Aeries Technology Reports Fiscal Year 2026 Results
Fiscal Year Ended
- Revenue: Revenue for fiscal year 2026 was
$70 million . - Income from Operations: Income from operations for fiscal year 2026 was
$4.5 million , compared to$(28.8) million for fiscal year 2025. - Net Income: Net income for fiscal year 2026 was
$3.5 million , compared to$(21.6) million for fiscal year 2025. - Adjusted EBITDA: Adjusted EBITDA for fiscal year 2026 was
$8.3 million , with an Adjusted EBITDA margin of 11.9%, above the Company's increased guidance range of$7 million to$8 million , compared to$(4.7) million and a margin of (6.6)% for fiscal year 2025. - Operating Cash Flow: The Company generated
$6.8 million in cash from operating activities during fiscal year 2026, compared to$(1.0) million used in operations in fiscal year 2025, and reported positive operating cash flow for the fourth consecutive quarter.
Financial Outlook
The Company is reiterating its previously stated guidance for fiscal year 2027:
- Revenue between
$80 million and$84 million - Adjusted EBITDA between
$10 million and$12 million
During the year, we continued to improve operating leverage through disciplined execution, automation-enabled productivity initiatives, and expansion of multi-year GCC engagements across
Based on our current portfolio of signed contracts and ongoing client expansions, we are reiterating our previously stated fiscal year 2027 outlook. We remain focused on profitable growth, operational discipline, and continued execution across our GCC platform."
Strategic and Operational Highlights
- Launched the AeriesOne A1 GCC Platform, integrating AI-enabled automation into GCC operations to enable improved efficiency, scalability, and real-time decision-making across client engagements
- Continued momentum in transformation programs and automation-enabled delivery initiatives
- Sustained focus on governance, operational efficiency, and scalable delivery execution
Demand for GCC-led operating models remained strong throughout the year, particularly among private equity-backed and mid-market enterprises seeking scalable, technology-enabled global operating structures.
Aeries further scaled its
Conference Call Details
The Company will host a conference call to discuss its financial results on
About
Founded in 2012,
Non-GAAP Financial Measures
The Company uses non-GAAP financial information and believes it is useful to investors as it provides additional information to facilitate comparisons of historical operating results, identify trends in its underlying operating results and provide additional insight and transparency on how it evaluates the business. The Company uses non-GAAP financial measures to budget, make operating and strategic decisions, and evaluate its performance. The Company has detailed the non-GAAP adjustments that it makes in the non-GAAP definitions below. The adjustments generally fall within the categories of non-cash items. The Company believes the non-GAAP measures presented herein should always be considered along with, and not as a substitute for or superior to, the related GAAP financial measures. In addition, similarly titled items used by other companies may not be comparable due to variations in how they are calculated and how terms are defined. For further information, see “Reconciliation of Non—GAAP Financial Measures” below, including the reconciliations of these non-GAAP measures to their most directly comparable GAAP financial measures.
The Company defines Adjusted EBITDA as net income (loss) before interest, income taxes, depreciation and amortization, further adjusted to exclude stock-based compensation, M&A transaction-related costs, severance pay, and changes in fair value of derivative liabilities.
Adjusted EBITDA is a key performance indicator the Company uses in evaluating our operating performance and in making financial, operating, and planning decisions. The Company believes this measure is useful to investors in the evaluation of Aeries’ operating performance as such information was used by the Company’s management for internal reporting and planning procedures, including aspects of our consolidated operating budget and capital expenditures. Adjusted EBITDA as a measure has some limitations in that it does not reflect: (i) our cash expenditures or future requirements for capital expenditures or contractual commitments; (ii) foreign exchange gain/loss; (iii) changes in, or cash requirements for, working capital; (iv) significant interest expense or the cash requirements necessary to service interest or principal payments on our outstanding debt; (v) payments made or future requirements for income taxes; (vi) cash requirements for future replacement or payment in depreciated or amortized assets; (vii) stock based compensation costs, (viii) severance pay, (ix) Business Combination and M&A transaction related costs, which represent non-recurring legal, professional, personnel and other fees and expenses incurred in connection with potential mergers and acquisitions related activities, and (x) change in fair value of derivative liabilities. We define Adjusted EBITDA Margin as Adjusted EBITDA divided by Revenue.
The Company does not provide a reconciliation of forward-looking non-GAAP financial measures to the most directly comparable financial measures calculated and reported in accordance with GAAP, as the Company is unable to estimate significant non-recurring or unusual items without unreasonable effort. The amounts and timing of these items are uncertain and could be material to the Company's results calculated in accordance with GAAP.
Forward-Looking Statements
All statements in this release that are not based on historical fact are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Words such as “anticipate,” “believe,” “continue,” “could,” “estimate”, “expect”, “hope”, “intend”, “may”, “might”, “should”, “would”, “will”, “understand” and similar words are intended to identify forward looking statements. These forward-looking statements include but are not limited to, statements regarding our future operating results, outlook, guidance and financial position, our business strategy and plans, our objectives for future operations, potential acquisitions and macroeconomic trends. While management has based any forward-looking statements included in this release on its current expectations, the information on which such expectations were based may change. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties and other factors, many of which are outside of the control of Aeries and its subsidiaries, which could cause actual results to materially differ from such statements. Such risks, uncertainties, and other factors include, but are not limited to, our ability to continue as a going concern; our ability to retain and expand our client base; changes in the business, market, financial, political and legal conditions in
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| CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except percentages) |
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| Year Ended |
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| 2026 | 2025 | $ Change | % Change | |||||||||||
| Revenues, net | $ | 70,014 | $ | 70,198 | $ | (184 | ) | (0 | )% | |||||
| Cost of Revenue | 52,715 | 53,478 | 763 | 1 | % | |||||||||
| Gross Profit | $ | 17,299 | $ | 16,720 | $ | 579 | 3 | % | ||||||
| Gross Profit Margin | 25 | % | 24 | % | ||||||||||
| Operating expenses | ||||||||||||||
| Selling, general & administrative expenses | 12,781 | 45,490 | 32,709 | 72 | % | |||||||||
| Total operating expenses | $ | 12,781 | $ | 45,490 | $ | 32,709 | 72 | % | ||||||
| (Loss) / income from operations | $ | 4,518 | $ | (28,770 | ) | $ | 33,288 | 116 | % | |||||
| Other income / (expense) | ||||||||||||||
| Change in fair value of forward purchase agreement put option | ||||||||||||||
| liability | (51 | ) | 4,585 | (4,636 | ) | (101 | )% | |||||||
| Change in fair value of derivative liabilities | 208 | 738 | (530 | ) | (72 | )% | ||||||||
| Gain on settlement of forward purchase agreement put option | ||||||||||||||
| liability | - | 581 | (581 | ) | (100 | )% | ||||||||
| Interest income | 318 | 326 | (8 | ) | (2 | )% | ||||||||
| Interest expense | (463 | ) | (751 | ) | 288 | 38 | % | |||||||
| Other income, net | 935 | 624 | 311 | 50 | % | |||||||||
| Total other income | 947 | 6,103 | (5,156 | ) | (84 | )% | ||||||||
| (Loss) / income before income taxes | 5,465 | (22,667 | ) | 28,132 | 124 | % | ||||||||
| Income tax benefit / (expenses) | (1,991 | ) | 1,072 | (3,063 | ) | (286 | )% | |||||||
| Net (loss) / income | $ | 3,474 | $ | (21,595 | ) | $ | 25,069 | 116 | % | |||||
| Less: Net (loss) / income attributable to noncontrolling interest | 278 | (1,163 | ) | 1,441 | 124 | % | ||||||||
| Less: Net (loss) / income attributable to redeemable noncontrolling interests | 642 | (718 | ) | 1,360 | 189 | % | ||||||||
| Net (loss) / income attributable to the shareholders of |
$ | 2,554 | $ | (19,714 | ) | $ | 22,268 | 113 | % | |||||
| RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | ||||||
| (In thousands, except percentages) |
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| Year Ended |
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| 2026 | 2025 | |||||
| Net (loss) / income | $ | 3,474 | $ | (21,595 | ) | |
| Income tax (benefit) / expense | 1,991 | (1,072 | ) | |||
| Interest income | (318 | ) | (326 | ) | ||
| Interest expense | 463 | 751 | ||||
| Depreciation and amortization | 837 | 1,384 | ||||
| Impairment loss | - | 1,693 | ||||
| EBITDA | $ | 6,447 | $ | (19,165 | ) | |
| Adjustments | ||||||
| (+) Stock-based compensation | 293 | 12,746 | ||||
| (+) Business Combination and M&A transaction related costs | 1,000 | 6,993 | ||||
| (+) Severance Pay | 728 | 678 | ||||
| (-) Change in fair value of derivative liabilities | (157 | ) | (5,323 | ) | ||
| (-) Gain on settlement of forward purchase agreement put option liability | - | (581 | ) | |||
| Adjusted EBITDA | $ | 8,311 | $ | (4,652 | ) | |
| Revenue | 70,014 | 70,198 | ||||
| Adjusted EBITDA margin [Adjusted EBITDA / Revenue] | 11.9 | % | (6.6 | )% | ||
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW (In thousands) |
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| Year Ended |
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| 2026 | 2025 | $ Change | % Change | |||||||||
| Cash and Cash Equivalent at the beginning of period | $ | 2,764 | $ | 2,084 | $ | 680 | 33 | % | ||||
| Net cash provided by / (used in) operating activities | 6,772 | (1,009 | ) | 7,781 | (771 | )% | ||||||
| Net cash used in investing activities | (1,418 | ) | (858 | ) | (560 | ) | (65 | )% | ||||
| Net cash (used in) / provided by financing activities | (3,017 | ) | 2,432 | (5,449 | ) | 224 | % | |||||
| Effects of exchange rates on cash | (223 | ) | 115 | (338 | ) | (294 | )% | |||||
| Cash and Cash Equivalent at the end of period | $ | 4,878 | $ | 2,764 | $ | 2,114 | 75 | % | ||||
| CONSOLIDATED BALANCE SHEET (In thousands) |
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| As of March31, |
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| 2026 | 2025 | |||
| ASSETS | ||||
| Current assets: | ||||
| Cash and cash equivalents | $ | 4,878 | $ | 2,764 |
| Accounts receivable, net of allowance of |
||||
| 12,719 | 10,982 | |||
| Prepaid expenses and other current assets, net of allowance of |
6,170 | 7,581 | ||
| Deferred transactions costs | 125 | |||
| Total current assets | $ | 23,892 | $ | 21,327 |
| Property and equipment, net | 1,750 | 1,570 | ||
| Operating right-of-use assets | 8,608 | 9,602 | ||
| Deferred tax assets, net | 3,689 | 4,064 | ||
| Long-term investments, net of allowance of |
||||
| 1,896 | 1,830 | |||
| Other assets | 2,059 | 1,440 | ||
| Total assets | $ | 41,894 | $ | 39,833 |
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST ANDSHAREHOLDERS’ |
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| EQUITY/(DEFICIT) | ||||
| Current liabilities: | ||||
| Accounts payable | $ | 9,270 | $ | 8,154 |
| Accrued compensation and related benefits, current | 3,568 | 2,432 | ||
| Operating lease liabilities, current | 2,694 | 2,543 | ||||
| Short-term borrowings | 4,436 | 6,504 | ||||
| Forward purchase agreement put option liability | 4,287 | 5,034 | ||||
| Other current liabilities | 6,434 | 7,753 | ||||
| Total current liabilities | $ | 30,689 | $ | 32,420 | ||
| Long term debt | 798 | 1,096 | ||||
| Operating lease liabilities, noncurrent | 6,358 | 7,483 | ||||
| Derivative warrant liabilities | 421 | 629 | ||||
| Deferred tax liabilities | 197 | 139 | ||||
| Other liabilities | 6,016 | 4,170 | ||||
| Total liabilities | $ | 44,479 | $ | 45,937 | ||
Commitments and contingencies |
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| Redeemable noncontrolling interest | 448 | (42 | ) | |||
| Shareholders’ equity / (deficit) | ||||||
| Preference shares, |
- | - | ||||
| Class A ordinary shares, |
5 | 5 | ||||
| Class V ordinary shares, |
- | - | ||||
| Net shareholders’ investment and additional paid-in capital | 29,115 | 27,203 | ||||
| Less : Common Stock held in treasury at cost; 2,997,954 shares as on |
(1,304 | ) | (724 | ) | ||
| Accumulated other comprehensive loss | (1,977 | ) | (908 | ) | ||
| Accumulated deficit | (28,873 | ) | (31,380 | ) | ||
| Total Aeries Technology, Inc. shareholders’ deficit | $ | (3,034 | ) | $ | (5,804 | ) |
| Noncontrolling interest | 1 | (258 | ) | |||
| Total shareholders’ deficit | (3,033 | ) | (6,062 | ) | ||
| Total liabilities, redeemable noncontrolling interest and shareholders’ deficit | $ | 41,894 | $ | 39,833 | ||
Source:
Source: Aeries Technology, Inc.