AIOT Stock Forecast & Price Target

PowerFleet Inc. demonstrated a robust financial performance in Q3 2025, evidenced by a total revenue increase of 45% to $106 million, with service revenue accounting for 77% of the total. The adjusted EBITDA saw a significant rise of 77% to $22.5 million, while adjusted gross profit rose 57% to $64.2 million, reflecting strong operational efficiency. Additionally, the consolidated adjusted gross margin improved by 480 basis points to 60.3%, highlighting the company’s ability to effectively enhance its profitability through both product and service offerings.

PowerFleet Inc. is experiencing significant challenges in achieving consistent profitability, with SG&A expenses comprising 45.8% of revenue despite a slight reduction from the prior year's 46.2%. The company is facing a substantial accumulated deficit and the threat of economic downturns which could diminish demand for its fleet management services, thereby adversely impacting its financial performance. Furthermore, increasing competitive pressures may limit PowerFleet's ability to maintain pricing and margins, further complicating its financial outlook and potentially leading to market share losses.