AIOT Stock Forecast & Price Target

PowerFleet Inc. has demonstrated substantial financial growth, with total revenue increasing by 45% to $106 million in Q3/25, driven predominantly by a 45% rise in service revenue, which now constitutes 77% of total revenue. The company also reported a significant expansion in its margins, with consolidated adjusted gross margin rising by 480 basis points to 60.3%, and adjusted Service gross margin improving by 440 basis points to 69.3%. Additionally, adjusted EBITDA surged by 77% to $22.5 million, highlighting the company’s strong operational efficiencies and robust business model in the Internet-of-Things sector.

PowerFleet Inc. is facing significant challenges that cast a negative outlook on its stock, particularly with its high adjusted SG&A expenses accounting for 45.8% of revenue, despite a slight decrease from the previous year. The company has reported substantial losses and a large accumulated deficit, highlighting the ongoing struggle for consistent profitability, which could be adversely impacted by an economic downturn leading to decreased demand for fleet management services. Furthermore, competitive pressures on pricing and margins threaten the company’s ability to maintain its market share, exacerbating its financial performance challenges.