AIOT Stock Forecast & Price Target

PowerFleet Inc. has demonstrated significant financial improvement, with a consolidated gross margin increase of 168 basis points year-over-year to 54.25%, supported by a notable rise in services gross margin to 60.2%. The company has successfully expanded its customer base, achieving a 14% sequential growth in new customer logos among enterprise and mid-market clients. Additionally, PowerFleet reported an adjusted EBITDA of $21.6 million, reflecting a 58% year-over-year increase and a 257 basis points enhancement in adjusted EBITDA margin to 20.78%.

PowerFleet Inc. is targeting a net leverage ratio of less than 2.25x by the end of FY/26, indicating efforts to improve its financial leverage position. Despite this target, the company reported an increase in net debt from $229 million in Q4/25 to $232 million at the quarter’s end, which raises concerns about its ability to manage debt levels effectively. Additionally, while the net leverage ratio has decreased from 3.25x to 2.97x, it remains above the targeted threshold, suggesting ongoing challenges in financial stability and risk management.