Financial Performance - Revenue for Q2 FY2026 was $17.36 million, representing a 3% increase year-over-year from $16.87 million in Q2 FY2025[5] - Net income for Q2 FY2026 was $0.64 million, a significant improvement from a net loss of $2.31 million in Q2 FY2025[5] - Adjusted EBITDA for Q2 FY2026 was $2.55 million with a margin of 14.7%, compared to a loss of $(2.30) million in Q2 FY2025[5] - The first half of FY2026 marked the strongest performance in the company's history, with two consecutive quarters of profitability and positive operating cash flow[3] - Revenue for the three months ended September 30, 2025, was $17,359 million, a 2.9% increase from $16,873 million in the same period of 2024[20] - Gross profit for the six months ended September 30, 2025, was $8,800 million, compared to $7,585 million for the same period in 2024, reflecting a 16.0% increase[20] - Net income for the three months ended September 30, 2025, was $642 million, a significant recovery from a net loss of $2,306 million in the same period of 2024[20] - Adjusted EBITDA for the six months ended September 30, 2025, was $3,585 million, compared to a loss of $1,894 million in the same period of 2024[25] - The adjusted EBITDA margin for the three months ended September 30, 2025, was 14.7%, compared to a negative margin of 13.6% in the same period of 2024[25] - Cash and cash equivalents at the end of the period for six months ended September 30, 2025, were $1,866 million, down from $3,627 million at the end of the same period in 2024[22] - Operating expenses for the three months ended September 30, 2025, were $3,037 million, significantly lower than $7,670 million in the same period of 2024[20] - The company reported a net cash provided by operating activities of $2,394 million for the six months ended September 30, 2025, compared to $205 million in the same period of 2024[22] - Total other income/expense, net for the three months ended September 30, 2025, was a loss of $549 million, compared to a gain of $1,263 million in the same period of 2024[20] - The weighted average shares outstanding of Class A ordinary shares for the three months ended September 30, 2025, were 47,309,264, compared to 44,356,074 in the same period of 2024[20] Future Outlook - Aeries plans to achieve FY2026 Adjusted EBITDA in the range of $6 million to $8 million as new contracts ramp up[7] - Aeries anticipates closing additional client opportunities in Q3 FY2026, reflecting rising demand for its services[4] Operational Expansion - The company expanded its operations in India and Mexico, planning to hire over 500 new roles to enhance delivery capacity[9] - Aeries signed a multi-million-dollar AI partnership to enhance its capabilities in India[9] - An AI-powered content automation solution was unveiled, achieving over 80% efficiency gains and a 12x improvement in throughput[9] - The company delivered over $20 million in client savings through its nearshore GCC model in Guadalajara, Mexico[9]

Core Insights - Aeries Technology has completed its turnaround and is entering a new growth phase, leveraging AI-led delivery, dual-shore Global Capability Center (GCC) scale, and enhanced private equity relationships [2][4][6]. Financial Performance - For Q2 FY2026, Aeries reported revenue of $17.36 million, a 3% increase year-over-year from $16.87 million in Q2 FY2025 [8]. - The company achieved a net income of $0.64 million, compared to a net loss of $2.31 million in Q2 FY2025 [8]. - Adjusted EBITDA for the quarter was $2.55 million, with a margin of 14.7%, a significant improvement from a loss of $(2.30) million in Q2 FY2025 [8][24]. - For the first half of FY2026, Aeries recorded a net income of $2.32 million, compared to a net loss of $17.62 million in the prior-year period [8]. Business Strategy and Growth - Aeries is executing a disciplined growth strategy focused on AI platforms and an integrated delivery model between India and Mexico, which has led to new enterprise client additions across various markets [4][5]. - The company anticipates further client opportunities in Q3 FY2026, indicating a positive outlook for continued growth [4][6]. - Aeries has expanded its operations in India and Mexico, planning to hire over 500 new roles to enhance delivery capacity [9]. Operational Highlights - The company celebrated a 10-year client partnership milestone, demonstrating durability and trust in its client relationships [9]. - Aeries delivered over $20 million in client savings through its nearshore GCC model in Guadalajara, Mexico, showcasing the effectiveness of its operational strategies [9].

Revenue 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]

Core Insights - Aeries Technology, Inc. has expanded its portfolio of AI-enabled implementation projects that enhance its core Global Capability Center (GCC) services, improving operational efficiency for mid-market and private equity-backed companies [1][2] Company Overview - Aeries Technology is recognized as a global leader in AI-enabled business transformation and GCC delivery, particularly for private equity portfolio companies, emphasizing scalable and technology-driven execution [3] Implementation Impact - The consulting-led execution and deep functional specialization of Aeries' projects have significantly increased productivity and speed across various functions, leading to faster transformations and improved operating leverage [2] - Specific improvements include: - Document automation achieving ≥80% automation for quicker releases and consistent metadata [5] - Transaction assurance through tamper-resistant event recording enhancing compliance [5] - Build and test acceleration resulting in ~50% faster UI builds and ~75% defect capture for more reliable cycles [5] - Workflow and revenue operations seeing reconciliation time reduced from ~30 minutes to seconds [5] Strategic Positioning - Aeries' dual capability in GCC development and targeted AI implementations positions the company as a comprehensive transformation partner, facilitating scalable growth, quicker impact realization, and deeper client engagement [2]

Core Insights - Aeries Technology, Inc. has successfully completed a 100-day Go-Live ERP implementation for an enterprise client in North America, showcasing its capabilities in AI-driven business transformation [1][2] - The company emphasizes its consulting-led, AI-enabled execution model, which has helped clients achieve measurable operational gains by unifying critical business functions [2][3] - Aeries' digital transformation practice is focused on modernizing core enterprise functions, with a projected global digital transformation spending exceeding $3 trillion by 2030, positioning the company for sustained growth [3] Company Overview - Aeries Technology is recognized as a global leader in AI-enabled value creation and business transformation, particularly for private-equity portfolio companies [4] - The company has been awarded the Great Place to Work Certification for two consecutive years, reflecting its commitment to workforce development [4] Operational Achievements - A shift-left IT operations model implemented by Aeries optimized support ticket resolution by 80% and reduced IT resources by 41% [6] - The company automated the Accounts Payable process for a global services firm, reducing approval cycle times to under 48 hours and doubling process efficiency [6] - A rapid ERP deployment achieved full system migration, configuration, and user adoption in record time [6]

Core Insights - Aeries Technology, Inc. has announced a new client engagement with a U.S.-based enterprise backed by a leading private equity firm, marking a significant expansion in its private equity relationships and nearshore delivery portfolio in Mexico [2][4] - The new engagement involves establishing a nearshore delivery operation in Guadalajara, Mexico, which is expected to scale rapidly and may evolve into a full Global Capability Center [3][4] - The global artificial intelligence market is projected to grow from approximately $372 billion in 2025 to over $2.4 trillion by 2032, indicating a strong demand for AI-driven solutions [4] Company Overview - Aeries Technology is recognized as a global leader in AI-enabled value creation and business transformation, specifically for private equity portfolio companies [5] - The company has been awarded the Great Place to Work Certification for two consecutive years, highlighting its commitment to workforce development [5]

Core Insights - Aeries Technology's Guadalajara Global Capability Center (GCC) has achieved significant cost savings and operational efficiency for U.S. enterprises, employing 125 professionals and generating over $20 million in cumulative savings [1][2][6] - The nearshore GCC model allows U.S. companies to reduce costs, enhance operational speed, and maintain control over strategy and data, with services including technical support, onboarding, data operations, and training [2][3] - The nearshore services market is projected to contribute $78 billion to Latin America's economy by 2034, positioning Aeries to capitalize on the growing demand for cost-effective global operations due to Mexico's talent pool and trade advantages under the USMCA [3] Company Overview - Aeries Technology is recognized as a leader in AI-enabled business transformation and GCC services, focusing on scalable execution for private-equity portfolio companies [4] - The company has received the Great Place to Work Certification for two consecutive years, highlighting its commitment to workforce development [4] Market Position - Aeries is expanding its AI-enabled GCC network, which supports stronger profit margins and new revenue streams, indicating a strategic focus on growth in the U.S.–Mexico nearshore market [6]

Core Insights - New to The Street is set to broadcast a nationwide episode on Fox Business featuring interviews with innovative companies such as NeOnc Technologies, FLOKI, XION, Sharps Technology, and Aeries Technology, focusing on their growth and leadership in their sectors [1][2]. Group 1: Company Highlights - The episode will showcase NeOnc Technologies (NASDAQ:NTHI), FLOKI, XION, Sharps Technology (NASDAQ:STSS), and Aeries Technology (NASDAQ:AERT), emphasizing their innovations and market positions [1]. - New to The Street aims to spotlight cutting-edge companies and emerging leaders through investor-focused interviews [2]. Group 2: Programming and Reach - The broadcast is presented as sponsored programming, supported by national TV commercials, enhancing visibility for featured companies [3]. - New to The Street has been a premier platform for corporate storytelling for over 16 years, providing exposure on Fox Business and Bloomberg TV, and has a significant digital presence with over 3.5 million YouTube subscribers [4].

Core Insights - Aeries Technology, Inc. celebrates a decade-long partnership with a global technology enterprise client, highlighting the strength of its Global Capability Center (GCC) model [1][2] - The partnership has evolved from an engineering and R&D focus to a multi-functional hub, encompassing IT, Finance, Customer Service, HR, and Legal functions [2] - The Bengaluru hub now supports over 50% of the client's global engineering team and product releases, indicating a high level of trust and operational excellence [3] Company Performance - The CEO of Aeries emphasizes that the long-term partnership demonstrates the company's ability to create sustained value rather than merely cost savings [4] - The collaboration is set to expand into artificial intelligence initiatives aimed at enhancing operational efficiency and innovation cycles [4] Investment Implications - This milestone serves as evidence of Aeries' competitive advantage in client retention and the stability of recurring revenue, which are critical for valuation in the professional services sector [5] - Long-term partnerships like this typically result in higher lifetime value and create barriers to switching, providing visibility into sustained revenue streams [5]

Core Insights - Aeries Technology, Inc. has successfully completed an AI-driven application modernization project for a high-transaction digital platform provider, showcasing its capabilities in AI-powered business transformation [1][5] - The engagement resulted in a ~30% faster delivery of software development and testing, improving code quality and deployment reliability, which allowed the client to accelerate feature releases [2][3] - The transformation was completed in under five months, embedding AI into core development workflows, leading to reduced technical debt and higher engineering productivity [3][5] Company Performance - Following the successful engagement, the client is reviewing the applicability of Aeries' practices across additional business units, indicating strong satisfaction with the outcomes [4] - Aeries Technology's playbook is designed to deliver measurable outcomes quickly and scale capabilities safely across organizations, reflecting its strategic focus on AI-enabled engineering [5][6] Industry Trends - AI-enabled engineering is becoming essential for digital platforms in fast-moving markets, as it enhances both development velocity and quality when integrated with proper governance [5] - The outcomes achieved by Aeries demonstrate its ability to secure AI-focused engineering programs and apply replicable methodologies across high-transaction digital platforms, which can deepen client relationships over time [5]