Powerfleet Reports Second Quarter 2025 Financial Results

PR Newswire11-12

Q2 FY25 revenue up 7%, to $77.0 million, and Adjusted EBITDA up 41%, to $14.5 million year-over-year, demonstrating continued strong execution of the immediate business objectives post-MiX combination...

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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nPowerfleet Reports Second Quarter 2025 Financial Results\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-12 20:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/powerfleet-reports-second-quarter-2025-120000689.html><strong>PR Newswire</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Q2 FY25 revenue up 7%, to $77.0 million, and Adjusted EBITDA up 41%, to $14.5 million year-over-year, demonstrating continued strong execution of the immediate business objectives post-MiX combination...</p>\n\n<a href=\"https://finance.yahoo.com/news/powerfleet-reports-second-quarter-2025-120000689.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"AIOT","symbol_name":"PowerFleet, Inc.","start_time":0,"source_url":"https://finance.yahoo.com/news/powerfleet-reports-second-quarter-2025-120000689.html","article_id":"2482770896","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/DpSlDM_lk0JMp391wbl6vA--~B/aD04NDt3PTQwMDthcHBpZD15dGFjaHlvbg--/https://media.zenfs.com/en/prnewswire.com/fa96e755ef9aeef4dd6d72905ad3d5b7"],"rights":{"source":"yahoofinance","url":"https://finance.yahoo.com/news/powerfleet-reports-second-quarter-2025-120000689.html","rn_cache_url":null,"customStyle":"img, svg { display: none !important; }","selectors":"article","filters":"","directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2482770896","pubTimestamp":1731412800,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Q2 FY25 revenue up 7%, to $77.0 million, and Adjusted EBITDA up 41%, to $14.5 million year-over-year, demonstrating continued strong execution of the immediate business objectivespost-MiX combination.First half FY25 results exceeded expectations with revenue up 9%, to $152.4 million and Adjusted EBITDA up 46% year-over -year, to $28.2 million.50% of the planned two-year annualized cost synergy target of $27 million secured within 6 months of the close of the MiX combination.WOODCLIFF LAKE, N.J., Nov. 12, 2024 /PRNewswire/ --Powerfleet, Inc.reported its financial results for the second quarter ended September 30, 2024. This marks the second full quarter following the closing of the business combination with MiX Telematics Ltd. with the prior year comparison numbers adjusted to reflect the pro forma financial performance of the combined businesses.Product revenue rose by 13% year-over-year to $20.3 million, with adjusted gross margins expanding by 3% sequentially to 35%, exceeding curren","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"AIOT":"PowerFleet, Inc.","BK4157":"电子设备和仪器"},"translate_title":"Powerfleet报告2025年第二季度财务业绩","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"AIOT":0.9},"content_text":"Q2 FY25 revenue up 7%, to $77.0 million, and Adjusted EBITDA up 41%, to $14.5 million year-over-year, demonstrating continued strong execution of the immediate business objectives post-MiX combination.\nFirst half FY25 results exceeded expectations with revenue up 9%, to $152.4 million and Adjusted EBITDA up 46% year-over -year, to $28.2 million.\n 50% of the planned two-year annualized cost synergy target of $27 million secured within 6 months of the close of the MiX combination.\nWOODCLIFF LAKE, N.J., Nov. 12, 2024 /PRNewswire/ -- Powerfleet, Inc. (Nasdaq: AIOT) reported its financial results for the second quarter ended September 30, 2024. This marks the second full quarter following the closing of the business combination with MiX Telematics Ltd. with the prior year comparison numbers adjusted to reflect the pro forma financial performance of the combined businesses.\n\n  \n\nSECOND QUARTER 2025 FINANCIAL HIGHLIGHTS\n\nTotal revenue was $77.0 million, up 7% year-over-year, driven by the continued strength of our Unity safety solutions.\nProduct revenue rose by 13% year-over-year to $20.3 million, with adjusted gross margins expanding by 3% sequentially to 35%, exceeding current guidance of +30%.\nService revenue growth of 5% was in line with annual revenue guidance, reaching $56.7 million, with adjusted gross margins expanding by 1.0% to 63.7% versus the prior year.\nRealized $13.5 million in annual cost synergies within the first six months of the MiX combination, achieving 50% of the two-year $27 million target. Cost synergies are the major driver of reduction in adjusted operating expenses, which declined by over 5% to $36.9 million versus the prior year.\nAdjusted EBITDA, a non-GAAP metric, increased by 41% to $14.5 million versus the prior year, benefiting from the flow through of expanded gross profit and the realization of cost synergies.\n\nFIRST HALF 2025 FINANCIAL HIGHLIGHTS\n\nTotal revenue was $152.4 million, up 9% year-over-year, running ahead of annual guidance and reflecting strong execution in the first six months following the close of the MiX combination.\nGross profit, after adjusting for the amortization of acquisition-related intangibles and other integration expenses, increased by $6.4 million, or 8% versus the prior year.\nAdjusted EBITDA, a non-GAAP metric, increased by $8.9 million, or 46%, to $28.2 million versus the prior year, driven by increased gross margin from higher sales and the benefits of cost synergies.\n\nMANAGEMENT COMMENTARY\n\"Just six months into the MiX combination, we're already seeing the integration gain strong momentum, setting the foundation for us to fully capitalize on the additional strategic opportunities offered by the Fleet Complete acquisition,\" said CEO Steve Towe.\n\"In the first half of fiscal 2025, we reported revenue of $152 million—up 9% from last year—and a 46% increase in adjusted EBITDA to $28.2 million. We have already secured $13.5 million in annual run-rate cost synergies, achieving 50% of our two-year $27 million target from the MiX combination within 6 months.\"\n\"We are energized by the expanded opportunities gained through the Fleet Complete acquisition. Our strategic direction is sharply focused on three key priorities: maximizing efficiency to accelerate adjusted EBITDA growth, driving towards accelerated top-line revenue expansion, and enhancing customer retention. These priorities serve as the foundation for how we align our resources, empower our teams, and execute initiatives for maximum impact.\"\n\"On the revenue front, we're driving the adoption of our Unity platform, in-warehouse solutions, and AI camera offerings to meet growing demand across North America, Europe, and beyond. Leveraging the Fleet Complete North American channel relationships, we expect accelerated growth beginning in FY2026, as well as global traction for their mid-market products and differentiated AI camera solutions. These initiatives underscore our strategy to capture high-demand markets while deepening customer engagement and expanding wallet share with highly sticky integrated solutions.\"\nSECOND QUARTER 2025 FINANCIAL RESULTS\nTotal revenue for the quarter increased by 7% year-over-year to $77.0 million, up from $72.0 million in the same period of the prior year. This growth was largely driven by the continued success of our differentiated safety-centric product solutions, with product revenue, a leading indicator, increasing 13% to $20.3 million.\nService revenue grew by 5% year-over-year to $56.7 million, aligning with our annual guidance and demonstrating the resilience of our broad offerings and global portfolio, which more than offset the previously disclosed expected churn in the legacy MiX customer base.\nCombined gross margin of 53.7% reflects a $1.2 million non-cash amortization expense related to acquisition-related intangibles from the MiX combination, along with $0.7 million in inventory write-offs due to integration efforts to streamline product offerings. Excluding these expenses, adjusted gross margin was 56.1%, in both the current and prior year.\nOperating expenses for the quarter totaled $40.8 million, including $3.9 million in one-time transaction and restructuring costs, versus the prior year of $41.0 million, which included $2.0 million in one-time costs. On an adjusted basis, total operating expenses were down by 5% annually, reflecting the success of our cost synergy program, which secured $13.5 million in annual savings through the end of September.\nWe reported a net loss attributable to common stockholders of $1.9 million, or $(0.02) per share, compared to $(0.06) in the prior year. However, after adjusting for one-time expenses and the amortization of acquisition-related intangibles, adjusted earnings per basic share was $0.02 for the current year versus a loss of $(0.01) in the prior period.\nAdjusted EBITDA increased by 41% to $14.5 million from $10.3 million in the previous year. This growth was driven by strong top-line performance, resulting in a $2.9 million increase in gross margin after accounting for the impact of the amortization of acquisition-related intangibles plus the flow through benefits of cost synergies.\nExcluding $62 million in proceeds from the private placement related to the Fleet Complete acquisition, we ended the quarter with net debt of $119 million. Adjusting for $1.9 million in unsettled transaction costs, pro forma net debt stood at $121 million, versus $110 million at the close of the MiX combination. The $11 million increase in pro forma net debt was primarily driven by an increase in net working capital of $8.2 million that is directly attributable to higher net receivables following strong top-line performance.\nFULL-YEAR 2025 FINANCIAL OUTLOOK\nWe are reaffirming our guidance from the October 2nd fireside chat. Capturing six months of Fleet Complete's financial performance, full-year 2025 revenue is expected to exceed $352.5 million. Adjusted EBITDA is anticipated to exceed $72.5 million, inclusive of an incremental $5 million in secured exit run-rate cost synergies. This guidance reflects Fleet Complete's pre-acquisition accounting treatment, which remains subject to review as we work to conform to US GAAP standards.\nINVESTOR CONFERENCE CALL\nAs previously announced, Powerfleet will hold a conference call on Tuesday, November 12, 2024, at 8:30 a.m. Eastern time (5:30 a.m. Pacific time) to discuss results for the second quarter fiscal 2025 ended September 30, 2024.\nManagement will make prepared remarks followed by a question-and-answer session.\nDate: Tuesday, November 12, 2024Time: 8:30 a.m. Eastern time (5:30 a.m. Pacific time)Toll Free: 888-506-0062International: 973-528-0011Participant Access Code: 216765The conference call will be broadcast simultaneously and available for replay here and via the investor section of the company's website at ir.powerfleet.com.\nNON-GAAP FINANCIAL MEASURES \nTo supplement its financial statements presented in accordance with Generally Accepted Accounting Principles (GAAP), Powerfleet provides certain non-GAAP measures of financial performance. These non-GAAP measures include adjusted EBITDA, adjusted gross margin, adjusted operating expenses, adjusted earnings per share, net debt and net working capital. Reference to these non-GAAP measures should be considered in addition to results prepared under current accounting standards, but are not a substitute for, or superior to, GAAP results. These non-GAAP measures are provided to enhance investors' overall understanding of Powerfleet's current financial performance. Specifically, Powerfleet believes the non-GAAP measures provide useful information to both management and investors by excluding certain expenses, gains and losses and fluctuations in currency rates that may not be indicative of its core operating results and business outlook. These non-GAAP measures are not measures of financial performance or liquidity under GAAP and, accordingly, should not be considered as an alternative to net income, gross margin, cash flow from operating activities or earnings per share as an indicator of operating performance or liquidity. Because Powerfleet's method for calculating the non-GAAP measures may differ from other companies' methods, the non-GAAP measures may not be comparable to similarly titled measures reported by other companies. Reconciliation of all non-GAAP measures included in this press release to the most directly comparable GAAP measures can be found in the financial tables included in this press release.\nABOUT POWERFLEET\nPowerfleet (Nasdaq: AIOT; JSE: PWR) is a global leader in the artificial intelligence of things (AIoT) software-as-a-service (SaaS) mobile asset industry. With more than 30 years of experience, Powerfleet unifies business operations through the ingestion, harmonization, and integration of data, irrespective of source, and delivers actionable insights to help companies save lives, time, and money. Powerfleet's ethos transcends our data ecosystem and commitment to innovation; our people-centric approach empowers our customers to realize impactful and sustained business improvement. The company is headquartered in New Jersey, United States, with offices around the globe. Explore more at www.powerfleet.com. Powerfleet has a primary listing on The Nasdaq Global Market and a secondary listing on the Main Board of the Johannesburg Stock Exchange (JSE).\nCAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS\nThis press release contains forward-looking statements within the meaning of federal securities laws. Powerfleet's actual results may differ from its expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Forward-looking statements may be identified by words such as \"expect,\" \"estimate,\" \"project,\" \"budget,\" \"forecast,\" \"anticipate,\" \"intend,\" \"plan,\" \"may,\" \"will,\" \"could,\" \"should,\" \"believes,\" \"predicts,\" \"potential,\" \"continue,\" and similar expressions.\nThese forward-looking statements include, without limitation, our expectations with respect to its beliefs, plans, goals, objectives, expectations, anticipations, assumptions, estimates, intentions and future performance, as well as anticipated financial impacts of our transactions with MiX Telematics and Fleet Complete. Forward-looking statements involve significant known and unknown risks, uncertainties and other factors, which may cause their actual results, performance or achievements to be materially different from the future results, performance or achievements expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be forward-looking statements. Most of these factors are outside our control and are difficult to predict. The risks and uncertainties referred to above include, but are not limited to, risks related to: (i) future economic and business conditions, including the conflict between Israel and Hamas; (ii) integration of our, MiX Telematics' and Fleet Complete's businesses and the ability to recognize the anticipated synergies and benefits of the transactions with MiX Telematics and Fleet Complete; (iii) the loss of any of our key customers or reduction in the purchase of our products by any such customers; (iv) the failure of the markets for our products to continue to develop; (v) the negative effects of the transactions on the market price of our securities; (vi) our inability to adequately protect our intellectual property; (vii) our inability to manage growth; (viii) the effects of competition from a wide variety of local, regional, national and other providers of wireless solutions; (ix) failure to make timely filings of our periodic reports with the Securities and Exchange Commission (\"SEC\")and (x) such other factors as are set forth in the periodic reports filed by us with the SEC, including but not limited to those described under the heading \"Risk Factors\" in our annual reports on Form 10-K, quarterly reports on Form 10-Q and any other filings made with the SEC from time to time, which are available via the SEC's website at http://www.sec.gov. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove to be incorrect, actual results may vary materially from those indicated or anticipated by these forward-looking statements. Therefore, you should not rely on any of these forward-looking statements.\nThe forward-looking statements included in this press release are made only as of the date of this press release, and except as otherwise required by applicable securities law, we assume no obligation, nor do we intend to publicly update or revise any forward-looking statements to reflect subsequent events or circumstances.\nPowerfleet Investor ContactsCarolyn Capaccio and Jody BurfeningLHA Investor RelationsAIOTIRTeam@lhai.com\nPowerfleet Media ContactJonathan Batesjonathan.bates@powerfleet.com +44 121 717-5360\n\n\n\n\nPOWERFLEET, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) \n\n\n\n\n\n\nThree Months Ended September 30, \n\nSix Months Ended September 30, \n\n\n\n2023 \n\n2024 \n\n2023 \n\n2024 \n\n\n\nPro FormaCombined \n\nConsolidated \n\nPro Forma Combined \n\nConsolidated \n\n\nRevenues: \n\n\n\n\n\n\n\n\n\nProducts \n$               17,947 \n\n$               20,293 \n\n$               32,470 \n\n$               39,031 \n\n\nServices \n54,057 \n\n56,725 \n\n107,977 \n\n113,417 \n\n\nTotal revenues \n72,004 \n\n77,018 \n\n140,447 \n\n152,448 \n\n\n\n\n\n\n\n\n\n\n\n\nCost of revenues: \n\n\n\n\n\n\n\n\n\nCost of products \n11,454 \n\n13,929 \n\n22,385 \n\n26,680 \n\n\nCost of services \n20,169 \n\n21,746 \n\n38,550 \n\n44,777 \n\n\nTotal cost of revenues \n31,623 \n\n35,675 \n\n60,935 \n\n71,457 \n\n\n\n\n\n\n\n\n\n\n\n\nGross profit \n40,381 \n\n41,343 \n\n79,512 \n\n80,991 \n\n\n\n\n\n\n\n\n\n\n\n\nOperating expenses: \n\n\n\n\n\n\n\n\n\nSelling, general and administrative expenses \n36,941 \n\n37,335 \n\n71,516 \n\n92,117 \n\n\nResearch and development expenses \n4,062 \n\n3,435 \n\n7,626 \n\n6,536 \n\n\nTotal operating expenses \n41,003 \n\n40,770 \n\n79,142 \n\n98,653 \n\n\n\n\n\n\n\n\n\n\n\n\n(Loss)/profit from operations \n(622) \n\n573 \n\n370 \n\n(17,662) \n\n\n\n\n\n\n\n\n\n\n\n\nInterest income \n221 \n\n168 \n\n512 \n\n472 \n\n\nInterest expense \n(693) \n\n(4,042) \n\n(1,367) \n\n(6,733) \n\n\nBargain purchase - Movingdots \n— \n\n— \n\n283 \n\n— \n\n\nOther income/(expense), net \n385 \n\n1,674 \n\n(324) \n\n1,050 \n\n\n\n\n\n\n\n\n\n\n\n\nNet loss before income taxes \n(709) \n\n(1,627) \n\n(526) \n\n(22,873) \n\n\n\n\n\n\n\n\n\n\n\n\nIncome tax expense \n(2,591) \n\n(256) \n\n(4,427) \n\n(1,309) \n\n\n\n\n\n\n\n\n\n\n\n\nNet loss before non-controlling interest \n(3,300) \n\n(1,883) \n\n(4,953) \n\n(24,182) \n\n\nNon-controlling interest \n— \n\n(5) \n\n(6) \n\n(18) \n\n\n\n\n\n\n\n\n\n\n\n\nNet loss \n(3,300) \n\n(1,888) \n\n(4,959) \n\n(24,200) \n\n\n\n\n\n\n\n\n\n\n\n\nAccretion of preferred stock \n(1,834) \n\n— \n\n(3,606) \n\n— \n\n\nPreferred stock dividend \n(1,128) \n\n— \n\n(2,257) \n\n(25) \n\n\n\n\n\n\n\n\n\n\n\n\nNet loss attributable to common stockholders \n$               (6,262) \n\n$               (1,888) \n\n$             (10,822) \n\n$             (24,225) \n\n\n\n\n\n\n\n\n\n\n\n\nNet loss per share attributable to common stockholders - basic and diluted \n$                 (0.06) \n\n$                 (0.02) \n\n$                 (0.10) \n\n$                 (0.23) \n\n\n\n\n\n\n\n\n\n\n\n\nWeighted average common shares outstanding - basic and diluted \n106,360 \n\n107,532 \n\n106,333 \n\n107,335 \n\n\n\n\n\n\n\n\nPOWERFLEET, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except per share data) \n\n\n\n\n\n\n\nMarch 31, 2024 \n\nSeptember 30, 2024 \n\n\n\n\nPro Forma  Combined \n\nConsolidated \n\n\nASSETS \n\n\n\n\n\n\nCurrent assets: \n\n\n\n\n\n\nCash and cash equivalents \n\n$                      51,091 \n\n$                      25,962 \n\n\nRestricted cash \n\n86,104 \n\n63,074 \n\n\nAccounts receivables, net \n\n55,008 \n\n64,819 \n\n\nInventory, net \n\n25,800 \n\n23,488 \n\n\nDeferred costs - current \n\n42 \n\n13 \n\n\nPrepaid expenses and other current assets \n\n17,784 \n\n17,985 \n\n\nTotal current assets \n\n235,829 \n\n195,341 \n\n\nFixed assets, net \n\n48,306 \n\n51,928 \n\n\nGoodwill \n\n121,713 \n\n300,283 \n\n\nIntangible assets, net \n\n40,444 \n\n167,320 \n\n\nRight-of-use asset \n\n11,222 \n\n9,402 \n\n\nSeverance payable fund \n\n3,796 \n\n3,864 \n\n\nDeferred tax asset \n\n3,874 \n\n3,602 \n\n\nOther assets \n\n19,090 \n\n16,595 \n\n\nTotal assets \n\n$                    484,274 \n\n$                    748,335 \n\n\n\n\n\n\n\n\n\nLIABILITIES \n\n\n\n\n\n\nCurrent liabilities: \n\n\n\n\n\n\nShort-term bank debt and current maturities of long-term debt \n\n$                      22,109 \n\n$                      35,339 \n\n\nAccounts payable and accrued expenses \n\n60,763 \n\n66,098 \n\n\nDeferred revenue - current \n\n12,236 \n\n10,447 \n\n\nLease liability - current \n\n2,648 \n\n2,248 \n\n\nTotal current liabilities \n\n97,756 \n\n114,132 \n\n\nLong-term debt - less current maturities \n\n113,810 \n\n111,011 \n\n\nDeferred revenue - less current portion \n\n4,892 \n\n4,674 \n\n\nLease liability - less current portion \n\n8,773 \n\n7,713 \n\n\nAccrued severance payable \n\n4,597 \n\n4,677 \n\n\nDeferred tax liability \n\n18,669 \n\n52,113 \n\n\nOther long-term liabilities \n\n2,980 \n\n2,905 \n\n\nTotal liabilities \n\n251,477 \n\n297,225 \n\n\n\n\n\n\n\n\n\nConvertible redeemable preferred stock: Series A \n\n90,273 \n\n— \n\n\n\n\n\n\n\n\n\nSTOCKHOLDERS' EQUITY \n\n\n\n\n\n\nPreferred stock \n\n— \n\n— \n\n\nCommon stock \n\n63,842 \n\n1,096 \n\n\nAdditional paid-in capital \n\n200,218 \n\n641,736 \n\n\nAccumulated deficit \n\n(78,516) \n\n(178,996) \n\n\nAccumulated other comprehensive loss \n\n(17,133) \n\n(1,364) \n\n\nTreasury stock \n\n(25,997) \n\n(11,518) \n\n\n\n\n\n\n\n\n\nTotal stockholders' equity \n\n142,414 \n\n450,954 \n\n\nNon-controlling interest \n\n110 \n\n156 \n\n\nTotal equity \n\n142,524 \n\n451,110 \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nTotal liabilities, convertible redeemable preferred stock, and stockholders' equity \n\n$                    484,274 \n\n$                    748,335 \n\n\n\n\n\n\n\n\nPOWERFLEET, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) \n\n\n\n\n\n\n\nSix Months Ended September 30, \n\n\n\n\n2023 \n\n2024 \n\n\n\n\nPro Forma Combined \n\nConsolidated \n\n\nCash flows from operating activities \n\n\n\n\n\n\nNet loss \n\n$                    (4,959) \n\n$                  (24,200) \n\n\nAdjustments to reconcile net loss to cash (used in)/provided by operating activities: \n\n\n\n\n\n\nNon-controlling interest \n\n6 \n\n18 \n\n\nGain on bargain purchase \n\n(283) \n\n— \n\n\nInventory reserve \n\n650 \n\n904 \n\n\nStock based compensation expense \n\n2,518 \n\n7,300 \n\n\nDepreciation and amortization \n\n13,577 \n\n19,399 \n\n\nRight-of-use assets, non-cash lease expense \n\n1,242 \n\n1,515 \n\n\nDerivative mark-to-market adjustment \n\n— \n\n(2,197) \n\n\nBad debts expense \n\n3,235 \n\n4,369 \n\n\nDeferred income taxes \n\n3,268 \n\n(283) \n\n\nShares issued for transaction bonuses \n\n— \n\n889 \n\n\nLease termination and modification losses \n\n— \n\n184 \n\n\nOther non-cash items \n\n2,613 \n\n1,522 \n\n\nChanges in operating assets and liabilities: \n\n\n\n\n\n\nAccounts receivables \n\n(9,404) \n\n(12,553) \n\n\nInventories \n\n(1,558) \n\n955 \n\n\nPrepaid expenses and other current assets \n\n47 \n\n(3,009) \n\n\nDeferred costs \n\n(4,105) \n\n(3,619) \n\n\nDeferred revenue \n\n222 \n\n(99) \n\n\nAccounts payable and accrued expenses \n\n5,453 \n\n(71) \n\n\nLease liabilities \n\n(1,247) \n\n(1,856) \n\n\nAccrued severance payable, net \n\n91 \n\n40 \n\n\n\n\n\n\n\n\n\nNet cash provided by/(used in) operating activities \n\n11,366 \n\n(10,792) \n\n\n\n\n\n\n\n\n\nCash flows from investing activities: \n\n\n\n\n\n\nAcquisition, net of cash assumed \n\n— \n\n27,531 \n\n\nProceeds from sale of fixed assets \n\n— \n\n217 \n\n\nCapitalized software development costs \n\n(4,964) \n\n(4,676) \n\n\nCapital expenditures \n\n(9,866) \n\n(10,454) \n\n\nDeferred consideration paid \n\n(267) \n\n— \n\n\nRepayment of loan advanced to external parties \n\n— \n\n294 \n\n\n\n\n\n\n\n\n\nNet cash (used in)/provided by investing activities  ...\n     \n(15,097) \n\n12,912 \n\n\n\n\n\n\n\n\n\nCash flows from financing activities: \n\n\n\n\n\n\nRepayment of long-term debt \n\n(2,656) \n\n(978) \n\n\nShort-term bank debt, net \n\n7,328 \n\n9,955 \n\n\nPurchase of treasury stock upon vesting of restricted stock \n\n(640) \n\n(2,836) \n\n\nPayment of preferred stock dividend and redemption of preferred stock \n\n(2,257) \n\n(90,298) \n\n\nProceeds from private placement, net \n\n— \n\n61,851 \n\n\nProceeds from exercise of stock options, net \n\n36 \n\n— \n\n\nCash paid on dividends to affiliates \n\n(2,673) \n\n(6) \n\n\n\n\n\n\n\n\n\nNet cash used in financing activities \n\n(862) \n\n(22,312) \n\n\n\n\n\n\n\n\n\nEffect of foreign exchange rate changes on cash and cash equivalents \n\n(1,331) \n\n(436) \n\n\nNet decrease in cash and cash equivalents, and restricted cash \n\n(5,924) \n\n(20,628) \n\n\nCash and cash equivalents, and restricted cash at beginning of the period \n\n55,746 \n\n109,664 \n\n\n\n\n\n\n\n\n\nCash and cash equivalents, and restricted cash at end of the period \n\n$                   49,822 \n\n$                   89,036 \n\n\n\n\n\n\n\n\n\nReconciliation of cash, cash equivalents, and restricted cash, beginning of the period \n\n\n\n\n\n\nCash and cash equivalents \n\n54,656 \n\n24,354 \n\n\nRestricted cash \n\n1,090 \n\n85,310 \n\n\nCash, cash equivalents, and restricted cash, beginning of the period \n\n$                   55,746 \n\n$                 109,664 \n\n\n\n\n\n\n\n\n\nReconciliation of cash, cash equivalents, and restricted cash, end of the period \n\n\n\n\n\n\nCash and cash equivalents \n\n48,757 \n\n25,962 \n\n\nRestricted cash \n\n1,065 \n\n63,074 \n\n\nCash, cash equivalents, and restricted cash, end of the period \n\n$                   49,822 \n\n$                   89,036 \n\n\n\n\n\n\n\n\n\nSupplemental disclosure of cash flow information: \n\n\n\n\n\n\nCash paid for: \n\n\n\n\n\n\nTaxes \n\n$                      1,270 \n\n$                         774 \n\n\nInterest \n\n$                         875 \n\n$                      6,262 \n\n\n\n\n\n\n\n\n\nNoncash investing and financing activities: \n\n\n\n\n\n\nCommon stock issued for transaction bonus \n\n$                           — \n\n$                             9 \n\n\nShares issued in connection with MiX Combination \n\n$                           — \n\n$                 362,005 \n\n\n\n\n\n\n\n\nPOWERFLEET, INC. AND SUBSIDIARIES \n\n\nRECONCILIATION OF GAAP TO ADJUSTED EBITDA FINANCIAL MEASURES \n\n\n(In thousands) \n\n\n\n\n\n\n\n\n\n\n\n\n\nThree Months Ended September 30, \n\nSix Months Ended September 30, \n\n\n\n2023 \n\n2024 \n\n2023 \n\n2024 \n\n\n\nPro FormaCombined \n\nConsolidated \n\nPro FormaCombined \n\nConsolidated \n\n\nNet loss attributable to common stockholders \n$            (6,262) \n\n$            (1,888) \n\n$             (10,822) \n\n$         (24,225) \n\n\nNon-controlling interest \n— \n\n5 \n\n6 \n\n18 \n\n\nPreferred stock dividend and accretion \n2,962 \n\n— \n\n5,863 \n\n25 \n\n\nInterest expense, net \n472 \n\n3,345 \n\n1,162 \n\n6,261 \n\n\nIncome tax expense \n2,591 \n\n256 \n\n4,427 \n\n1,309 \n\n\nDepreciation and amortization \n7,243 \n\n9,064 \n\n13,577 \n\n19,399 \n\n\nStock-based compensation \n1,426 \n\n1,371 \n\n2,518 \n\n7,300 \n\n\nForeign currency losses \n74 \n\n636 \n\n442 \n\n745 \n\n\nRestructuring-related expenses \n149 \n\n1,069 \n\n597 \n\n2,267 \n\n\nGain on bargain purchase - Movingdots \n— \n\n— \n\n(283) \n\n— \n\n\nDerivative mark-to-market adjustment \n— \n\n(2,197) \n\n— \n\n(2,197) \n\n\nNet profit on fixed assets \n— \n\n— \n\n(4) \n\n— \n\n\nContingent consideration remeasurement \n(514) \n\n— \n\n(538) \n\n— \n\n\nAcquisition related expenses \n2,028 \n\n1,406 \n\n2,251 \n\n15,571 \n\n\nIntegration-related costs \n— \n\n1,410 \n\n— \n\n1,739 \n\n\nNon-recurring transitional service agreement costs \n121 \n\n— \n\n121 \n\n— \n\n\nAdjusted EBITDA \n$            10,290 \n\n$            14,477 \n\n$               19,317 \n\n$           28,212 \n\n\n\n\n\n\n\n\nPOWERFLEET, INC. AND SUBSIDIARIES \n\n\nRECONCILIATION OF GAAP TO NON-GAAP NET LOSS FINANCIAL MEASURES \n\n\n(In thousands) \n\n\n\n\n\n\n\n\n\n\n\n\n\nThree Months Ended September 30, \n\nSix Months Ended September 30, \n\n\n\n2023 \n\n2024 \n\n2023 \n\n2024 \n\n\n\nPro FormaCombined \n\nConsolidated \n\nPro FormaCombined \n\nConsolidated \n\n\nNet loss \n$                (3,300) \n\n$                (1,888) \n\n$               (4,959) \n\n$             (24,200) \n\n\nIncremental intangible assets amortization expense as a resultof MiX Telematics business combination \n— \n\n1,163 \n\n— \n\n4,158 \n\n\nStock-based compensation (non-recurring/accelerated cost) \n— \n\n— \n\n— \n\n4,693 \n\n\nForeign currency losses \n74 \n\n636 \n\n442 \n\n745 \n\n\nIncome tax effect of net foreign exchange gains/(losses) \n109 \n\n(1,109) \n\n534 \n\n(1,856) \n\n\nRestructuring related expenses \n149 \n\n1,069 \n\n597 \n\n2,267 \n\n\nIncome tax effect of restructuring costs \n(2) \n\n(21) \n\n(7) \n\n(124) \n\n\nAcquisition-related expenses \n2,028 \n\n1,406 \n\n2,251 \n\n15,571 \n\n\nIntegration-related expenses \n— \n\n1,410 \n\n— \n\n1,739 \n\n\nNon-recurring transitional service agreement costs \n121 \n\n— \n\n121 \n\n— \n\n\nContingent consideration remeasurement \n(514) \n\n— \n\n(538) \n\n— \n\n\nIncome tax effect of contingent consideration remeasurement \n(5) \n\n— \n\n— \n\n— \n\n\nNon-GAAP net (loss)/profit \n$                (1,340) \n\n$                  2,666 \n\n$               (1,559) \n\n$                 2,993 \n\n\n\n\n\n\n\n\n\n\n\n\nWeighted average shares outstanding \n106,360 \n\n107,532 \n\n106,333 \n\n107,335 \n\n\n\n\n\n\n\n\n\n\n\n\nNon-GAAP net (loss)/profit per share - basic \n$                  (0.01) \n\n$                    0.02 \n\n$                 (0.01) \n\n$                   0.03 \n\n\n\n\n\n\n\n\nPOWERFLEET, INC. AND SUBSIDIARIES \n\n\nADJUSTED GROSS PROFIT MARGINS \n\n\n(In thousands) \n\n\n\n\n\n\n\n\n\n\n\n\n\nThree Months Ended September 30, \n\nSix Months Ended September 30, \n\n\n\n2023 \n\n2024 \n\n2023 \n\n2024 \n\n\n\nPro Forma Combined \n\nConsolidated \n\nPro Forma Combined \n\nConsolidated \n\n\nRevenues: \n\n\n\n\n\n\n\n\n\nProducts \n$           17,947 \n\n$          20,293 \n\n$           32,470 \n\n$          39,031 \n\n\nServices \n54,057 \n\n56,725 \n\n107,977 \n\n113,417 \n\n\nTotal revenues \n72,004 \n\n77,018 \n\n140,447 \n\n152,448 \n\n\n\n\n\n\n\n\n\n\n\n\nCost of revenues: \n\n\n\n\n\n\n\n\n\nCost of products \n11,454 \n\n13,929 \n\n22,385 \n\n26,680 \n\n\nCost of services \n20,169 \n\n21,746 \n\n38,550 \n\n44,777 \n\n\nTotal cost of revenues \n31,623 \n\n35,675 \n\n60,935 \n\n71,457 \n\n\n\n\n\n\n\n\n\n\n\n\nGross profit \n$           40,381 \n\n$          41,343 \n\n$           79,512 \n\n$          80,991 \n\n\n\n\n\n\n\n\n\n\n\n\nProduct margin \n36.2 % \n\n31.4 % \n\n31.1 % \n\n31.6 % \n\n\nService margin \n62.7 % \n\n61.7 % \n\n64.3 % \n\n60.5 % \n\n\nTotal gross profit margin \n56.1 % \n\n53.7 % \n\n56.6 % \n\n53.1 % \n\n\n\n\n\n\n\n\n\n\n\n\nIncremental intangible assets amortization expense as a result of MiX Telematics business combination \n$                   — \n\n$             1,163 \n\n$                   — \n\n$             4,158 \n\n\nInventory rationalization \n$                   — \n\n$                734 \n\n$                   — \n\n$                734 \n\n\n\n\n\n\n\n\n\n\n\n\nProduct margin \n36.2 % \n\n35.0 % \n\n31.1 % \n\n33.5 % \n\n\nService margin \n62.7 % \n\n63.7 % \n\n64.3 % \n\n64.2 % \n\n\nAdjusted total gross profit margin \n56.1 % \n\n56.1 % \n\n56.6 % \n\n56.3 % \n\n\n\n\n\n\n\n\nPOWERFLEET, INC. AND SUBSIDIARIES \n\n\nADJUSTED OPERATING EXPENSES \n\n\n(In thousands) \n\n\n\n\n\n\n\n\n\n\n\n\n\nThree Months Ended September 30, \n\nSix Months Ended September 30, \n\n\n\n2023 \n\n2024 \n\n2023 \n\n2024 \n\n\n\nPro Forma Combined \n\nConsolidated \n\nPro FormaCombined \n\nConsolidated \n\n\nTotal operating expenses \n$               41,003 \n\n$               40,770 \n\n$               79,142 \n\n$               98,653 \n\n\nAdjusted for once-off costs \n\n\n\n\n\n\n\n\n\nAcquisition-related expenses \n2,028 \n\n1,406 \n\n2,251 \n\n15,571 \n\n\nIntegration-related costs \n— \n\n1,410 \n\n— \n\n1,739 \n\n\nStock-based compensation (non-recurring/accelerated cost) \n— \n\n— \n\n— \n\n4,693 \n\n\nRestructuring-related expenses \n156 \n\n1,069 \n\n627 \n\n2,267 \n\n\n\n2,184 \n\n3,885 \n\n2,878 \n\n24,270 \n\n\n\n\n\n\n\n\n\n\n\n\nAdjusted operating expenses \n$               38,819 \n\n$               36,885 \n\n$               76,264 \n\n$               74,383 \n\n\n\n\n\n\n\n\nPOWERFLEET, INC. AND MiX TELEMATICS CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) \n\n\n\n\n\n\nThree Months Ended September 30, 2023 \n\n\n\nPowerfleet Inc. \n\nMiX Telematics \n\nAdjustments to align disclosure \n\nPro Forma Combined \n\n\nRevenues: \n\n\n\n\n\n\n\n\n\nProducts \n$               13,233 \n\n$                 5,324 \n\n$                  (610) \n\n$               17,947 \n\n\nServices \n21,010 \n\n32,437 \n\n610 \n\n54,057 \n\n\nTotal revenues \n34,243 \n\n37,761 \n\n— \n\n72,004 \n\n\n\n\n\n\n\n\n\n\n\n\nCost of revenues: \n\n\n\n\n\n\n\n\n\nCost of products \n8,842 \n\n3,269 \n\n(657) \n\n11,454 \n\n\nCost of services \n8,294 \n\n11,218 \n\n657 \n\n20,169 \n\n\nTotal cost of revenues \n17,136 \n\n14,487 \n\n— \n\n31,623 \n\n\n\n\n\n\n\n\n\n\n\n\nGross profit \n17,107 \n\n23,274 \n\n— \n\n40,381 \n\n\n\n\n\n\n\n\n\n\n\n\nOperating expenses: \n\n\n\n\n\n\n\n\n\nSelling, general and administrative expenses \n17,778 \n\n19,163 \n\n— \n\n36,941 \n\n\nResearch and development expenses \n2,426 \n\n1,636 \n\n— \n\n4,062 \n\n\nTotal operating expenses \n20,204 \n\n20,799 \n\n— \n\n41,003 \n\n\n\n\n\n\n\n\n\n\n\n\n(Loss)/income from operations \n(3,097) \n\n2,475 \n\n— \n\n(622) \n\n\n\n\n\n\n\n\n\n\n\n\nInterest income \n23 \n\n198 \n\n— \n\n221 \n\n\nInterest expense \n(154) \n\n(539) \n\n— \n\n(693) \n\n\nBargain purchase - Movingdots \n— \n\n— \n\n— \n\n— \n\n\nOther (expense)/income, net \n(25) \n\n410 \n\n— \n\n385 \n\n\n\n\n\n\n\n\n\n\n\n\nNet (loss)/income before income taxes \n(3,253) \n\n2,544 \n\n— \n\n(709) \n\n\n\n\n\n\n\n\n\n\n\n\nIncome tax expense \n(295) \n\n(2,296) \n\n— \n\n(2,591) \n\n\n\n\n\n\n\n\n\n\n\n\nNet (loss)/income before non-controlling interest \n(3,548) \n\n248 \n\n— \n\n(3,300) \n\n\nNon-controlling interest \n— \n\n— \n\n— \n\n— \n\n\n\n\n\n\n\n\n\n\n\n\nNet (loss)/income \n(3,548) \n\n248 \n\n— \n\n(3,300) \n\n\n\n\n\n\n\n\n\n\n\n\nAccretion of preferred stock \n(1,834) \n\n— \n\n— \n\n(1,834) \n\n\nPreferred stock dividend \n(1,128) \n\n— \n\n— \n\n(1,128) \n\n\n\n\n\n\n\n\n\n\n\n\nNet (loss)/income attributable to common stockholders \n$               (6,510) \n\n$                    248 \n\n$                       — \n\n$               (6,262) \n\n\n\n\n\n\n\n\n\n\n\n\nNet (loss)/income per share attributable to common stockholders - basic and diluted \n$                 (0.18) \n\n$                 0.004 \n\n\n\n$                 (0.06) \n\n\n\n\n\n\n\n\n\n\n\n\nWeighted average common shares outstanding - basic \n35,653 \n\n70,707 \n\n\n\n106,360 \n\n\n\n\n\n\n\n\nPOWERFLEET, INC. AND MiX TELEMATICS CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) \n\n\n\n\n\n\nSix Months Ended September 30, 2023 \n\n\n\nPowerfleet Inc. \n\nMiX Telematics \n\nAdjustments to align disclosure \n\nPro FormaCombined \n\n\nRevenues: \n\n\n\n\n\n\n\n\n\nProducts \n$               24,317 \n\n$                 9,464 \n\n$               (1,311) \n\n$               32,470 \n\n\nServices \n42,018 \n\n64,648 \n\n1,311 \n\n107,977 \n\n\nTotal revenues \n66,335 \n\n74,112 \n\n— \n\n140,447 \n\n\n\n\n\n\n\n\n\n\n\n\nCost of revenues: \n\n\n\n\n\n\n\n\n\nCost of products \n17,392 \n\n6,294 \n\n(1,301) \n\n22,385 \n\n\nCost of services \n15,818 \n\n21,431 \n\n1,301 \n\n38,550 \n\n\nTotal cost of revenues \n33,210 \n\n27,725 \n\n— \n\n60,935 \n\n\n\n\n\n\n\n\n\n\n\n\nGross profit \n33,125 \n\n46,387 \n\n— \n\n79,512 \n\n\n\n\n\n\n\n\n\n\n\n\nOperating expenses: \n\n\n\n\n\n\n\n\n\nSelling, general and administrative expenses \n34,976 \n\n36,540 \n\n— \n\n71,516 \n\n\nResearch and development expenses \n4,646 \n\n2,980 \n\n— \n\n7,626 \n\n\nTotal operating expenses \n39,622 \n\n39,520 \n\n79,142 \n\n79,142 \n\n\n\n\n\n\n\n\n\n\n\n\n(Loss)/income from operations \n(6,497) \n\n6,867 \n\n— \n\n370 \n\n\n\n\n\n\n\n\n\n\n\n\nInterest income \n45 \n\n467 \n\n— \n\n512 \n\n\nInterest expense \n(327) \n\n(1,040) \n\n— \n\n(1,367) \n\n\nBargain purchase - Movingdots \n283 \n\n— \n\n— \n\n283 \n\n\nOther expense, net \n(25) \n\n(299) \n\n— \n\n(324) \n\n\n\n\n\n\n\n\n\n\n\n\nNet (loss)/income before income taxes \n(6,521) \n\n5,995 \n\n— \n\n(526) \n\n\n\n\n\n\n\n\n\n\n\n\nIncome tax expense \n(289) \n\n(4,138) \n\n— \n\n(4,427) \n\n\n\n\n\n\n\n\n\n\n\n\nNet (loss)/income before non-controlling interest \n(6,810) \n\n1,857 \n\n— \n\n(4,953) \n\n\nNon-controlling interest \n(6) \n\n— \n\n— \n\n(6) \n\n\n\n\n\n\n\n\n\n\n\n\nNet (loss)/income \n(6,816) \n\n1,857 \n\n— \n\n(4,959) \n\n\n\n\n\n\n\n\n\n\n\n\nAccretion of preferred stock \n(3,606) \n\n— \n\n— \n\n(3,606) \n\n\nPreferred stock dividend \n(2,257) \n\n— \n\n— \n\n(2,257) \n\n\n\n\n\n\n\n\n\n\n\n\nNet (loss)/income attributable to common stockholders \n$             (12,679) \n\n$                 1,857 \n\n$                       — \n\n$             (10,822) \n\n\n\n\n\n\n\n\n\n\n\n\nNet (loss)/income per share attributable to common stockholders - basic \n$                 (0.36) \n\n$                   0.03 \n\n\n\n$                 (0.10) \n\n\n\n\n\n\n\n\n\n\n\n\nWeighted average common shares outstanding - basic \n35,629 \n\n70,704 \n\n\n\n106,333 \n\n\n\n\n\n\n\n\nPOWERFLEET, INC. AND MiX TELEMATICS CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except per share data) \n\n\n\n\n\n\nMarch 31, 2024 \n\n\n\nPowerfleet Inc. \n\nMiX Telematics \n\nPro FormaCombined \n\n\nASSETS \n\n\n\n\n\n\n\nCurrent assets: \n\n\n\n\n\n\n\nCash and cash equivalents \n$               24,354 \n\n$               26,737 \n\n$               51,091 \n\n\nRestricted cash \n85,310 \n\n794 \n\n86,104 \n\n\nAccounts receivables, net \n30,333 \n\n24,675 \n\n55,008 \n\n\nInventory, net \n21,658 \n\n4,142 \n\n25,800 \n\n\nDeferred costs - current \n42 \n\n— \n\n42 \n\n\nPrepaid expenses and other current assets \n8,091 \n\n9,693 \n\n17,784 \n\n\nTotal current assets \n169,788 \n\n66,041 \n\n235,829 \n\n\nFixed assets, net \n12,719 \n\n35,587 \n\n48,306 \n\n\nGoodwill \n83,487 \n\n38,226 \n\n121,713 \n\n\nIntangible assets, net \n19,652 \n\n20,792 \n\n40,444 \n\n\nRight-of-use asset \n7,428 \n\n3,794 \n\n11,222 \n\n\nSeverance payable fund \n3,796 \n\n— \n\n3,796 \n\n\nDeferred tax asset \n2,781 \n\n1,093 \n\n3,874 \n\n\nOther assets \n9,029 \n\n10,061 \n\n19,090 \n\n\nTotal assets \n$             308,680 \n\n$             175,594 \n\n$             484,274 \n\n\n\n\n\n\n\n\n\n\nLIABILITIES \n\n\n\n\n\n\n\nCurrent liabilities: \n\n\n\n\n\n\n\nShort-term bank debt and current maturities of long-term debt \n$                 1,951 \n\n$               20,158 \n\n$               22,109 \n\n\nAccounts payable and accrued expenses \n34,008 \n\n26,755 \n\n60,763 \n\n\nDeferred revenue - current \n5,842 \n\n6,394 \n\n12,236 \n\n\nLease liability - current \n1,789 \n\n859 \n\n2,648 \n\n\nTotal current liabilities \n43,590 \n\n54,166 \n\n97,756 \n\n\nLong-term debt - less current maturities \n113,810 \n\n— \n\n113,810 \n\n\nDeferred revenue - less current portion \n4,892 \n\n— \n\n4,892 \n\n\nLease liability - less current portion \n5,921 \n\n2,852 \n\n8,773 \n\n\nAccrued severance payable \n4,597 \n\n— \n\n4,597 \n\n\nDeferred tax liability \n4,465 \n\n14,204 \n\n18,669 \n\n\nOther long-term liabilities \n2,496 \n\n484 \n\n2,980 \n\n\nTotal liabilities \n179,771 \n\n71,706 \n\n251,477 \n\n\n\n\n\n\n\n\n\n\nConvertible redeemable preferred stock: Series A \n90,273 \n\n— \n\n90,273 \n\n\n\n\n\n\n\n\n\n\nSTOCKHOLDERS' EQUITY \n\n\n\n\n\n\n\nPreferred stock \n— \n\n— \n\n— \n\n\nCommon stock \n387 \n\n63,455 \n\n63,842 \n\n\nAdditional paid-in capital \n202,607 \n\n(2,389) \n\n200,218 \n\n\nAccumulated deficit \n(154,796) \n\n76,280 \n\n(78,516) \n\n\nAccumulated other comprehensive loss \n(985) \n\n(16,148) \n\n(17,133) \n\n\nTreasury stock \n(8,682) \n\n(17,315) \n\n(25,997) \n\n\n\n\n\n\n\n\n\n\nTotal stockholders' equity \n38,531 \n\n103,883 \n\n142,414 \n\n\nNon-controlling interest \n105 \n\n5 \n\n110 \n\n\nTotal equity \n38,636 \n\n103,888 \n\n142,524 \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nTotal liabilities, convertible redeemable preferred stock, and stockholders' equity \n$             308,680 \n\n$             175,594 \n\n$             484,274 \n\n\n\n\n\n\n\n\nPOWERFLEET, INC. AND MiX TELEMATICS CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) \n\n\n\n\n\n\nSix Months Ended September 30, 2023 \n\n\n\nPowerfleet Inc. \n\nMiX Telematics \n\nPro Forma Combined \n\n\nCash flows from operating activities \n\n\n\n\n\n\n\nNet (loss)/income \n$               (6,816) \n\n$                 1,857 \n\n$               (4,959) \n\n\nAdjustments to reconcile net (loss)/income to cash (used in)/provided by operating activities: \n\n\n\n\n\n\n\nNon-controlling interest \n6 \n\n— \n\n6 \n\n\nGain on bargain purchase \n(283) \n\n— \n\n(283) \n\n\nInventory reserve \n617 \n\n33 \n\n650 \n\n\nStock based compensation expense \n1,953 \n\n565 \n\n2,518 \n\n\nDepreciation and amortization \n4,807 \n\n8,770 \n\n13,577 \n\n\nRight-of-use assets, non-cash lease expense \n1,242 \n\n— \n\n1,242 \n\n\nBad debts expense \n933 \n\n2,302 \n\n3,235 \n\n\nDeferred income taxes \n285 \n\n2,983 \n\n3,268 \n\n\nOther non-cash items \n126 \n\n2,487 \n\n2,613 \n\n\nChanges in operating assets and liabilities: \n\n\n\n\n\n\n\nAccounts receivables \n(3,866) \n\n(5,538) \n\n(9,404) \n\n\nInventories \n(2,023) \n\n465 \n\n(1,558) \n\n\nPrepaid expenses and other current assets \n51 \n\n(4) \n\n47 \n\n\nDeferred costs \n332 \n\n(4,437) \n\n(4,105) \n\n\nDeferred revenue \n222 \n\n— \n\n222 \n\n\nAccounts payable and accrued expenses \n1,498 \n\n3,955 \n\n5,453 \n\n\nLease liabilities \n(1,247) \n\n— \n\n(1,247) \n\n\nAccrued severance payable, net \n91 \n\n— \n\n91 \n\n\n\n\n\n\n\n\n\n\nNet cash (used in)/provided by operating activities \n(2,072) \n\n13,438 \n\n11,366 \n\n\n\n\n\n\n\n\n\n\nCash flows from investing activities: \n\n\n\n\n\n\n\nCapitalized software development costs \n(2,047) \n\n(2,917) \n\n(4,964) \n\n\nCapital expenditures \n(1,441) \n\n(8,425) \n\n(9,866) \n\n\nDeferred consideration paid \n— \n\n(267) \n\n(267) \n\n\n\n\n\n\n\n\n\n\nNet cash used in investing activities  \n(3,488) \n\n(11,609) \n\n(15,097) \n\n\n\n\n\n\n\n\n\n\nCash flows from financing activities: \n\n\n\n\n\n\n\nRepayment of long-term debt \n(2,656) \n\n— \n\n(2,656) \n\n\nShort-term bank debt, net \n4,996 \n\n2,332 \n\n7,328 \n\n\nPurchase of treasury stock upon vesting of restricted stock \n(94) \n\n(546) \n\n(640) \n\n\nPayment of preferred stock dividend and redemption of preferred stock \n(2,257) \n\n— \n\n(2,257) \n\n\nProceeds from exercise of stock options, net \n36 \n\n— \n\n36 \n\n\nCash paid on dividends to affiliates \n— \n\n(2,673) \n\n(2,673) \n\n\n\n\n\n\n\n\n\n\nNet cash from/(used in) financing activities \n25 \n\n(887) \n\n(862) \n\n\n\n\n\n\n\n\n\n\nEffect of foreign exchange rate changes on cash and cash equivalents \n53 \n\n(1,384) \n\n(1,331) \n\n\nNet decrease in cash and cash equivalents, and restricted cash \n(5,482) \n\n(442) \n\n(5,924) \n\n\nCash and cash equivalents, and restricted cash at beginning of the period \n25,089 \n\n30,657 \n\n55,746 \n\n\n\n\n\n\n\n\n\n\nCash and cash equivalents, and restricted cash at end of the period \n$               19,607 \n\n$               30,215 \n\n$               49,822 \n\n\n\n\n\n\n\n\n\n\nReconciliation of cash, cash equivalents, and restrictedcash, beginning of the period \n\n\n\n\n\n\n\nCash and cash equivalents \n24,780 \n\n29,876 \n\n54,656 \n\n\nRestricted cash \n309 \n\n781 \n\n1,090 \n\n\nCash, cash equivalents, and restricted cash, beginning of the period \n$               25,089 \n\n$               30,657 \n\n$               55,746 \n\n\n\n\n\n\n\n\n\n\nReconciliation of cash, cash equivalents, and restrictedcash, end of the period \n\n\n\n\n\n\n\nCash and cash equivalents \n19,297 \n\n29,460 \n\n48,757 \n\n\nRestricted cash \n310 \n\n755 \n\n1,065 \n\n\nCash, cash equivalents, and restricted cash, end of the period \n$               19,607 \n\n$               30,215 \n\n$               49,822 \n\n\n\n\n\n\n\n\n\n\nSupplemental disclosure of cash flow information: \n\n\n\n\n\n\n\nCash paid for: \n\n\n\n\n\n\n\nTaxes \n$                    115 \n\n$                 1,155 \n\n$                 1,270 \n\n\nInterest \n$                    538 \n\n$                    337 \n\n$                    875 \n\n\n\n\n\n\n\n\nPOWERFLEET, INC. AND MiX TELEMATICS \n\n\nRECONCILIATION OF GAAP TO ADJUSTED EBITDA FINANCIAL MEASURES \n\n\n(In thousands) \n\n\n\n\n\n\n\n\n\n\n\nThree Months Ended September 30, 2023 \n\n\n\nPowerfleet Inc. \n\nMiX Telematics \n\nPro FormaCombined \n\n\nNet (loss)/profit attributable to common stockholders \n$               (6,510) \n\n$                    248 \n\n$           (6,262) \n\n\nNon-controlling interest \n— \n\n— \n\n— \n\n\nPreferred stock dividend and accretion \n2,962 \n\n— \n\n2,962 \n\n\nInterest expense, net \n131 \n\n341 \n\n472 \n\n\nIncome tax expense \n295 \n\n2,296 \n\n2,591 \n\n\nDepreciation and amortization \n2,485 \n\n4,758 \n\n7,243 \n\n\nStock-based compensation \n1,101 \n\n325 \n\n1,426 \n\n\nForeign currency (gains)/losses \n(49) \n\n123 \n\n74 \n\n\nRestructuring-related expenses \n142 \n\n7 \n\n149 \n\n\nContingent consideration remeasurement \n— \n\n(514) \n\n(514) \n\n\nAcquisition related expenses \n1,232 \n\n796 \n\n2,028 \n\n\nNon-recurring transitional service agreement costs \n— \n\n121 \n\n121 \n\n\nAdjusted EBITDA \n$                 1,789 \n\n$                 8,501 \n\n$           10,290 \n\n\n\n\n\n\n\n\nPOWERFLEET, INC. AND MiX TELEMATICS \n\n\nRECONCILIATION OF GAAP TO ADJUSTED EBITDA FINANCIAL MEASURES \n\n\n(In thousands) \n\n\n\n\n\n\n\n\n\n\n\nSix Months Ended September 30, 2023 \n\n\n\nPowerfleet Inc. \n\nMiX Telematics \n\nPro FormaCombined \n\n\nNet (loss)/profit attributable to common stockholders \n$             (12,679) \n\n$                 1,857 \n\n$             (10,822) \n\n\nNon-controlling interest \n6 \n\n— \n\n6 \n\n\nPreferred stock dividend and accretion \n5,863 \n\n— \n\n5,863 \n\n\nInterest expense, net \n588 \n\n574 \n\n1,162 \n\n\nIncome tax expense \n289 \n\n4,138 \n\n4,427 \n\n\nDepreciation and amortization \n4,807 \n\n8,770 \n\n13,577 \n\n\nStock-based compensation \n1,953 \n\n565 \n\n2,518 \n\n\nForeign currency translation \n(411) \n\n853 \n\n442 \n\n\nRestructuring related expenses \n567 \n\n30 \n\n597 \n\n\nGain on Bargain purchase - Movingdots \n(283) \n\n— \n\n(283) \n\n\nNet profit on fixed assets \n— \n\n(4) \n\n(4) \n\n\nContingent consideration remeasurement \n— \n\n(538) \n\n(538) \n\n\nAcquisition related expenses \n1,455 \n\n796 \n\n2,251 \n\n\nNon-recurring transitional service agreement costs \n— \n\n121 \n\n121 \n\n\nAdjusted EBITDA \n$                 2,155 \n\n$               17,162 \n\n$               19,317 \n\n\n\n\n\n\n\n\nPOWERFLEET, INC. AND MiX TELEMATICS \n\n\nRECONCILIATION OF GAAP TO NON-GAAP NET (LOSS)/INCOME FINANCIAL MEASURES \n\n\n(In thousands) \n\n\n\n\n\n\n\n\n\n\n\nThree Months Ended September 30, 2023 \n\n\n\nPowerfleet Inc. \n\nMiX Telematics \n\nPro FormaCombined \n\n\nNet (loss)/income \n$               (3,548) \n\n$                    248 \n\n$               (3,300) \n\n\nForeign currency (gains)/losses \n(49) \n\n123 \n\n74 \n\n\nIncome tax effect of net foreign exchange gains/(losses) \n— \n\n109 \n\n109 \n\n\nRestructuring related expenses \n142 \n\n7 \n\n149 \n\n\nIncome tax effect of restructuring costs \n— \n\n(2) \n\n(2) \n\n\nAcquisition related expenses \n1,232 \n\n796 \n\n2,028 \n\n\nNon-recurring transitional service agreement costs \n— \n\n121 \n\n121 \n\n\nContingent consideration remeasurement \n— \n\n(514) \n\n(514) \n\n\nIncome tax effect of contingent consideration remeasurement \n— \n\n(5) \n\n(5) \n\n\nNon-GAAP net (loss)/income \n$               (2,223) \n\n$                    883 \n\n$               (1,340) \n\n\n\n\n\n\n\n\n\n\nWeighted average shares outstanding \n35,653 \n\n70,707 \n\n106,360 \n\n\n\n\n\n\n\n\n\n\nNon-GAAP net (loss)/income per share - basic \n$                 (0.06) \n\n$                   0.01 \n\n$                 (0.01) \n\n\n\n\n\n\n\n\nPOWERFLEET, INC. AND MiX TELEMATICS \n\n\nRECONCILIATION OF GAAP TO NON-GAAP NET (LOSS)/INCOME FINANCIAL MEASURES \n\n\n(In thousands) \n\n\n\n\n\n\n\n\n\n\n\nSix Months Ended September 30, 2023 \n\n\n\nPowerfleet Inc. \n\nMiX Telematics \n\nPro FormaCombined \n\n\nNet (loss)/income \n$               (6,816) \n\n$                 1,857 \n\n$               (4,959) \n\n\nForeign currency (gains)/losses \n(411) \n\n853 \n\n442 \n\n\nIncome tax effect of net foreign exchange gains \n— \n\n534 \n\n534 \n\n\nRestructuring related expenses \n567 \n\n30 \n\n597 \n\n\nIncome tax effect of restructuring costs \n— \n\n(7) \n\n(7) \n\n\nAcquisition related expenses \n1,455 \n\n796 \n\n2,251 \n\n\nNon-recurring transitional service agreement costs \n— \n\n121 \n\n121 \n\n\nContingent consideration remeasurement \n— \n\n(538) \n\n(538) \n\n\nNon-GAAP net (loss)/income \n$               (5,205) \n\n$                 3,646 \n\n$               (1,559) \n\n\n\n\n\n\n\n\n\n\nWeighted average shares outstanding \n35,629 \n\n70,704 \n\n106,333 \n\n\n\n\n\n\n\n\n\n\nNon-GAAP net (loss)/income per share - basic \n$                 (0.15) \n\n$                   0.05 \n\n$                 (0.01) \n\n\n\n\n View original content to download multimedia:https://www.prnewswire.com/news-releases/powerfleet-reports-second-quarter-2025-financial-results-302301670.html\nSOURCE Powerfleet","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2482770896"}