Aeries Technology(US:AERT)2025-11-10 11:03Revenue 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]