Aeries Technology (AERT) Q2 2026 earnings summary

Executive summary

• Achieved a defining milestone with the completion of a turnaround and entry into a disciplined growth phase, focusing on long-term sustainable profitability and AI-led delivery.

• Reported net income of $2.32 million for the six months ended September 30, 2025, reversing a prior year loss of $17.62 million, driven by cost reductions and a one-time revenue from a customer contract buyout.

• Operational excellence, AI-powered delivery, and expansion in India and Mexico underpin current strength and scalability, with multiple new enterprise client additions across technology, healthcare, and software.

• Two consecutive profitable quarters and positive cash flow from operations signal a successful transformation.

• Operating expenses fell sharply by 60% for the quarter and 79% for the six months, mainly from lower stock-based compensation, reduced credit loss provisioning, and cost controls.

Financial highlights

• Q2 FY26 revenue was $17.36 million, up 3% year-over-year from $16.87 million, with gross profit up 40% to $5.02 million.

• GAAP net income of $0.64 million for Q2 FY26, reversing a $2.3 million loss in the prior year period.

• Adjusted EBITDA for Q2 FY26 was $2.55 million (14.7% margin), compared to a $2.3 million loss a year ago.

• First half FY26 revenue totaled $32.69 million, net income $2.32 million, adjusted EBITDA $3.59 million, and operating cash flow $2.39 million.

• Basic and diluted net income per share for Q2 FY26 was $0.01, compared to $(0.05) in Q2 FY25.

Outlook and guidance

• Full year FY26 Adjusted EBITDA expected between $6 million and $8 million, with new contracts ramping and increased revenue contribution anticipated in the coming quarters.

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

• Focus remains on balancing growth and profitability, with continued investment in innovation and organic growth in North America.