Powerfleet Inc. (Nasdaq: AIOT) has reported its financial results for the first quarter ending June 30, 2025. The company experienced a 38% year-over-year increase in total revenue, reaching $104.1 million. This growth was largely driven by a 6% sequential rise in services revenue to $86.5 million, which now constitutes a record high of 83% of the total revenue. The adjusted EBITDA for the quarter increased by 58% to $21.6 million, with an adjusted EBITDA margin expansion of 260 basis points to 21%. Additionally, gross profit increased by $16.8 million year-over-year to $56.5 million, with adjusted EBITDA gross margins improving by 3% to reach 67%. Powerfleet's EBITDA expansion program has delivered $11 million in annual savings by the end of the first quarter, achieving 60% of its full-year target of $18 million. In terms of outlook, Powerfleet has raised its total revenue guidance for FY26 to range between $430 million and $440 million, up from the previous guidance of $420 million to $440 million. The company's CEO, Steve Towe, highlighted the profitable growth and the accelerating adoption of Powerfleet's AI-driven SaaS solutions as key contributors to its success in transitioning towards a high-margin business model. Additionally, Powerfleet announced a major new strategic sales channel partnership with MTN Group to expand its reach by white-labeling its solutions to enterprise customers.