Powerfleet Reports Second Quarter 2025 Financial Results

About this update from Powerfleet, Inc.

Q2 FY25 revenue up 7%, to $77.0 million , and Adjusted EBITDA up 41%, to $14.5 million year-over-year, demonstrating continued strong execution of the immediate business objectives post-MiX combination. First half FY25 results exceeded expectations with revenue up 9%, to $152.4 million and Adjusted EBITDA up 46% year-over -year, to $28.2 million . 50% of the planned two-year annualized cost synergy target of $27 million secured within 6 months of the close of the MiX combination. WOODCLIFF LAKE, N.J. , Nov. 12, 2024 /PRNewswire/ -- Powerfleet, Inc. (Nasdaq: AIOT) reported its financial results for the second quarter ended September 30, 2024 . This marks the second full quarter following the closing of the business combination with MiX Telematics Ltd. with the prior year comparison numbers adjusted to reflect the pro forma financial performance of the combined businesses. SECOND QUARTER 2025 FINANCIAL HIGHLIGHTS Total revenue was $77.0 million , up 7% year-over-year, driven by the continued strength of our Unity safety solutions. Product revenue rose by 13% year-over-year to $20.3 million , with adjusted gross margins expanding by 3% sequentially to 35%, exceeding current guidance of +30%. Service revenue growth of 5% was in line with annual revenue guidance, reaching $56.7 million , with adjusted gross margins expanding by 1.0% to 63.7% versus the prior year. Realized $13.5 million in annual cost synergies within the first six months of the MiX combination, achieving 50% of the two-year $27 million target. Cost synergies are the major driver of reduction in adjusted operating expenses, which declined by over 5% to $36.9 million versus the prior year. Adjusted EBITDA, a non-GAAP metric, increased by 41% to $14.5 million versus the prior year, benefiting from the flow through of expanded gross profit and the realization of cost synergies. FIRST HALF 2025 FINANCIAL HIGHLIGHTS Total revenue was $152.4 million , up 9% year-over-year, running ahead of annual guidance and reflecting strong execution in the first six months following the close of the MiX combination. Gross profit, after adjusting for the amortization of acquisition-related intangibles and other integration expenses, increased by $6.4 million , or 8% versus the prior year. Adjusted EBITDA, a non-GAAP metric, increased by $8.9 million , or 46%, to $28.2 million versus the prior year, driven by increased gross margin from higher sales and the benefits of cost synergies. MANAGEMENT COMMENTARY "Just six months into the MiX combination, we're already seeing the integration gain strong momentum, setting the foundation for us to fully capitalize on the additional strategic opportunities offered by the Fleet Complete acquisition," said CEO Steve Towe . "In the first half of fiscal 2025, we reported revenue of $152 million—up 9% from last year—and a 46% increase in adjusted EBITDA to $28.2 million . We have already secured $13.5 million in annual run-rate cost synergies, achieving 50% of our two-year $27 million target from the MiX combination within 6 months." "We are energized by the expanded opportunities gained through the Fleet Complete acquisition. Our strategic direction is sharply focused on three key priorities: maximizing efficiency to accelerate adjusted EBITDA growth, driving towards accelerated top-line revenue expansion, and enhancing customer retention. These priorities serve as the foundation for how we align our resources, empower our teams, and execute initiatives for maximum impact." "On the revenue front, we're driving the adoption of our Unity platform, in-warehouse solutions, and AI camera offerings to meet growing demand across North America , Europe , and beyond. Leveraging the Fleet Complete North American channel relationships, we expect accelerated growth beginning in FY2026, as well as global traction for their mid-market products and differentiated AI camera solutions. These initiatives underscore our strategy to capture high-demand markets while deepening customer engagement and expanding wallet share with highly sticky integrated solutions." SECOND QUARTER 2025 FINANCIAL RESULTS Total revenue for the quarter increased by 7% year-over-year to $77.0 million , up from $72.0 million in the same period of the prior year. This growth was largely driven by the continued success of our differentiated safety-centric product solutions, with product revenue, a leading indicator, increasing 13% to $20.3 million . Service revenue grew by 5% year-over-year to $56.7 million , aligning with our annual guidance and demonstrating the resilience of our broad offerings and global portfolio, which more than offset the previously disclosed expected churn in the legacy MiX customer base. Combined gross margin of 53.7% reflects a $1.2 million non-cash amortization expense related to acquisition-related intangibles from the MiX combination, along with $0.7 million in inventory write-offs due to integration efforts to streamline product offerings. Excluding these expenses, adjusted gross margin was 56.1%, in both the current and prior year. Operating expenses for the quarter totaled $40.8 million , including $3.9 million in one-time transaction and restructuring costs, versus the prior year of $41.0 million , which included $2.0 million in one-time costs. On an adjusted basis, total operating expenses were down by 5% annually, reflecting the success of our cost synergy program, which secured $13.5 million in annual savings through the end of September. We reported a net loss attributable to common stockholders of $1.9 million , or $(0.02) per share, compared to $(0.06) in the prior year. However, after adjusting for one-time expenses and the amortization of acquisition-related intangibles, adjusted earnings per basic share was $0.02 for the current year versus a loss of $(0.01) in the prior period. Adjusted EBITDA increased by 41% to $14.5 million from $10.3 million in the previous year. This growth was driven by strong top-line performance, resulting in a $2.9 million increase in gross margin after accounting for the impact of the amortization of acquisition-related intangibles plus the flow through benefits of cost synergies. Excluding $62 million in proceeds from the private placement related to the Fleet Complete acquisition, we ended the quarter with net debt of $119 million . Adjusting for $1.9 million in unsettled transaction costs, pro forma net debt stood at $121 million , versus $110 million at the close of the MiX combination. The $11 million increase in pro forma net debt was primarily driven by an increase in net working capital of $8.2 million that is directly attributable to higher net receivables following strong top-line performance. FULL-YEAR 2025 FINANCIAL OUTLOOK We are reaffirming our guidance from the October 2 nd fireside chat. Capturing six months of Fleet Complete's financial performance, full-year 2025 revenue is expected to exceed $352.5 million . Adjusted EBITDA is anticipated to exceed $72.5 million , inclusive of an incremental $5 million in secured exit run-rate cost synergies. This guidance reflects Fleet Complete's pre-acquisition accounting treatment, which remains subject to review as we work to conform to US GAAP standards. INVESTOR CONFERENCE CALL As previously announced, Powerfleet will hold a conference call on Tuesday, November 12, 2024 , at 8:30 a.m. Eastern time ( 5:30 a.m. Pacific time ) to discuss results for the second quarter fiscal 2025 ended September 30, 2024 . Management will make prepared remarks followed by a question-and-answer session. Date : Tuesday, November 12, 2024 Time : 8:30 a.m. Eastern time ( 5:30 a.m. Pacific time ) Toll Free : 888-506-0062 International : 973-528-0011 Participant Access Code : 216765The conference call will be broadcast simultaneously and available for replay here and via the investor section of the company's website at ir.powerfleet.com . NON-GAAP FINANCIAL MEASURES To supplement its financial statements presented in accordance with Generally Accepted Accounting Principles (GAAP), Powerfleet provides certain non-GAAP measures of financial performance. These non-GAAP measures include adjusted EBITDA, adjusted gross margin, adjusted operating expenses, adjusted earnings per share, net debt and net working capital. Reference to these non-GAAP measures should be considered in addition to results prepared under current accounting standards, but are not a substitute for, or superior to, GAAP results. These non-GAAP measures are provided to enhance investors' overall understanding of Powerfleet's current financial performance. Specifically, Powerfleet believes the non-GAAP measures provide useful information to both management and investors by excluding certain expenses, gains and losses and fluctuations in currency rates that may not be indicative of its core operating results and business outlook. These non-GAAP measures are not measures of financial performance or liquidity under GAAP and, accordingly, should not be considered as an alternative to net income, gross margin, cash flow from operating activities or earnings per share as an indicator of operating performance or liquidity. Because Powerfleet's method for calculating the non-GAAP measures may differ from other companies' methods, the non-GAAP measures may not be comparable to similarly titled measures reported by other companies. Reconciliation of all non-GAAP measures included in this press release to the most directly comparable GAAP measures can be found in the financial tables included in this press release. ABOUT POWERFLEET Powerfleet (Nasdaq: AIOT; JSE: PWR) is a global leader in the artificial intelligence of things (AIoT) software-as-a-service (SaaS) mobile asset industry. With more than 30 years of experience, Powerfleet unifies business operations through the ingestion, harmonization, and integration of data, irrespective of source, and delivers actionable insights to help companies save lives, time, and money. Powerfleet's ethos transcends our data ecosystem and commitment to innovation; our people-centric approach empowers our customers to realize impactful and sustained business improvement. The company is headquartered in New Jersey , United States , with offices around the globe. Explore more at www.powerfleet.com . Powerfleet has a primary listing on The Nasdaq Global Market and a secondary listing on the Main Board of the Johannesburg Stock Exchange (JSE). CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This press release contains forward-looking statements within the meaning of federal securities laws. Powerfleet's actual results may differ from its expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Forward-looking statements may be identified by words such as "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "may," "will," "could," "should," "believes," "predicts," "potential," "continue," and similar expressions. These forward-looking statements include, without limitation, our expectations with respect to its beliefs, plans, goals, objectives, expectations, anticipations, assumptions, estimates, intentions and future performance, as well as anticipated financial impacts of our transactions with MiX Telematics and Fleet Complete. Forward-looking statements involve significant known and unknown risks, uncertainties and other factors, which may cause their actual results, performance or achievements to be materially different from the future results, performance or achievements expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be forward-looking statements. Most of these factors are outside our control and are difficult to predict. The risks and uncertainties referred to above include, but are not limited to, risks related to: (i) future economic and business conditions, including the conflict between Israel and Hamas ; (ii) integration of our, MiX Telematics' and Fleet Complete's businesses and the ability to recognize the anticipated synergies and benefits of the transactions with MiX Telematics and Fleet Complete; (iii) the loss of any of our key customers or reduction in the purchase of our products by any such customers; (iv) the failure of the markets for our products to continue to develop; (v) the negative effects of the transactions on the market price of our securities; (vi) our inability to adequately protect our intellectual property; (vii) our inability to manage growth; (viii) the effects of competition from a wide variety of local, regional, national and other providers of wireless solutions; (ix) failure to make timely filings of our periodic reports with the Securities and Exchange Commission (" SEC ")and (x) such other factors as are set forth in the periodic reports filed by us with the SEC , including but not limited to those described under the heading "Risk Factors" in our annual reports on Form 10-K, quarterly reports on Form 10-Q and any other filings made with the SEC from time to time, which are available via the SEC's website at http://www.sec.gov . Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove to be incorrect, actual results may vary materially from those indicated or anticipated by these forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. The forward-looking statements included in this press release are made only as of the date of this press release, and except as otherwise required by applicable securities law, we assume no obligation, nor do we intend to publicly update or revise any forward-looking statements to reflect subsequent events or circumstances. Powerfleet Investor Contacts Carolyn Capaccio and Jody Burfening LHA Investor Relations [email protected] Powerfleet Media Contact Jonathan Bates [email protected] +44 121 717-5360 POWERFLEET, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) Three Months Ended September 30 , Six Months Ended September 30 , 2023 2024 2023 2024 Pro FormaCombined Consolidated Pro Forma Combined Consolidated Revenues: Products $ 17,947 $ 20,293 $ 32,470 $ 39,031 Services 54,057 56,725 107,977 113,417 Total revenues 72,004 77,018 140,447 152,448 Cost of revenues: Cost of products 11,454 13,929 22,385 26,680 Cost of services 20,169 21,746 38,550 44,777 Total cost of revenues 31,623 35,675 60,935 71,457 Gross profit 40,381 41,343 79,512 80,991 Operating expenses: Selling, general and administrative expenses 36,941 37,335 71,516 92,117 Research and development expenses 4,062 3,435 7,626 6,536 Total operating expenses 41,003 40,770 79,142 98,653 (Loss)/profit from operations (622) 573 370 (17,662) Interest income 221 168 512 472 Interest expense (693) (4,042) (1,367) (6,733) Bargain purchase - Movingdots — — 283 — Other income/(expense), net 385 1,674 (324) 1,050 Net loss before income taxes (709) (1,627) (526) (22,873) Income tax expense (2,591) (256) (4,427) (1,309) Net loss before non-controlling interest (3,300) (1,883) (4,953) (24,182) Non-controlling interest — (5) (6) (18) Net loss (3,300) (1,888) (4,959) (24,200) Accretion of preferred stock (1,834) — (3,606) — Preferred stock dividend (1,128) — (2,257) (25) Net loss attributable to common stockholders $ (6,262) $ (1,888) $ (10,822) $ (24,225) Net loss per share attributable to common stockholders - basic and diluted $ (0.06) $ (0.02) $ (0.10) $ (0.23) Weighted average common shares outstanding - basic and diluted 106,360 107,532 106,333 107,335 POWERFLEET, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except per share data) March 31, 2024 September 30, 2024 Pro Forma Combined Consolidated ASSETS Current assets: Cash and cash equivalents $ 51,091 $ 25,962 Restricted cash 86,104 63,074 Accounts receivables, net 55,008 64,819 Inventory, net 25,800 23,488 Deferred costs - current 42 13 Prepaid expenses and other current assets 17,784 17,985 Total current assets 235,829 195,341 Fixed assets, net 48,306 51,928 Goodwill 121,713 300,283 Intangible assets, net 40,444 167,320 Right-of-use asset 11,222 9,402 Severance payable fund 3,796 3,864 Deferred tax asset 3,874 3,602 Other assets 19,090 16,595 Total assets $ 484,274 $ 748,335 LIABILITIES Current liabilities: Short-term bank debt and current maturities of long-term debt $ 22,109 $ 35,339 Accounts payable and accrued expenses 60,763 66,098 Deferred revenue - current 12,236 10,447 Lease liability - current 2,648 2,248 Total current liabilities 97,756 114,132 Long-term debt - less current maturities 113,810 111,011 Deferred revenue - less current portion 4,892 4,674 Lease liability - less current portion 8,773 7,713 Accrued severance payable 4,597 4,677 Deferred tax liability 18,669 52,113 Other long-term liabilities 2,980 2,905 Total liabilities 251,477 297,225 Convertible redeemable preferred stock: Series A 90,273 — STOCKHOLDERS' EQUITY Preferred stock — — Common stock 63,842 1,096 Additional paid-in capital 200,218 641,736 Accumulated deficit (78,516) (178,996) Accumulated other comprehensive loss (17,133) (1,364) Treasury stock (25,997) (11,518) Total stockholders' equity 142,414 450,954 Non-controlling interest 110 156 Total equity 142,524 451,110 Total liabilities, convertible redeemable preferred stock, and stockholders' equity $ 484,274 $ 748,335 POWERFLEET, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) Six Months Ended September 30 , 2023 2024 Pro Forma Combined Consolidated Cash flows from operating activities Net loss $ (4,959) $ (24,200) Adjustments to reconcile net loss to cash (used in)/provided by operating activities: Non-controlling interest 6 18 Gain on bargain purchase (283) — Inventory reserve 650 904 Stock based compensation expense 2,518 7,300 Depreciation and amortization 13,577 19,399 Right-of-use assets, non-cash lease expense 1,242 1,515 Derivative mark-to-market adjustment — (2,197) Bad debts expense 3,235 4,369 Deferred income taxes 3,268 (283) Shares issued for transaction bonuses — 889 Lease termination and modification losses — 184 Other non-cash items 2,613 1,522 Changes in operating assets and liabilities: Accounts receivables (9,404) (12,553) Inventories (1,558) 955 Prepaid expenses and other current assets 47 (3,009) Deferred costs (4,105) (3,619) Deferred revenue 222 (99) Accounts payable and accrued expenses 5,453 (71) Lease liabilities (1,247) (1,856) Accrued severance payable, net 91 40 Net cash provided by/(used in) operating activities 11,366 (10,792) Cash flows from investing activities: Acquisition, net of cash assumed — 27,531 Proceeds from sale of fixed assets — 217 Capitalized software development costs (4,964) (4,676) Capital expenditures (9,866) (10,454) Deferred consideration paid (267) — Repayment of loan advanced to external parties — 294 Net cash (used in)/provided by investing activities (15,097) 12,912 Cash flows from financing activities: Repayment of long-term debt (2,656) (978) Short-term bank debt, net 7,328 9,955 Purchase of treasury stock upon vesting of restricted stock (640) (2,836) Payment of preferred stock dividend and redemption of preferred stock (2,257) (90,298) Proceeds from private placement, net — 61,851 Proceeds from exercise of stock options, net 36 — Cash paid on dividends to affiliates (2,673) (6) Net cash used in financing activities (862) (22,312) Effect of foreign exchange rate changes on cash and cash equivalents (1,331) (436) Net decrease in cash and cash equivalents, and restricted cash (5,924) (20,628) Cash and cash equivalents, and restricted cash at beginning of the period 55,746 109,664 Cash and cash equivalents, and restricted cash at end of the period $ 49,822 $ 89,036 Reconciliation of cash, cash equivalents, and restricted cash, beginning of the period Cash and cash equivalents 54,656 24,354 Restricted cash 1,090 85,310 Cash, cash equivalents, and restricted cash, beginning of the period $ 55,746 $ 109,664 Reconciliation of cash, cash equivalents, and restricted cash, end of the period Cash and cash equivalents 48,757 25,962 Restricted cash 1,065 63,074 Cash, cash equivalents, and restricted cash, end of the period $ 49,822 $ 89,036 Supplemental disclosure of cash flow information: Cash paid for: Taxes $ 1,270 $ 774 Interest $ 875 $ 6,262 Noncash investing and financing activities: Common stock issued for transaction bonus $ — $ 9 Shares issued in connection with MiX Combination $ — $ 362,005 POWERFLEET, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO ADJUSTED EBITDA FINANCIAL MEASURES (In thousands) Three Months Ended September 30 , Six Months Ended September 30 , 2023 2024 2023 2024 Pro Forma Combined Consolidated Pro Forma Combined Consolidated Net loss attributable to common stockholders $ (6,262) $ (1,888) $ (10,822) $ (24,225) Non-controlling interest — 5 6 18 Preferred stock dividend and accretion 2,962 — 5,863 25 Interest expense, net 472 3,345 1,162 6,261 Income tax expense 2,591 256 4,427 1,309 Depreciation and amortization 7,243 9,064 13,577 19,399 Stock-based compensation 1,426 1,371 2,518 7,300 Foreign currency losses 74 636 442 745 Restructuring-related expenses 149 1,069 597 2,267 Gain on bargain purchase - Movingdots — — (283) — Derivative mark-to-market adjustment — (2,197) — (2,197) Net profit on fixed assets — — (4) — Contingent consideration remeasurement (514) — (538) — Acquisition related expenses 2,028 1,406 2,251 15,571 Integration-related costs — 1,410 — 1,739 Non-recurring transitional service agreement costs 121 — 121 — Adjusted EBITDA $ 10,290 $ 14,477 $ 19,317 $ 28,212 POWERFLEET, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP NET LOSS FINANCIAL MEASURES (In thousands) Three Months Ended September 30 , Six Months Ended September 30 , 2023 2024 2023 2024 Pro Forma Combined Consolidated Pro Forma Combined Consolidated Net loss $ (3,300) $ (1,888) $ (4,959) $ (24,200) Incremental intangible assets amortization expense as a resultof MiX Telematics business combination — 1,163 — 4,158 Stock-based compensation (non-recurring/accelerated cost) — — — 4,693 Foreign currency losses 74 636 442 745 Income tax effect of net foreign exchange gains/(losses) 109 (1,109) 534 (1,856) Restructuring related expenses 149 1,069 597 2,267 Income tax effect of restructuring costs (2) (21) (7) (124) Acquisition-related expenses 2,028 1,406 2,251 15,571 Integration-related expenses — 1,410 — 1,739 Non-recurring transitional service agreement costs 121 — 121 — Contingent consideration remeasurement (514) — (538) — Income tax effect of contingent consideration remeasurement (5) — — — Non-GAAP net (loss)/profit $ (1,340) $ 2,666 $ (1,559) $ 2,993 Weighted average shares outstanding 106,360 107,532 106,333 107,335 Non-GAAP net (loss)/profit per share - basic $ (0.01) $ 0.02 $ (0.01) $ 0.03 POWERFLEET, INC. AND SUBSIDIARIES ADJUSTED GROSS PROFIT MARGINS (In thousands) Three Months Ended September 30 , Six Months Ended September 30 , 2023 2024 2023 2024 Pro Forma Combined Consolidated Pro Forma Combined Consolidated Revenues: Products $ 17,947 $ 20,293 $ 32,470 $ 39,031 Services 54,057 56,725 107,977 113,417 Total revenues 72,004 77,018 140,447 152,448 Cost of revenues: Cost of products 11,454 13,929 22,385 26,680 Cost of services 20,169 21,746 38,550 44,777 Total cost of revenues 31,623 35,675 60,935 71,457 Gross profit $ 40,381 $ 41,343 $ 79,512 $ 80,991 Product margin 36.2 % 31.4 % 31.1 % 31.6 % Service margin 62.7 % 61.7 % 64.3 % 60.5 % Total gross profit margin 56.1 % 53.7 % 56.6 % 53.1 % Incremental intangible assets amortization expense as a result of MiX Telematics business combination $ — $ 1,163 $ — $ 4,158 Inventory rationalization $ — $ 734 $ — $ 734 Product margin 36.2 % 35.0 % 31.1 % 33.5 % Service margin 62.7 % 63.7 % 64.3 % 64.2 % Adjusted total gross profit margin 56.1 % 56.1 % 56.6 % 56.3 % POWERFLEET, INC. AND SUBSIDIARIES ADJUSTED OPERATING EXPENSES (In thousands) Three Months Ended September 30 , Six Months Ended September 30 , 2023 2024 2023 2024 Pro Forma Combined Consolidated Pro FormaCombined Consolidated Total operating expenses $ 41,003 $ 40,770 $ 79,142 $ 98,653 Adjusted for once-off costs Acquisition-related expenses 2,028 1,406 2,251 15,571 Integration-related costs — 1,410 — 1,739 Stock-based compensation (non-recurring/accelerated cost) — — — 4,693 Restructuring-related expenses 156 1,069 627 2,267 2,184 3,885 2,878 24,270 Adjusted operating expenses $ 38,819 $ 36,885 $ 76,264 $ 74,383 POWERFLEET, INC. AND MiX TELEMATICS CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) Three Months Ended September 30, 2023 Powerfleet Inc. MiX Telematics Adjustments to align disclosure Pro Forma Combined Revenues: Products $ 13,233 $ 5,324 $ (610) $ 17,947 Services 21,010 32,437 610 54,057 Total revenues 34,243 37,761 — 72,004 Cost of revenues: Cost of products 8,842 3,269 (657) 11,454 Cost of services 8,294 11,218 657 20,169 Total cost of revenues 17,136 14,487 — 31,623 Gross profit 17,107 23,274 — 40,381 Operating expenses: Selling, general and administrative expenses 17,778 19,163 — 36,941 Research and development expenses 2,426 1,636 — 4,062 Total operating expenses 20,204 20,799 — 41,003 (Loss)/income from operations (3,097) 2,475 — (622) Interest income 23 198 — 221 Interest expense (154) (539) — (693) Bargain purchase - Movingdots — — — — Other (expense)/income, net (25) 410 — 385 Net (loss)/income before income taxes (3,253) 2,544 — (709) Income tax expense (295) (2,296) — (2,591) Net (loss)/income before non-controlling interest (3,548) 248 — (3,300) Non-controlling interest — — — — Net (loss)/income (3,548) 248 — (3,300) Accretion of preferred stock (1,834) — — (1,834) Preferred stock dividend (1,128) — — (1,128) Net (loss)/income attributable to common stockholders $ (6,510) $ 248 $ — $ (6,262) Net (loss)/income per share attributable to common stockholders - basic and diluted $ (0.18) $ 0.004 $ (0.06) Weighted average common shares outstanding - basic 35,653 70,707 106,360 POWERFLEET, INC. AND MiX TELEMATICS CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) Six Months Ended September 30, 2023 Powerfleet Inc. MiX Telematics Adjustments to align disclosure Pro FormaCombined Revenues: Products $ 24,317 $ 9,464 $ (1,311) $ 32,470 Services 42,018 64,648 1,311 107,977 Total revenues 66,335 74,112 — 140,447 Cost of revenues: Cost of products 17,392 6,294 (1,301) 22,385 Cost of services 15,818 21,431 1,301 38,550 Total cost of revenues 33,210 27,725 — 60,935 Gross profit 33,125 46,387 — 79,512 Operating expenses: Selling, general and administrative expenses 34,976 36,540 — 71,516 Research and development expenses 4,646 2,980 — 7,626 Total operating expenses 39,622 39,520 79,142 79,142 (Loss)/income from operations (6,497) 6,867 — 370 Interest income 45 467 — 512 Interest expense (327) (1,040) — (1,367) Bargain purchase - Movingdots 283 — — 283 Other expense, net (25) (299) — (324) Net (loss)/income before income taxes (6,521) 5,995 — (526) Income tax expense (289) (4,138) — (4,427) Net (loss)/income before non-controlling interest (6,810) 1,857 — (4,953) Non-controlling interest (6) — — (6) Net (loss)/income (6,816) 1,857 — (4,959) Accretion of preferred stock (3,606) — — (3,606) Preferred stock dividend (2,257) — — (2,257) Net (loss)/income attributable to common stockholders $ (12,679) $ 1,857 $ — $ (10,822) Net (loss)/income per share attributable to common stockholders - basic $ (0.36) $ 0.03 $ (0.10) Weighted average common shares outstanding - basic 35,629 70,704 106,333 POWERFLEET, INC. AND MiX TELEMATICS CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except per share data) March 31, 2024 Powerfleet Inc. MiX Telematics Pro FormaCombined ASSETS Current assets: Cash and cash equivalents $ 24,354 $ 26,737 $ 51,091 Restricted cash 85,310 794 86,104 Accounts receivables, net 30,333 24,675 55,008 Inventory, net 21,658 4,142 25,800 Deferred costs - current 42 — 42 Prepaid expenses and other current assets 8,091 9,693 17,784 Total current assets 169,788 66,041 235,829 Fixed assets, net 12,719 35,587 48,306 Goodwill 83,487 38,226 121,713 Intangible assets, net 19,652 20,792 40,444 Right-of-use asset 7,428 3,794 11,222 Severance payable fund 3,796 — 3,796 Deferred tax asset 2,781 1,093 3,874 Other assets 9,029 10,061 19,090 Total assets $ 308,680 $ 175,594 $ 484,274 LIABILITIES Current liabilities: Short-term bank debt and current maturities of long-term debt $ 1,951 $ 20,158 $ 22,109 Accounts payable and accrued expenses 34,008 26,755 60,763 Deferred revenue - current 5,842 6,394 12,236 Lease liability - current 1,789 859 2,648 Total current liabilities 43,590 54,166 97,756 Long-term debt - less current maturities 113,810 — 113,810 Deferred revenue - less current portion 4,892 — 4,892 Lease liability - less current portion 5,921 2,852 8,773 Accrued severance payable 4,597 — 4,597 Deferred tax liability 4,465 14,204 18,669 Other long-term liabilities 2,496 484 2,980 Total liabilities 179,771 71,706 251,477 Convertible redeemable preferred stock: Series A 90,273 — 90,273 STOCKHOLDERS' EQUITY Preferred stock — — — Common stock 387 63,455 63,842 Additional paid-in capital 202,607 (2,389) 200,218 Accumulated deficit (154,796) 76,280 (78,516) Accumulated other comprehensive loss (985) (16,148) (17,133) Treasury stock (8,682) (17,315) (25,997) Total stockholders' equity 38,531 103,883 142,414 Non-controlling interest 105 5 110 Total equity 38,636 103,888 142,524 Total liabilities, convertible redeemable preferred stock, and stockholders' equity $ 308,680 $ 175,594 $ 484,274 POWERFLEET, INC. AND MiX TELEMATICS CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) Six Months Ended September 30, 2023 Powerfleet Inc. MiX Telematics Pro Forma Combined Cash flows from operating activities Net (loss)/income $ (6,816) $ 1,857 $ (4,959) Adjustments to reconcile net (loss)/income to cash (used in)/provided by operating activities: Non-controlling interest 6 — 6 Gain on bargain purchase (283) — (283) Inventory reserve 617 33 650 Stock based compensation expense 1,953 565 2,518 Depreciation and amortization 4,807 8,770 13,577 Right-of-use assets, non-cash lease expense 1,242 — 1,242 Bad debts expense 933 2,302 3,235 Deferred income taxes 285 2,983 3,268 Other non-cash items 126 2,487 2,613 Changes in operating assets and liabilities: Accounts receivables (3,866) (5,538) (9,404) Inventories (2,023) 465 (1,558) Prepaid expenses and other current assets 51 (4) 47 Deferred costs 332 (4,437) (4,105) Deferred revenue 222 — 222 Accounts payable and accrued expenses 1,498 3,955 5,453 Lease liabilities (1,247) — (1,247) Accrued severance payable, net 91 — 91 Net cash (used in)/provided by operating activities (2,072) 13,438 11,366 Cash flows from investing activities: Capitalized software development costs (2,047) (2,917) (4,964) Capital expenditures (1,441) (8,425) (9,866) Deferred consideration paid — (267) (267) Net cash used in investing activities (3,488) (11,609) (15,097) Cash flows from financing activities: Repayment of long-term debt (2,656) — (2,656) Short-term bank debt, net 4,996 2,332 7,328 Purchase of treasury stock upon vesting of restricted stock (94) (546) (640) Payment of preferred stock dividend and redemption of preferred stock (2,257) — (2,257) Proceeds from exercise of stock options, net 36 — 36 Cash paid on dividends to affiliates — (2,673) (2,673) Net cash from/(used in) financing activities 25 (887) (862) Effect of foreign exchange rate changes on cash and cash equivalents 53 (1,384) (1,331) Net decrease in cash and cash equivalents, and restricted cash (5,482) (442) (5,924) Cash and cash equivalents, and restricted cash at beginning of the period 25,089 30,657 55,746 Cash and cash equivalents, and restricted cash at end of the period $ 19,607 $ 30,215 $ 49,822 Reconciliation of cash, cash equivalents, and restrictedcash, beginning of the period Cash and cash equivalents 24,780 29,876 54,656 Restricted cash 309 781 1,090 Cash, cash equivalents, and restricted cash, beginning of the period $ 25,089 $ 30,657 $ 55,746 Reconciliation of cash, cash equivalents, and restrictedcash, end of the period Cash and cash equivalents 19,297 29,460 48,757 Restricted cash 310 755 1,065 Cash, cash equivalents, and restricted cash, end of the period $ 19,607 $ 30,215 $ 49,822 Supplemental disclosure of cash flow information: Cash paid for: Taxes $ 115 $ 1,155 $ 1,270 Interest $ 538 $ 337 $ 875 POWERFLEET, INC. AND MiX TELEMATICS RECONCILIATION OF GAAP TO ADJUSTED EBITDA FINANCIAL MEASURES (In thousands) Three Months Ended September 30, 2023 Powerfleet Inc. MiX Telematics Pro Forma Combined Net (loss)/profit attributable to common stockholders $ (6,510) $ 248 $ (6,262) Non-controlling interest — — — Preferred stock dividend and accretion 2,962 — 2,962 Interest expense, net 131 341 472 Income tax expense 295 2,296 2,591 Depreciation and amortization 2,485 4,758 7,243 Stock-based compensation 1,101 325 1,426 Foreign currency (gains)/losses (49) 123 74 Restructuring-related expenses 142 7 149 Contingent consideration remeasurement — (514) (514) Acquisition related expenses 1,232 796 2,028 Non-recurring transitional service agreement costs — 121 121 Adjusted EBITDA $ 1,789 $ 8,501 $ 10,290 POWERFLEET, INC. AND MiX TELEMATICS RECONCILIATION OF GAAP TO ADJUSTED EBITDA FINANCIAL MEASURES (In thousands) Six Months Ended September 30, 2023 Powerfleet Inc. MiX Telematics Pro Forma Combined Net (loss)/profit attributable to common stockholders $ (12,679) $ 1,857 $ (10,822) Non-controlling interest 6 — 6 Preferred stock dividend and accretion 5,863 — 5,863 Interest expense, net 588 574 1,162 Income tax expense 289 4,138 4,427 Depreciation and amortization 4,807 8,770 13,577 Stock-based compensation 1,953 565 2,518 Foreign currency translation (411) 853 442 Restructuring related expenses 567 30 597 Gain on Bargain purchase - Movingdots (283) — (283) Net profit on fixed assets — (4) (4) Contingent consideration remeasurement — (538) (538) Acquisition related expenses 1,455 796 2,251 Non-recurring transitional service agreement costs — 121 121 Adjusted EBITDA $ 2,155 $ 17,162 $ 19,317 POWERFLEET, INC. AND MiX TELEMATICS RECONCILIATION OF GAAP TO NON-GAAP NET (LOSS)/INCOME FINANCIAL MEASURES (In thousands) Three Months Ended September 30, 2023 Powerfleet Inc. MiX Telematics Pro Forma Combined Net (loss)/income $ (3,548) $ 248 $ (3,300) Foreign currency (gains)/losses (49) 123 74 Income tax effect of net foreign exchange gains/(losses) — 109 109 Restructuring related expenses 142 7 149 Income tax effect of restructuring costs — (2) (2) Acquisition related expenses 1,232 796 2,028 Non-recurring transitional service agreement costs — 121 121 Contingent consideration remeasurement — (514) (514) Income tax effect of contingent consideration remeasurement — (5) (5) Non-GAAP net (loss)/income $ (2,223) $ 883 $ (1,340) Weighted average shares outstanding 35,653 70,707 106,360 Non-GAAP net (loss)/income per share - basic $ (0.06) $ 0.01 $ (0.01) POWERFLEET, INC. AND MiX TELEMATICS RECONCILIATION OF GAAP TO NON-GAAP NET (LOSS)/INCOME FINANCIAL MEASURES (In thousands) Six Months Ended September 30, 2023 Powerfleet Inc. MiX Telematics Pro Forma Combined Net (loss)/income $ (6,816) $ 1,857 $ (4,959) Foreign currency (gains)/losses (411) 853 442 Income tax effect of net foreign exchange gains — 534 534 Restructuring related expenses 567 30 597 Income tax effect of restructuring costs — (7) (7) Acquisition related expenses 1,455 796 2,251 Non-recurring transitional service agreement costs — 121 121 Contingent consideration remeasurement — (538) (538) Non-GAAP net (loss)/income $ (5,205) $ 3,646 $ (1,559) Weighted average shares outstanding 35,629 70,704 106,333 Non-GAAP net (loss)/income per share - basic $ (0.15) $ 0.05 $ (0.01) View original content to download multimedia: https://www.prnewswire.com/news-releases/powerfleet-reports-second-quarter-2025-financial-results-302301670.html SOURCE Powerfleet

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