PowerFleet (PWFL) The 38th Annual Roth Conference summary

Recent business transformation and operational progress

• Completed integration of three major acquisitions, including MiX Telematics and Fleet Complete, with operational unification achieved in April last year.

• Product portfolio upgraded with a focus on AI innovation and proprietary fleet data, leading to customer and industry recognition.

• Achieved significant cost synergies, extracting $16 million in the first year post-MiX merger and an additional $17 million in the last year.

• Transitioned from integration to a high growth and optimization phase, with operational metrics delivered as promised.

• Despite operational success, share price remains under pressure due to market dynamics and SaaS sector valuation resets.

Financial outlook and growth expectations

• Confident in achieving double-digit ARR and SaaS growth, with Q4 exit run rates above 10% and strong pipeline visibility.

• FY 2027 targeted as the year of free cash flow and debt reduction below 2x EBITDA, with $30M+ free cash flow expected.

• EBITDA projected to grow faster than revenue, with margin expansion and improved operating leverage.

• Large South African government contract expected to contribute 4%-5% ARR growth, with an 18-month ramp-up period.

• Retired underperforming product lines, removing $15M ARR to strengthen future performance and reduce churn.

AI strategy and competitive positioning

• AI viewed as an accelerant, not a threat, leveraging proprietary real-world fleet data for defensibility and product enhancement.

• Embedded AI and analytics improve safety, optimize routes, and deliver tangible ROI, strengthening customer engagement.

• AI adoption compounds data advantage, supporting premium monetization and reinforcing the system of record status.

• Internal modernization with AI expected to unlock future margin expansion and operational efficiencies.