Aeries Technology(AERT) - 2025 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - North American revenue reached $16.4 million, representing a 13.1$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$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.