 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 35,694 71,200 106,894 POWERFLEET, INC. AND MiX TELEMATICS CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except per share data) March 31, 2024 Powerfleet Inc. MiX Telematics Pro FormaCombined ASSETS Current assets: Cash and cash equivalents $ 24,354 $ 26,737 $ 51,091 Restricted cash 85,310 794 86,104 Accounts receivables, net 30,333 24,675 55,008 Inventory, net 21,658 4,142 25,800 Prepaid expenses and other current assets 8,133 9,693 17,826 Total current assets 169,788 66,041 235,829 Fixed assets, net 12,719 35,587 48,306 Goodwill 83,487 38,226 121,713 Intangible assets, net 19,652 20,792 40,444 Right-of-use asset 7,428 3,794 11,222 Severance payable fund 3,796 — 3,796 Deferred tax asset 2,781 1,093 3,874 Other assets 9,029 10,061 19,090 Total assets $ 308,680 $ 175,594 $ 484,274 LIABILITIES Current liabilities: Short-term bank debt and current maturities of long-term debt $ 1,951 $ 20,158 $ 22,109 Accounts payable 20,025 7,149 27,174 Accrued expenses and other current liabilities 13,983 19,606 33,589 Deferred revenue - current 5,842 6,394 12,236 Lease liability - current 1,789 859 2,648 Total current liabilities 43,590 54,166 97,756 Long-term debt - less current maturities 113,810 — 113,810 Deferred revenue - less current portion 4,892 — 4,892 Lease liability - less current portion 5,921 2,852 8,773 Accrued severance payable 4,597 — 4,597 Deferred tax liability 4,465 14,204 18,669 Other long-term liabilities 2,496 484 2,980 Total liabilities 179,771 71,706 251,477 Convertible redeemable preferred stock: Series A 90,273 — 90,273 STOCKHOLDERS' EQUITY Preferred stock — — — Common stock 387 63,455 63,842 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 38,531 103,883 142,414 Non-controlling interest 105 5 110 Total equity 38,636 103,888 142,524 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 Telematics Pro Forma Combined Cash 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 — 50 Gain on bargain purchase (1,800) — (1,800) Inventory reserve 1,557 615 2,172 Stock based compensation expense 4,104 1,110 5,214 Depreciation and amortization 9,098 20,450 29,548 Impairment of long-lived assets — 139 139 Right-of-use assets, non-cash lease expense 2,919 — 2,919 Bad debts expense 2,309 5,225 7,534 Deferred income taxes (281) 3,516 3,235 Other non-cash items (55) 6,393 6,338 Changes 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 8,786 945 9,731 Lease liabilities (2,851) — (2,851) Accrued severance payable, net 15 — 15 Net cash provided by operating activities 2,434 23,888 26,322 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 — 115,000 Payment of long-term debt costs (1,081) — (1,081) Proceeds from exercise of stock options, net 36 — 36 Cash 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) 81,449 Cash and cash equivalents, and restricted cash at beginning ofthe period 25,089 30,657 55,746 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 24,780 29,876 54,656 Restricted cash 309 781 1,090 Cash, 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 24,354 26,737 51,091 Restricted cash 85,310 794 86,104 Cash, 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 $ 3,381 Interest $ 1,720 $ 694 $ 2,414 Noncash investing and financing activities: Value of licensed intellectual property acquired in connection with Movingdots acquisition $ 1,517 $ — $ 1,517 Preferred stock dividends paid in shares $ 1,108 $ — $ 1,108 Issuance 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, 2024 Powerfleet Inc. MiX Telematics Pro 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 601 334 935 Other expense, net 55 — 55 Income tax expense 352 1,565 1,917 Depreciation and amortization 1,943 6,426 8,369 Stock-based compensation 1,028 283 1,311 Foreign currency losses 43 395 438 Restructuring-related expenses 324 — 324 Impairment of long-lived assets — 139 139 Net profit on fixed assets — (66) (66) Contingent consideration remeasurement — (250) (250) Acquisition-related expenses 6,078 1,099 7,177 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, 2024 Powerfleet Inc. MiX Telematics Pro 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 1,987 1,205 3,192 Other expense, net 87 — 87 Income tax expense 549 6,465 7,014 Depreciation and amortization 9,098 20,450 29,548 Stock-based compensation 4,104 1,110 5,214 Foreign currency translation (248) 1,741 1,493 Restructuring-related expenses 1,035 30 1,065 Gain on Bargain purchase - Movingdots (1,800) — (1,800) Impairment of long-lived assets — 139 139 Net profit on fixed assets — (115) (115) Contingent consideration remeasurement — (1,299) (1,299) Acquisition-related expenses 11,218 3,095 14,313 Non-recurring transitional service agreement costs — 482 482 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, 2024 Powerfleet Inc. MiX Telematics Pro FormaCombined Net (loss) income $ (8,515) $ (733) $ (9,248) Foreign currency losses 43 395 438 Income tax effect of net foreign exchange losses — 389 389 Restructuring-related expenses 324 — 324 Acquisition-related expenses 6,078 1,099 7,177 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 35,813 71,081 106,894 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, 2024 Powerfleet Inc. MiX Telematics Pro FormaCombined Net (loss) income $ (18,836) $ 2,585 $ (16,251) Foreign currency (gains) losses (248) 1,741 1,493 Income tax effect of net foreign exchange losses — 279 279 Restructuring-related expenses 1,035 30 1,065 Income tax effect of restructuring costs — (7) (7) Acquisition-related expenses 11,218 3,095 14,313 Non-recurring transitional service agreement costs — 482 482 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 35,694 71,200 106,894 Non-GAAP net (loss) income per share - basic $ (0.19) $ 0.10 $ (0.001) SOURCE Powerfleet WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

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

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