PowerFleet's 2026 Q1 Earnings Call: Unpacking Contradictions in AI Growth, Earnings Expectations, and Strategic Shifts

AI video bookings growth, earnings growth expectations, AI Video Safety Solutions growth and impact, synergy savings and transformation, and hardware and modular sales strategy are the key contradictions discussed in PowerFleet's latest 2026Q1 earnings call.



SaaS Revenue and Service Growth:
- PowerFleet's services revenue grew 53% year-over-year and 6% sequentially to $86.5 million, reaching 83% of total revenue.
- The growth was driven by a strategic shift towards SaaS-led solutions and improved attach rates in high-value verticals.

Enterprise Wins and New Customer Acquisition:
- The company added high-value deals exceeding $100,000 ARR across 11 diverse sectors and grew new customer wins by 14% sequentially.
- This was achieved through increased adoption of the Unity platform and strategic partnerships like MTN.

Unity Platform and MTN Partnership:
- MTN selected PowerFleet's Unity platform, integrating it into their connectivity stack for enterprise data intelligence solutions.
- This partnership opens a vast TAM in high-growth regions, driven by the success and referenceability of PowerFleet's indirect model.

Financial Performance and Synergy Capture:
- PowerFleet reported adjusted EBITDA of $21.6 million, a 58% increase year-over-year, exceeding consensus estimates.
- The improved financial performance was attributed to synergy realization and a shift towards SaaS-centric revenue, mitigating CapEx pressure.

Innovation and AI Video Bookings:
- AI video bookings grew 52% quarter-over-quarter, with a sequential 28% improvement in overall pipeline.
- This was driven by the introduction of new AI risk intervention modules and strong demand for data intelligence solutions.