Core Viewpoint - Aeries Technology, Inc. reported a significant increase in Core Adjusted EBITDA and a 15% year-over-year revenue growth in North America, despite an overall decline in total revenues for fiscal year 2025 [1][3][4]. Financial Performance - Revenues for fiscal year 2025 were $70.2 million, a decrease of 3.2% from $72.5 million in fiscal year 2024 [4][14]. - The company reported a net loss of $21.6 million for fiscal year 2025, compared to a net income of $17.3 million in fiscal year 2024 [4][14]. - Adjusted EBITDA for fiscal year 2025 was $(4.7) million, down from $9.2 million in fiscal year 2024 [5][18]. - Core Adjusted EBITDA for fiscal year 2025 was $7.4 million, a 365% increase from $1.6 million in fiscal year 2024 [5][18]. Strategic Focus - The company has exited non-core geographies, including the Middle East, and has realigned its focus on the North American market [3][10]. - Aeries aims to generate the majority of its revenue from its core business, which includes Global Capability Center (GCC) services for private equity-backed companies in North America [10][11]. Future Outlook - Aeries has reiterated its guidance for fiscal year 2026, projecting revenues between $74 million and $80 million and Adjusted EBITDA between $6 million and $8 million [8][6].

[Part I](index=6&type=section&id=PART%20I) This section details the company's business operations, corporate history, key risk factors, cybersecurity measures, and property locations [Business Overview](index=6&type=section&id=Item%201.%20Business) Aeries Technology provides professional and technology consulting, specializing in Global Capability Centers for private equity and middle-market firms, leveraging AI for efficiency and growth - The company's core business is providing professional and technology consulting services, specializing in the design, set-up, and management of Global Capability Centers (GCCs) for private equity portfolio companies and middle-market companies[22](index=22&type=chunk) - Aeries' GCC model aims to deliver significant cost savings (targeting a minimum of **40%**, with some clients achieving over **60%**) by leveraging cost-effective geographies, AI, and process improvements[22](index=22&type=chunk)[39](index=39&type=chunk) - Key growth strategies include expanding within the private equity ecosystem, cross-selling additional solutions like AI and RPA to existing customers, and accelerating growth into the mid-market enterprise segment[40](index=40&type=chunk) - As of March 31, 2025, the company had over **30 clients**. Revenue is concentrated, with the top five clients accounting for **57% of revenue** in FY2025. Two individual clients contributed **21%** and **12% of revenue**, respectively[56](index=56&type=chunk) - The company completed a business combination with Worldwide Webb Acquisition Corp. (WWAC) on November 6, 2023, which was accounted for as a reverse recapitalization, with AARK being the accounting acquirer[82](index=82&type=chunk)[84](index=84&type=chunk) [Services and Solutions](index=10&type=section&id=Services%20and%20Solutions%20We%20Offer) Aeries offers modular Global Capability Center services, including setup, optimization, and advisory, across various business functions with AI integration - Aeries offers modular GCC services, including **end-to-end setup and operation**, **optimization modules** for existing centers, and **full-lifecycle advisory and consulting** support[43](index=43&type=chunk)[44](index=44&type=chunk)[46](index=46&type=chunk)[48](index=48&type=chunk) - The company provides expertise in core business functions such as Technology, Finance & Accounting, IT Infrastructure, and Cybersecurity, aiming for a **50%+ cost advantage** over onshore teams[49](index=49&type=chunk)[50](index=50&type=chunk)[54](index=54&type=chunk) - Aeries embeds AI-powered transformation services within its GCC models, offering **AI strategy**, **intelligent automation (RPA, IDP)**, **predictive analytics**, and **process optimization** to accelerate clients' digital maturity[51](index=51&type=chunk)[52](index=52&type=chunk)[55](index=55&type=chunk) [Corporate History and Business Combination](index=17&type=section&id=Corporate%20History%2C%20the%20Business%20Combination%2C%20and%20the%20Exchange%20of%20Shares) The company completed a reverse recapitalization with WWAC in November 2023, leading to a significant increase in Aeries' economic interest in AARK and establishing a dual-class share structure - On November 6, 2023, the company consummated a business combination with WWAC, which was accounted for as a reverse recapitalization. Post-combination, Aeries owned **38.24%** of the economic interests of AARK[82](index=82&type=chunk)[84](index=84&type=chunk) - Exchange Agreements allow holders of AARK and ATG shares to exchange them for Class A ordinary shares or cash, subject to certain conditions. On April 5, 2024, Mr. Raman Kumar exchanged **9,500 AARK shares for 21,337,000 Class A shares**, increasing Aeries' economic interest in AARK from **38.24% to 96.91%**[86](index=86&type=chunk)[87](index=87&type=chunk)[88](index=88&type=chunk) - The company has a dual-class share structure. A Class V share, held by a business associate of Mr. Kumar, has special voting rights (**51% of total votes**) in the event of extraordinary events like a hostile takeover attempt, effectively making Aeries a **"controlled company"**[83](index=83&type=chunk)[212](index=212&type=chunk)[213](index=213&type=chunk) - The company is classified as an **"emerging growth company"** and a **"smaller reporting company,"** allowing it to take advantage of reduced disclosure obligations[91](index=91&type=chunk)[94](index=94&type=chunk) [Risk Factors](index=20&type=section&id=Item%201A.%20Risk%20Factors) The company faces substantial going concern risk due to recurring losses and a working capital deficit, compounded by significant customer loss, high client concentration, and material weaknesses in internal controls - **Going Concern Risk:** The company has identified conditions that raise substantial doubt about its ability to continue as a going concern. This is due to a net loss of **$21.6 million** in FY2025, a working capital deficit of **$11.1 million**, and obligations under Forward Purchase Agreements (FPAs)[104](index=104&type=chunk) - **Loss of Significant Customer:** A significant customer provided a non-renewal notice, expected to result in an annual revenue loss of approximately **$11.5 million**. While a one-time buyout payment of **~$3.0 million** is expected, this may not offset the long-term impact[106](index=106&type=chunk)[142](index=142&type=chunk) - **Material Weaknesses in Internal Control:** The company identified material weaknesses in its internal control over financial reporting, related to improper segregation of duties, inadequate processes for recording transactions, and poor information/communication policies. This led to a restatement of prior financial statements[218](index=218&type=chunk)[219](index=219&type=chunk) - **Client Concentration:** The business is dependent on key clients, with the top five accounting for **57% of revenue** in FY2025. The loss of any key client could materially harm the business[141](index=141&type=chunk) - **Receivables Risk:** The company faces challenges in collecting accounts receivable, particularly in the Middle East and Asia Pacific. In FY2025, it wrote off **$9.5 million** in receivables and recorded an allowance for doubtful accounts of **$3.6 million**[132](index=132&type=chunk)[134](index=134&type=chunk) - **Controlled Company Status:** Due to the voting power of the Class V shareholder, Aeries is a **"controlled company"** under Nasdaq rules, exempting it from certain corporate governance requirements, such as having a majority of independent directors[212](index=212&type=chunk) [Cybersecurity](index=49&type=section&id=Item%201C.%20Cybersecurity) Aeries manages cybersecurity risk through a dedicated committee, regular assessments, and Board oversight, maintaining ISO 27001:2022 and SOC 2 Type 2 certifications - The company's risk management program is governed by a cybersecurity committee of senior executives and an Enterprise Risk Management lead, utilizing third-party consultants and maintaining cyber insurance[241](index=241&type=chunk) - The Board of Directors oversees cybersecurity risk, receiving at least one annual report from the cybersecurity committee on risks, threats, and program status[244](index=244&type=chunk) - The company is **ISO 27001:2022 certified** and compliant with **SOC 2 Type 2 certification**, indicating adherence to recognized cybersecurity frameworks[74](index=74&type=chunk) [Properties](index=50&type=section&id=Item%202.%20Properties) The company maintains its corporate office in Mumbai, with global delivery centers across India and Mexico, alongside a Singapore headquarters and U.S. sales offices Global Delivery Centers | Location | Centers | | :--- | :--- | | Hyderabad | 2 | | Bengaluru | 4 | | Mumbai | 3 | | Pune | 1 | | Mexico (Guadalajara) | 3 | [Part II](index=52&type=section&id=PART%20II) This section covers the company's common equity market, management's financial analysis, auditor changes, and internal control effectiveness [Market for Common Equity and Related Matters](index=52&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Shareholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Aeries' Class A shares and warrants trade on Nasdaq, with no anticipated cash dividends, and the report details various unregistered share issuances related to the Business Combination - Class A ordinary shares and warrants are traded on Nasdaq under the symbols **"AERT"** and **"AERTW,"** respectively[254](index=254&type=chunk) - The company has never declared or paid cash dividends and does not intend to in the foreseeable future, retaining earnings for business development and growth[256](index=256&type=chunk) - In connection with the Business Combination, the company issued **5,638,530 Class A shares** to Innovo Consultancy DMCC (controlled by Mr. Kumar) and **2,677,227 shares** to non-redeeming shareholders[259](index=259&type=chunk)[260](index=260&type=chunk) - On April 5, 2024, Mr. Kumar exchanged **9,500 AARK ordinary shares for 21,337,000 Class A ordinary shares** under the Exchange Agreement[264](index=264&type=chunk) [Management's Discussion and Analysis (MD&A)](index=54&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) MD&A highlights a **3% revenue decrease** and a **$21.6 million net loss** in FY2025, driven by increased SG&A, with management expressing substantial doubt about going concern due to liquidity issues Fiscal Year 2025 vs 2024 Financial Performance (in thousands) | Metric | FY 2025 | FY 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Revenues, net | $70,198 | $72,509 | (3)% | | Gross Profit | $16,720 | $21,641 | (23)% | | (Loss) / income from operations | $(28,770) | $2,987 | (1,063)% | | Net (loss) / income | $(21,595) | $17,256 | (225)% | | Net (loss) / income attributable to shareholders | $(19,714) | $15,657 | (226)% | - **Going Concern Warning:** Management has identified conditions raising substantial doubt about the company's ability to continue as a going concern. Key factors include a net loss of **$21.6 million**, a working capital deficit of **$11.1 million**, liabilities from Forward Purchase Agreements (FPAs), a **$9.5 million** write-off of receivables, and the non-renewal of a significant customer contract expected to cause an **$11.5 million** annual revenue loss[311](index=311&type=chunk)[314](index=314&type=chunk) - SG&A expenses increased by **144% to $45.5 million**, primarily due to an **$11.1 million** increase in stock-based compensation, **$9.1 million** in bad debts, a **$1.7 million** impairment loss, and a **$1.2 million** increase in provisions for expected credit loss[303](index=303&type=chunk) Adjusted EBITDA Reconciliation (in thousands) | | Year Ended March 31, | | :--- | :--- | :--- | | | **2025** | **2024** | | **Net (loss) / income** | **$(21,595)** | **$17,256** | | Adjustments | | | | Stock-based compensation | 12,746 | 1,626 | | Business Combination and M&A costs | 6,993 | 3,067 | | Change in fair value of derivative liabilities | (5,323) | (16,167) | | Other adjustments (Depreciation, Interest, etc.) | 3,348 | 3,458 | | **Adjusted EBITDA** | **$(4,652)** | **$9,192** | | **Adjusted EBITDA margin** | **(6.6)%** | **12.7%** | [Changes in and Disagreements with Accountants](index=67&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) Aeries dismissed KNAV CPA LLP and appointed Manohar Chowdhry & Associates due to disagreements over audit scope expansion for revenue recognition and noted material weaknesses - The company dismissed its auditor, KNAV CPA LLP, on August 11, 2024, and appointed Manohar Chowdhry & Associates[350](index=350&type=chunk)[356](index=356&type=chunk) - A disagreement occurred with KNAV over the need to expand audit procedures for revenue recognition in the Middle East and APAC region, which the company felt required more accessible auditing resources located in India[353](index=353&type=chunk) - A previously disclosed material weakness in internal control over financial reporting was noted as a **"reportable event"** under SEC regulations[355](index=355&type=chunk) [Controls and Procedures](index=68&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded disclosure controls were ineffective as of March 31, 2025, due to material weaknesses in internal control over financial reporting, prompting a remediation plan - Management concluded that disclosure controls and procedures were **not effective** as of March 31, 2025[359](index=359&type=chunk) - Material weaknesses were identified in internal control over financial reporting, including: **improper segregation of duties**, **inadequate processes for timely recording of transactions**, and **inadequate design of communication policies and monitoring activities**[365](index=365&type=chunk) - These weaknesses led to a **restatement of previously issued financial statements** to correct misreporting of EPS and share counts[364](index=364&type=chunk) - A remediation plan is in process, focusing on improving financial statement review processes and communication with service providers, but its success is not guaranteed[367](index=367&type=chunk)[368](index=368&type=chunk)[369](index=369&type=chunk) [Part III](index=70&type=section&id=PART%20III) This section outlines the company's corporate governance structure, executive compensation, security ownership, and related party transactions [Directors, Executive Officers and Corporate Governance](index=70&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) This section details the Board and executive team, noting Aeries' "controlled company" status under Nasdaq rules, and outlines the three standing Board committees - Key leadership includes **Venu Raman Kumar as Chairman** of the Board and **Bhisham (Ajay) Khare as Chief Executive Officer**[375](index=375&type=chunk) - The company is a **"controlled company"** under Nasdaq rules, exempting it from the requirement to have a majority of independent directors on its board[412](index=412&type=chunk) - The Board has three committees: **Audit, Compensation, and Nominating & Corporate Governance**. The Audit Committee consists of three independent directors, each qualifying as an **"audit committee financial expert"**[413](index=413&type=chunk)[415](index=415&type=chunk) [Executive Compensation](index=78&type=section&id=Item%2011.%20Executive%20Compensation) FY2025 executive compensation primarily comprised base salaries and substantial stock/option awards, with no cash bonuses, and new employment agreements outlining future terms FY2025 Summary Compensation Table (in thousands) | Name and Principal Position | Salary ($) | Stock/Option Awards ($) | All Other Comp. ($) | Total ($) | | :--- | :--- | :--- | :--- | :--- | | **Bhisham (Ajay) Khare** (CEO) | 389 | 3,460 | 257 | 4,105 | | **Sudhir Appukuttan Panikassery** (Former CEO) | 565 | 7,314 | 165 | 8,044 | | **Daniel S. Webb** (CFO & CIO) | 400 | 1,047 | 15 | 1,462 | | **Unnikrishnan (Unni) Balakrishnan Nambiar** (CTO) | 283 | 925 | - | 1,209 | - No annual cash incentive bonuses were paid to Named Executive Officers for fiscal year 2025[445](index=445&type=chunk) - In March 2025, the company entered into new employment agreements with its NEOs, establishing base salaries and severance provisions. Termination without **"cause"** or for **"good reason"** entitles the executive to **12 months of base salary** as severance[461](index=461&type=chunk)[464](index=464&type=chunk)[470](index=470&type=chunk) - Non-employee directors receive an annual cash fee of **$50,000**. The Chairman, Venu Raman Kumar, has a separate agreement for an annual fee, which was temporarily reduced[481](index=481&type=chunk)[482](index=482&type=chunk)[488](index=488&type=chunk) [Security Ownership](index=87&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Shareholder%20Matters) As of June 25, 2025, Chairman Venu Raman Kumar beneficially owns **58.2%** of Class A shares, with insiders collectively holding **79.2%**, reinforcing the company's controlled status via a dual-class share structure Beneficial Ownership of Class A Ordinary Shares (as of June 25, 2025) | Name of Beneficial Owner | Shares Beneficially Owned | Percentage of Class A | | :--- | :--- | :--- | | Venu Raman Kumar (Chairman) | 28,098,530 | 58.2% | | Sudhir Appukuttan Panikassery (Vice Chairman) | 5,151,005 | 10.9% | | Bhisham (Ajay) Khare (CEO) | 3,358,624 | 6.9% | | All executive officers and directors as a group (9 individuals) | 38,106,533 | 79.2% | - The company has a dual-class share structure. A single Class V ordinary share holds **51% of the voting power** in the event of a hostile change of control or matters related to the appointment/removal of directors[491](index=491&type=chunk) [Related Party Transactions](index=90&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) The company engages in extensive related party transactions with entities controlled by Chairman Venu Raman Kumar and his family, including intercompany loans and consulting services - The company has extensive related party transactions with entities controlled by Chairman Venu Raman Kumar and his family[501](index=501&type=chunk)[502](index=502&type=chunk) - In FY2025, the company provided management consulting services totaling **$2.86 million** to affiliated entities Aark II Pte Ltd and TSLC Pte Ltd[507](index=507&type=chunk) - The company has an outstanding loan from Mr. Vaibhav Rao (son of the Chairman) with a balance of **$0.81 million** as of March 31, 2025[506](index=506&type=chunk) - The company holds investments in preference shares of affiliated entities Aeries Financial Technologies and Aeries Technology Products and Strategies with a combined carrying value of **$1.83 million** as of March 31, 2025[510](index=510&type=chunk)[511](index=511&type=chunk) [Financial Statements and Supplementary Data](index=62&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the independent auditor's report, consolidated financial statements, and detailed notes providing critical financial context [Auditor's Report](index=100&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) The auditor's report affirms fair financial statement presentation but includes a critical 'Going Concern Uncertainty' paragraph due to operating losses and working capital deficiency - **Going Concern Uncertainty:** The auditor's report explicitly includes a paragraph stating that conditions such as operating losses, working capital deficiency, and negative cash flows **"raise substantial doubt about the Company's ability to continue as a going concern"**[538](index=538&type=chunk) [Consolidated Financial Statements](index=101&type=section&id=Consolidated%20Financial%20Statements) FY2025 consolidated financial statements reveal a deteriorating position with an **$11.1 million working capital deficit**, a **$21.6 million net loss**, and low cash reserves Consolidated Balance Sheet Highlights (in thousands) | | As of March 31, 2025 | As of March 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $2,764 | $2,084 | | Total current assets | $21,327 | $32,836 | | Total current liabilities | $32,420 | $38,125 | | **Working Capital (Deficit)** | **$(11,093)** | **$(5,289)** | | Total assets | $39,833 | $49,407 | | Total liabilities | $45,937 | $50,587 | | **Total shareholders' deficit** | **$(6,062)** | **$(1,914)** | Consolidated Cash Flow Highlights (in thousands) | | Year Ended March 31, 2025 | Year Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(1,009) | $(4,299) | | Net cash used in investing activities | $(858) | $(1,740) | | Net cash provided by financing activities | $2,432 | $7,056 | | **Cash at end of period** | **$2,764** | **$2,084** | [Notes to Consolidated Financial Statements](index=108&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes to financial statements detail going concern uncertainty, high customer concentration, the impact of a major contract non-renewal, and the valuation of significant liabilities like the FPA put option - **Note 2 (Going Concern):** Re-emphasizes the substantial doubt about continuing as a going concern, citing the net loss, working capital deficit, FPA liabilities, and customer non-renewal. Management's mitigation plan includes raising funds, restructuring liabilities, and cost-cutting[579](index=579&type=chunk)[581](index=581&type=chunk) - **Note 10 (Revenue):** Customer concentration is high. For the year ended March 31, 2025, two customers accounted for **21% and 12% of total revenue**, respectively[601](index=601&type=chunk) - **Note 19 (Non-renewal of Customer Contract):** A significant customer contract non-renewal is expected to reduce annual revenues by approximately **$11.5 million**. The company will receive a one-time buyout payment of approximately **$3.0 million**[753](index=753&type=chunk)[754](index=754&type=chunk) - **Note 20 (Fair Value Measurements):** The Forward Purchase Agreement (FPA) put option liability was valued at **$5.0 million** as of March 31, 2025. This represents a significant potential cash or equity settlement obligation[757](index=757&type=chunk)[758](index=758&type=chunk)

New York, New York--(Newsfile Corp. - June 30, 2025) - Aeries Technology, Inc. (NASDAQ: AERT), a global leader in AI-enabled value creation, business transformation, and Global Capability Center (GCC) delivery for private equity portfolio companies, today announced a Letter of Intent with Cority, a leading SaaS platform developer providing environment, health, safety, quality and sustainability solutions, under which Aeries will undertake preliminary efforts to establish AI-driven GCCs in India and Mexico ...

Core Insights - Aeries Technology successfully transitioned a high-performing Global Capability Center (GCC) in India to a leading U.S. healthcare fintech platform, reflecting operational excellence and long-term value creation for the client [1][3] - The GCC, launched during the pandemic, scaled to over 300 professionals and was designed to meet stringent HIPAA-compliant controls, becoming critical for service delivery and cost optimization [2][3] - The transition to a wholly owned subsidiary by the client highlights Aeries' ability to provide structural flexibility and support evolving growth strategies [3][4] Company Overview - Aeries Technology is a global leader in AI-enabled value creation and GCC delivery for private equity portfolio companies, with a focus on scalable, technology-driven execution since 2012 [5] - The company has received Great Place to Work Certification for two consecutive years, indicating a strong workplace culture [5] Leadership Perspective - The CEO of Aeries Technology emphasized the company's role in delivering scalable, future-ready operating platforms that foster innovation and strategic advantages for clients [4]

Aeries Technology (AERT) Appoints Eli Mendoza as Chief Growth & Strategy Officer to Accelerate Private Equity-Focused ExpansionFormer Siris Capital COO to lead AI-driven transformation and global scale-up for portfolio value creationJune 17, 2025 8:00 AM EDT | Source: Aeries Technology, Inc.New York, New York--(Newsfile Corp. - June 17, 2025) - Aeries Technology, Inc. (NASDAQ: AERT) ("Aeries" or the "Company"), a global leader in AI-enabled value creation, business transformation, and Global C ...

Core Insights - Aeries Technology, Inc. has announced a strategic partnership with Fortra to establish Global Capability Centers (GCCs) in India and Mexico, aimed at expanding Fortra's workforce and creating a nearshore hub [1][2] - The collaboration will leverage Aeries' expertise to enhance Fortra's core business functions, providing access to a skilled talent pool, ensuring cost efficiency, and supporting operational scaling [2][3] - This partnership is expected to foster innovation, optimize operational efficiency, and accelerate digital transformation initiatives for Fortra [2] Company Overview - Aeries Technology is a global leader in GCC solutions, focusing on establishing GCCs for Private Equity's Portfolio Companies and offering a comprehensive suite of Advisory & Value Creation solutions [5] - The company has grown to over 1,800 professionals since its founding in 2012 and has received the Great Place to Work Certification for two consecutive years, highlighting its commitment to workforce development [6] - Fortra specializes in advanced cybersecurity solutions, providing comprehensive protection across the cyber kill chain, with capabilities for real-time threat intelligence and flexible solution delivery [4]

Financial Data and Key Metrics Changes - North American revenue reached $16.4 million, representing a 13.1% year-over-year growth, while total revenues were $17.6 million, down 6.8% year-over-year [14] - Gross profit for the quarter was $4.0 million, resulting in a gross margin of 23.0% [15] - Income from operations was negative $5.2 million compared to $0.7 million for the same quarter last year [15] - Net income improved to $2.0 million from a loss of $16.3 million in the previous year [15] - Core adjusted EBITDA was $1.5 million, compared to negative $0.02 million for the same quarter last year [15] - Cash and cash equivalents stood at $2.4 million, with total long-term debt at $1.5 million [16] - Guidance for fiscal year 2025 is revenue between $71 million and $73 million, with core adjusted EBITDA between $6 million and $7 million [17] - Fiscal year 2026 outlook includes expected revenues between $74 million and $80 million and adjusted EBITDA between $6 million and $8 million [17] Business Line Data and Key Metrics Changes - The company has realigned its business model to focus on high-value, long-term engagements with core North American clients, which now represent over 93% of total revenue [7][14] - Exiting non-core segments, such as the Middle East, is part of the strategy to enhance service quality and achieve profitable growth [7] Market Data and Key Metrics Changes - The company is concentrating on transformation-led partnerships, which is expected to support its strategy of achieving profitable growth [7] Company Strategy and Development Direction - The company is focused on profitable growth, robust cost discipline, and financial health, with significant SG&A cost reductions expected to positively impact the bottom line [8][11] - Innovation and AI-driven transformation are central to the growth strategy, with a focus on AI assessments to optimize client operations [9][10] - The company aims to be cash flow positive for the foreseeable future through disciplined resource allocation [8] Management's Comments on Operating Environment and Future Outlook - Management acknowledges headwinds in the current period but remains optimistic about the benefits of ongoing cost optimization efforts [15][18] - The renewed focus on profitable growth and stringent cost controls is expected to enhance the company's ability to achieve sustained success [18] Other Important Information - The newly appointed CEO, Ajay Khare, emphasizes the importance of the leadership transition and the strategic focus on high-value engagements [5][11] - Daniel Webb has been appointed as CFO, bringing extensive experience in public markets and investment banking [6] Q&A Session Summary - No specific questions and answers were provided in the content, thus this section is not applicable.

Revenue Performance - North America revenue increased by 13.1% year-over-year, with total revenues for Q3 2025 at $17.6 million, down 6.8% from $18.9 million in Q3 2024[1][3] - For the three months ended December 31, 2024, net revenue was $17,607 million, a decrease of 6.8% compared to $18,897 million in the same period of 2023[18] - Revenue from North America for the three months ended December 31, 2024, was $16,430 million, an increase of 12.9% from $14,533 million in 2023[26] Profitability Metrics - Core adjusted EBITDA for Q3 2025 was $1.5 million, a significant improvement from $(0.02) million in Q3 2024[1][4] - Adjusted EBITDA for Q3 2025 was $(2.0) million, down from $2.4 million in Q3 2024[1][4] - The net loss attributable to shareholders of Aeries Technology Inc. for the three months ended December 31, 2024, was $3,053 million, compared to a loss of $16,411 million in the same period of 2023[18] - Adjusted EBITDA for the nine months ended December 31, 2024, was $(3,931) million, compared to $8,200 million in 2023, indicating a significant decline[24] - The adjusted EBITDA margin for the three months ended December 31, 2024, was (11.6)%, compared to 12.5% in the same period of 2023[24] Financial Guidance - The company is reiterating its fiscal year 2025 revenue guidance of $71 million to $73 million and introducing a fiscal year 2026 outlook of $74 million to $80 million[1][5] Operating Expenses and Cash Flow - Operating expenses increased significantly to $37,299 million for the nine months ended December 31, 2024, compared to $12,321 million in 2023, reflecting a rise of 202.5%[18] - The company reported a net cash used in operating activities of $(1,873) million for the nine months ended December 31, 2024, compared to a net cash provided of $25 million in 2023[20] - Cash and cash equivalents at the end of the period were $2,386 million, down from $6,543 million at the end of the same period in 2023[20] - The company incurred stock-based compensation expenses of $12,746 million for the nine months ended December 31, 2024, compared to $1,626 million in 2023[20] Company Strategy and Workforce - Aeries Technology aims to focus on core business services provided to private equity-backed companies in North America, moving away from non-core markets[1][9] - The company has over 1,800 professionals and has received the Great Place to Work Certification for two consecutive years[1][7] Asset and Liability Overview - Total assets as of December 31, 2024, were $50.681 million, an increase from $49.407 million as of March 31, 2024[1][14] - Total liabilities decreased to $50.022 million as of December 31, 2024, from $50.587 million as of March 31, 2024[1][14] Market Presence - The company plans to strengthen its presence in the North American market and capitalize on new opportunities for sustained success[1][2]

Core Insights - Aeries Technology, Inc. reported a revenue of $17.6 million for the third fiscal quarter of 2025, a decrease of 6.8% compared to $18.9 million in the same quarter of 2024 [3] - The company achieved a net profit of $2.0 million in the third fiscal quarter of 2025, a significant improvement from a net loss of $16.3 million in the same period of 2024 [4] - Core adjusted EBITDA for the third fiscal quarter of 2025 was $1.5 million, compared to a slight loss of $0.02 million in the same quarter of 2024 [4] Financial Performance - Revenues for the third fiscal quarter of 2025 were $17.6 million, down from $18.9 million in the third fiscal quarter of 2024 [3] - Income from operations for the third fiscal quarter of 2025 was a loss of $5.2 million, compared to a profit of $0.7 million in the same quarter of 2024 [3] - Adjusted EBITDA for the third fiscal quarter of 2025 was a loss of $2.0 million, compared to a profit of $2.4 million in the same quarter of 2024 [4] Strategic Outlook - The company is focused on serving high-quality, long-standing U.S. clients through Global Capability Centers, aiming for profitable growth in cash flow and Adjusted EBITDA [2] - Aeries Technology is reiterating its guidance for fiscal year 2025 and introducing an outlook for fiscal year 2026, expecting revenues between $74 million and $80 million and Adjusted EBITDA between $6 million and $8 million [5] - The company plans to focus on its core business, which includes GCC services provided to private equity-backed companies in North America, and does not intend to enter new customer contracts outside North America [10] Revenue Breakdown - For the three months ended December 31, 2024, North America generated $16.4 million in revenue, compared to $14.5 million in the same period of 2023 [25] - The Asia Pacific and Other regions contributed $1.2 million in revenue for the same period, down from $4.4 million in the previous year [25]

Core Insights - Aeries Technology, Inc. announced a strategic leadership realignment aimed at driving sustainable growth and strengthening its market position [1] - Ajay Khare has been appointed as the new CEO, succeeding Sudhir Panikassery, who will become Non-Executive Vice Chairman [2][3] - The company aims to enhance its role as a leading Global Capability Center (GCC) partner for private equity firms under Khare's leadership [3] Leadership Changes - Ajay Khare, a founding partner, has extensive experience in operational expertise and commercial acumen, having previously served as Chief Revenue Officer and Chief Operating Officer [2] - Daniel Webb will assume the role of Chief Financial Officer while continuing as Chief Investment Officer, focusing on capital efficiency and financial controls [4] Strategic Focus - The company will concentrate on revenue growth, optimizing service delivery, and enhancing operational excellence [3][5] - Aeries plans to sharpen its focus on the North American market and adopt a disciplined approach emphasizing high-value engagements and AI-driven transformation [5] Company Overview - Aeries Technology is a global leader in GCC solutions, providing advisory and value creation services for private equity portfolio companies [6] - The company has grown to over 1,800 professionals since its founding in 2012 and has received the Great Place to Work Certification for two consecutive years [7]