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].

Revenue Performance - Total revenue for the year ended March 31, 2024, was $72.51 million, a 36.6% increase from $53.10 million in 2023[300] - Revenue from North America increased to $56.96 million in 2024 from $48.20 million in 2023, representing a growth of 18.3%[300] - Revenue from Asia Pacific and Other regions surged to $15.55 million in 2024, up from $4.90 million in 2023, marking a significant increase of 217.4%[300] - Net revenues for the year ended March 31, 2024, were $72.5 million, a $19.4 million or 37% increase compared to $53.1 million for the year ended March 31, 2023[303] Profitability - Cost of revenue for the year ended March 31, 2024, was $50.9 million, a $11.4 million or 29% increase compared to $39.4 million for the year ended March 31, 2023[304] - Gross profit for the year ended March 31, 2024, was $21.6 million, a $8.0 million or 58% increase compared to $13.7 million for the year ended March 31, 2023[306] - Net income for the year ended March 31, 2024, was $17.3 million, a $15.6 million or 911% increase compared to $1.7 million for the year ended March 31, 2023[322] - Adjusted EBITDA for the year ended March 31, 2024, was $9.2 million, compared to $8.7 million for the year ended March 31, 2023[316] Expenses - Selling, general and administrative expenses for the year ended March 31, 2024, were $18.7 million, a $7.3 million or 65% increase compared to $11.3 million for the year ended March 31, 2023[308] Cash Flow and Financing - Cash at the end of the period for the year ended March 31, 2024, was $2.1 million, an increase of $953,000 or 84% compared to $1.1 million at the end of the previous year[322] - Net cash provided by financing activities for the year ended March 31, 2024, was $7.1 million, a $6.8 million or 2,700% increase compared to $252,000 for the year ended March 31, 2023[322] - Net cash used in investing activities for the year ended March 31, 2024, was $1.7 million, with $1.5 million for property and equipment purchases and $2.3 million for loans to affiliates, offset by $2.1 million from loan repayments[326] - Net cash provided by financing activities for the year ended March 31, 2024, was $7.1 million, primarily from a Business Combination generating $8.7 million and net proceeds from short-term debt of $2.6 million[328] Debt and Liabilities - Aeries amended its revolving credit facility, increasing the total borrowing capacity to $3.8 million as of March 31, 2024[295] - The company has an outstanding unsecured loan of $0.8 million at an interest rate of 10% per annum, with the principal amount outstanding as of March 31, 2024[296] - The company had a deficit of $1.9 million in shareholders' equity as of March 31, 2024, raising concerns about its ability to continue as a going concern[317] Client and Market Position - Aeries had more than 30 clients across various industries, including e-commerce, telecom, security, healthcare, and engineering as of March 31, 2024[280] - The company focuses on maintaining long-term customer relationships, as a significant portion of revenue is derived from long-term contracts[291] Strategic Initiatives - Aeries aims to leverage AI and digital transformation technologies to enhance operational efficiencies and drive innovation for clients[277] - The allowance for credit losses was $1.2 million as of March 31, 2024, compared to $0 as of March 31, 2023, reflecting a transition adjustment and subsequent additions[352] Other Financial Information - Total other income, net for the year ended March 31, 2024, was $16.1 million, a $15.7 million or 3,610% increase compared to $0.4 million for the year ended March 31, 2023[309] - The fair value of the FPA put option liability increased from $25.0 million at the Closing Date to $42.3 million as of March 31, 2024, with a change in fair value of $17.3 million recorded for the year[340] - The Company issued 361,338 Class A ordinary shares to settle vendor balances amounting to $0.9 million in December 2023, with potential additional shares to be issued based on share price performance[342] - The total prepayment amount related to Forward Purchase Agreements was $42.8 million, which includes a net cash outflow of $3.1 million[340] - The Company recorded an unbilled receivable for revenue recognized on contracts exceeding billings, included in accounts receivable, net[351] - The Company capitalizes certain costs related to internal use software, with costs incurred in preliminary stages expensed as incurred[356] - The Company has no material off-balance sheet arrangements as of March 31, 2024[330] - The redeemable noncontrolling interest is recorded as mezzanine equity and is subject to certain exchange conditions and cash redemption features outside the Company's control[350]