Aeries Technology (AERT) Q3 2026 earnings summary

Executive summary

• Q3 FY2026 delivered stable revenue of $17.5 million and net income of $1.2 million, with a significant turnaround in adjusted EBITDA to $2.5 million and a 14.1% margin, driven by strong execution in India and Mexico and expansion of multi-year GCC engagements.

• Positive operating cash flow for the third consecutive quarter, reflecting disciplined cost management, automation gains, and improved operating leverage.

• Enhanced delivery model, talent retention, and acquisition, supported by Great Place to Work certification and a strategic recruitment partnership.

• Consistent year-over-year revenue growth in North America, with strong client engagement and growing multi-year, multi-function contracts.

• The company leverages AI and digital transformation to drive operational efficiency and value creation for clients, primarily in North America.

Financial highlights

• Q3 FY2026 revenue was $17.5 million, nearly flat year-over-year; net income was $1.2 million, and adjusted EBITDA was $2.5 million (14.1% margin); gross margin was 19.1%.

• Operating cash flow for Q3 FY2026 was $2.4 million; for the nine months ended December 31, 2025, it was $4.8 million, up from a cash outflow in the prior year.

• Basic and diluted EPS for Q3 FY2026 was $0.02, compared to $0.08 in Q3 FY2025.

• Selling, general, and administrative expenses decreased 72% year-over-year for the quarter, driven by lower stock-based compensation and professional fees.

• Cash and cash equivalents at December 31, 2025, were $2.6 million.

Outlook and guidance

• FY2026 adjusted EBITDA guidance raised to $7–8 million, up from prior $6–8 million.

• FY2027 revenue expected in the $80–84 million range, with adjusted EBITDA of $10–12 million.

• Outlook supported by signed multi-year contracts, GCC expansion, and ramping AI implementation.

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

• No formal forward-looking revenue or earnings guidance provided in some filings.