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Aeries Technology(AERT) - 2026 Q2 - Earnings Call Transcript
2025-11-10 13:00
Financial Data and Key Metrics Changes - For Q2 FY 2026, the company reported revenue of $17.36 million, a 3% increase year-over-year from $16.87 million in Q2 FY 2025 [11] - Net income for the quarter was $640,000, a significant improvement from a loss of $2.3 million in the same period last year [11] - Adjusted EBITDA was $2.55 million compared to a loss of $2.3 million a year ago, reflecting a strong turnaround [11] - For the first half of FY 2026, revenue reached $32.69 million, with net income of $2.32 million and adjusted EBITDA of $3.59 million, marking the strongest six-month performance in the company's history [3][11] Business Line Data and Key Metrics Changes - The company expanded operations in India and Mexico, planning to hire over 500 new roles to enhance delivery capabilities [4] - New enterprise clients were added across technology, healthcare, and software segments, including private equity-backed companies [4][5] - The company reported positive cash flow from operations for two consecutive quarters, driven by disciplined cost management and stronger collections [6] Market Data and Key Metrics Changes - The company is experiencing positive movements in client engagement across various industries, including enterprise software and healthcare technology [7] - The demand for partners who can assist enterprises in modernization, automation, and scaling efficiently is increasing [8] Company Strategy and Development Direction - The company aims to strengthen its core through technology and AI while building enduring relationships with enterprise and private equity clients [10] - The strategy focuses on operational excellence, AI-powered deliveries, and a scalable model of value creation [5][10] Management's Comments on Operating Environment and Future Outlook - Management highlighted that the current contracts are in the early phase, with greater financial impacts expected in the upcoming quarters [8] - The company anticipates full-year FY 2026 adjusted EBITDA to be between $6 million and $8 million, indicating a focus on balancing growth and profitability [13] Other Important Information - The company has stabilized its operating expenses to support profitability and scalability while allowing for targeted investments in automation and delivery infrastructure [12] - The balance sheet remains healthy, providing flexibility for innovation investments while maintaining financial prudence [13] Q&A Session Summary - No specific questions and answers were provided in the content, thus this section is not applicable.