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]

Core Insights - Aeries Technology reported a 13.3% year-over-year increase in North America revenue, indicating strong growth potential in its core market [2][3] - The company is refocusing on its core business, primarily targeting US-based, long-tenure, high-quality private equity-backed portfolio companies, which have provided a consistent revenue base [2][11] - Financial results for the second fiscal quarter of 2025 showed total revenues of $16.9 million, a decrease of 4% compared to $17.6 million in the same quarter of 2024 [3][19] Financial Performance - North America revenue for the second fiscal quarter 2025 was $15.7 million, up 13% from $13.9 million in the same quarter of 2024 [3][23] - The company reported an operating loss of $(4.1) million for the second fiscal quarter 2025, down from an income of $1.5 million in the same quarter of 2024 [4][19] - Net loss for the second fiscal quarter 2025 was $(2.3) million, compared to a net income of $0.9 million in the same quarter of 2024 [4][19] Adjusted Metrics - Adjusted EBITDA for the second fiscal quarter 2025 was negative $(2.3) million, a decline from $3.0 million in the same quarter of 2024 [4][12] - Core Adjusted EBITDA for the second fiscal quarter 2025 was $0.2 million, down 82% from $1.0 million in the same quarter of 2024 [5][12] Revenue Breakdown - Total revenue for the second fiscal quarter 2025 was $16.9 million, with North America contributing $15.7 million and Asia Pacific and Other regions contributing $1.1 million [3][23] - For the six months ended September 30, 2024, total revenue was $33.5 million, slightly down from $33.9 million in the same period of 2023 [23]

Revenue Performance - Total revenue for the three months ended September 30, 2024, was $16.873 million, compared to $17.578 million for the same period in 2023, representing a decrease of approximately 4%[212] - Revenue from North America was $15.728 million for the three months ended September 30, 2024, down from $13.879 million in the same period of 2023, indicating an increase of about 13%[212] - Revenue from Asia Pacific and Other regions was $1.145 million for the three months ended September 30, 2024, compared to $3.699 million in the same period of 2023, reflecting a significant decrease of approximately 69%[212] - The total revenue for the six months ended September 30, 2024, was $33.540 million, slightly down from $33.908 million for the same period in 2023, showing a decrease of about 1%[212] Client and Market Information - Aeries had more than 30 clients across various industries, including e-commerce, telecom, security, healthcare, and engineering as of September 30, 2024[196] - The company plans to focus on organic growth in North America and does not intend to enter into new customer contracts outside this region[234] Financial Position and Liabilities - As of September 30, 2024, the company had a working capital deficit of $9.8 million, primarily due to current liabilities related to liquidity arrangements[241] - The company is actively pursuing capital raising alternatives to address remaining liabilities of $7.5 million owed to FPA holders[246] Operating Results - For the three months ended September 30, 2024, the company's net revenue decreased by $0.7 million or 4%, to $16.9 million from $17.6 million in the same period of 2023[215] - The cost of revenue increased by $0.6 million or 4%, to $13.3 million, primarily due to a $1.6 million increase in employee compensation and benefits[216] - Gross profit for the three months ended September 30, 2024, decreased by $1.2 million or 26%, resulting in a gross profit margin decline of 2,600 basis points to 21%[217][218] - Selling, general and administrative expenses surged by $4.3 million or 130%, reaching $7.7 million, driven by a $2.5 million provision for expected credit loss on customer receivables[219] - Total other income for the three months ended September 30, 2024, was $1.3 million, a significant increase of $1.2 million or 953% compared to the previous year[220] - The income tax benefit for the three months ended September 30, 2024, was $(0.5) million, reflecting a $1.2 million decrease compared to a provision of $0.7 million in the same period of 2023[221] - For the six months ended September 30, 2024, net revenue decreased by $0.3 million or 1%, totaling $33.5 million compared to $33.9 million in the same period of 2023[224] - The cost of revenue for the six months ended September 30, 2024, increased by $1.3 million or 5%, to $25.9 million, driven by a $3.3 million increase in employee compensation and benefits[225] - Selling, general and administrative expenses for the six months ended September 30, 2024, increased by $21.0 million or 301%, reaching $28.1 million, largely due to stock-based compensation and legal charges[229] - The income tax benefit for the six months ended September 30, 2024, was $(1.6) million, a decrease of $2.5 million or 280% compared to a provision of $0.9 million in the same period of 2023[231] - For the six months ended September 30, 2024, the company reported a net loss of $17.6 million[240] Cash Flow and Financing - The company generated a net operating cash inflow of $0.2 million for the six months ended September 30, 2024[244] - Net cash provided by financing activities during the six months ended September 30, 2024, was $2.3 million, primarily from proceeds of the PIPE transaction of $4.7 million[253] - The company had cash and cash equivalents of $3.6 million as of September 30, 2024, an increase from $1.9 million at the end of the previous period[244] Tax and Risk Management - The effective tax rate for the company varies based on jurisdiction and tax planning strategies, with operations in India, Mexico, Singapore, and the United States[203] - The company is exposed to risks from inflation and fluctuations in currency exchange rates, which could negatively impact operating results[212] - The company focuses on maintaining strong customer relationships to mitigate risks associated with potential early termination of long-term contracts[201] Adjusted EBITDA - Adjusted EBITDA for the three months ended September 30, 2024, was $(2.3) million, compared to $2.9 million for the same period in 2023[238] - Core adjusted EBITDA for the three months ended September 30, 2024, was $183,000, down from $1.0 million in the same period in 2023[238]

Core Insights - Aeries Technology reported financial results for the fiscal quarter ended June 30, 2024, indicating a focus on long-term growth strategies despite short-term losses [1][2]. Financial Performance - Revenues for the first fiscal quarter 2025 were $16.7 million, representing a 2% increase from $16.3 million in the same quarter of 2024 [2]. - Income from operations was $(16.4) million, a decline from $0.8 million in the first fiscal quarter of 2024 [2]. - The net loss for the first fiscal quarter 2025 was $(15.3) million, compared to a net income of $0.5 million for the same period in 2024 [2]. - Adjusted EBITDA for the first fiscal quarter 2025 was $0.4 million, down from $2.9 million in the first fiscal quarter of 2024 [2][11]. Operational Highlights - The company is implementing operational initiatives aimed at returning to high profitability while realigning costs to support growth [1]. - Aeries Technology has over 1,700 professionals specializing in various services, including Technology Services and Digital Transformation [4]. Conference Call Information - A conference call to discuss the financial results is scheduled for October 16, 2024, at 8:30 AM ET, accessible via telephone and webcast [3].

Financial Performance - For the three months ended June 30, 2024, total revenue was $16,667,000, representing a 2% increase from $16,330,000 in the same period of 2023[190]. - Cost of revenue increased by 7% to $12,657,000 from $11,883,000, resulting in a gross profit of $4,010,000, down 10% from $4,447,000[191]. - Operating expenses surged by 457% to $20,430,000 compared to $3,670,000 in the prior year, leading to an operating loss of $16,420,000[191]. - Net loss attributable to shareholders was $14,821,000 for the three months ended June 30, 2024, a significant decline from a net income of $421,000 in the same period last year[191]. - The effective tax expense for the period was $1,091,000, compared to a tax benefit of $218,000 in the previous year, indicating a shift in tax liabilities[191]. - For the three months ended June 30, 2024, the company's consolidated revenue increased by $0.3 million or 2%, reaching $16.7 million compared to $16.3 million for the same period in 2023[194]. - The cost of revenue for the same period increased by $0.8 million or 7%, totaling $12.7 million, primarily due to a $1.6 million rise in employee compensation and benefits[195]. - Gross profit decreased by $0.4 million or 10%, resulting in a gross profit margin decline of 300 basis points, attributed to reduced business from project-based consulting[196][197]. - Selling, general and administrative expenses surged by $16.8 million or 457%, amounting to $20.4 million, driven by a $11.4 million increase in stock-based compensation[198]. - The company reported a net loss of $15.3 million for the three months ended June 30, 2024, raising concerns about its ability to continue as a going concern[205]. Cash Flow and Financing - Cash and cash equivalents stood at $4.2 million as of June 30, 2024, with positive cash flows totaling $2.1 million for the same period[208]. - Net cash provided by financing activities was $4.4 million, primarily from proceeds of a PIPE transaction[212]. - The company acquired approximately $8.7 million in cash following the Business Combination, but may face challenges in meeting future cash obligations[206]. - The company experienced a decrease of $1.8 million in net cash used in operating activities, primarily due to a decline in net income[211]. Operational Insights - Aeries had over 30 clients across various industries, including e-commerce, telecom, security, healthcare, and engineering, as of June 30, 2024[179]. - Aeries' operational performance is influenced by macroeconomic conditions, including inflation and geopolitical uncertainties, which have impacted business operations[181]. - The company focuses on digital transformation and leveraging AI to enhance operational efficiencies and drive innovation for clients[176]. - Aeries aims to maintain strong customer relationships to mitigate risks associated with potential contract terminations, which could significantly impact revenue[183]. Accounting and Estimates - The preparation of condensed consolidated financial statements requires estimates and assumptions that affect reported amounts of assets, liabilities, revenue, and expenses[217]. - Current assumptions, judgments, and estimates used in financial statements are deemed appropriate, but actual results may differ under different conditions[217]. - There have been no material changes to the Company's critical accounting estimates since the 2024 Form 10-K[217]. Credit Facilities - The company amended its revolving credit facility in May 2023, increasing the total borrowing capacity to $3.8 million[186]. Adjusted Metrics - Adjusted EBITDA for the three months ended June 30, 2024, was $0.4 million, with an Adjusted EBITDA margin of 2.4%[203].

Core Insights - Aeries Technology reported financial results for the fiscal year ended March 31, 2024, showing significant growth in revenues and net income, driven by expansion in client engagements and new relationships [1][2]. Financial Performance - Revenues for fiscal year 2024 were $72.5 million, representing a 37% increase from $53.1 million in fiscal year 2023 [2]. - Income from operations increased by 28% to $3.0 million compared to $2.3 million in the previous year [2]. - Net income surged to $17.3 million from $1.7 million in fiscal year 2023, which included $16.2 million in non-cash income related to Forward Purchase Agreements [2][7]. - Adjusted EBITDA for fiscal year 2024 was $9.2 million, slightly up from $8.7 million in fiscal year 2023 [2][5]. Operational Highlights - The gross profit margin improved to 30% in fiscal year 2024 from 26% in fiscal year 2023, indicating enhanced operational efficiency [7]. - Total operating expenses rose by 65% to $18.7 million, primarily due to increased selling, general, and administrative expenses [7]. Cash Flow and Balance Sheet - Cash at the end of the period increased to $2.1 million from $1.1 million, reflecting an 84% rise [9]. - The company reported net cash used in operating activities of $(4.3) million, a decline from $2.1 million in the previous year [9]. - Total assets grew to $49.4 million from $34.4 million, driven by increases in current assets and property [10][11]. Company Overview - Aeries Technology specializes in providing professional services and consulting for businesses in transformation, focusing on private equity sponsors and mid-size businesses [3]. - The company has over 1,700 professionals and emphasizes a technology-driven, solution-specific approach to enhance client operations [3].