AIOT Stock Forecast & Price Target

PowerFleet Inc. has demonstrated a robust financial performance in Q3/25, with total revenue increasing by 45% to $106 million, driven largely by a 45% rise in service revenue that now accounts for 77% of total income. The company has also seen significant improvements in its profitability metrics, with adjusted EBITDA soaring by 77% to $22.5 million and an adjusted gross profit rising 57% to $64.2 million, reflecting strong operational efficiencies. Furthermore, the expansion of consolidated adjusted gross margin by 480 basis points to 60.3% and notable growth in both service and product gross margins underscore the effectiveness of PowerFleet's IoT solutions in enhancing business intelligence and operational capabilities across organizations.

PowerFleet Inc. has been struggling to achieve consistent profitability, with significant accumulated losses that pose a risk to its financial stability. The company faces a challenging economic environment, which may lead to decreased demand for its fleet management services and negatively impact overall performance. Additionally, competitive pressures threaten pricing and margins, further complicating efforts to maintain market share and profitability.