Aeries Technology (AERT) Q2 2027 earnings summary

Executive summary

• Q2 FY27 revenue rose 4.5% YoY to $18.148m; net income increased to $1.348m from $0.642m.

• H1 revenue grew 23% to $40.066m and net income rose to $3.561m from $2.320m; revenue included a $2.7m customer buyout recognized in Q1.

• H1 Adjusted EBITDA was $6.171m versus $3.585m; operating cash flow was $4.740m.

Financial highlights

• Q2 gross profit fell to $4.057m from $5.022m; gross margin declined to 22.4% from 28.9%, while operating income was $0.899m versus $1.985m.

• Q2 cost of revenue rose 14% to $14.091m, driven largely by employee compensation and benefits.

• Q2 Adjusted EBITDA was $2.100m versus $2.552m; margin was 11.6% versus 14.7%.

• H1 gross profit increased 19% to $10.436m; cost of revenue rose 24% to $29.630m.

• H1 operating income was $4.259m versus $2.805m; Adjusted EBITDA margin was 15.4% versus 11.0%.

Outlook and guidance

• FY27 guidance reaffirmed: revenue of $80m–$84m and Adjusted EBITDA of $10m–$12m.

• Cash from operations, reserves and debt capacity are expected to fund operations and growth for 12 months; continued cash generation and potential additional financing remain factors.

• Priorities include client delivery, disciplined execution and efficient financial resource management; cost reductions and North American organic growth support liquidity efforts.