AIOT Stock Forecast & Price Target

PowerFleet Inc has demonstrated a solid financial performance, evidenced by a notable year-over-year increase in consolidated gross margin of 168 basis points, reaching 54.25%, primarily propelled by an 83 basis point rise in services gross margin to 60.2%. The company has also achieved a significant milestone with a 14% sequential increase in new customer logos, indicating strong demand from both enterprise and mid-market customers. Furthermore, the adjusted EBITDA surged by 58% year-over-year to $21.6 million, accompanied by a 257 basis point improvement in adjusted EBITDA margin, which now stands at 20.78%, reflecting enhanced operational efficiency.

PowerFleet's stock outlook appears negative due to the company's stagnant net debt, which increased slightly from $229 million at the end of Q4/25 to $232 million at the most recent quarter. Furthermore, while the net leverage ratio improved to 2.97x from 3.25x, it remains above the targeted ratio of less than 2.25x by FY/26, indicating continued leverage concerns. These financial metrics suggest challenges in reducing debt levels and achieving operational efficiency, which may impact investor confidence moving forward.