Powerfleet said fourth-quarter revenue rose 11% to $114.5 million from $103.6 million a year earlier, lifted by a 14% increase in services revenue to $92.9 million. Services accounted for more than 81% of total revenue in the quarter.
Gross margin widened to 56.5% from 52.8%, a 370-basis-point improvement. Gross profit increased to $64.7 million.
Income from operations swung to a profit of $11.0 million from a $7.0 million loss in the prior-year quarter. Net loss narrowed 78% to $2.7 million from $12.4 million, and loss per share improved to 2 cents from 9 cents.
Adjusted EBITDA climbed 42% to $26.4 million from $18.7 million, with margin expanding to 23.1% from 18.0%. Adjusted net income doubled to $5.6 million from $2.8 million, and adjusted earnings per share rose to 4 cents from 2 cents.
For the full year, revenue increased 22% to $443.8 million from $363.8 million. Services revenue rose 30% to $359.8 million. Gross margin improved to 55.5% from 53.7%.
Net loss narrowed 60% to $20.6 million from $51.2 million, while loss per share improved to 15 cents from 43 cents.
Adjusted EBITDA advanced 44% to $97.0 million from $67.4 million, and adjusted net income jumped 118% to $11.3 million from $5.2 million.
Operating cash flow turned positive at $30.5 million, compared with a $3.3 million use of cash in fiscal 2025. In the second half of fiscal 2026, free cash flow shifted to a $4.1 million source from a $13.7 million use in the first half, an improvement of $17.8 million.
At March 31, 2026, Powerfleet had $36.5 million in cash and cash equivalents, $27.1 million of available borrowing capacity, and total liquidity of $63.6 million. Total debt stood at $280.0 million, with net debt of $239.2 million. Net debt to trailing 12-month adjusted EBITDA improved to 2.47x from 3.39x a year earlier.
The company said it signed its three largest individual contracts ever, including two deals above $10 million in total contract value, and announced a South African National Treasury agreement expected to generate $100 million to $120 million over at least five years.
For fiscal 2027, Powerfleet projected revenue of $485 million to $490 million, adjusted EBITDA of $122 million to $125 million, and free cash flow of $30 million to $35 million. Today the company's shares have moved -4.26% to a price of $4.04. If you want to know more, read the company's complete 8-K report here.
