Key Points – Q1 performance improved: Revenue rose 6.4% year over year to $110.8 million, while adjusted EBITDA increased to $21.5 million and total gross margin expanded to 55.2%.
Services revenue grew 9.1% and supported margin expansion despite a temporary product-revenue delay. – South African contract is scaling faster than expected: PowerFleet now has more than 70,000 vehicle installations to deploy in the near term, potentially rising to 80,000–90,000, prompting the company to redirect resources toward the contract. – Full-year guidance was reduced: Fiscal 2027 revenue guidance fell to $468 million–$473 million and adjusted EBITDA guidance to $111 million–$114 million, reflecting timing effects, reprioritization costs and a projected net loss of $6 million–$8 million. – The Bottom Is in for Powerfleet: An Intelligent Time to Buy PowerFleet (NASDAQ:AIOT) reported first-quarter fiscal 2027 revenue growth and higher adjusted EBITDA, while lowering its full-year outlook as it reallocates resources toward a rapidly expanding South African government contract
Total first-quarter revenue rose 6.4% year over year to $110.8 million. Adjusted EBITDA increased to $21.5 million from $20.1 million in the prior-year quarter, producing a 19.4% margin. The company reported GAAP operating income of $300,000, compared with a $2 million operating loss a year earlier.
Net loss attributable to common stockholders was $8.4 million, or $0.06 per share, compared with a loss of $0.08 per share in the prior-year period. CFO David Wilson said net interest expense of $6.7 million accounted for most of the difference between operating income and the net loss. Services Growth Supports Margin Expansion Services revenue increased 9.1% year over year to $94.3 million and represented about 85% of total revenue.