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Aeries Technology(AERT) - 2026 Q3 - Earnings Call Transcript
2026-02-09 14:00
Financial Data and Key Metrics Changes - For Q3 FY 2026, revenue was $17.5 million, slightly down from $17.6 million in the prior year period, while Adjusted EBITDA improved significantly to $2.5 million from a loss of $2 million in Q3 FY 2025, marking a notable turnaround [2][8] - Adjusted EBITDA margin was approximately 14.1%, a significant improvement from a negative margin in the prior year quarter [2][3] - Operating cash flow was positive for the third consecutive quarter at $2.4 million, indicating strong cash generation capabilities [9] Business Line Data and Key Metrics Changes - The company reported stable revenue across its client base, with strong delivery performance noted in India and Mexico [2][3] - Automation initiatives have led to improved throughput and productivity, contributing to the overall financial performance [3][9] Market Data and Key Metrics Changes - The company continues to see strong engagement across the Private Equity ecosystem and multiple industry sectors, which supports revenue visibility and long-term margin expansion [4][5] - The nearshore presence in Mexico is scaling, with recent engagements further strengthening the company's long-term positioning [4] Company Strategy and Development Direction - The company is focused on creating a more predictable and efficient operating model, with an emphasis on automation and AI capabilities [3][5] - Strategic relationships with clients are maturing into multi-year engagements, enhancing the durability of client relations and the recurring nature of the business model [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the revenue and profitability profile for fiscal 2027, projecting revenue in the range of $80 million to $84 million and Adjusted EBITDA of $10 million to $12 million [6][10] - The outlook is supported by signed contracts and active program ramp-ups, which are expected to contribute to revenue and profits as they progress towards steady state [10][11] Other Important Information - The company has achieved its third Great Place to Work certification, reflecting strong talent retention and engagement across core delivery locations [5] - The balance sheet remains healthy, positioning the company well for continued growth while improving profitability and cash flow [11] Q&A Session Summary - No specific questions or answers were provided in the content, thus this section is not applicable.