Powerfleet Posts Record $113.5M Q3 Revenue, Services Up 11%
Powerfleet posted record Q3 revenue of $113.5 million, a 7% increase driven by recurring AIoT services revenue of $91.1 million, up 11% year-over-year. Adjusted EBITDA rose 26% to $25.7 million, operating profit reached $6.3 million, and full-year revenue guidance was tightened to $440-445 million.
1. Q3 Financial Performance
Powerfleet delivered $113.5 million in revenue for Q3 FY2026, marking a 7% increase from $106.4 million in the prior-year period. Services revenue reached $91.1 million, up 11% year-over-year, representing 80% of total revenue and underscoring the strength of its AIoT platform.
2. Major South Africa Contract Win
During the quarter, the company secured a public sector contract in South Africa to provide AI video and visibility services for fleets managing over 100,000 assets, positioning Powerfleet for significant recurring revenue growth in mission-critical operations.
3. Profitability and Margin Expansion
Operating profit improved to $6.3 million from a $1.2 million loss, while net loss narrowed to $3.4 million. Adjusted EBITDA rose 26% to $25.7 million, with margins expanding to 23% from 19%, benefiting from cost synergies and operating leverage.
4. Revised Full-Year Guidance
Powerfleet narrowed its fiscal 2026 revenue outlook to $440 million–$445 million and forecasts adjusted EBITDA growth of about 45%, reflecting continued investments in operating expenses to support anticipated demand from its new South Africa public sector opportunity.