Powerfleet Reports Third Quarter 2025 Financial Results

Q3 revenue rises to $106 million, an increase of 45% year-over-year, with service revenuerepresenting 77% of total revenue Adjusted EBITDA climbs to $22 million, an increase of 77%, driving an annual run ratesurpassing $85 million— doubling 2024 adjusted EBITDA FY25 full year guidance increased $10 million for revenue and $2.5 million for adjustedEBITDA Meaningful increase in adjusted gross margin performance, with total adjusted grossmargins now above 60%, and adjusted service gross margins approaching 70% Post-M&A integration ahead of schedule, priming for double digit growth trajectory in FY26 , /PRNewswire/ -- Powerfleet, Inc. (Nasdaq: AIOT) reported its financial results for the third quarter ended December 31, 2024. This marks the first full quarter following the closing of the acquisition of Fleet Complete and the third full quarter since closing the business combination with MiX Telematics Ltd (MiX). Prior year comparison numbers are adjusted to reflect the pro-forma financial performance of the business combination with MiX. THIRD QUARTER 2025 FINANCIAL HIGHLIGHTS Total revenue: Increased by 45% to $106.4 million. Service revenue: Accounted for 77% of total revenue, increasing 45% to $81.7 million, driven by the Fleet Complete acquisition and Unity's safety-focused solutions. Product revenue: Grew 42% to $24.7 million, driven by the Fleet Complete acquisition and in-warehouse product strength. Gross profit: Increased by 44% to $58.8 million. Gross profit, adjusted for the amortization of acquisition-related intangibles, increased by $23.3 million, or 57%, to $64.2 million. Combined adjusted gross margin: Exceeded 60%, an increase from 55.5% in the prior year, with adjusted service margins expanding by 4.4% to 69.3% and product margins improving by 5.3% to 30.6%. Adjusted EBITDA: Increased 77% to $22.5 million, up from $12.7 million in the prior year, driven by the Fleet Complete acquisition, organic growth, and cost synergies. Exits the quarter with over 2.6 million recurring revenue subscribers actively leveraging the company's comprehensive suite of solutions MANAGEMENT COMMENTARY "Our strategic focus on achieving global scale through accretive M&A transactions has fundamentally reshaped our business. With the rapid follow-up of the Fleet Complete acquisition after the MiX combination, we have built a scaled P&L that sets the stage for long-term growth," said CEO Steve Towe. "With these strong financial foundations in place, our primary focus is now on seamlessly integrating the combined businesses, executing our strategic priorities, and positioning Powerfleet for accelerated top-line growth." "The process of integration is well underway, as we align our organizational structure to drive sustainable growth and enhance operational excellence. Simultaneously, our cost synergy program remains on track, with $15 million in annualized savings secured exiting the December quarter and more than $16 million targeted by fiscal year-end." "On the commercial front, the Fleet Complete acquisition has significantly expanded our market opportunity through scaled channel partnerships with leading telecommunications providers. Our direct sales efforts continue to drive high-value wins, including a major Unity in-warehouse safety solution deal with one of the largest beverage companies in North America, with long-term total contract value revenue potential in the $25 million to $30 million range. Meanwhile, AI camera solutions continue to gain strong traction, with sales volumes up 52% year-over-year through our largest channel partner." THIRD QUARTER 2025 FINANCIAL RESULTS Total revenue increased 45% year-over-year to $106.4 million, driven by the Fleet Complete acquisition and strong in-warehouse product sales, which helped offset headwinds in the U.S. logistics segment. Product revenue grew 42% to $24.7 million, while service revenue rose 45% to $81.7 million, fueled by the Fleet Complete acquisition and Unity's safety-centric solutions. Gross profit increased by 44% to $58.8 million. Gross profit, adjusted for the amortization of acquisition-related intangibles, increased by $23.3 million, or 57%, to $64.2 million. Gross margin saw significant expansion, with product gross margin improving to 30.6%, up from 25.3% in the prior year. Service gross margin, adjusted for $5.4 million in non-cash amortization, increased by 4.4% to 69.3%. As a result, the combined adjusted gross margin surpassed 60%, up from 55.5% in the prior year. Operating expenses totaled $60.0 million, including $6.7 million in one-time transaction and restructuring costs, compared to $5.0 million in the prior year. Excluding these costs, adjusted operating expenses were $53.4 million, up from $37.4 million, with the increase solely attributable to the Fleet Complete acquisition. Adjusted EBITDA increased 77% to $22.5 million, up from $12.7 million in the prior year, reflecting contributions from the Fleet Complete acquisition, organic growth, and cost synergies. Net loss attributable to common stockholders was $0.11 per share, compared to $0.05 per share in the prior year, reflecting higher transaction costs, interest expense and taxes. After adjusting for one-time expenses and amortization of acquisition-related intangibles, adjusted net income was $0.01 per share, down from $0.03 per share in the prior year. The $0.02 decline was fully accounted for by a $0.07 per share increase in interest expense and taxes. Net debt exiting the quarter was $229.7 million, consisting of $38.6 million in cash and $268.3 million in total debt. Net debt was below year-end guidance of $235 million, benefiting from the delayed settlement of transaction costs. FULL-YEAR 2025 FINANCIAL OUTLOOK We are raising our full-year 2025 guidance to reflect the strength of our year-to-date financial performance and the accounting impact of Fleet Complete's conversion from Canadian accounting standards to U.S. GAAP. Annual revenue is now expected to exceed $362.5 million, a $10 million increase from our prior guidance of approximately $352.5 million. Adjusted EBITDA is now expected to exceed $75 million, a $2.5 million increase from our prior guidance of $72.5 million, with both figures inclusive of $5 million in secured annualized run-rate synergies. INVESTOR CONFERENCE CALLAs previously announced, Powerfleet will hold a conference call on Monday, February 10, 2025, at 8:30 a.m. Eastern time (5:30 a.m. Pacific time) to discuss results for the third quarter fiscal 2025 ended December 31, 2024. Management will make prepared remarks followed by a question-and-answer session. Date: Monday, February 10, 2025Time: 8:30 a.m. Eastern time (5:30 a.m. Pacific time)Toll Free: 888-506-0062International: 973-528-0011Participant Access Code: 466496The conference call will be broadcast simultaneously and available for replay here and 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 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, 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 economic and business conditions; (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 loss of any of our key customers or reduction in the purchase of our products by any such customers; (iv) the failure of the markets for our products to continue to develop; (v) the negative effects of the transactions on the market price of our securities; (vi) our inability to adequately protect our intellectual property; (vii) our inability to manage growth; (viii) the effects of competition from a wide variety of local, regional, national and other providers of wireless solutions; and (ix) 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 BurfeningAlliance Advisors IR [email protected] Powerfleet Media ContactJonathan Bates[email protected]+44 121 717-5360 POWERFLEET, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(In thousands, except per share data) Three Months Ended December 31, Nine Months Ended December 31, 2023 2024 2023 2024 Pro Forma Combined Consolidated Pro Forma Combined Consolidated Revenues: Products $ 17,402 $ 24,687 $ 49,872 $ 63,718 Services 56,233 81,742 164,210 195,159 Total revenues 73,635 106,429 214,082 258,877 Cost of revenues: Cost of products 12,996 17,129 35,381 43,809 Cost of services 19,762 30,517 58,312 75,294 Total cost of revenues 32,758 47,646 93,693 119,103 Gross profit 40,877 58,783 120,389 139,774 Operating expenses: Selling, general and administrative expenses 38,957 55,405 110,473 147,522 Research and development expenses 3,434 4,621 11,060 11,157 Total operating expenses 42,391 60,026 121,533 158,679 Loss from operations (1,514) (1,243) (1,144) (18,905) Interest income 341 359 853 831 Interest expense (1,742) (7,942) (3,111) (14,675) Bargain purchase - Movingdots 1,517 — 1,800 — Other income/(expense), net 58 (2,011) (266) (961) Net loss before income taxes (1,340) (10,837) (1,868) (33,710) Income tax expense (670) (3,513) (5,097) (4,821) Net loss before non-controlling interest (2,010) (14,350) (6,965) (38,531) Non-controlling interest (32) 1 (38) (17) Net loss (2,042) (14,349) (7,003) (38,548) Accretion of preferred stock (1,878) — (5,484) — Preferred stock dividend (1,129) — (3,385) (25) Net loss attributable to commonstockholders $ (5,049) $ (14,349) $ (15,872) $ (38,573) Net loss per share attributable tocommon stockholders - basic anddiluted $ (0.05) $ (0.11) $ (0.15) $ (0.33) Weighted average common shares outstanding - basic and diluted 106,335 132,189 106,367 115,650 POWERFLEET, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS(In thousands, except per share data) March 31, 2024 December 31, 2024 Pro Forma Combined Consolidated ASSETS Current assets: Cash and cash equivalents $ 51,091 $ 33,634 Restricted cash 86,104 5,011 Accounts receivables, net 55,008 82,167 Inventory, net 25,800 27,985 Deferred costs - current 42 6 Prepaid expenses and other current assets 17,784 25,455 Total current assets 235,829 174,258 Fixed assets, net 48,306 55,257 Goodwill 121,713 374,939 Intangible assets, net 40,444 263,396 Right-of-use asset 11,222 12,308 Severance payable fund 3,796 4,461 Deferred tax asset 3,874 5,766 Other assets 19,090 18,284 Total assets $ 484,274 $ 908,669 LIABILITIES Current liabilities: Short-term bank debt and current maturities of long-term debt $ 22,109 $ 34,596 Accounts payable and accrued expenses 60,763 86,481 Deferred revenue - current 12,236 17,912 Lease liability - current 2,648 4,763 Total current liabilities 97,756 143,752 Long-term debt - less current maturities 113,810 233,750 Deferred revenue - less current portion 4,892 3,949 Lease liability - less current portion 8,773 8,268 Accrued severance payable 4,597 4,906 Deferred tax liability 18,669 52,461 Other long-term liabilities 2,980 3,042 Total liabilities 251,477 450,128 Convertible redeemable preferred stock: Series A 90,273 — STOCKHOLDERS' EQUITY Preferred stock — — Common stock 63,842 1,339 Additional paid-in capital 200,218 669,492 Accumulated deficit (78,516) (193,345) Accumulated other comprehensive loss (17,133) (7,578) Treasury stock (25,997) (11,518) Total stockholders' equity 142,414 458,390 Non-controlling interest 110 151 Total equity 142,524 458,541 Total liabilities, convertible redeemable preferred stock, andstockholders' equity $ 484,274 $ 908,669 POWERFLEET, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(In thousands) Nine Months Ended December 31, 2023 2024 Pro FormaCombined Consolidated Cash flows from operating activities Net loss $ (7,003) $ (38,548) Adjustments to reconcile net loss to cash provided by/(used in) operatingactivities: Non-controlling interest 38 17 Gain on bargain purchase (1,800) — Inventory reserve 1,821 1,571 Stock based compensation expense 3,903 8,438 Depreciation and amortization 21,179 33,042 Right-of-use assets, non-cash lease expense 2,156 4,284 Derivative mark-to-market adjustment — (475) Bad debts expense 4,900 7,229 Deferred income taxes 2,935 676 Shares issued for transaction bonuses — 889 Lease termination and modification losses — 232 Other non-cash items 3,907 727 Changes in operating assets and liabilities: Accounts receivables (11,552) (15,245) Inventories (2,030) 2,623 Prepaid expenses and other current assets 381 2,062 Deferred costs (6,323) (5,124) Deferred revenue (292) 1,031 Accounts payable and accrued expenses 6,117 (15,655) Lease liabilities (2,157) (4,098) Accrued severance payable, net (21) (562) Net cash provided by/(used in) operating activities 16,159 (16,886) Cash flows from investing activities: Acquisition, net of cash assumed — (137,112) Proceeds from sale of fixed assets — 256 Capitalized software development costs (7,203) (7,310) Capital expenditures (15,140) (16,607) Deferred consideration paid (1,414) — Repayment of loan advanced to external parties — 294 Net cash used in investing activities (23,757) (160,479) Cash flows from financing activities: Repayment of long-term debt (3,079) (2,140) Short-term bank debt, net 10,268 11,887 Purchase of treasury stock upon vesting of restricted stock (643) (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 — 125,000 Payment of long-term debt costs — (1,410) Proceeds from exercise of stock options, net 36 912 Cash paid on dividends to affiliates (4,002) (6) Net cash (used in)/provided by financing activities (934) 107,568 Effect of foreign exchange rate changes on cash and cash equivalents (1,600) (1,222) Net decrease in cash and cash equivalents, and restricted cash (10,132) (71,019) 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 $ 45,614 $ 38,645 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 44,441 33,634 Restricted cash 1,173 5,011 Cash, cash equivalents, and restricted cash, end of the period $ 45,614 $ 38,645 Supplemental disclosure of cash flow information: Cash paid for: Taxes $ 1,757 $ 1,052 Interest $ 1,828 $ 11,517 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 $ — POWERFLEET, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO ADJUSTED EBITDA FINANCIAL MEASURES (In thousands) Three Months Ended December 31, Nine Months Ended December 31, 2023 2024 2023 2024 Pro FormaCombined Consolidated Pro FormaCombined Consolidated Net loss attributable to common stockholders $ (5,049) $ (14,349) $ (15,872) $ (38,573) Non-controlling interest 32 (1) 38 17 Preferred stock dividend and accretion 3,007 — 8,870 25 Interest expense, net 1,095 7,583 2,257 13,844 Other expense, net 8 — 32 — Income tax expense 670 3,513 5,097 4,821 Depreciation and amortization 7,602 13,643 21,179 33,042 Stock-based compensation 1,385 1,138 3,903 8,438 Foreign currency losses 637 543 1,055 1,288 Restructuring-related expenses 144 841 741 3,108 Gain on bargain purchase - Movingdots (1,517) — (1,800) — Derivative mark-to-market adjustment — 1,722 — (475) Recognition of pre-October 1, 2024contract assets (Fleet Complete) — 2,041 — 2,041 Net profit on fixed assets (45) — (49) — Contingent consideration remeasurement (511) — (1,049) — Acquisition-related expenses 4,885 5,301 7,136 20,872 Integration-related expenses — 520 — 2,259 Non-recurring transitional serviceagreement costs 361 — 482 — Adjusted EBITDA $ 12,704 $ 22,495 $ 32,020 $ 50,707 POWERFLEET, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP NET INCOME FINANCIAL MEASURES (In thousands) Three Months Ended December 31, Nine Months Ended December 31, 2023 2024 2023 2024 Pro FormaCombined Consolidated Pro FormaCombined Consolidated Net loss $ (2,042) $ (14,349) $ (7,003) $ (38,548) Incremental intangible assets amortizationexpense as a result of MiX Telematics andFleet Complete business combinations — 5,393 — 9,551 Stock-based compensation (non-recurring/accelerated cost) — — — 4,693 Foreign currency losses 637 543 1,055 1,288 Income tax effect of net foreign exchange(losses)/gains (644) 1,631 (110) (225) Restructuring-related expenses 144 841 741 3,108 Income tax effect of restructuring costs — (30) (7) (154) Derivative mark-to-market adjustment — 1,722 — (475) Acquisition-related expenses 4,885 5,301 7,136 20,872 Integration-related expenses — 520 — 2,259 Non-recurring transitional serviceagreement costs 361 — 482 — Contingent consideration remeasurement (511) — (1,049) — Income tax effect of contingentconsideration remeasurement — — — — Non-GAAP net income $ 2,830 $ 1,572 $ 1,245 $ 2,369 Weighted average shares outstanding 106,335 132,189 106,367 115,650 Non-GAAP net income per share - basic $ 0.03 $ 0.01 $ 0.01 $ 0.02 POWERFLEET, INC. AND SUBSIDIARIES ADJUSTED GROSS PROFIT MARGINS (In thousands) Three Months Ended December 31, Nine Months Ended December 31, 2023 2024 2023 2024 Pro Forma Combined Consolidated Pro Forma Combined Consolidated Revenues: Products $ 17,402 $ 24,687 $ 49,872 $ 63,718 Services 56,233 81,742 164,210 195,159 Total revenues 73,635 106,429 214,082 258,877 Cost of revenues: Cost of products 12,996 17,129 35,381 43,809 Cost of services 19,762 30,517 58,312 75,294 Total cost of revenues 32,758 47,646 93,693 119,103 Gross profit $ 40,877 $ 58,783 $ 120,389 $ 139,774 Product margin 25.3 % 30.6 % 29.1 % 31.2 % Service margin 64.9 % 62.7 % 64.5 % 61.4 % Total gross profit margin 55.5 % 55.2 % 56.2 % 54.0 % Incremental intangible assetsamortization expense as a result ofMiX Telematics and Fleet Completebusiness combinations $ — $ 5,393 $ — $ 9,551 Inventory rationalization $ — $ 6 $ — $ 740 Product margin 25.3 % 30.6 % 29.1 % 32.4 % Service margin 64.9 % 69.3 % 64.5 % 66.3 % Adjusted total gross profit margin 55.5 % 60.3 % 56.2 % 58.0 % POWERFLEET, INC. AND SUBSIDIARIES ADJUSTED OPERATING EXPENSES (In thousands) Three Months Ended December 31, Nine Months Ended December 31, 2023 2024 2023 2024 Pro Forma Combined Consolidated Pro Forma Combined Consolidated Total operating expenses $ 42,391 $ 60,026 $ 121,533 $ 158,679 Adjusted for once-off costs Acquisition-related expenses 4,885 5,301 7,136 20,872 Integration-related costs — 520 — 2,259 Stock-based compensation (non-recurring/accelerated cost) — — — 4,693 Restructuring-related expenses 144 841 741 3,108 5,029 6,662 7,877 30,932 Adjusted operating expenses $ 37,362 $ 53,364 $ 113,656 $ 127,747 POWERFLEET, INC. AND MiX TELEMATICSCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(In thousands, except per share data) Three Months Ended December 31, 2023 Powerfleet Inc MiX Telematics Adjustments toalign disclosure Pro FormaCombined Revenues: Products $ 12,916 $ 5,430 $ (944) $ 17,402 Services 21,634 33,655 944 56,233 Total revenues 34,550 39,085 — 73,635 Cost of revenues: Cost of products 10,009 3,645 (658) 12,996 Cost of services 7,162 11,942 658 19,762 Total cost of revenues 17,171 15,587 — 32,758 Gross profit 17,379 23,498 — 40,877 Operating expenses: Selling, general and administrativeexpenses 19,337 19,620 — 38,957 Research and development expenses 2,010 1,424 — 3,434 Total operating expenses 21,347 21,044 — 42,391 (Loss)/income from operations (3,968) 2,454 — (1,514) Interest income 34 307 — 341 Interest expense (1,138) (604) — (1,742) Bargain purchase - Movingdots 1,517 — — 1,517 Other (expense)/income, net (8) 66 — 58 Net (loss)/income before income taxes (3,563) 2,223 — (1,340) Income tax benefit/(expense) 92 (762) — (670) Net (loss)/income before non-controllinginterest (3,471) 1,461 — (2,010) Non-controlling interest (32) — — (32) Net (loss)/income (3,503) 1,461 — (2,042) Accretion of preferred stock (1,878) — — (1,878) Preferred stock dividend (1,129) — — (1,129) Net (loss)/income attributable tocommon stockholders $ (6,510) $ 1,461 $ — $ (5,049) Net (loss)/income per share attributableto common stockholders - basic anddiluted $ (0.18) $ 0.02 $ (0.05) Weighted average common sharesoutstanding - basic 35,706 70,629 106,335 POWERFLEET, INC. AND MiX TELEMATICSCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(In thousands, except per share data) Nine Months Ended December 31, 2023 Powerfleet Inc MiX Telematics Adjustments to align disclosure Pro FormaCombined Revenues: Products $ 37,232 $ 14,895 $ (2,255) $ 49,872 Services 63,652 98,303 2,255 164,210 Total revenues 100,884 113,198 — 214,082 Cost of revenues: Cost of products 27,402 9,938 (1,959) 35,381 Cost of services 22,980 33,373 1,959 58,312 Total cost of revenues 50,382 43,311 — 93,693 Gross profit 50,502 69,887 — 120,389 Operating expenses: Selling, general and administrativeexpenses 54,312 56,161 — 110,473 Research and development expenses 6,657 4,403 — 11,060 Total operating expenses 60,969 60,564 — 121,533 (Loss)/income from operations (10,467) 9,323 — (1,144) Interest income 79 774 — 853 Interest expense (1,466) (1,645) — (3,111) Bargain purchase - Movingdots 1,800 — — 1,800 Other expense, net (32) (234) — (266) Net (loss)/income before income taxes (10,086) 8,218 — (1,868) Income tax expense (197) (4,900) — (5,097) Net (loss)/income before non-controlling interest (10,283) 3,318 — (6,965) Non-controlling interest (38) — — (38) Net (loss)/income (10,321) 3,318 — (7,003) Accretion of preferred stock (5,484) — — (5,484) Preferred stock dividend (3,385) — — (3,385) Net (loss)/income attributable to common stockholders $ (19,190) $ 3,318 $ — $ (15,872) Net (loss)/income per share attributableto common stockholders - basic $ (0.54) $ 0.05 $ (0.15) Weighted average common sharesoutstanding - basic 35,655 70,712 106,367 POWERFLEET, INC. AND MiX TELEMATICSCONDENSED CONSOLIDATED BALANCE SHEETS(In thousands, except per share data) March 31, 2024 Powerfleet Inc MiX Telematics Pro Forma Combined 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 Deferred costs - current 42 — 42 Prepaid expenses and other current assets 8,091 9,693 17,784 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 and accrued expenses 34,008 26,755 60,763 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 TELEMATICSCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(In thousands) Nine Months Ended December 31, 2023 Powerfleet Inc MiX Telematics Pro FormaCombined Cash flows from operating activities Net (loss)/income $ (10,321) $ 3,318 $ (7,003) Adjustments to reconcile net (loss)/income to cash (usedin)/provided by operating activities: Non-controlling interest 38 — 38 Gain on bargain purchase (1,800) — (1,800) Inventory reserve 1,498 323 1,821 Stock based compensation expense 3,076 827 3,903 Depreciation and amortization 7,155 14,024 21,179 Right-of-use assets, non-cash lease expense 2,156 — 2,156 Bad debts expense 1,339 3,561 4,900 Deferred income taxes (378) 3,313 2,935 Other non-cash items 58 3,849 3,907 Changes in operating assets and liabilities: Accounts receivables (2,284) (9,268) (11,552) Inventories (1,506) (524) (2,030) Prepaid expenses and other current assets 876 (495) 381 Deferred costs 440 (6,763) (6,323) Deferred revenue (292) — (292) Accounts payable and accrued expenses 4,765 1,352 6,117 Lease liabilities (2,157) — (2,157) Accrued severance payable, net (21) — (21) Net cash provided by operating activities 2,642 13,517 16,159 Cash flows from investing activities: Capitalized software development costs (2,949) (4,254) (7,203) Capital expenditures (2,364) (12,776) (15,140) Deferred consideration paid — (1,414) (1,414) Net cash used in investing activities (5,313) (18,444) (23,757) Cash flows from financing activities: Repayment of long-term debt (3,079) — (3,079) Short-term bank debt, net 4,322 5,946 10,268 Purchase of treasury stock upon vesting of restricted stock (97) (546) (643) Repayment of financing lease (129) — (129) Payment of preferred stock dividend and redemption ofpreferred stock (3,385) — (3,385) Proceeds from exercise of stock options, net 36 — 36 Cash paid on dividends to affiliates — (4,002) (4,002) Net cash (used in)/from financing activities (2,332) 1,398 (934) Effect of foreign exchange rate changes on cash and cash equivalents (754) (846) (1,600) Net decrease in cash and cash equivalents, and restrictedcash (5,757) (4,375) (10,132) Cash and cash equivalents, and restricted cash at beginning of the period 25,089 30,657 55,746 Cash and cash equivalents, and restricted cash at end of the period $ 19,332 $ 26,282 $ 45,614 Reconciliation of cash, cash equivalents, and restrictedcash, 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 restrictedcash, end of the period Cash and cash equivalents 19,022 25,419 44,441 Restricted cash 310 863 1,173 Cash, cash equivalents, and restricted cash, end of the period $ 19,332 $ 26,282 $ 45,614 Supplemental disclosure of cash flow information: Cash paid for: Taxes $ 170 $ 1,587 $ 1,757 Interest $ 1,273 $ 555 $ 1,828 Noncash investing and financing activities: Value of licensed intellectual property acquired inconnection with Movingdots acquisition $ 1,517 $ — $ 1,517 Preferred stock dividends paid in shares $ 1,108 $ — $ 1,108 POWERFLEET, INC. ANDMiX TELEMATICS RECONCILIATION OF GAAP TO ADJUSTED EBITDA FINANCIAL MEASURES (In thousands) Three Months Ended December 31, 2023 Powerfleet Inc MiX Telematics Pro FormaCombined Net (loss)/profit attributable to common stockholders $ (6,510) $ 1,461 $ (5,049) Non-controlling interest 32 — 32 Preferred stock dividend and accretion 3,007 — 3,007 Interest expense, net 798 297 1,095 Other expense, net 8 — 8 Income tax (benefit)/expense (92) 762 670 Depreciation and amortization 2,348 5,254 7,602 Stock-based compensation 1,123 262 1,385 Foreign currency (gains)/losses 144 493 637 Restructuring-related expenses 144 — 144 Gain on bargain purchase - Movingdots (1,517) — (1,517) Net profit on fixed assets — (45) (45) Contingent consideration remeasurement — (511) (511) Acquisition-related expenses 3,685 1,200 4,885 Non-recurring transitional service agreement costs — 361 361 Adjusted EBITDA $ 3,170 $ 9,534 $ 12,704 POWERFLEET, INC. AND MiX TELEMATICS RECONCILIATION OF GAAP TO ADJUSTED EBITDA FINANCIAL MEASURES (In thousands) Nine Months Ended December 31, 2023 Powerfleet Inc MiX Telematics Pro FormaCombined Net (loss)/profit attributable to common stockholders $ (19,190) $ 3,318 $ (15,872) Non-controlling interest 38 — 38 Preferred stock dividend and accretion 8,870 — 8,870 Interest expense, net 1,386 871 2,257 Other expense, net 32 — 32 Income tax expense 197 4,900 5,097 Depreciation and amortization 7,155 14,024 21,179 Stock-based compensation 3,076 827 3,903 Foreign currency translation (291) 1,346 1,055 Restructuring-related expenses 711 30 741 Gain on Bargain purchase - Movingdots (1,800) — (1,800) Net profit on fixed assets — (49) (49) Contingent consideration remeasurement — (1,049) (1,049) Acquisition-related expenses 5,140 1,996 7,136 Non-recurring transitional service agreement costs — 482 482 Adjusted EBITDA $ 5,324 $ 26,696 $ 32,020 POWERFLEET, INC. ANDMiX TELEMATICS RECONCILIATION OF GAAP TO NON-GAAP NET INCOME FINANCIAL MEASURES (In thousands) Three Months Ended December 31, 2023 Powerfleet Inc MiX Telematics Pro FormaCombined Net (loss)/income $ (3,503) $ 1,461 $ (2,042) Foreign currency losses 144 493 637 Income tax effect of net foreign exchange losses — (644) (644) Restructuring-related expenses 144 — 144 Acquisition-related expenses 3,685 1,200 4,885 Non-recurring transitional service agreement costs — 361 361 Contingent consideration remeasurement — (511) (511) Non-GAAP net income $ 470 $ 2,360 $ 2,830 Weighted average shares outstanding 35,706 70,629 106,335 Non-GAAP net income per share - basic $ 0.01 $ 0.03 $ 0.03 POWERFLEET, INC. ANDMiX TELEMATICS RECONCILIATION OF GAAP TO NON-GAAP NET (LOSS)/INCOME FINANCIAL MEASURES (In thousands) Nine Months Ended December 31, 2023 Powerfleet Inc MiX Telematics Pro FormaCombined Net (loss)/income $ (10,321) $ 3,318 $ (7,003) Foreign currency (gains)/losses (291) 1,346 1,055 Income tax effect of net foreign exchange losses — (110) (110) Restructuring-related expenses 711 30 741 Income tax effect of restructuring costs — (7) (7) Acquisition-related expenses 5,140 1,996 7,136 Non-recurring transitional service agreement costs — 482 482 Contingent consideration remeasurement — (1,049) (1,049) Non-GAAP net (loss)/income $ (4,761) $ 6,006 $ 1,245 Weighted average shares outstanding 35,655 70,712 106,367 Non-GAAP net (loss)/income per share - basic $ (0.13) $ 0.08 $ 0.01 SOURCE Powerfleet WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

Powerfleet Reports Third Quarter 2025 Financial Results

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