Financial Data and Key Metrics Changes - The company reported positive EBITDA of $2.3 million, net income of $1.7 million, and positive cash from operations of $1.4 million, indicating a strong financial performance for Q1 FY 2026 [4][9] - There was a significant year-over-year net income swing of over $17 million from a loss of $15.3 million last year, showcasing a remarkable recovery [9] - SG&A expenses were reduced by more than 85%, contributing to improved margins and operational efficiency [4][10] Business Line Data and Key Metrics Changes - The company has exited non-core operations to focus on high-value Global Capability Centers (GCCs) and AI-powered transformation services, leading to multiple new client wins [5][6] - The private equity segment saw accelerated momentum, with several clients transitioning from pilot programs to multi-year engagements, increasing delivery volumes and expanding margins [10] Market Data and Key Metrics Changes - The company integrated nearshore capabilities in Mexico with offshore teams in India, enhancing client service through faster turnaround and better cost efficiency [5] - The rollout of AresONE is enabling faster deployment of enterprise-grade AI solutions, improving operational efficiency for clients [7] Company Strategy and Development Direction - The company is focused on creating a more agile, efficient, and scalable organization, aiming for consistent and profitable growth [6] - An independent advisory board has been formed to help seize growth opportunities and refine the AI strategy [6][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering financial year 2026 priorities and achieving guidance, indicating a strong foundation and proven model for growth [8][11] - The company reaffirmed its fiscal year 2026 revenue guidance of $74 million to $80 million and adjusted EBITDA of $6 million to $8 million, highlighting expanding growth opportunities [10][11] Other Important Information - The company emphasized the importance of disciplined cost control and a healthy revenue mix in achieving positive cash flow, marking a significant turnaround from previous quarters [10] Q&A Session Summary - No specific questions or answers were provided in the transcript, as the call concluded without a Q&A segment [12]

Financial Performance - Aeries Technology reported fiscal year 2025 revenues of $70.2 million, a decrease of 3.2% from $72.5 million in fiscal year 2024[4] - The company achieved a Core Adjusted EBITDA of $7.4 million for fiscal year 2025, representing a 365% increase compared to $1.6 million in fiscal year 2024[6] - Aeries experienced a net loss of $21.6 million in fiscal year 2025, compared to a net income of $17.3 million in fiscal year 2024[5] - Adjusted EBITDA for fiscal year 2025 was $(4.7) million, down from $9.2 million in fiscal year 2024[6] - Aeries has reiterated its revenue guidance for fiscal year 2026, projecting between $74 million and $80 million[7] - The company expects Adjusted EBITDA for fiscal year 2026 to be between $6 million and $8 million[7] Market Focus and Strategy - Aeries has exited non-core geographies, including the Middle East, to focus on its core North American market[3] - The company plans to discontinue reporting Core Adjusted EBITDA as a financial metric starting in FY2026, focusing instead on Adjusted EBITDA and GAAP results[2] Profitability and Margins - The gross profit margin for fiscal year 2025 was 24%, down from 30% in fiscal year 2024[16] Cash Flow and Assets - Cash and Cash Equivalents increased by 33% from $2,084 million in 2024 to $2,764 million in 2025[22] - Net cash used in operating activities decreased by 77%, from $(4,299) million in 2024 to $(1,009) million in 2025[22] - Total current assets decreased by 35% from $32,836 million in 2024 to $21,327 million in 2025[24] - Accounts receivable decreased significantly by 54% from $23,757 million in 2024 to $10,982 million in 2025[24] - Operating right-of-use assets increased by 31% from $7,318 million in 2024 to $9,602 million in 2025[24] - Deferred tax assets increased by 110% from $1,933 million in 2024 to $4,064 million in 2025[24] Liabilities and Shareholder Equity - Total liabilities decreased by 9% from $50,587 million in 2024 to $45,937 million in 2025[24] - Shareholders' deficit improved from $(12,240) million in 2024 to $(5,804) million in 2025, a reduction of 53%[24] Financing Activities - Net cash provided by financing activities decreased by 66%, from $7,056 million in 2024 to $2,432 million in 2025[22] Exchange Rate Effects - Effects of exchange rates on cash improved significantly by 280%, from $(64) million in 2024 to $115 million in 2025[22]

Core Insights - Aeries Technology, Inc. reported its strongest first quarter in company history, achieving positive operating cash flow and a $17.0 million year-over-year improvement in net income [1][4] - The company attributes its success to operational discipline, a focus on core offerings, and the implementation of AI-enabled Global Capability Center (GCC) services [2][3] Financial Performance - Revenue for the quarter ended June 30, 2025, was $15.3 million, driven entirely by strong demand for AI-powered GCC services [4] - SG&A expenses were reduced by more than 85% year-over-year, contributing to a leaner cost structure [4] - Operating profit reached $0.8 million, an increase of $17.2 million year-over-year, while net income was $1.7 million compared to a net loss of $15.3 million in Q1 FY2025 [4][19] - Cash flow from operations was $1.4 million, reversing the negative cash flow from the previous year [4] Strategic Initiatives - The company exited non-core operations to concentrate on high-value GCC and AI-powered transformation services, resulting in multiple new client wins [5] - Aeries integrated nearshore and offshore delivery to enhance speed, cost efficiency, scalability, and innovation [5] - The company strengthened its leadership team and aligned skill sets to core offerings, optimizing project governance and delivery [5] Market Position and Growth - Aeries has positioned itself as a key partner for Private Equity (PE) firms, enhancing its market presence through new client acquisitions and expanded relationships [7] - The AI-first GCC model allows clients to achieve significant improvements in speed, scale, and efficiency, attracting Private Equity-backed companies [2][6] Fiscal Outlook - Aeries reaffirmed its full-year FY2026 guidance, emphasizing that disciplined execution can deliver both growth and profitability [8]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (MARK ONE) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission file number: 001-40920 Aeries Technology, Inc. (Exact Name of Registrant as Specified in Its Charter) | Cayman Islands | 98-15 ...

Core Insights - Aeries Technology, Inc. has successfully transformed its HR processes using AI, enhancing workforce agility and client value [1][2][3] - The AI-enabled Global Capability Center (GCC) market is projected to reach $211 billion by 2030, while the HR management market is expected to hit $60.52 billion [2] Group 1: HR Transformation Achievements - Aeries' HR transformation streamlined sourcing, compliance, and reporting, achieving a Learning & Development feedback score of 4.4 out of 5 [2] - The employee experience framework improved Great Place to Work® scores to 82, reinforcing Aeries' status as an employer of choice [2] - Onboarding time was reduced from 3-5 days to one day, representing a 60-70% improvement, with 100% compliance from day one [6] Group 2: Operational Efficiency and Cost Savings - Administrative workload was cut by 80%, allowing HR to focus on strategic priorities [6] - Employee engagement reached 97% satisfaction through the 30:60:90 Connect framework, with voluntary attrition below 7%, significantly lower than the industry benchmark of 13% [6] - Aeries has achieved over 50% cost savings and established over 40 successful GCC setups across seven global locations [3] Group 3: Strategic Positioning - The transformation positions Aeries as a strategic partner for innovation and growth, particularly for Private Equity portfolio companies [3] - Aeries Technology has been recognized as a Great Place to Work for two consecutive years, highlighting its commitment to workforce development [4]

Core Insights - Aeries Technology has launched AeriesOne, a generative-AI value-creation platform aimed at helping mid-market private-equity portfolio companies transition from AI pilots to production-scale implementations [1][9] - The platform is designed to optimize operations and accelerate AI adoption across various functions such as Engineering, Customer Support, IT, and Finance [2][9] - Aeries estimates a potential 25% increase in its Total Addressable Market due to the rise in AI adoption within its mid-market private-equity focus [4] Industry Context - Bain & Company projects the global market for AI products and services could reach between $780 billion and $990 billion by 2027, highlighting significant value-creation opportunities for mid-market private-equity portfolios [3] - McKinsey estimates that generative-AI applications could unlock between $2.6 trillion and $4.4 trillion in annual economic value [3] Product Features - AeriesOne includes three foundational pillars: A1GCC for digital-twin operating models, A1Marketplace for LLM-powered agents and automation modules, and A1Support for shared services across various business functions [6][12] - The platform emphasizes modular flexibility, allowing phased deployment that evolves with client needs and future-proof integrations [12] Strategic Benefits - Aeries anticipates expanding its wallet share across its current Global Capability Center client base while opening new pipelines in the mid-market private-equity sector through continuous innovation [8] - The company aims to provide a practical path from ideation to implementation with minimal disruption and faster time-to-value for its clients [5][9]

Core Insights - Aeries Technology, Inc. has formed a strategic partnership with Skydda.ai to enhance its cybersecurity operations through AI-enabled solutions [1][2] - The collaboration aims to improve the efficiency and adaptability of Security Operations Centers (SOC) for mid-market companies [3][4] - Aeries' integration of Skydda.ai's technology is expected to significantly boost analyst productivity and speed up SOC workflows [4] Company Overview - Aeries Technology is recognized as a global leader in AI-enabled value creation and business transformation, particularly for private equity portfolio companies [6] - The company has been operational since 2012 and has received the Great Place to Work Certification for two consecutive years, highlighting its commitment to workforce development [6] Partnership Details - The partnership with Skydda.ai is part of Aeries' AI Partner Network, which focuses on delivering high-impact, domain-specific AI platforms [5] - Skydda.ai's technology offers autonomous threat detection and AI-powered workflows, which will enhance Aeries' SOC capabilities [2][4] - The collaboration is expected to provide a 33x increase in analyst productivity and 20x faster execution of SOC workflows [4]

Core Insights - Aeries Technology has launched the AI Partner Network Program aimed at enhancing operational efficiency for mid-market companies backed by private equity [1][2] - The AI-enabled Global Capability Center (GCC) market is projected to grow to $211 billion by 2030, indicating significant demand for AI solutions in business transformation [2] Company Overview - Aeries Technology is recognized as a global leader in AI-enabled value creation and business transformation, specifically for private equity portfolio companies [6] - The company has been operational since 2012 and has received the Great Place to Work Certification for two consecutive years, highlighting its commitment to workforce development [6] AI Partner Network Program - The AI Partner Network is designed to provide enterprise-deployable tools that are tailored for mid-market environments, focusing on areas such as finance automation, IT operations, HR support, cybersecurity, and analytics [3][4] - Aeries employs a rigorous evaluation process for these tools, ensuring they are customized and co-developed to meet specific client needs [4] Implementation Strategy - The program is supported by Aeries' proprietary AI Enablement Framework, which benchmarks AI readiness and manages deployment through a unified delivery layer [5] - This structured approach ensures that AI adoption is technically feasible, scalable, and aligned with the transformation goals of clients [5]

Core Viewpoint - Aeries Technology has successfully restored compliance with Nasdaq's minimum bid price requirement, allowing it to continue trading on the Nasdaq Capital Market without the need for a hearing or appeal process [1]. Group 1: Compliance and Market Position - The company has restored compliance with Nasdaq Listing Rule 5550(a)(2) and will continue trading on the Nasdaq Capital Market [1]. - No hearing or appeal process was necessary, indicating a smooth resolution of the compliance issue [1]. Group 2: Leadership and Strategic Focus - Ajay Khare, the CEO, expressed gratitude for shareholder support and emphasized the company's focus on execution and long-term value creation [2]. - Aeries Technology is committed to strengthening its platform for AI-driven business transformation and Global Capability Center (GCC) delivery [3]. Group 3: Business Model and Services - The company supports private equity partners in scaling and optimizing portfolio companies through digital innovation, operational efficiency, and access to global talent via unique GCC solutions [3]. - Aeries Technology is recognized as a global leader in AI-enabled value creation and business transformation for private-equity portfolio companies [4].

Core Insights - Aeries Technology has launched the 1GCC automation initiative, which significantly enhances value creation for private-equity portfolio companies through improved transparency and execution [1][2]. Group 1: 1GCC Platform Features - The 1GCC platform provides real-time status updates during the Design and Build phases, allowing clients to monitor progress and manage risks effectively [2]. - A key feature, the Value Creation Planner, helps private-equity-backed portfolio companies define strategic priorities early and track them through the Operate phase, aligning execution with investment goals [2][3]. - The platform is designed to co-create value with clients by offering a single source of truth, enabling them to track progress and measure outcomes in real time [3]. Group 2: Operational Benefits - Early usage of the 1GCC platform has led to measurable improvements, including reduced manual overhead, enhanced PMO productivity, and faster reporting through better automation and visibility [3]. - The platform's development utilized technologies such as Python, React, Power Apps, and AI agents, supporting rapid deployment and scalability [3]. Group 3: Strategic Importance - 1GCC not only focuses on automation but also provides a value-first, insight-led foundation for scaling global capabilities, helping portfolio companies future-proof their operations [4]. - Aeries Technology positions itself as a leader in AI-enabled value creation and business transformation for private-equity portfolio companies, emphasizing its commitment to workforce development [5].