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].

Core Insights - Aeries Technology has established an Independent Strategic Advisory Board to enhance its growth, innovation, and long-term client success [1][4] - The Advisory Board aims to align with client needs, advance strategic priorities, and identify new commercial opportunities [2][4] Group 1: Advisory Board Composition and Purpose - Ramesh Venkataraman, a seasoned private-equity investor and former McKinsey partner, will chair the Advisory Board [3] - The Board is designed to incorporate the "voice of the customer" into strategic discussions and leverage industry expertise [2][4] - The Advisory Board will support Aeries in navigating a complex landscape, enhancing execution capabilities [4] Group 2: Company Background - Aeries Technology is a global leader in AI-enabled value creation and business transformation for private-equity portfolio companies [5] - The company has been recognized for its commitment to workforce development, earning the Great Place to Work Certification for two consecutive years [5]

Core Insights - Aeries Technology, Inc. reported a revenue of $70.2 million for FY 2025, with North America revenue increasing by 15% year-over-year to $65.5 million, representing 93.3% of total revenue [5][6] - The company achieved a Core Adjusted EBITDA of $7.4 million, surpassing its previous guidance of $6–7 million [5][6] - Aeries reaffirmed its outlook for FY 2026, expecting revenue between $74 million and $80 million and Adjusted EBITDA between $6 million and $8 million [5][6] Financial Performance - The company reported an Adjusted EBITDA of $(4.7) million and an operating loss of $(28.8) million, with a net loss of $(21.6) million, primarily due to one-time expenses not expected to recur in 2026 [5][6] - A significant portion of the loss, $12.0 million, was attributed to non-core business activities, while $12.7 million was related to stock-based compensation from a one-time issuance [5][6] - Year-end liquidity stood at $2.8 million in cash, with $1.1 million in long-term debt [5] Strategic Developments - The company has shifted its focus to core Global Capability Centers (GCCs) for private equity-backed companies in North America, fully winding down its legacy operations in the Middle East [5][6] - Aeries launched an AI-Centric GCC Framework, integrating intelligent automation and generative AI agents, and has already scaled a 300-plus-member GCC for a healthcare client [5][6] - New engagements have been signed with a global cybersecurity provider and a sustainability-focused SaaS leader to establish multi-country GCCs in India and Mexico [5][6] Management Commentary - CEO Ajay Khare emphasized that FY 2025 was pivotal for Aeries, highlighting the intentional strategy to focus on core business and streamline operations [6] - CFO Daniel Webb noted strong traction with new clients and a leaner cost structure, indicating that 2026 is on track to be the company's best year yet [6]

Financial Data and Key Metrics Changes - For fiscal year 2025, the company reported total revenue of $70.2 million, a slight decline from $72.5 million in fiscal year 2024, primarily due to the exit from the Middle East business [12] - Core adjusted EBITDA reached $7.4 million, an increase of 365% from $1.6 million in the previous year, exceeding guidance of $6 million to $7 million [4][15] - The company ended the year with $2.8 million in cash and $1.1 million in long-term debt, providing flexibility for ongoing initiatives [15] Business Line Data and Key Metrics Changes - North America revenue grew 15% year over year from $57 million to $65.5 million, highlighting strong momentum in core markets [7][12] - The company has shifted focus to private equity-backed companies and exited lower-value, non-core geographies, which has strengthened its business model [5][6] Market Data and Key Metrics Changes - North America now represents over 93.3% of the company's revenue base, indicating a significant concentration in this market [6] - The company is seeing increased adoption of large-scale digital transformation initiatives among clients, reflecting a growing demand for its services [6][17] Company Strategy and Development Direction - The company has made intentional decisions to sharpen its strategy by focusing on core business areas and exiting non-core markets [5] - A new AI-centered global capability center framework has been launched, integrating intelligent automation and data-driven decision systems [10][11] - The company plans to continue hiring key personnel with relationships in the private equity industry to expand its pipeline and network [6][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in fiscal year 2026, projecting revenue between $74 million and $80 million and adjusted EBITDA between $6 million and $8 million [16][17] - The company is experiencing strong traction with clients, with existing clients deepening their partnerships and an expanding private equity network [17][18] Other Important Information - The restructuring process is complete, and stock-based compensation is expected to be significantly lower moving forward [13][15] - Fiscal year 2025 will be the last year to report core adjusted EBITDA as a separate metric, transitioning to adjusted EBITDA and GAAP measures [15] Q&A Session Summary - No specific questions or answers were provided in the content regarding the Q&A session.