Powerfleet, Inc. · NASDAQ:AIOT
Powerfleet — Q4 2025 Earnings Presentation
43 slides from Powerfleet's earnings presentation, June 2025
Slide 1: Business Update
BUSINESS UPDATE June 2025
Slide 2: Important Disclaimers
Important Disclaimers The contents of this presentation are not to be construed as legal, regulatory, business, accounting or tax advice. You should consult your own attorney, business advisor, accountant and tax advisor as to legal, regulatory, business, accounting and tax advice. This presentation
Slide 3: Important Disclaimers (Cont'd.)
Important Disclaimers (Cont’d.) No Offer or Solicitation This presentation does not constitute an offer to sell or the solicitation of an offer to buy any securities, or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicit
Slide 4: Agenda
AGENDA 1 2 3 4 5 6 The Rapid FY25: The Year’s Q4FY25 Quarter FY26: Propelling Financial A Strong Transformation Business Highlights Powerfleet to Highlights: FY26 Investment of Powerfleet Highlights the Next Level Expectations Opportunity
Slide 5: The Rapid Transformation of Powerfleet
THE RAPID TRANSFORMATION OF POWERFLEET Powerfleet’s Reinvention – An Opportunity for Strong Value Creation
Slide 6: The Accelerated Strategic Transformation Delivered
THE ACCELERATED STRATEGIC TRANSFORMATION DELIVERED Key commitments executed with strong proof points for sustainable organic growth success, whilst integrating 3 businesses in just 12 months POWERFLEET EXITING FY24 POWERFLEET ENTERING FY26 700k subscribers, outside of the top 10 scale globally Subsc
Slide 7: Three Smaller Players Transformed to Create One Global Market Powerhouse
SIGNIFICANT VALUE UNLOCK WITH THREE SMALLER PLAYERS TRANSFORMED TO CREATE ONE GLOBAL MARKET POWERHOUSE MiX One Powerfleet • 48,000 enterprise & mid-market customers, 2.8M subscribers • 4,000 enterprise & mid-market customers • 1M subscribers • 50% of Fortune 500 companies in 8 key industries are our
Slide 8: How Powerfleet Was Revolutionized in FY25: H1
HOW POWERFLEET WAS REVOLUTIONIZED IN FY25 H1: laying the foundations for sustainable success AEBITDA M&A Go to Market Technology Operations Organization Expansion Unified the global organization with one aligned leadership team Consolidated overlapping regional Go To Market teams Unified global manu
Slide 9: How Powerfleet Was Revolutionized in FY25: H2
HOW POWERFLEET WAS REVOLUTIONIZED IN FY25 H2: gearing up for acceleration of growth and scale AEBITDA M&A Go to Market Technology Operations Organization Expansion North America: expanded and Fully redesigned global strengthened indirect channel organization structure with a ecosystem Created global
Slide 10: Exceeded FY25 AEBITDA Expansion Targets Through Economies of Scale
EXCEEDED FY25 AEBITDA EXPANSION TARGETS THROUGH ECONOMIES OF SCALE: $16M SAVINGS DELIVERED $4M DUPLICATIVE COSTS FY25 savings fuel Optimized public company and marketing overhead Reduced organization complexity via design efficiencies ongoing AEBITDA $7M delivered leverage in FY26 $7M WAYS OF WORK
Slide 11: FY25 The Year's Business Highlights
FY25 THE YEAR’S BUSINESS HIGHLIGHTS
Slide 12: Flagship Organic Customer SaaS Growth in FY25
FLAGSHIP ORGANIC CUSTOMER SaaS GROWTH IN FY25 Significant wallet share increases with our largest customers driven by expansion and cross-sell Fortune 500 Fortune 500 Large Multinational Global Fortune 500 Energy Provider Mining Company Services Organization Energy Provider Construction Company $600
Slide 13: 600+ Mid Market and Enterprise New Logo Organic Growth
600+ MID MARKET AND ENTERPRISE NEW LOGO ORGANIC GROWTH Global momentum built through enhanced portfolio, post-business combinations and sales team upgrade National Passenger Leading Fortune 500 Fortune 500 Two International Vehicle Transport Provider Engineering Company Manufacturing Leader Food & B
Slide 14: Proven Traction in High Quality Segments in FY25
PROVEN TRACTION IN HIGH QUALITY SEGMENTS IN FY25 Accelerated double-digit growth in key strategic solution sets of AI video and in-warehouse safety, supported by 13% growth in international operations 96% 71% 52% Increase in Cross-Sell & Growth of In-Warehouse Safety Solution Largest US Partner Expa
Slide 15: Customer Retention Improving with Path to Best in Class
CUSTOMER RETENTION IMPROVING WITH PATH TO BEST IN CLASS Following proactive or expected churn at point of acquisitions of MiX and Fleet Complete, we have now achieved 3 consecutive quarters of retention improvement Retention Strong Focus on Customer Stickiness Improving Customer Success Through Unit
Slide 16: Customer Strategic Benefit and Tangible Returns
CUSTOMER STRATEGIC BENEFIT AND TANGIBLE RETURNS $500K “Powerfleet ensures customer stickiness “We chose their solution because they had the across our base, especially with the addition of best sales team, and their overall performance advanced AI video solution options. Our 130% has been excellent.
Slide 17: Powerfleet Unity Awarded Best Solution Portfolio in the Industry
Unparalleled breadth, depth, and quality of product portfolio, driven by AI data-led best- in-class solutions. 2025 POWERFLEET INNOVATION RANKING UNITY AWARDED BEST SOLUTION 1 POWERFLEET 6 PLATFORM SCIENCE PORTFOLIO IN 2 GEOTAB 7 SOLERA THE INDUSTRY 3 SAMSARA 8 FORD PRO VERIZON 4 9 ZONAR CONNECT “Po
Slide 18: Q4FY25 Quarter Highlights
Q4FY25 QUARTER HIGHLIGHTS © POWERRFLEET®
Slide 19: Q4FY25 Financial Highlights
Q4FY25 FINANCIAL HIGHLIGHTS Success of Business Transformation Evident in Results vs. Pro Forma FY’24 Comparatives 40%+ 62% +80% increase in total revenue to increase in adjusted gross profit increase in adjusted EBITDA to $104M to $63M to $20M 49% increase in service revenue, now 7% $229M 79% incre
Slide 20: Land and Expand Highlights Q4FY25
LAND AND EXPAND HIGHLIGHTS Q4FY25 Cross-sell and new logo momentum driving wins, key solution organic growth and improved pipeline build 9 Diverse Sectors Contributed Marquee 150+ 51% 120%+ New customers added Of sales revenue signed was in- Increase in cross-sell in- Wins >$100K ARR warehouse and A
Slide 21: EverDriven Expands AI Video Safety Partnership with Powerfleet
“Our exclusive partnership with Powerfleet and the implementation of AI video technology marks a significant advancement in our safety protocols. The AI-powered capabilities have already proven EVERDRIVEN EXPANDS to enhance driver performance, provide peace of AI VIDEO SAFETY PARTNERSHIP mind, and,
Slide 22: Propelling Sales Growth in FY26
PROPELLING SALES GROWTH IN FY26
Slide 23: Key Market Drivers Are Evolving Fast
KEY MARKET DRIVERS ARE EVOLVING FAST THE GROWING COST OF DATA FRAGMENTATION Vendor sprawl, wasted hours, and missed opportunities are symptoms of a deeper disconnect. SAFETY HAS BECOME A STRATEGIC IMPERATIVE OPERATIONAL RESILIENCE CAN’T WAIT As operational risk accelerates, organizations can no long
Slide 24: The Sales Pipeline Is Accelerating in Q1
THE SALES PIPELINE IS ACCELERATING IN Q1 Data Highway In-Warehouse AI Video Several major existing customers signed 3 Fortune 500 companies Customer adoption up 2% quarter-on- in Q1, adding more references added to FY26 pipeline last quarter quarter, generating more references Data Highway pipeline
Slide 25: Differentiated Unity Solutions Driving Sales Growth
DIFFERENTIATED UNITY SOLUTIONS DRIVING SALES GROWTH Data Highway In-Warehouse AI Video Fortune 500 automotive leader unifies TELUS launches on 15 May Secured EverDriven, leading US student compliance processes and builds pipeline rapidly transporter Top international mobility provider Top Fortune 50
Slide 26: Telco Channel Momentum and Opportunity Is Rapidly Growing
TELCO CHANNEL MOMENTUM AND OPPORTUNITY IS RAPIDLY GROWING In-Warehouse launched in TELUS Enterprise pre-launch deals with AT&T are in motion Another large North American Telco readying launch European giant signs up and prepares to launch COMING SOON • North American partnership agreement • AI video
Slide 27: TELUS Launches In-Warehouse Solutions and Builds Pipeline in Q1
“Our commercial channels are buzzing with excitement about the in-warehouse vehicle solutions, and for good reason. This offering TELUS LAUNCHES IN- enhances worker safety and operational WAREHOUSE SOLUTIONS AND efficiencies, while revolutionizing asset management practices. The strong momentum BUIL
Slide 28: Unity Ecosystem Is Growing Every Day
UNITY ECOSYSTEM IS GROWING EVERY DAY The complete single system of record, on-road & on-site, for safety, resilience, efficiency & compliance, solving for the maturing market’s key drivers AGNOSTIC & HARMONIZED INTEGRATION OF COMPLETE IN-WAREHOUSE APPS AI VIDEO APPS DATA INGESTION DATA SETS DATA 30%
Slide 29: Mission Critical Single Pane of Glass FY26 H1 Momentum
MISSION CRITICAL SINGLE PANE OF GLASS FY26 H1 MOMENTUM World-leading companies adopting Unity’s single system of record value proposition to solve data fragmentation & multi-vendor pains Fortune 500 Top 3 US Top Multi-Service Fortune 500 Top Food & Beverage Energy Sector Operator Freight Brokerage P
Slide 30: FY25 & Q4 Financial Results, Expectations for FY26
FY25 & Q4 FINANCIAL RESULTS EXPECTATIONS FOR FY26
Slide 31: Q4FY25 Financial Highlights
Q4FY25 FINANCIAL HIGHLIGHTS Success of business transformation evident in results vs. pro forma FY’24 comparatives 40%+ 62% +80% increase in total revenue to increase in adjusted gross profit increase in adjusted EBITDA to $104M to $63M to $20M 49% increase in service revenue, now 7% $229M 79% incre
Slide 32: AIOT: A Rapidly Evolving Business
AIOT: A RAPIDLY EVOLVING BUSINESS Two transformative M&A Deals in FY25 - the right strategy married with critical scale; positioned to thrive Revenue EBITDA Expected to increase 3X from FY24 to FY26 Expected to increase 15X from FY24 to FY26 ~$430M ~$105M 362.5 152 287 71 36 43 135 7 FY'24 MiX FY'25
Slide 33: Accelerating Growth in H2 FY26: Negotiating Macroeconomic Headwinds
ACCELERATING GROWTH IN H2 FY26: NEGOTIATING MACROECONOMIC HEADWINDS Targeting 10% organic growth run Targeting +20% growth in FY26 Accelerating growth in H2 rate exiting Q4 FY26 +20% Growth ~ 25 ~$(10M) 55 ~$430M -5 $362M -5 $352M FY'25 USGAAP Change Shut non-core FY'25 revenue base Fleet Complete O
Slide 34: AEBITDA: A Clear Pathway to Achieving ~50% Growth in FY26
AEBITDA: A CLEAR PATHWAY TO ACHIEVING ~50% GROWTH IN FY26 AEBITDA is projected to increase by $34M in FY’26 with $28M underpinned by run rate gains and cost synergy realization $17M is banked through realized cost $11M contribution from in year cost Residual ~$6M contribution is highly synergies exi
Slide 35: Cost Synergies the Major Driver of Near-Term EBITDA Margin Expansion
REALIZATION OF COST SYNERGIES IS THE MAJOR DRIVER OF NEAR-TERM EBITDA MARGIN EXPANSION On course to realize The flow through of cost synergy realization to EBITDA margin $34M in annual cost synergies expansion is clear by the end of FY26 Cumulative Annual Cost Synergy Realization EBITDA Margins by P
Slide 36: Key Pro Forma AEBITDA Expense to Revenue Ratios
KEY PRO FORMA AEBTIDA EXPENSE TO REVENUE RATIOS Presented E:Rs exclude depreciation, amortization, stock-based compensation and one time transaction, restructuring and integration costs AEBITDA Gross Margin AEBITDA Opex E:Rs 67% 29% 66% 27% 24% 16% 17% 64% 12% 7% 8% 8% G&A S&M R&D 1H'25 2H'25 FY26 E
Slide 37: Net Debt to EBITDA Ratio: Targeting a Full Turn Improvement in FY26
NET DEBT TO EBITDA RATIO: TARGETING A FULL TURN IMPROVEMENT IN FY26 Adjusted Net Debt will increase by Net debt is forecast to improve by Guiding Net Debt to EBITDA to improve ~$20M in 1H’26 with up front investments ~$30M in 2H’26 with a sharp decline in from ~3.25 times at year end FY25 to in syne
Slide 38: FY26 Reduction in Adjusted Net Debt
FY26 REDUCTION IN ADJUSTED NET DEBT Capex runs at ~11.5% of revenue Interest expense based on an effective rate of ~9% One time cost synergies set at ~50 cents for Elevated by ~2% from one-time investment in each $1 of annuity cost savings back-office systems and the impact of tariffs Cash taxes ~10
Slide 39: Continuous Operational Improvement in FY26
CONTINUOUS OPERATIONAL IMPROVEMENT IN FY26 H1 highlights: execution ahead of schedule H2 focus: commercial expansion and operational leverage Go to Market & Commercial Alignment Organizational Alignment & Efficiency Platform and Product Scale Advance organizational integration to continue to Onbo
Slide 40: FY26: On Track to Deliver $18M in Annualized Savings
FY26: ON TRACK TO DELIVER $18M IN ANNUALIZED SAVINGS. MORE THAN 50% OF ANNUALIZED TARGET WAS ACTIONED IN Q1 . GLOBAL ORGANIZATION STRUCTURE $6M Implement lean global org structure focused on high performance $6.5M execution Streamlined decision-making and simplification of operating model $6M target
Slide 41: Powerfleet: A Strong Investment Opportunity
POWERFLEET: A STRONG INVESTMENT OPPORTUNITY
Slide 42: A Strong Investment Opportunity
A STRONG INVESTMENT OPPORTUNITY Tangible and demonstrable execution of ambitious strategic plan with multiplying customer proof 1 points of future business success potential 2 Now scaled, with the differentiated and disruptive solution set & strategy to win in a high growth market 3 Clear line of si
Slide 43: Thank You Q&A
THANK YOU Q POWERQFLEET® People Powered AloT