PowerFleet Reports 6.4% Revenue Growth to $110.8 Million for Q2 2026

PowerFleet, Inc. reported a revenue increase of 6.4% for the three months ended June 30, 2026, reaching $110.8 million compared to $104.1 million in the same period of the previous year. The growth was primarily driven by a 9.1% rise in service revenues, which totaled $94.3 million, while product revenues decreased by 6.7% to $16.5 million. The decline in product sales was attributed to production delays and firmware compatibility issues that affected the timing of shipments. Despite the challenges in product sales, the overall gross profit improved to $61.2 million, representing a gross margin of 55.2%, up from 54.2% in the prior year.

In terms of operational performance, PowerFleet's net loss attributable to common stockholders decreased to $8.4 million, or $(0.06) per share, from a loss of $10.2 million, or $(0.08) per share, in the same quarter of 2025. This reduction in net loss was largely due to increased gross profit, which was partially offset by higher selling, general, and administrative expenses that rose to $56.5 million. The company also reported a decrease in research and development expenses, which fell to $4.4 million, reflecting a higher capitalization of development costs.

PowerFleet's balance sheet showed total assets of $962.6 million as of June 30, 2026, a slight increase from $955.6 million at the end of the previous fiscal period. The company’s cash and cash equivalents, including restricted cash, decreased to $36.7 million from $40.8 million. The company’s working capital also declined to $15.5 million, down from $21.2 million. The total liabilities remained relatively stable at $473.7 million, with long-term debt slightly reduced to $229.3 million.

Strategically, PowerFleet completed the acquisition of RTS Solutions Africa on February 1, 2026, which is expected to enhance its service offerings and operational capabilities. The acquisition was accounted for as a business combination, with RTS contributing $1.3 million in revenue and $66,000 in net income for the quarter. The company continues to focus on integrating its acquisitions and realizing operational synergies, although it faces challenges from ongoing supply chain disruptions and macroeconomic uncertainties, including inflation and geopolitical tensions.

Looking ahead, PowerFleet anticipates that its current cash balances, expected cash flows from operations, and available borrowing capacity will be sufficient to meet its operational and capital requirements for at least the next 12 months. However, the company remains cautious about the potential impacts of external economic factors on its financial performance and is actively managing its liquidity through cost reductions and increased utilization of credit facilities.