Stocks, bonds, ETFs, straight out of downtown Chicago. This is Zach's Market Edge. Welcome to Zach's Market Edge, the podcast about investing in your life.I'm your host, Tracy Reinick, and this week I have a guest. As promised, Zach's small cap analyst, Mark Zinski, is back on the podcast, and he's bringing us those small cap stocks. Now remember the difference between Mark and myself.Mark is actually an analyst. I'm just a strategist. So I look at the bigger picture.Mark is actually looking at these compan ...

Core Viewpoint - Zacks Investment Research has initiated coverage of Aeries Technology, Inc. (AERT) with an Outperform recommendation, highlighting improving profitability trends, expanding revenue visibility, and a valuation that appears significantly discounted compared to industry peers [1] Company Overview - Aeries Technology is a global provider of professional and technology consulting services, specializing in the design, setup, and management of Global Capability Centers (GCCs) for private equity portfolio companies and middle-market enterprises [2] Financial Performance - Recent financial results indicate that Aeries may be entering the early stages of sustained profitability, reporting positive net income and adjusted EBITDA margins in the low-teens through the quarter ended December 31, 2025, with positive operating cash flow on a year-to-date basis [3] - Management has raised its fiscal 2026 adjusted EBITDA guidance and introduced a fiscal 2027 outlook, projecting revenues of $80-$84 million and EBITDA of $10-$12 million, suggesting continued profitability expansion as the company scales its consulting and delivery operations [4] Strategic Engagements - Aeries has secured a multi-year, multi-million-dollar engagement with a global financial services organization to establish and operate a dedicated GCC in Bangalore, which will serve as a strategic engineering hub focused on developing next-generation platform capabilities and modernizing the client's digital infrastructure [5] Capital Allocation - In March 2026, the board authorized a share repurchase program of up to $5 million over a 12-month period, representing a meaningful capital allocation decision and signaling management's confidence in the company's improving cash-flow profile and perceived intrinsic value [6] Market Position - Aeries shares have underperformed broader market benchmarks recently, but the stock currently trades at a significant discount to many peers, which could offer potential upside if the company continues to improve profitability and revenue visibility [9] Growth Drivers and Risks - Despite existing financial risks related to liquidity, including a cash position of approximately $2.6 million and a working capital deficit of about $7.1 million, Aeries' improving profitability profile and expanding pipeline of multi-year engagements position it well for continued momentum [10]

Core Viewpoint - Aeries Technology, Inc. has received shareholder approval for share consolidation resolutions but does not plan to implement them in the near term [2] Group 1: Share Consolidation - Shareholders approved share consolidation resolutions at a ratio of up to one-for-ten (1:10), with the exact ratio to be determined by the Board [2] - The Board retains the authority to implement the share consolidation before the next annual general meeting, if deemed appropriate [2] Group 2: Share Repurchase Program - The Company is focused on enhancing operational performance and has authorized a $5.0 million share repurchase program to buy back Class A ordinary shares [3] - Repurchases will occur at management's discretion regarding amounts and prices [3] Group 3: Company Overview - Aeries Technology, Inc. is a leader in AI-powered business transformation and Global Capability Center (GCC) services [4] - The Company collaborates with private equity firms and enterprise clients to establish global capability centers aimed at driving operational efficiency and long-term value creation [4]

Group 1 - The Annual General Meeting of Shareholders is being held for purposes outlined in the proxy statements prepared by the company [1] - Ajay Khare serves as the Chief Executive Officer and Chairman of the Annual General Meeting [1] - The management team present includes Ajay Khare and Daniel S. Webb, the Chief Financial Officer [2] Group 2 - The meeting will commence with the confirmation of proper notice and the presence of a quorum [2] - Daniel S. Webb will report on the notice of the meeting as the Chief Financial Officer and Secretary [2]

Core Viewpoint - Aeries Technology, Inc. has announced a share repurchase program of up to $5.0 million for its Class A ordinary shares, reflecting the Board's confidence in the company's strategy and long-term growth opportunities [1][2]. Group 1: Share Repurchase Program - The share repurchase program is authorized for a twelve-month period, allowing the company to buy back shares as a means to allocate capital effectively and enhance shareholder value [1][2]. - The Board believes that this program provides a disciplined and flexible mechanism for capital allocation [2]. - Repurchases may occur at management's discretion, using various methods such as open market purchases or private negotiated transactions, and the program can be modified or discontinued at any time [3]. Group 2: Company Overview - Aeries Technology, Inc. is recognized as a global leader in AI-powered business transformation and Global Capability Center (GCC) services [4]. - The company collaborates with private equity firms and enterprise clients to establish and scale dedicated global capability centers aimed at driving operational efficiency and long-term value creation [4].

Core Insights - Aeries Technology, Inc. has announced a strategic advisory engagement with a leading global tax and financial advisory firm to support the expansion of its India-based Global Capability Center (GCC) [1] - The engagement will provide integrated advisory services across various domains as the client scales its global delivery footprint, highlighting the demand for advisory-led GCC design [2] - Aeries' CEO noted improved profitability and positive operating cash flow in Q3, leading to an increase in full-year guidance and a strong pipeline for future engagements [3] Financial Performance - Aeries reported third quarter fiscal 2026 results with revenue of $17.5 million and adjusted EBITDA of $2.5 million, reflecting an adjusted EBITDA margin of 14.1% [9] - The company raised its full-year fiscal 2026 adjusted EBITDA guidance to a range of $7 million to $8 million based on Q3 performance [4] - For fiscal 2027, Aeries expects continued margin expansion supported by recurring multi-year engagements and a growing enterprise pipeline [5] Future Outlook - The combination of the new strategic engagement, improved profitability, and raised guidance indicates a strengthening operating foundation for Aeries [6] - Management believes the company is well-positioned to sustain growth momentum and enhance predictability as it enters fiscal 2027 [6]

Core Insights - Aeries Technology Inc. reported a turnaround in profitability for FQ3 2026, achieving an Adjusted EBITDA of $2.5 million compared to a loss of $2 million in the same period last year, despite flat year-over-year revenue of $17.5 million [1][2]. Financial Performance - The company achieved flat revenue of $17.5 million year-over-year in FQ3 2026 [1]. - Adjusted EBITDA improved to $2.5 million from a loss of $2 million in the same quarter last year [1]. Management Commentary - The CEO attributed the positive results to disciplined cost management, scaled Global Capability Center operations, and increased adoption of AI and automation among clients [2]. - High utilization and stability of delivery teams in India and Mexico contributed to the company's performance, earning a third 'Great Place to Work' certification [2]. Future Guidance - Aeries Technology provided strong guidance for FY2027, projecting revenue between $80 million and $84 million and Adjusted EBITDA between $10 million and $12 million [3]. - The CFO emphasized that this outlook is supported by already signed multi-year contracts and maturing AI implementations [3]. - The company also raised its FY2026 Adjusted EBITDA guidance to a range of $7 million to $8 million [3]. Business Overview - Aeries Technology Inc. offers professional and technology consulting services across North America, the Asia Pacific, and internationally [4].

Financial Data and Key Metrics Changes - For Q3 FY 2026, revenue was $17.5 million, slightly down from $17.6 million in the prior year period, while Adjusted EBITDA improved significantly to $2.5 million from a loss of $2 million in Q3 FY 2025, marking a notable turnaround [2][8][9] - Adjusted EBITDA margin was approximately 14.1%, reflecting a significant improvement from the previous year's negative margin [2][8] - Operating cash flow was positive for the third consecutive quarter at $2.4 million, indicating improved cash generation and stability in working capital [9][10] Business Line Data and Key Metrics Changes - The company reported strong delivery performance in India and Mexico, contributing to overall stability across its client base [2][3] - Automation initiatives have led to improved throughput and productivity, enhancing the operational efficiency across client programs [3][9] Market Data and Key Metrics Changes - The company continues to see strong engagement across the Private Equity ecosystem and multiple industry sectors, reinforcing its position and creating additional opportunities [4][5] - The nearshore presence in Mexico is scaling, with recent engagements further strengthening long-term positioning [4] Company Strategy and Development Direction - The company is focused on creating a predictable and efficient operating model, with a dual strength in its GCC delivery model and targeted AI execution [3][4] - Strategic relationships with clients are maturing into multi-year engagements across various business functions, highlighting the durability of client relations [5] - The outlook for fiscal 2027 anticipates revenue in the range of $80 million to $84 million, supported by multi-year contracts and ongoing program ramp-ups [7][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the revenue and profitability profile for fiscal 2027, citing strong visibility from signed contracts and active program ramp-ups [6][10] - The company is increasing its full-year fiscal 2026 Adjusted EBITDA guidance to a range of $7 million to $8 million, reflecting strong operating performance and improved delivery utilization [9] Other Important Information - The company achieved its third Great Place to Work certification, indicating strong talent retention and engagement across core delivery locations [5] - The balance sheet remains healthy, positioning the company well for continued growth and improved profitability [11] Q&A Session Summary - The call concluded without a Q&A session, as indicated by the operator's closing remarks [12]

Financial Data and Key Metrics Changes - Revenue for Q3 FY 2026 was $17.5 million, slightly down from $17.6 million in the prior year period [8] - Adjusted EBITDA improved significantly to $2.5 million from a loss of $2 million in Q3 FY 2025, marking a turnaround [8][9] - Adjusted EBITDA margin was approximately 14.1%, a notable improvement from the previous year's negative margin [2][8] - Operating cash flow was positive for the third consecutive quarter at $2.4 million, indicating strong cash generation [9] Business Line Data and Key Metrics Changes - The company reported stable revenue across its business lines, with improved margins driven by automation and efficiency initiatives [2][3] - Continued momentum in AI-led transformation and GCC practices contributed to operational improvements [3][4] - Multi-year engagements with clients are expected to enhance revenue visibility and profitability in the future [4][5] Market Data and Key Metrics Changes - The company is seeing strong engagement across the Private Equity ecosystem and various industry sectors, reinforcing its market position [4] - The nearshore presence in Mexico is scaling, with recent engagements further strengthening long-term positioning [4] Company Strategy and Development Direction - The company is focused on creating a predictable and efficient operating model, with an emphasis on automation and AI capabilities [2][3] - Strategic relationships with clients are maturing into multi-year engagements, highlighting the durability of client relations [5] - The outlook for fiscal 2027 anticipates revenue in the range of $80 million to $84 million, supported by signed contracts and active program ramp-ups [7][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the revenue and profitability profile for fiscal 2027, citing strong visibility from multi-year contracts [6][10] - The company expects further contributions to revenue and profits as programs progress towards steady state [10] - The balance sheet remains healthy, positioning the company well for continued growth and improved profitability [11] Other Important Information - The company achieved its third Great Place to Work certification, reflecting strong talent retention and engagement [5] - Adjusted EBITDA guidance for the full fiscal year 2026 has been increased to a range of $7 million to $8 million, up from the previous guidance of $6 million to $8 million [9] Q&A Session Summary - No specific questions or answers were provided in the content, thus this section is not applicable.

Financial Data and Key Metrics Changes - For Q3 FY 2026, revenue was $17.5 million, slightly down from $17.6 million in the prior year period, while Adjusted EBITDA improved significantly to $2.5 million from a loss of $2 million in Q3 FY 2025, marking a notable turnaround [2][8] - Adjusted EBITDA margin was approximately 14.1%, a significant improvement from a negative margin in the prior year quarter [2][3] - Operating cash flow was positive for the third consecutive quarter at $2.4 million, indicating strong cash generation capabilities [9] Business Line Data and Key Metrics Changes - The company reported stable revenue across its client base, with strong delivery performance noted in India and Mexico [2][3] - Automation initiatives have led to improved throughput and productivity, contributing to the overall financial performance [3][9] Market Data and Key Metrics Changes - The company continues to see strong engagement across the Private Equity ecosystem and multiple industry sectors, which supports revenue visibility and long-term margin expansion [4][5] - The nearshore presence in Mexico is scaling, with recent engagements further strengthening the company's long-term positioning [4] Company Strategy and Development Direction - The company is focused on creating a more predictable and efficient operating model, with an emphasis on automation and AI capabilities [3][5] - Strategic relationships with clients are maturing into multi-year engagements, enhancing the durability of client relations and the recurring nature of the business model [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the revenue and profitability profile for fiscal 2027, projecting revenue in the range of $80 million to $84 million and Adjusted EBITDA of $10 million to $12 million [6][10] - The outlook is supported by signed contracts and active program ramp-ups, which are expected to contribute to revenue and profits as they progress towards steady state [10][11] Other Important Information - The company has achieved its third Great Place to Work certification, reflecting strong talent retention and engagement across core delivery locations [5] - The balance sheet remains healthy, positioning the company well for continued growth while improving profitability and cash flow [11] Q&A Session Summary - No specific questions or answers were provided in the content, thus this section is not applicable.