Aeries Technology featured in Everest Group's PEAK Matrix for GCC Setup Capabilities 2025 for the Second Year RunningRecognition highlights Aeries' continued strength in global capability center setup for mid-market and PE-backed enterprises.November 17, 2025 8:08 AM EST | Source: Aeries Technology, Inc.New York, New York--(Newsfile Corp. - November 17, 2025) - Aeries Technology, Inc. (NASDAQ: AERT), a global leader in AI-powered business transformation and Global Capability Center (GCC) servi ...

Recognition highlights Aeries’ continued strength in global capability center setup for mid-market and PE-backed enterprisesNEW YORK, Nov. 17, 2025 (GLOBE NEWSWIRE) -- Aeries Technology, Inc. (NASDAQ: AERT), a global leader in AI-powered business transformation and Global Capability Center (GCC) services, today announced that it has been recognized in the Global Capability Center (GCC) Setup Capabilities in India – PEAK Matrix® Assessment 2025 by Everest Group. The PEAK Matrix® is an annual, independent ass ...

Core Insights - Aeries Technology, Inc. has reported a successful second quarter for fiscal year 2026, marking two consecutive profitable quarters and a strong start in company history [1][5] - The company is focusing on disciplined growth, leveraging AI platforms and a dual-shore delivery model between India and Mexico [4][5] Financial Performance - Revenue for Q2 FY2026 reached $17.36 million, reflecting a 3% year-over-year increase [5] - Net income was reported at $0.64 million, with an Adjusted EBITDA of $2.55 million, resulting in a 14.7% EBITDA margin [5] - Operating cash flow for the first half of FY2026 was $2.39 million, indicating a durable financial model [5] Strategic and Operational Progress - The company has completed its turnaround and is now positioned for growth, focusing on AI-led Global Capability Center (GCC) services and automation initiatives [3][4] - Aeries plans to hire over 500 delivery personnel in the next 12 months to meet increasing client demand [5] - New enterprise clients have been added across various sectors, including technology, healthcare, and software, driven by rising demand for GCC builds and AI modernization [4][5] Future Outlook - Aeries anticipates that new contracts currently in ramp-up will contribute significantly to revenue as they mature over the next 4 to 6 months [5] - The company reaffirms its FY2026 Adjusted EBITDA guidance of $6 million to $8 million, indicating confidence in its operational strategy [5]

Core Insights - Aeries Technology held its Second Quarter Fiscal 2026 Earnings Conference Call to discuss results for the quarter ended September 30, 2025, and outline strategic priorities for future growth [1]. Financial Performance - The call included discussions on Aeries' expectations regarding future performance and market opportunities, indicating a focus on growth and strategic direction [2]. Strategic Priorities - The leadership team, including CEO Ajay Khare and CFO Daniel Webb, is set to review the company's strategic priorities that will shape the next stage of growth [1].

Financial Data and Key Metrics Changes - For Q2 FY 2026, the company reported revenue of $17.36 million, a 3% increase year-over-year from $16.87 million in Q2 FY 2025 [11] - Net income for the quarter was $640,000, a significant improvement from a loss of $2.3 million in the same period last year [11] - Adjusted EBITDA was $2.55 million compared to a loss of $2.3 million a year ago, reflecting a strong turnaround [11] - For the first half of FY 2026, revenue reached $32.69 million, with net income of $2.32 million and adjusted EBITDA of $3.59 million, marking the strongest six-month performance in the company's history [3][11] Business Line Data and Key Metrics Changes - The company expanded operations in India and Mexico, planning to hire over 500 new roles to enhance delivery capabilities [4] - New enterprise clients were added across technology, healthcare, and software segments, including private equity-backed companies [4][5] - The company reported positive cash flow from operations for two consecutive quarters, driven by disciplined cost management and stronger collections [6] Market Data and Key Metrics Changes - The company is experiencing positive movements in client engagement across various industries, including enterprise software and healthcare technology [7] - The demand for partners who can assist enterprises in modernization, automation, and scaling efficiently is increasing [8] Company Strategy and Development Direction - The company aims to strengthen its core through technology and AI while building enduring relationships with enterprise and private equity clients [10] - The strategy focuses on operational excellence, AI-powered deliveries, and a scalable model of value creation [5][10] Management's Comments on Operating Environment and Future Outlook - Management highlighted that the current contracts are in the early phase, with greater financial impacts expected in the upcoming quarters [8] - The company anticipates full-year FY 2026 adjusted EBITDA to be between $6 million and $8 million, indicating a focus on balancing growth and profitability [13] Other Important Information - The company has stabilized its operating expenses to support profitability and scalability while allowing for targeted investments in automation and delivery infrastructure [12] - The balance sheet remains healthy, providing flexibility for innovation investments while maintaining financial prudence [13] Q&A Session Summary - No specific questions and answers were provided in the content, thus this section is not applicable.

Financial Performance - Revenue for Q2 FY2026 was $17.36 million, representing a 3% increase year-over-year from $16.87 million in Q2 FY2025[5] - Net income for Q2 FY2026 was $0.64 million, a significant improvement from a net loss of $2.31 million in Q2 FY2025[5] - Adjusted EBITDA for Q2 FY2026 was $2.55 million with a margin of 14.7%, compared to a loss of $(2.30) million in Q2 FY2025[5] - The first half of FY2026 marked the strongest performance in the company's history, with two consecutive quarters of profitability and positive operating cash flow[3] - Revenue for the three months ended September 30, 2025, was $17,359 million, a 2.9% increase from $16,873 million in the same period of 2024[20] - Gross profit for the six months ended September 30, 2025, was $8,800 million, compared to $7,585 million for the same period in 2024, reflecting a 16.0% increase[20] - Net income for the three months ended September 30, 2025, was $642 million, a significant recovery from a net loss of $2,306 million in the same period of 2024[20] - Adjusted EBITDA for the six months ended September 30, 2025, was $3,585 million, compared to a loss of $1,894 million in the same period of 2024[25] - The adjusted EBITDA margin for the three months ended September 30, 2025, was 14.7%, compared to a negative margin of 13.6% in the same period of 2024[25] - Cash and cash equivalents at the end of the period for six months ended September 30, 2025, were $1,866 million, down from $3,627 million at the end of the same period in 2024[22] - Operating expenses for the three months ended September 30, 2025, were $3,037 million, significantly lower than $7,670 million in the same period of 2024[20] - The company reported a net cash provided by operating activities of $2,394 million for the six months ended September 30, 2025, compared to $205 million in the same period of 2024[22] - Total other income/expense, net for the three months ended September 30, 2025, was a loss of $549 million, compared to a gain of $1,263 million in the same period of 2024[20] - The weighted average shares outstanding of Class A ordinary shares for the three months ended September 30, 2025, were 47,309,264, compared to 44,356,074 in the same period of 2024[20] Future Outlook - Aeries plans to achieve FY2026 Adjusted EBITDA in the range of $6 million to $8 million as new contracts ramp up[7] - Aeries anticipates closing additional client opportunities in Q3 FY2026, reflecting rising demand for its services[4] Operational Expansion - The company expanded its operations in India and Mexico, planning to hire over 500 new roles to enhance delivery capacity[9] - Aeries signed a multi-million-dollar AI partnership to enhance its capabilities in India[9] - An AI-powered content automation solution was unveiled, achieving over 80% efficiency gains and a 12x improvement in throughput[9] - The company delivered over $20 million in client savings through its nearshore GCC model in Guadalajara, Mexico[9]

Core Insights - Aeries Technology has completed its turnaround and is entering a new growth phase, leveraging AI-led delivery, dual-shore Global Capability Center (GCC) scale, and enhanced private equity relationships [2][4][6]. Financial Performance - For Q2 FY2026, Aeries reported revenue of $17.36 million, a 3% increase year-over-year from $16.87 million in Q2 FY2025 [8]. - The company achieved a net income of $0.64 million, compared to a net loss of $2.31 million in Q2 FY2025 [8]. - Adjusted EBITDA for the quarter was $2.55 million, with a margin of 14.7%, a significant improvement from a loss of $(2.30) million in Q2 FY2025 [8][24]. - For the first half of FY2026, Aeries recorded a net income of $2.32 million, compared to a net loss of $17.62 million in the prior-year period [8]. Business Strategy and Growth - Aeries is executing a disciplined growth strategy focused on AI platforms and an integrated delivery model between India and Mexico, which has led to new enterprise client additions across various markets [4][5]. - The company anticipates further client opportunities in Q3 FY2026, indicating a positive outlook for continued growth [4][6]. - Aeries has expanded its operations in India and Mexico, planning to hire over 500 new roles to enhance delivery capacity [9]. Operational Highlights - The company celebrated a 10-year client partnership milestone, demonstrating durability and trust in its client relationships [9]. - Aeries delivered over $20 million in client savings through its nearshore GCC model in Guadalajara, Mexico, showcasing the effectiveness of its operational strategies [9].

Revenue Performance - For the three months ended September 30, 2025, total revenue was $17.359 million, an increase from $16.873 million in the same period of 2024, representing a growth of 2.9%[180] - North America generated $15.880 million in revenue for the three months ended September 30, 2025, compared to $15.728 million in the same period of 2024, reflecting a growth of 1.0%[180] - The Asia Pacific and Other segment reported revenue of $1.479 million for the three months ended September 30, 2025, up from $1.145 million in the same period of 2024, marking a growth of 29.2%[180] - For the six months ended September 30, 2025, total revenue was $32.688 million, a decrease from $33.540 million in the same period of 2024, indicating a decline of 2.5%[180] - For the three months ended September 30, 2025, net revenues increased by $0.49 million or 3% to $17.36 million compared to $16.87 million in the same period of 2024[182] - For the six months ended September 30, 2025, net revenues decreased by $0.85 million or 3% to $32.69 million from $33.54 million in the same period of 2024[191] - Revenue for the three months ended September 30, 2025 was $17.359 million, up from $16.873 million in 2024, indicating a growth of approximately 2.9%[202] Profitability and Expenses - Gross profit for the three months ended September 30, 2025, rose by $1.45 million or 40% to $5.02 million, driven by a reduction in cost of revenue[184] - Selling, general and administrative expenses decreased by $4.63 million or 60% to $3.04 million for the three months ended September 30, 2025, compared to $7.67 million in 2024[186] - Net income for the three months ended September 30, 2025, was $0.64 million, a significant increase of $2.95 million or 128% compared to a net loss of $2.31 million in 2024[190] - Gross profit for the six months ended September 30, 2025, increased by $1.22 million or 16% to $8.88 million, despite a revenue decline[193] - Total other income (expense), net for the six months ended September 30, 2025, was $0.64 million, a decrease of $0.64 million or 50% compared to $1.28 million in 2024[197] - The effective tax rate for the six months ended September 30, 2025, was 32.7%, an increase from 8.4% in 2024, primarily due to non-recognition of deferred tax benefits[198] - The company reported a significant reduction in expected credit loss provisioning, contributing to lower operating expenses[196] - Adjusted EBITDA is defined as net income from operations before interest, income taxes, depreciation, and amortization, providing insight into the company's operating performance[200] - Adjusted EBITDA for the six months ended September 30, 2025 was $3.585 million, a significant improvement from a loss of $1.894 million in the same period of 2024[202] Cash Flow and Financing - The company generated positive operating cash flows of $2.39 million for the six months ended September 30, 2025, compared to $205,000 in the same period of 2024[208] - Net cash used in financing activities for the six months ended September 30, 2025 was $2.33 million, primarily due to repayments of short-term borrowings[213] - The company has initiated targeted cost-cutting measures focusing on non-core expenses to improve cash flow without impacting core operations[209] - The company entered into an "at-the-market" sales agreement on October 1, 2025, to raise additional funds, pending SEC review[207] Client and Market Dynamics - The Company had over 30 clients across various industries, including e-commerce, telecom, security, healthcare, and engineering as of September 30, 2025[164] - Aeries Technology's operational performance is influenced by macroeconomic conditions, including inflation and geopolitical uncertainties, which have impacted business operations during the three and six months ended September 30, 2025[168] - Aeries focuses on maintaining long-term customer relationships, as a significant portion of revenue is derived from long-term contracts, which may be subject to early termination risks[169] - The non-renewal of a significant customer contract is expected to reduce annual revenues by approximately $4 million[203] Debt and Credit Facilities - The Company has a revolving credit facility of INR 3.20 million (approximately $3,604) as of September 30, 2025, with interest rates tied to the 3-month Repo Rate plus a margin of 3.90%[172] - Aeries has an outstanding unsecured loan of $0.8 million from a director at an interest rate of 12% per annum, which was fully outstanding as of September 30, 2025[173] - The company had a working capital deficit of $8.45 million as of September 30, 2025, primarily due to current liabilities related to FPAs and short-term borrowings[203] - An allowance for doubtful accounts of approximately $3.52 million was recorded, reflecting a heightened risk of non-collection[203]

Core Insights - Aeries Technology, Inc. has expanded its portfolio of AI-enabled implementation projects that enhance its core Global Capability Center (GCC) services, improving operational efficiency for mid-market and private equity-backed companies [1][2] Company Overview - Aeries Technology is recognized as a global leader in AI-enabled business transformation and GCC delivery, particularly for private equity portfolio companies, emphasizing scalable and technology-driven execution [3] Implementation Impact - The consulting-led execution and deep functional specialization of Aeries' projects have significantly increased productivity and speed across various functions, leading to faster transformations and improved operating leverage [2] - Specific improvements include: - Document automation achieving ≥80% automation for quicker releases and consistent metadata [5] - Transaction assurance through tamper-resistant event recording enhancing compliance [5] - Build and test acceleration resulting in ~50% faster UI builds and ~75% defect capture for more reliable cycles [5] - Workflow and revenue operations seeing reconciliation time reduced from ~30 minutes to seconds [5] Strategic Positioning - Aeries' dual capability in GCC development and targeted AI implementations positions the company as a comprehensive transformation partner, facilitating scalable growth, quicker impact realization, and deeper client engagement [2]

Core Insights - Aeries Technology, Inc. has successfully completed a 100-day Go-Live ERP implementation for an enterprise client in North America, showcasing its capabilities in AI-driven business transformation [1][2] - The company emphasizes its consulting-led, AI-enabled execution model, which has helped clients achieve measurable operational gains by unifying critical business functions [2][3] - Aeries' digital transformation practice is focused on modernizing core enterprise functions, with a projected global digital transformation spending exceeding $3 trillion by 2030, positioning the company for sustained growth [3] Company Overview - Aeries Technology is recognized as a global leader in AI-enabled value creation and business transformation, particularly for private-equity portfolio companies [4] - The company has been awarded the Great Place to Work Certification for two consecutive years, reflecting its commitment to workforce development [4] Operational Achievements - A shift-left IT operations model implemented by Aeries optimized support ticket resolution by 80% and reduced IT resources by 41% [6] - The company automated the Accounts Payable process for a global services firm, reducing approval cycle times to under 48 hours and doubling process efficiency [6] - A rapid ERP deployment achieved full system migration, configuration, and user adoption in record time [6]