PowerFleet, Inc.

Greetings. Welcome to Power Fleet's fourth quarter and full year 2025 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, David Wilson, Chief Financial Officer. You may begin.

Thank you, operator, and welcome everyone to our extended year-end 2025 earnings call. I'll begin with a brief review of our safe harbor statement before handing things over to our CEO, Steve Towe, to kick off today's discussion. Our remarks today contain forward-looking statements. Our actual results may differ from those contemplated by those forward-looking statements. Factors that may cause our actual results performance achievements to be materially different from those expressed or implied by such forward-looking statements are described in today's earnings release and accompanying slides. Any forward-looking statements that we make on this call are made as of only today, and we assume no obligation, nor do we intend to publicly update or abide any forward-looking statements to reflect subsequent events or circumstances. During this call, we will present both GAAP and certain non-GAAP financial measures. A reconciliation of GAAP to non-GAAP measures is included in today's press release and slide deck. The press release and the accompanying slides we will share on today's call are available in our investor section of our website at ir.fleet.com. I'll now turn the call over to Steve. Steve?

Thank you, David, and good morning, everyone. I appreciate you joining us for today's full year and Q4 2025 earnings call. I'm here with key members of the leadership team, and we're excited to walk you through what has been, without question, a transformative year for the business. Over the past 12 months, we've taken bold, decisive steps, integrating two major acquisitions, streamlining our global operating model, and laying down the foundation for durable, profitable growth. But what's most exciting is the momentum and investor-approved points we're now building, not just in the numbers, but in independent recognition of our solution capabilities The highly expanding customer landscape and the calibre of talent we've brought together across the organisation. This is fundamentally a very different company than it was just a year ago, and today you'll see exactly how far we've come. It's important for investors to remain cognisant of the speed and the depth of the extensive high-quality business change programme the business has successfully executed in context of evaluating PowerFleet as a strong value accretion opportunity. To help with that, we'll begin today's presentation with a short review of the last 12 months' transformation story. I'll hand over to Melissa Ingram, our Chief Corporate Development Officer. Melissa?

Thank you, Steve. Over the past 12 months, PowerSuite has undergone an extraordinary transformation. The company you see today is nearly unrecognizable compared to the three legacy businesses from which it emerged. This next slide captures just how comprehensive this reinvention has been. We now have the revenue scale, subscriber base, customer reach, product portfolio, and a fortified balance sheet to cement the market-leading position in our sector. We're operating across six continents with a go-to-market model that includes both direct and indirect channels. Some of the key highlights are a company of more than $400 million of annualized revenue with over 75% of ongoing FAS revenue, scaling from 700,000 subscribers to 2.8 million, A dramatic move in adjusted EBITDA from 7 million to 71 million and significant growth in the number of customers and our ability to drive increased wallet share from that extended customer base. PowerCrate is now a scaled, modern SaaS company. We're unifying our operating systems, sharpening our execution model, and are delivering measurable value across AI video, our unique data highway, and in warehouse solutions. Our transformation has turned complexity and weakness in three individual businesses into the strength of one combined top-tier provider, and we're now positioned to scale with speed and profitability. Moving on to the next slide, we recognize early skepticism from the investor community, concerns that three moderately performing companies might combine into one larger underperforming entity. But this narrative does not reflect reality. Instead, we have strategically extracted the strengths of each business, eliminated legacy inefficiencies, and added a disruptive, differentiated solution strategy to an expanded customer base. This gives us the ability to perform as a high-growth, focused enterprise. Our M&A strategy wasn't opportunistic. It was deliberate and disciplined, designed to allow rapid forward movement after a targeted cleanup period. Our global scale in premium geographies now enables us to tackle customer pain points more strategically, positioning PowerFleet as a mission critical partner across markets and channels. Moving on to the next slide. Thanks to six months of pre-planning, our integration execution was immediate and decisive. In the first half of FY25, our focus was on structure and rapid mobilization, and we executed with intensity. The closure of the MIGS deal gave us global scale and engineering depth. Integration for us is about building a better company, so we hit the ground running with a clear and deliberate execution plan. In half one, we launched a top-down synergy program, identifying and fast-tracking the highest ROI savings initiatives. We unified our product roadmap under Unity, sunsetting legacy overlaps and aligning teams to one platform vision. The business centralised key functions to drive scalability and consistency, and we rationalised underperforming spend across tools, systems and facilities. The team began to rebuild our customer success function from the ground up, aligning teams around lifecycle value and platform expansion. Another key priority was to enhance a high-calibre leadership team, with performance metrics aligned to our post-combination priorities. This was a highly coordinated execution effort, which laid the groundwork for an even more aggressive posture in half two. Next slide, please. Half two was about acceleration. With the close of the Fleet Complete acquisition, we shifted gears, moving from organizational blocking and tackling to creating scale and momentum. Here's what we delivered. We hit our full synergy target ahead of schedule, Showing that we could integrate while still growing. We quadrupled our Unity-focused engineering headcount to over 400 FTE, giving us the muscle to scale innovation across AI video in warehouse and data ingestion. We built and activated a modern sales enablement function, giving reps the tools, training, and the data to close more faster. The business transitioned from siloed regional teams to a unified commercial engine, The team also simplified our product architecture, reducing go-to-market friction and enabling multi-solution modularity. Performance rigor was embedded across the organization, from daily sales stand-up calls, weekly pipeline reviews, to monthly operating cadences. This phase of the year demonstrated our ability to transform while building, to stay aggressive without losing financial discipline. A key fundamental of the transformation is now coming to life as we enter FY26 aggressively implementing new operating systems. We now have the quantum and quality of people and the group strategy is being implemented across the whole business. And that gives us full confidence in what comes next. Next slide, please. One of the most important proof points from FY25 is that we didn't just promise synergy, we delivered it. We committed to $16 million in adjusted EBITDA synergies, and I'm pleased to report we executed every dollar of that on time and in full, while simultaneously thriving growth vectors and building out innovation. This synergy achievement came from four strategic levers. Firstly, organization efficiency. We streamlined redundant functions across legacy businesses, flattened reporting structures, and built centralized centers of excellence. This was a surgical approach focusing on role clarity, performance, and scalability. Secondly, systems and process consolidation. We're rationalizing dozens of overlapping systems from ERP to HRIS to customer support tools and moving towards a harmonized operating backbone. This allows us to scale without having overhead. Thirdly, procurement and vendor spend optimization. With greater volume came greater negotiating power. We consolidated vendor relationships, exited duplicative contracts, and implemented cost governance across engineering and operations. And finally, commercial simplification. We restructured go-to-market motions to align around SaaS, eliminating product overlap, and focusing reps on higher velocity, higher margin opportunities. Most importantly, we delivered these results while maintaining organic growth, investing in customer experience, and laying the foundation for FY26 cost leverage. This wasn't integration at the expense of performance. It was integration fueling performance. I'll now hand back to Steve to take us through some of the business highlights from the year.

Thanks, Melissa. Before we dive into the numbers, let's take a moment to step back and look at the big picture because FY25 was not just a year of integration. It was a breakout year for PowerFleet. Simultaneously, we bought Mix and Fleet Complete under one roof to hit our organic growth targets. We dramatically expanded EBITDA and executed one of the fastest and effective platform consolidations ever in the space. On top of that, customer engagement has undeniably surged, a clear sign that our strategy is resonating where it matters most. This was a truly foundational year, and what we've built now positions us as durable, and more. Let's move to the next slide. One of the core pillars of our strategy is revenue expansion through cross-sell and up-sell, and FY25 gave us some of the clearest signals yet it's working at scale. This slide spotlights just a few of our standout enterprise expansion routes, each one strategically significant From contracts with multiple Fortune 500 sectors, like energy mining and construction, to large multinational and global service organizations. And each one, a powerful proof point of the traction our Unity platform is generating across key verticals. These aren't just headline wins, they're part of a repeatable, durable, land and expand motion. In many cases, we entered through a single solution and quickly earned the right to grow into multiple Unity pillars. What we're seeing now is a flywheel in motion. Customers are leaning in because Unity solves real, everyday challenges, improving safety, enhancing visibility, and boosting operational efficiency all in one integrated platform. We're embedding ourselves deeper into customer workflows, driving long-term value, and securing recurring revenue streams that scale over time. Put simply, these larger, multi-product expansions signal something bigger. PowerFleet is becoming a mission-critical partner to the enterprises we serve. Next slide. While customer expansion was a major story in FY25, what's just as powerful, and maybe even more telling, is our newfound ability to consistently land new, high-quality logos. And we are now beginning to do that at scale. As you can see on this slide, we sign contracts with over 600 new mid-size and large customers this year, cutting across a wide range of industries, geographies, and deal profiles. We have many of the world's top companies choosing Poutleet as their long-term partner of choice, from Fortune 500 manufacturing of food and beverage leaders to multi-million dollar TCV deals with national transport and leasing companies. That level of diversification speaks volumes about the breadth of our product market fit and the growing reputation of PowerFleet as a serious player in enterprise and mid-market segments. We're now being invited into more competitive RFPs, our presence in key verticals is expanding, and most importantly, our win ranks are climbing. More and more customers view PowerFleet not as a challenger brand, but as a credible tier one solution provider. Our strategy is earning trust at the enterprise level and opening the door for long-term platform-wide relationships. Next slide. Our top-tier geographies, North America, Europe, and Australasia, continue to deliver strong performance. But what really stands out is the consistency and breadth of that momentum across key segments. This represents systemic traction that reinforces the strength of our growth model. Let's take a look at some of the highlights. Cross-sell revenues of 96% year-over-year, which tells us that our customers are leaning into the Unity platform as a result of the business combination. They're consolidating point solutions, expanding their footprint, and seeing fast returns on investment, and we're capturing that momentum with precision. Our in-warehouse solutions grew 71% in high-intensity verticals of automotive, food and beverage, and heavy industrials. These are sectors that run on efficiency, risk mitigation, and uptime, and Unity delivers all three, with measurable ROI that accelerates buying decisions. And finally, our AI video deployment increased 52% within our largest indirect channel partner in the US. We're seeing increased demand for intelligence, safety, and compliance tools, not as standalone modules, but as core components of operational strategies. This is what we mean when we say the strategy is working across a variety of industries, customer tiers, and multi-region go-to-market motions. The Unity Suite is scaling with real purpose. Moving on to the next slide. We've also taken bold deliberate steps to sharpen our revenue mix, pruning non-strategic contracts and sunsetting product lines that no longer align with our long-term vision. That's allowed us to reallocate resources to the highest value opportunities. Also, in our legacy mix and fleet complete operations, there's been a clear underinvestment in customer success in recent times, and it showed in retention. We entered both acquisitions in the knowledge of churn erosion that was hit in FY25 with a tail into early FY26 in some complex legacy large accounts that had previously been undeserved. accounting collectively for circa $10 million of ARR, or 3% of their combined revenue estate. We are now building a proactive, high-impact customer success organisation, and the turnaround is already visible. We've delivered three consecutive quarters of improved retention, driven by faster onboarding, more predictive engagement, and a clearer connection between platform usage and business outcomes. At the same time, our data-hiring integrations are driving higher customer sickness, making it easier for clients to stay with us and harder to walk away. The key here is we are creating durable growth through deeper, smarter customer relationships, and we're doing it all with real discipline. Next slide. At the end of the day, product traction and revenue growth only matter if we're delivering real, measurable customer values. And this slide shows exactly that. Our customers are transforming how they operate, and they're doing it fast. The feedback we're getting is unambiguous. Unity helps executives to sleep at night. It de-rifts daily operations, elevates safety standards, boosts efficiency, and unifies data into one intuitive, integrated view, whether you're in compliance, safety, logistics, or warehouse operations. These are hard dollar benefit outcomes delivered at Scam, and the impact is strong enough that our customers are becoming strong advocates. Our sponsors are introducing us into other divisions, expanding from a single module to full platform adoption, and becoming multi-product, multi-site customers within 12 months of initial deployment. This is the unity flywheel in motion. Our time to value, referenceable outcomes, and growing customer lifetime value. Next slide. A true defining moment this year was our recognition as the number one global leader in platform solutions and innovation by the most respected product research firm in our space. ABI Research ranked PowerFleet as number one in innovation ahead of other market leaders. This isn't a fantasy ranking. ABI's evaluation is rigorous, measuring platform breadth, AI maturity, usability, scalability, and ecosystem readiness. We weren't even on the radar two years ago, and now we lead the global marketplace in innovation. That's a testament to the Unity platform strategy, to our execution on hardware agnostic ingestion, AI-driven insight layers, and our ability to solve multiple use cases across fleet, fixed sites such as warehouses, and mobile operations. This ranking gives us added credibility in enterprise conversations. It builds confidence with channel partners, and it's a tangible differentiator as we compete for larger platform scale deals. In short, the market is recognizing the transformation and it's putting PowerFleet firmly at the front of the pack. Next slide. Now let's close out FY25 with a view of our Q4 performance. Next slide. Q4 was a disciplined on-point close to the year to what has been a transformational year for PowerFleet. We delivered $104 million in total revenue, representing 40% year-over-year growth, and generated $20 million in adjusted EBITDA, up an impressive 80% from the prior year. Our growth margins held steady at over 60%, and recurring revenue made up 79% of the total, a clear sign of our shift to a subscription-first business model. This was achieved in a quarter marked by significant integration activity. In our opinion, this makes these results more compelling. They reflect the operating leverage we're beginning to unlock as we scale effectively and efficiently with precision. You'll hear more financial details on the quarter from David shortly, but the key takeaway is this. Our strategy is working. The pipeline growth, our recent large wind announcements, and improve customer sentiment all supported. And our continued margin trajectory and improving underlying cash performance will confirm it. Next slide. Now turning to Q4 business highlights. This is a quarter where we saw diverse, high-quality ARR wins spanning multiple industries and geographies. We're now building the muscle to consistently land multiple 100K plus ARR deals each quarter. It's more than encouraging, it's foundational to scaling our future performance. What's even more exciting is where the growth is coming from. We're seeing a clear shift in both pipeline and closed deals towards our highest value solution sets. In fact, over half of our new sales revenue signed in Q4 came from AI video and in-ware hash products, two of the most strategic high-impact components of the Unity platform. And our AI video pipeline grew 120% quarter over quarter, which is a powerful indicator of increasing market demand and successful deployments. This is exactly what we are driving towards. Larger deal sizes, stronger product mix, and a sales motion that aligns directly with our platform value and margin goals. Moving on to the next slide. Building on the momentum from last quarter's strategic win with a global beverage leader, we're thrilled to share another high-impact enterprise expansion this quarter in the U.S. market. Everdriven has agreed a large-scale deployment of Unity's safety solutions, a great relationship with a multi-million dollar contract value spanning operations across 34 states. This is a standout example of a customer not only scaling with us, but doing so with conviction and high levels of confidence. It also underscores the power of unity to support mission critical operations across large distributed fleets. We're really proud to support Mitch and the entire team at Everdriven as they enter the next phase of their journey of improving safety and reducing risk for their community. With that, let's pivot to what lies ahead in FY26. I'll now hand it over to our EVP of sales, Craig Fisk, to walk you through the commercial outlook for FY26. Greg?

Thanks, Steve. Hi, everybody. I'm excited to share with you our sales outlook for FY26. This year is about activation. FY25 was about integration and transformation, and we execute that at speed. FY26 is now about unlocking the full value of what we've built. Next slide. Let's talk about what is happening in the market. We're seeing three urgent shifts. Safety is no longer optional. It is a board level concern. Unity hits right at the heart of all three of these market drivers. Next slide, please. Q1 has shown a clear and compelling signal. Unity's momentum in the market is accelerating. Across all key categories, pipeline growth is strong. Our data highway pipeline has increased 50% quarter over quarter Driven by customers seeking to consolidate fragmented systems into a single data ingestion and orchestration layer. In Warehouse, new local pipeline grew 121% quarter over quarter. Fueled by demand in automotive, F&B, and logistics. Verticals are now prioritizing real-time visibility and safety. AI Video, one of our fastest growing modules, saw a 50% jump in pipelines. reflecting increased awareness and strong early results from recent deployments. Perhaps most notably, our cross-sell pipeline has doubled, signaling real traction in bundling Unity capabilities across existing accounts. We also added 38 new major enterprise opportunities to the data highway pipeline this quarter, a leading indicator that awareness is up, the value proposition is resonating, and our go-to-market teams are executing. This is the early flywheel effect, and we've been building toward. Product differentiation is driving demand. Enablement is increasing velocity, and the references from our single pane of glass data highway deployments are starting to pay dividends across the funnel. We expect this acceleration to continue throughout FY26. Next slide. What's powering this pipeline acceleration is not just Unity's breadth. It's how well differentiated Each solution area is within our target markets. Take our single pane of glass data highway. A Fortune 500 automotive leader selected Unity to consolidate compliance, driver performance, and data over six disparate systems into a single system of record. That level of harmonization is something other point solutions can't deliver. Shifting to in-warehouse, our work with TELUS as an example, who launched Unity in Q1, is opening up major indirect channel in Canada. AI video continues to be one of our biggest levers. We're seeing multi-thousand subscription opportunities from customers like EverDriven, who are rapidly scaling across 34 states. That deployment alone includes deep integration with compliance and behavioral-based alerts, driving both safety and efficiency improvement. What ties all these together is Unity's flexibility and end-to-end visibility. We're not selling isolated features. We're offering a modular, extensible platform that adapts to each customer's operations and expands easily once value is proven. That's why deal sizes are growing, sales cycles are tightening, and referenceability is rising. Next slide, please. Our indirect channel, especially through our telco partners, is now becoming a meaningful and scalable growth engine. I'll cover TELUS in more depth on the next slide, so let's start with AT&T, where we're in pre-launch phase for the enterprise segment. This is an enormous opportunity. AT&T serves a large base of commercial fleet customers, many of whom are underpenetrated or using fragmented solutions. We're also working closely with a third major North American telco, where early integration work and go-to-market planning are already underway. Once live, this will extend our reach even further into mid-market and public sector vertical. We're also delighted to have signed with a major European telco with go-to-market plans being ready for launching Q4. What's exciting is how quickly these partners are ramping. The Unity platform is easy to demo, it's fast to deploy, and solves real pain points for their customers. This is one of our highest leverage growth plays going into second half and beyond. Moving on to the next slide. This is what real partner activation looks like. Telus launched on May 15th, and the commercial teams are now fully engaged. The feedback has been phenomenal. They're excited about the value we're bringing in warehouse, safety, efficiency, asset optimization, and their pipeline is already in the millions. We have a tremendous partnership and an outstanding growth opportunity with lots of runway that's executing on right now. Next slide. This slide captures the power of Unity. It's the only system of record covering agnostic data adjustment, end-to-end warehouse to over-the-row visibility, and AI video insights harmonizing customer operations across the whole supply chain. The result of Unity's consolidation engine? Customers are seeing a 30% plus reduction in vendor spend and wasted time, and a 35% increase in value by integrating into their other operating systems. as well as all of the safety, operational, and compliance benefits from being able to use the full power of their data. That's huge. Unity is now a mission-critical strategic platform for our customers. Next slide. In Q1 alone so far, Unity's single pane of glass gained serious traction. For example, we signed a Fortune 500 energy customer for 1,500 new subs. We also secured a top three U.S. freight broker With momentum growing, we have confidence around signing a global automotive leader for over 10,000 subs and a food and beverage distributor for over 14,000 subs, both expected in the first half. These are transformative rollouts, using Unity to solve for holistic safety, visibility, and system consolidations. The single painted glass value prop is winning, and the numbers prove it. Our sales teams are pumped up for this year, and we have superbly differentiated value props to take to the market. With that, I'll hand it over to David Wilson, PowerFleet CFO, to walk you through the financial highlights.

David? Thanks, Craig. I'll begin by providing additional details on our Q4 financial highlights, starting with a quick reminder of key pro forma adjustments. Pro forma comparisons. All prior period comparisons are based on pro forma financials with a combined mix and PowerFleet businesses, whereas our same queue reflects only legacy PowerFleet numbers. One-time expenses. This quarter's expenses included $10.1 million in one-time costs in restructuring, integrations, and transaction, which were excluded from adjusted EBITDA and EPS. Amortization impacts. Results also include $5.2 million in non-cash amortization based on mixed and fleet-complete acquisitions, impacting service gross margins by 80%. Next slide, please. Now on to the detail, beginning with revenue, which grew by 42% year-over-year, reaching $103.6 million. This increase was driven by fleet complete and underlying organic growth, which more than offset continued headwinds in legacy U.S. track and trace and niche offerings, as well as a planned wind down of legacy mix FSM business. Looking at the components of revenue, product grew by $4 million, or 23% to $22 million. Product margins for the quarter of 17% reflects an inventory write-off of $2.6 million, Part of a planned, post-transaction rationalization of product lines and offerings. Both former for this write-off, adjusted product gross margin was 29%, up from 27% in the prior year. Service revenue grew by 49% to $82 million, fueled by Fleet Complete and the strength of our SaaS operations. Service margins adjusted for $5.2 million in non-cash amortization expanded by 8%, 69%, and 61% in the prior year. Combined adjusted gross margins exceeded 60% versus 53% in the prior year. Turning to offering expenses, which totaled $61.7 million for the quarter, including $7.5 million in one-time transaction and restructuring costs. After adjusting for these costs, total op-ex was $54.2 million. Research and development investment, including $4 million of capitalized software, totaled $9 million. Turning to adjusted EBITDA, which increased by 84% to $20.4 million, up from $11.1 million in the prior year. This increase is driven by the Fleet Complete transaction, organic growth, gross margin expansion, and the success of our cost program. Net loss attributable to common stockholders was $12.4 million, a loss of $0.09 for basic and diluted share compared to a loss of $0.19 in the prior year. On an adjusted non-gap basis, income to common stockholders was $2.9 million, or $0.02 for basic share compared to a loss of $0.01 in the prior year. Closing with cash in the balance sheet, we ended the quarter with net debt of $225 million, consisting of $49 million in cash, and $274 million in total debts. Adjusted net debt, inclusive of $4 million in transaction fees for a fleet-to-fleet transaction settled in Q126, was $229 million, or $6 million better than our $235 million year-end guidance. Next slide. As we close fiscal 25, it's helpful to take a step back to assess the scale of transformation we've achieved and where we're heading. Revenue grew from $135 million in FY24 to $362.5 million in FY25, nearly tripling. We're targeting approximately $430 million revenue for FY26, which would represent a full three times increase versus FY24, underscoring multiple vectors for growth and the strength of our integration execution. On the earnings front, adjusted EBITDA rose from $7 million in FY24 That's a tenfold increase reflecting our focus on profitable scale and synergy realization. For FY26, we are targeting approximately 105 million EBITDA, a 15 times increase from our FY24 baseline. Next slide. As we look to fiscal 26, we see a major opportunity to unlock value through accelerated growth, particularly in the second half of the year. We are targeting 20% total revenue growth in FY26, bringing us to approximately $430 million in revenue supported by momentum that is building. To break it down, we've rebased our FY25 revenue to $352 million after adjusting for $10 million in revenue restructuring that includes U.S. debt accounting impacts for fleet completes and the shutdown of non-core lines of business. From that base, we're expecting $55 million in organic growth from Fleet and Feast. We're also projecting approximately $25 million in organic growth with a Q4 exit growth rate of 10% year-over-year. The fundamentals of our business are very strong. The reason for our previously reported tempering of revenue growth in the first half of the year is a level of prudence from anticipated customer slowdown of execution of contracts for CapEx requirements due to the ongoing uncertainty driven by tariffs, which are meaningful in terms of quality revenue, particularly in warehouse solutions. Secondly, as good stewards of capital, we made the responsible decision to pull 50% of originally planned $8 million in go-to-market investment for the year. This investment, initially stated for early FY26, was expected to drive productivity gains in the second half. We intend to resume the activation of this investment once there is greater stability and clarity in the macroeconomic environment. Importantly, we expect organic momentum to accelerate in the second half of FY26. as we ignite the pipeline from our indirect channel partnerships and we see extended productivity gains from managed investments in incremental sales tactics. Next slide. Looking at the bottom line for fiscal 26, we're projecting another year of significant progress. EBITDA is expected to increase by approximately 50%, rising from $71 million to approximately $105 million. This projected increase is underpinned by tangible, well-identified drivers. First, $17 million is highly assured, as this includes the run rate impact as cost synergies realized exiting FY25, along with the full-year run rate EBITDA contribution from the Fleet Complete acquisition. Second, we're highly confident in an additional $11 million in in-year cost synergies in FY26, as part of an annualized $18 million cost reductions. This continues to be a core area of execution strength for our team, as demonstrated by our performance to date. Offsetting these gains slightly is the $4 million investment in our go-to-market engine covered on the last slide, which is critical to unlocking our long-term growth potential, particularly through new channel activations. Finally, we're forecasting $10 million in organic EBITDA growth, driven by top-line expansion and consumer operating leverage across the business. The result is a clear and achievable path to 105 million EBITDA FY26, with the vast majority of the increase tied to identified, controllable levels. Next slide. A key theme underpinning our near-term value creation is our disciplined execution on cost synergies. We're on track to realize a total of 34 million annualized cost synergies by the end of FY26, from the successful integration of the mixed, telematics, and fleet-complete transactions. Of the $34 million to date, we've achieved a total of $16 million exiting FY25. In FY26, we expect to relapse an additional $13 million annualized in the first half, with a further $5 million annualized in the second half, bringing us to the total of $34 million. Looking at the right-hand side of the slide, you can see our EBITDA margin expanded from 15% in FY24 to 20% in FY25. and we expect the realization of costs induced to continue to be a key driver of ongoing EBITDA margin expansion to north of 20% in the first half of fiscal 26 and north of 25% for the second half. Next slide, please. Let me briefly touch on our pro forma adjusted EBITDA margin and expense-to-revenue trends, which reflect disciplined execution and the strength of our service-led models. We saw a meaningful improvement in adjusted gross margin, increasing from 64% in the first half of FY25 to 66% in the second half, with an incremental 1% in gross margin expansion to 67% expected in fiscal 26. Favorable shifts towards service revenue, which carried significantly higher margins, was the key driver of margin expansion second half FY25. and this trend is expected to continue in FY26 with service revenue growth outpacing product revenue growth. G&A as a percentage of revenue is expected to decline from 29% in first half 25 to 24% for the full year FY26 with the ongoing realization of cost synergies the key driver. R&D remains consistent at 8% with about half tied to capitalized investments to support ongoing unity innovations. Moving on to the next slide. Our net debt to EBITDA ratio stood at approximately three and a quarter times at year end 25. In fiscal 26, we are targeting a full turn improvement with the goal to reduce this ratio to below two and a quarter times by year end. We expect adjusted net debt to increase by approximately 20 million in the first half of 26 due to upfront investments to capture synergies, Back Office System Upgrades, and Settlement of FY25 Incentive Compensation. Importantly, we expect an improvement of approximately $30 million in net debt in the second half, driven by lower investment levels, working capital recovery, and continued EBITDA growth.

Next slide, please.

We are forecasting $10 million in due leveraging in the year with calls against EBITDA from CapEx, which is expected to be 11.5% of revenue in FY26, temporarily elevated by approximately two percentage points due to one-time back office investments and tariff-related impacts. Interest expense is forecast to be an effective rate of approximately 9%, and cash taxes are expected to run at about 10% of EBITDA. From a synergy perspective, we estimate a one-time cost of $0.50 for every realized dollar of annuity cost savings. And that wraps up the National Outlook for FY26. I'm now going to pass the call back to Melissa.

Melissa. FY26 is a pivotal year, not just for growth, but for continued execution excellence. We're now in the third and final phase of our transformation, converting integration into scale, speed, and leverage. In the first half of the year, we're making big strides. We're onboarding high-quality talent across sales and customer success, We're enhancing our lead generation engine with the support of a Fortune 500 demand generation expert. Sales operations is being further upgraded and enablement is being rolled out to drive global frontline performance. One of the lesser-seen but critically important wins so far this year has been our execution around supply chain strategy, especially in the face of rising tariffs and ongoing global cost volatility. This has included restructuring our sourcing footprint, Relocating key components to more favorable regions, leveraging allowable exceptions where applicable, we've negotiated new Incoterms, and we've made strategic buys of key components ahead of known or anticipated tariff implementations. Through our actions, we've already mitigated over $13 million in identified cost-of-sales risk, helping to protect both gross margin and pricing stability, reducing to a current expected impact to cost of sales to less than $5 million. The outcome is a structurally leaner and a more resilient supply chain and is a great example of the kind of proactive, cross-functional execution that now defines the PowerSleet operating model. We're also taking creative commercial action to support customers through macroeconomic conditions, deploying flexible third-party financing models for our customers. In the second half, our focus shifts to acceleration. We're scaling our sales motion to boost direct productivity and deal close velocity. Indirect channels are expanding, especially in enterprise, opening new lanes of growth. We're rolling out unified business systems across all regions, which will streamline post-sell execution and reduce cost to serve. In the field, we're scaling deployment capacity, combining internal teams and strategic outsourcing. And finally, we're focused on unity, continuing legacy platform retirement while doubling down on differentiated high ROI functionality. Next slide. As we grow, we're also continuing to execute with discipline, and that means unlocking further cost efficiencies while protecting growth investments. In FY26, we're targeting $18 million in annualized cost savings. and I'm pleased to report that more than 50% are already in execution. These annual savings come from four main areas. We're removing structural redundancies across regions and departments, simplifying management layers and aligning teams under a unified operating model. By consolidating central functions like enablement, support, finance and HR, we're eliminating duplication and unlocking scale efficiencies, especially post-M&A. We're rationalizing overlapping vendor relationships, rebidding key contracts, and we're reducing spend on legacy software and services we no longer need. We're increasing installation efficiency through better workforce planning, outsourcing where appropriate, and leveraging automation across project coordination. These are structural changes to support strengthening the organization, increasing our EBITDA margin, improving operating leverage, and creating capacity to reinvest in the business. all while driving toward our long-term financial model. Now, I'd like to hand back to Steve. Steve?

Thanks, Melissa. Let's close by attempting to answer a critical question for investors. Why PowerFleet and why now? Next slide. Quite simply, a large chunk of the surgical execution and heavy lifting is behind us, allowing us to focus on the company reaching its full potential. In essence, we've integrated, we've scaled, we're growing, and we're profitable. Now, the full potential of PowerFleet is within our reach. We can credibly state that we are now a scale business, expecting to achieve $430 million in total revenue this year, of which approximately 75% is recurring tax revenue. Our gross margins are continuing to expand. We've created a strong global footprint. With more than 2.8 million subscribers and 48,000 customers, seeing solid momentum in cross-sell and up-sell sales motions, including near-term opportunity with more than half of the Fortune 500 in key segments. We are now the number one ranked innovation platform in our space, according to ABI research. Our product strategy is differentiated and disruptive to the marketplace, and customers are responding superbly to our ability to soothe their pain points. We've created a go-to-market engine that is multi-channel, multinational, and multi-product. And we're developing a durable, free cash flow profile with 25% plus EBITDA margins within our sites. Unity is the winning data delivery engine for medium to large global customers, and our proven execution capabilities set us apart. We're not a point solution. We're an AIoT platform that's already delivering results at scale with strong financial discipline and a clear roadmap to shareholder value. PowerFleet now has all the core ingredients to be a margin-expanding, cash-generating category leader. Last slide, please. To finish off, we want to say a big thank you for your support. We're proud of the progress we've made and excited about the path ahead. Let's open the line for questions.

Certainly. At this time, we will be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for questions. Your first question for today is coming from Scott Sherrill with Roth Capital.

Hey, good morning. Thanks for taking the questions, and thanks for all the detailed look at the combined entity going forward. Hey, maybe, Steve and Dave, just to start, All the commentary, all the data that you're providing today, it looks like there's a nice pipeline that continues to build with Unity, AI, video, warehouse, et cetera. And it seems like you're increasingly upbeat in terms of the opportunity set there. Could you reconcile that a little bit with the macro environment, what you guys are seeing with extended sales cycles? And, you know, kind of the outlook here feels – incredibly positive, particularly as we get to the second half of this year, and just kind of help us understand what you're seeing in the near term, customer behaviors, are we seeing sales cycles push out?

Yeah, so thanks, Scott. Good to talk to you as always. So we are extremely positive, and that positivity is backed up from our perspective with credibility of the wins, not just from a pipeline perspective, but actually the sales executions. As David kind of stated, the reason for our little bit of conservatism and caution is a proportion of our business is based on CapEx in the warehouse space. You know, the units that we provide are not, you know, 100 bucks hardware. They're $1,500 to $5,000. So that is a significant investment for customers. So we've seen a proportion of that in terms of customers saying, hey, Let's just see where we land in terms of what the total cost of our asset is going to be from, say, a forklift perspective. And we'll get back to you once we know and our CapEx budgets are finalized. And that's kind of what we're seeing in a number of the larger opportunities. So the pipeline is not going away. But if you look at that, you know, in context of the overall growth vectors that we had in the years, so that in-warehouse space, irrespective of that slowdown, continues to get good momentum. AI Video is 20% plus growth and we're seeing large traction for those solutions. And then it being underpinned by the stickiness of the Unity platform where people are pivoting to that device agnostic piece. So all the health vectors of the business are super strong. The second thing we did, as David said, we were planning $8 million because of the pipeline, because of the momentum in terms of more headcount and more go-to-market spend. We've just toggled back on that. We've done the first half. And once things kind of play out over the next quarter to two quarters, we fully envisage pressing the button on that extra investment. But just as a good student of capital and making sure that we look after our fiscal requirements, we've just said, hey, let's just pause that. So in general terms, we couldn't be more excited. If you remember the The last earnings call we did, we announced the big win with the beverage provider. Our narrative hasn't changed. In fact, it's only been enhanced. And I think you've seen from today's presentation, we're able to give more credible proof points. So in general, the macro is having a little bit of weathering on us, but not substantial in terms of once we feel the clarity that we'll be able to accelerate again. and then secondly, as Melissa alluded to, to help with some of that CapEx investment, we're putting in place in Q2 some third-party finance options for customers to manage that outlay. So we think that will help as well in terms of allowing people to make buying decisions because the need for our solutions, the use cases for our solutions, the value propositions we're providing, as you've seen from the customer example, the results that we're achieving, people want to deploy these solutions. Even more important in difficult times. Right now, it's just about having the mechanism and the affordability to do that while they're still waiting to see what happens at the start of July, as we all know.

Great. Very helpful. And if I could just for a follow-up, and I'll get back in the queue, we've talked about metrics going forward in terms of how you're going to help us understand that. You provided a lot of data today. Have you kind of settled on what those metrics are and maybe around that It sounds like the pipeline continues to grow. I'm wondering if you could gauge that a little bit for us. And lastly, telco relationships, clearly important. Sounds like you've got a couple of them up and running now, trained on the Unity platform. But I think you also referenced in the presentation another North American relationship and a European one. I just wanted to clarify that if the North American one is new or if that is still AT&T or on top of AT&T and then the European relationship and when we can expect to see those kind of wrapping up. Thank you.

So I think, you know, from the quality of our presentation in terms of the metrics that we're starting to be able to deliver, you're seeing that come forward. And, you know, we'll continue to evolve that from a pipeline perspective, an NRR perspective, you know, and different vectors that give you that sense. That will be a lot easier for us once we're through The business systems integration, which you've heard, you know, for our core main regions, we're kind of two quarters away from having that done. But we'll continue to evolve them. It was a commitment we made. I think, you know, you've been around Scott for a long time. You're seeing more credible data come from us now. And that will only continue to move going forward. And then on the telco front, this is two new relationships in terms of Power Fleet and telcos, one being North America and the other one being in Europe. And You know, I think this is, you know, AT&T and TELUS, it was a core part of what we wanted to do to understand the opportunity with Fleet Complete. You know, the excitement is, you know, is growing. You've seen what Jody has said in terms of from a TELUS perspective. If you look closely at the slide, you'll see a couple of references to AT&T who are in pilot with some very large names pre-launch. So that is particularly exciting for us. But this is now alternative telcos who are looking for a data highway IoT play. So they both have agreed to move forward with us. As we've previously articulated, this takes a while to get the motion going. But when we think about that credibility from first half to second half, as AT&T and TELUS are mobilized, then on top of that we'll get the mobilization of these two partners as well, It makes logical sense that this business is going to expand. And, you know, it's on us to invest to make sure those relationships are successful. But the fact that we've got two new ones signed up I think is another good testament, solid testament to us being able to leverage that channel for accelerated growth.

Great. Thanks so much.

Great to see the pipeline and the channel continuing to expand. Thanks.

The next question is coming from Anthony Stoss with Craig Hallam.

Thanks, Steve and team, for the presentation. A couple questions. So you're talking about accelerating growth, exiting fiscal year 2026 at 10% revenue growth. Steve, I'm curious if you could just shed some light on is it across the board, all the product lines, or which product lines you think are going to be the biggest mover for the needle? And I have a couple follow-ups.

So I think there's a couple of things to reference there. So we talked about in terms of the shift in revenue mix. So when we've taken on these acquisitions, as businesses end cycles, some of the revenue streams that were previously good for the businesses aren't strategic anymore or they're highly bespoke and difficult to maintain. So we've actually shared as part of this growth story in FY25 and early 26 You know, $10 million plus in terms of those revenue streams that are dilutive in terms of effort, in terms of profitability. And we've shifted the business to this real data highway play with the backbone of AI video in warehouse and then the integration capabilities. So in terms of in warehouse, it links to over the road, so it's the dual visibility. And, you know, I think FY25 annualized is 17% growth across that sector. Then we're 20% plus growth in terms of the camera space. I mean, the industry has really evolved to a camera first strategy. Our businesses haven't done that. You're seeing the shift in terms of pipeline momentum and sales growth in terms of doing that. So those are really the two that kind of stand out. And what I would say is we're adopting those across the business. So the 13% growth in the year in international operations is coming from more adoption of those kind of high value segments. So in a lot of our narrative, we talk about those things. That's where the high value is. That's where we're differentiated. That's where safety, compliance, sustainability all plays a role. And we want to be very much at the forefront of that. And I think if you look at the logo wins, the new logo wins, if you look at the expansion, it's all based around those solutions, which is What we would want it to be.

And then if I could just follow up on Scott's question a little bit further. Again, the European giant and the new North American telco. Was there a particular product line that drove them to you? Do you expect them to start with one and end up with all three? I'm just curious on that and what you expect for timing.

Yeah. So, rinse and repeat in terms of in-warehouse AI Video and Unity's Data Highway. In terms of timing, we think the North American one, it will probably be, you know, we'll get active, you know, Q3 into Q4. The European one is slightly further behind. So, you know, we've just signed that agreement in the last three to four weeks. So, you know, its major impact will be in FY27. But delighted to have them. And, you know, what I would say is, As individual businesses, we probably wouldn't have won these expanded partnerships. So it's another proof point of why scale was important from our perspective.

Very good. Thanks, Steve.

The next question for today is coming from Gary Prespetino with Barrington Research.

Good morning, everyone. A couple of things here. With this ever-driven, this new contract, was that a competitive takeaway or was this a totally new implementation of these safety solutions that you have out there?

They were an original customer that went into a competitive bid in order to overhaul their technological solutions for AI video.

Got that. When this is up and running and mature, considering the amount of vehicles they'll have on this, is this one of your bigger contracts, Steve?

Absolutely. You know, it's significant. And, you know, I think this shows, you know, our versatility in terms of vertical we serve. It's a very nice win. It's something that we care about a lot in terms of our community. in the U.S. market, and I think it's a strong signal when this was a highly attractive account for some of our competitors, and we've been able to achieve that relationship with Epic Driven. So we're very proud of it. It's significant for our business.

Okay. Yeah, it's a nice win. And then just another couple of questions. You said organic growth on slide 20 was greater than 9% in the quarter. and I seem to recall that organic growth was 7% in Q3, so an acceleration there, am I correct?

So I'm not sure which vector on the – it wasn't organic growth was 90%. Was it the 9% in international operations? Yeah. So 7% was what we previously reported across the business. The 9% is international operations.

Okay, so it was 7% organic growth in the quarter, then total.

Yeah, that's what we reported, yeah.

Okay, that's fine. All right, thank you very much.

Your next question is coming from Alex Sklar with Raymond James.

Great, thank you. Steve or David, really strong diversity of bookings with that 100,000 plus cohort. Any color how meaningful those customers are today in aggregate, the makeup of the pipeline from those larger opportunities and maybe relative to a year ago?

It's a big shift. So, you know, to have, I think it's nine different verticals with 100K ARR wins is something that we didn't see 12 months ago. and, you know, we've referenced a lot, I think, within this presentation around the, you know, the movement in mix of product, the movement in terms of size of opportunity and, you know, that was a very pleasing, you know, testament to the latest quarter in terms of us being able to do that. So major shift and these will become even more meaningful. So this is entry level. And if you think about the modularity of FleetComplete and our ability to add wallet share within each individual customer, then, you know, that is something that ultimately we feel really good about winning those types of opportunities. This is absolutely the sweet spot of where we want to be.

Okay, great, Collin. And then maybe one more follow-up on that indirect channel. So, great to get TELUS set up in the quarter. What's next from TELUS in terms of when you think of channel enablement? Is that as of May 15th, all of their reps now have PowerFleet kind of quota in their bag? Do they sell the full suite now? Is it a portion of the sellers are selling PowerFleet today? And over the next year or two, you're going to see more get set up. I'm just kind of curious how to think about enablement from the indirect channel.

So, Craig, why don't you say that one?

Yeah, sure.

Thanks, Steve.

So the way I'd answer that is all of the reps have an AIoT quota inside their commissions, all kind of commissions on it.

They can all sell the full IoT platform today. Okay, great.

And then maybe one last one for David. So on the slide, it talks about the $10 million of organic EBITDA improvements embedded in the 26th Guide on top of that $25-ish million of organic revenue improvement. That's a nice, really strong 40% kind of incremental margins. Is that the right anchor to think about the potential of the business longer term, absent kind of any additional growth investments or anything kind of unique about this next year when we think about that incrementality?

No, Alex, that's the right way to think about it. If you think about the calls on top line, we have gross margin expanding, increasing services revenue, which is going at a faster rate, so that's higher contribution than the blended. And if you look at the off-ex side of things, G&A should continue to come down in both percentages, and we're working on absolute dollar reductions there as well. and in terms of R&D, there's an expectation that there will be some additional leverage on the R&D side as well. So I think it's a good way to think about it as the business matures and evolves over time.

All right. Great. Thank you all.

Your next question is from Dylan Becker with William Blair.

Hey, gentlemen. Steve, maybe starting with you, a lot of commentary right around in-warehouse and the AI camera, not only adoption in the quarter but pipeline momentum. I guess how much of that in your mind is a function of kind of where the market's going and the need for visibility and solutions like this and kind of the current context alongside kind of your growing base as a referenceable and strategic partner and maybe how that kind of ties into the confidence as you think about and so on.

So, there's an undoubted shift in the marketplace from these solutions being a nice-to-have to be a necessity. And I think also from a privacy perspective in the camera space, it's becoming far more common now to adopt these solutions. But there's a big market with a lot of people playing in that market, and I think what we're We're encouraged about and pleased about is our improvement in execution. So whether that is from a customer satisfaction perspective in existing accounts, whether that's bringing in the right salespeople who can take customers more on a long-term value proposition solution CLROI journey, and whether it's confidence really that actually now we're a player that has the investment and the future proofing with the platform that means we can be a higher quality partner. My prepared remarks and the presentation, we talked a lot about the shift to being a mission-critical partner. And I think the really jam on top of that is therefore being that central system of record, single pane of glass, device agnostic piece, because all of this information can be overwhelming to customers. I was having dialogue with a Very strategic customer of ours. They've got 40,000 different drivers who are all driving different vehicles. And from a safety perspective, they want to know what real risk is within that portfolio. This was just last week. And what they're saying is with the other platforms that they have had within their estate, with the challenges that they have in their business, they just don't have the time. to be able to do that effectively. It needs a platform to be able to do that and the right business support to do it, but it's absolutely a necessity. And as they start to roll out this solution, they can't roll out safety and compliance to part of the fleet. They have to do it to the whole fleet, which is obviously highly encouraging from where we can sit and how we can expand and multiply within those types of customs.

Got it. Very helpful. Thank you, Steve. And then maybe for Per Dave as well here. On the implied second half acceleration, maybe Steve, your perspective here as well too, but how much of that is, we walked through kind of the strong pipeline and demand drivers, but how much of that is actually unlocking capabilities from a supply constraint perspective versus maybe incremental demand flowing into the system. And if it is supply, can you walk through whether that's, again, engineering, partnerships, data integration, what's kind of easing the accessibility of onboarding there? Thank you.

So I'll say that first, and then, David, you can back it up. So, you know, if you look at the acceleration coming out in the second half, first of all, it The indirect channels maturing pipeline into sales, which we have a high confidence of. These aren't new channels with new partners. We've been doing this for a long time. It's about broader opportunities with a broader base of customers. So we feel really good about that. And then secondly, in terms of that shift in terms of mindset of our salespeople to be a camera-led proposition and a safety-led proposition, that will continue to expand as we go as well. In terms of the constraints that we've talked about previously, that's been very much around, you know, there's a slide in our deck which talks about the subs that are being added from a unity perspective, from a device-agnostic single-pay-in-the-class perspective. And if you actually see in the slide, you know, there's, I think, 1.5k subs, 4,000 subs, 4.5k subs, two opportunities coming in the Second half, which is, you know, 12,000 plus subs. So, you know, as we do more of those, that's where we are ramping up and we've really pivoted in the last six months, the capabilities in terms from an R&D perspective to do that at scale. That continues to need work because we are supply constrained. Sorry, we are not demand constrained, but we need to get better and more efficient and effective at doing that. and that's just a matter of scaling for something that is really solving a customer pain point. What I would say in terms of the final vector is we've added more sales feet to the street. So their pipeline is building that we expect a number of reps to come online with productivity. We've been able to capture different quality of rep as well with the new company, with the differentiated propositions. So we're hopeful and Craig gives me a lot of confidence to believe that Those guys are going to come good.

Great. Thank you.

Your next question is from Greg Gibbous with Nordland Securities.

Hey, good morning, Steve and David. I appreciate the presentation. If I could drill down on the near term a little bit more, you know, progression of revenue in EBITDA in Q1 and Q2, you know, you've spoken to the anticipated acceleration in the back half. But, you know, to what extent, I guess, and what are kind of your expectations on the bridge to get to that point?

So, yeah, Greg, we've talked about growth in the first half of the year, initially going for the absolute growth of 40% or so for Q1 and Q2. In order to hit that 40%, you do need to adjust down for some of the proactive steps that were taken, particularly, for example, the FSM business. which, you know, rounding up to about $1.5 million per quarter. In terms of the second half, to Steve's comments earlier, we do expect to see that sort of 10 percentage points of growth as we exit the year. Again, and turning back to the slides, that's adjusted both for FSM as well as the U.S. gap changes for the fleet-complete business. But in terms of what's driving that, it's everything that Steve's been talking about. So we have been investing more in terms of sales capabilities, That will have a compounding impact in terms of turning up the channel in terms of high-quality leads coming through. We continue to get stronger in terms of AI video. Obviously, that's the fastest-growing piece of the market. And then you layer on top of that the comment that Steve just made in terms of our ability to increasingly handle sort of single-panel graphs, data ingestions in the thousands, and then north of 10,000. So all of these things, as planned, are being worked, coordinated, and they'll have an increasingly large impact to see accelerating growth in the second half.

Okay, got it. And to follow up on, you know, the commentary on customer decision cycles, I wanted to just ask to how much of an extent maybe that was a headwind or had an impact on your outlook for the year? Any context you can provide regarding what you're hearing from customers would be very helpful as well.

So, you know, it has no doubt had a weathering effect. And I think we're not alone in that. In most businesses are reporting that, you know, in terms of people just saying, look, we just need to see where these tariffs end. You know, if you think about buying a forklift truck and buying new forklift trucks and on new cycles, Potentially the costs of those things are significantly higher and therefore people are juggling CapEx abilities, they're looking at stuff in their own business. But in terms of the overall quantum of revenue that that is going to affect, we don't think that is substantial. and that is being brought out in terms of the pipeline that we're building, the OPEX deals that we do, particularly in the camera space, the international operations that we are really growing nicely across the estate. We think we've been sensible just in terms of that level of caution. We do believe and hope that there is clarity that comes to organisations to allow them to make buying decisions The needs are there, but just naturally, when the capex deployments can be quite large, people are saying, well, I just need to see how this kind of shakes out. And that's kind of the cycle we're in. And I don't think we need to overplay that in any way, shape, or form. But because there is a level of that that comes into our business each quarter, then it does temper down in the short term. and some of the growth expectation. But as we keep saying, and I think the proof points provide, the health factors of growth for this business are super strong. The proof points are there. The credibility is growing. And if you look at the referenceability, there's a slide in there of customer quotes that we've been able to produce. And when we think about the notable wins, and people said to me, why did you need scale? Last quarter, we gave you the large beverage provider. This quarter, we've given you Evergreen. This company has not been able to communicate deals like that until this point. So we feel very confident. We're just managing our way through the best we feel and the most appropriately fit we feel, understanding that there is a little bit of caution in sentiment. But people are still buying our solutions at scale. What I would just add to that just for kind of a view, if you think about that $10 million of ARR that we have shed over probably the last six to nine months, it gives you a fairly good view of the health of agro-sets. And once we've lapped that stuff that we've proactively taken off and we have been very supportive to customers to help them to a new place, then you can do the math in terms of how the growth rate should expand as part of all the other stuff that we've been discussing.

That's helpful, Steve. Thanks, guys.

We have reached the end of the question and answer session and I will now turn the call over to Steve Towe for closing remarks.

I think today is a good time, so David.

Yeah, so firstly, again, I appreciate everyone's time today. Just a quick update in terms of the audit. So before concluding the call, a quick update in terms of the audit of our 10K. While the audit is essentially complete with no areas of disagreement and no anticipated changes to the figures shared today, it's worth noting this is Deloitte's first year auditing PowerFleet. The scope includes a global engagement and follows a year in which we executed two transformative M&A transactions. Prior to filing, Deloitte does require a little further time to complete their internal quality procedures. We are working with them on a daily basis, and both parties firmly believe we are on track to file the 10-K well ahead of the 15-day grace period. Thank you again for attending today. We appreciate your ongoing interest and support, and we look forward to providing further updates as Momentum continues to build in fiscal 2026. So thank you all, and that concludes today's call.

This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.