Aeries Technology (AERT) investor relations material

Executive summary

• Achieved a profitable, scalable, and innovation-led transformation, with a $17M year-over-year net income turnaround and the strongest start to a fiscal year in company history.

• Focused on AI-powered global capability centers, exited non-core operations, and integrated nearshore/offshore teams to prioritize high-value services and improve efficiency.

• Reinforced leadership with an independent advisory board and operational restructuring to drive growth and AI strategy.

• Revenue declined 8% year-over-year to $15.33M, primarily due to ramp-downs and project completions, partially offset by new client additions.

• Gross profit margin improved by 50 basis points to 24.6% due to cost reductions, mainly in employee compensation.

Financial highlights

• Q1 FY2026 revenue was $15.3M, with net income of $1.7M, a $17M improvement from a $15.3M net loss in the prior year.

• Operating profit was $0.8M, EBITDA was $2.3M, and Adjusted EBITDA was $1.03M, with margin at 6.7%.

• SG&A expenses reduced by over 85% year-over-year, mainly from a $12.75M reduction in stock-based compensation.

• Cash flow from operations was $1.4M, reversing prior negative cash flow; cash and cash equivalents stood at $2.14M as of June 30, 2025.

• Working capital deficit was $10.62M as of June 30, 2025.

Outlook and guidance

• Fiscal year 2026 revenue guidance reaffirmed at $74M–$80M, with Adjusted EBITDA guidance of $6M–$8M.

• Management expects sufficient cash from operations, reserves, and debt capacity for the next 12 months, assuming no immediate cash settlement of FPA liabilities.

• Plans include raising additional funds, restructuring liabilities, and focusing on organic growth in North America.

• Confident in delivering FY26 priorities and sustaining growth, leveraging AI capabilities and PE partnerships.