PowerFleet Inc. (AIOT) Achieves Robust Organic Growth Despite Wide Net Loss

PowerFleet Inc. (NASDAQ:AIOT) is one of the fastest-growing penny stocks to buy now. On November 11, William Blair reiterated an Outperform rating, impressed by PowerFleet Inc. (NASDAQ:AIOT)’s second-quarter 2026 results, characterized by record revenue and strong performance across key metrics.

PowerFleet Inc. (AIOT) Achieves Robust Organic Growth  Despite Wide Net Loss

The company achieved double-digit year-over-year organic annual recurring revenue growth driven by strong global traction across direct and indirect channels. Total revenue increased 45% to a record high of $111.7 million, driven by expanding adoption of the company’s AIoT platform. Gross profit increased 51% year-over-year to $62.6 million.

William Blair has touted the company on achieving 12% organic services growth amid broad-based business strength and accelerating pipeline momentum.

“Strong product revenue with a sequential revenue improvement of 27%, as well as solid sequential margin expansion, highlights continued momentum and resilience amid evolving macroeconomic conditions,” said Steve Towe, Chief Executive Officer.

However, the company delivered a wider-than-expected net loss attributable to stockholders of $4.3 million, or $0.03 a share, compared to a net loss of $1.9 million, or $0.02 a share, for the same quarter last year. The wider-than-expected net loss was due to higher interest expenses and non-cash amortization.

PowerFleet, Inc. (NASDAQ:AIOT) is a global AIoT (Artificial Intelligence of Things) company that provides software-as-a-service (SaaS) solutions to help organizations manage, monitor, and optimize assets like connected vehicles and warehouse equipment.

While we acknowledge the potential of PowerFleet Inc. (NASDAQ:AIOT) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AIOT and that has 100x upside potential, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.