Aeries Technology Exceeds Core Profitability Guidance, Driven by North American Growth
NEW YORK, July 02, 2025 (GLOBE NEWSWIRE) — Aeries Technology, Inc. (Nasdaq: AERT), a key player in AI-enabled value creation and business transformation for private equity portfolio companies, today released its financial results for the fiscal year ending March 31, 2025.
Looking ahead, Aeries will transition away from reporting “Core Adjusted EBITDA” as a primary financial metric starting in fiscal year 2026. This strategic shift aligns with the company’s intensified focus on its core operations, with Adjusted EBITDA and GAAP results continuing to provide key insights into the company’s performance.
Ajay Khare, Chief Executive Officer of Aeries, commented on the company’s performance: “We began the year with a forecast of $6 to $7 million in Core Adjusted EBITDA and concluded at $7.4 million, marking a substantial 365% increase year-over-year and surpassing our initial guidance. Fiscal year 2025 was a pivotal year for Aeries. We successfully divested non-core international markets, including the Middle East, and strategically realigned our focus squarely on the North American market. In this core region, we achieved a robust 15% year-over-year revenue growth, reaching $65.5 million. Concurrently, we implemented stringent cost controls, honed our expertise in Global Capability Centers (GCCs), and deepened our partnerships with PE-backed businesses. With over 13 years of leadership in the GCC space and a growing pipeline of AI-driven transformation projects, we are entering fiscal year 2026 with significant momentum, strategic clarity, and a scalable platform designed for sustained growth.”
Fiscal Year Ended March 31, 2025 (Fiscal Year 2025) Financial Highlights
Revenues: Revenues for fiscal year 2025 totaled $70.2 million, a slight decrease of 3.2% compared to $72.5 million in fiscal year 2024.
Income/(Loss) from Operations: The company reported an income from operations of $(28.8) million for fiscal year 2025, a shift from the $3.0 million income recorded in fiscal year 2024.
Net Income/(Loss): A net loss of $(21.6) million was recorded for fiscal year 2025, contrasting with a net income of $17.3 million in fiscal year 2024.
Adjusted EBITDA: Adjusted EBITDA for fiscal year 2025 stood at $(4.7) million, compared to $9.2 million in fiscal year 2024.
Core adjusted EBITDA: Core adjusted EBITDA for fiscal year 2025 reached $7.4 million, a significant increase from $1.6 million in fiscal year 2024.
Financial Outlook
The Company reaffirms its financial guidance for fiscal year 2026:
- Revenue projected to be between $74 million and $80 million
- Adjusted EBITDA anticipated to range from $6 million to $8 million
Conference Call Details
Aeries Technology will host a conference call to discuss its financial results on Thursday, July 3, 2025, at 8 AM Eastern Time. Call-in details are as follows: 1-877-407-0792 (domestic) or 1-201-689-8263 (international). A transcript of the call will be available on the company’s investor relations website at https://ir.aeriestechnology.com.
About Aeries Technology
Aeries Technology (Nasdaq: AERT) is a premier global provider of Global Capability Center (GCC) solutions, specializing in the establishment of GCCs for Private Equity’s Portfolio Companies. The company delivers a comprehensive suite of Advisory & Value Creation solutions, leveraging advanced technologies like AI and automation. Aeries offers adaptable engagement models designed for impact-driven outcomes with measurable results.
Founded in 2012, Aeries Technology has grown to a team of over 1,400 professionals and has been recognized with the Great Place to Work Certification for two consecutive years, underscoring its commitment to workforce development.
Non-GAAP Financial Measures
The Company utilizes non-GAAP financial information, believing it offers valuable insights for investors by enabling more effective comparisons of historical operating results, identification of underlying operational trends, and enhanced transparency into business evaluation. Aeries employs non-GAAP measures for budgeting, strategic decision-making, and performance assessment. Specific non-GAAP adjustments are detailed below, typically relating to non-cash items. These non-GAAP measures should be considered alongside, and not as a substitute for, GAAP financial measures. It’s important to note that similar measures used by other companies may not be directly comparable due to variations in calculation methodologies and definitions. For a comprehensive understanding and detailed reconciliations, please refer to the “Reconciliation of Non—GAAP Financial Measures” section.
Adjusted EBITDA is defined as net income from operations before interest, income taxes, depreciation, and amortization, further adjusted for stock-based compensation, M&A transaction-related costs, and changes in fair value of derivative liabilities. Core Adjusted EBITDA is calculated by subtracting EBITDA from non-core business activities from Adjusted EBITDA. The company’s core business encompasses GCC services provided to private equity-backed companies, predominantly in North America, characterized by long-term relationships, recurring contracts, and multi-year revenue streams. In contrast, its non-core operations include consulting services, primarily for clients in the Middle East, typically involving one-time engagements with extended collection cycles. Aeries aims to derive the majority of its future revenue from its core business and does not intend to pursue new customer contracts outside of North America.
Adjusted EBITDA and Core Adjusted EBITDA are key performance indicators that the company uses to evaluate its operating performance and inform financial, operational, and planning decisions. The company believes these measures are beneficial for investors in assessing Aeries’ operating performance, as management utilizes them for internal reporting and planning, including aspects of its consolidated operating budget and capital expenditures. It’s important to acknowledge the limitations of Adjusted EBITDA and Core Adjusted EBITDA. These measures do not account for specific cash expenditures or future requirements related to capital expenditures, contractual commitments, foreign exchange gains/losses, changes in working capital, significant interest expenses or the cash needed for debt servicing, income tax payments, future replacement of depreciated or amortized assets, stock-based compensation costs, severance pay, Business Combination and M&A transaction-related costs (which are non-recurring fees associated with potential mergers and acquisitions), or changes in the fair value of derivative liabilities. Furthermore, Core Adjusted EBITDA excludes any provision for expected credit losses or profits derived from non-core business activities.
Forward-Looking Statements
This release contains statements that are not based on historical facts and are considered “forward-looking statements” under the Private Securities Litigation Reform Act of 1995 and relevant sections of the Securities Act of 1933 and the Securities Exchange Act of 1934. Words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “hope,” “intend,” “may,” “might,” “should,” “would,” “will,” “understand,” and similar terms are used to identify these statements. These forward-looking statements pertain to our future operating results, outlook, guidance, financial position, business strategy, plans, objectives for future operations, potential acquisitions, and macroeconomic trends. While management bases these statements on current expectations, the underlying information may be subject to change. These statements rely on numerous assumptions about future events and are subject to various risks, uncertainties, and other factors, many of which are beyond Aeries’ control. Actual results could materially differ from those projected. Such risks, uncertainties, and factors include, but are not limited to, our ability to continue as a going concern; changes in business, market, financial, political, and legal conditions globally; developments related to inflation, interest rates, and global supply chains; economic and geopolitical uncertainty; the potential for decelerating global economic growth and increased volatility in foreign currency exchange rates; our ability to maximize potential value through business development efforts; our ability to maintain our Nasdaq listing and the liquidity and trading of our securities; changes in applicable laws and regulations and other regulatory developments; our ability to develop and maintain effective internal controls and remediate any material weaknesses; success in retaining or recruiting key personnel; our financial performance; our ability to successfully complete and integrate acquisitions, divestitures, or joint ventures; the sufficiency of our cash and cash equivalents to fund operating expenses and capital expenditure requirements; the impact of global conflicts and related restrictive actions, such as sanctions or export controls; risks associated with cybersecurity and data privacy; the impact of inflation; the effects of the COVID-19 pandemic and other similar disruptions; and the fluctuation of economic conditions, global conflicts, inflation, and other global events on our results of operations and supply chains. Further details on these risks and uncertainties can be found in Aeries’ periodic and current reports filed with the U.S. Securities and Exchange Commission. Aeries operates in a dynamic and competitive environment where unanticipated risks may emerge. Investors should not place undue reliance on forward-looking statements as predictions of actual results. Aeries disclaims any intention or obligation to update or revise any forward-looking statements.
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| CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except percentages) |
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| Year Ended March 31, |
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| 2025 | 2024 | $ Change | % Change | |||||||||||
| Revenues, net | $ | 70,198 | $ | 72,509 | $ | (2,311 | ) | (3 | )% | |||||
| Cost of Revenue | 53,478 | 50,868 | 2,610 | 5 | % | |||||||||
| Gross Profit | $ | 16,720 | $ | 21,641 | $ | (4,921 | ) | (23 | )% | |||||
| Gross Profit Margin | 24 | % | 30 | % | ||||||||||
| Operating expenses | ||||||||||||||
| Selling, general & administrative expenses | 45,490 | 18,654 | 26,836 | 144 | % | |||||||||
| Total operating expenses | $ | 45,490 | $ | 18,654 | $ | 26,836 | 144 | % | ||||||
| (Loss) / income from operations | $ | (28,770 | ) | $ | 2,987 | $ | (31,757 | ) | (1,063 | )% | ||||
| Other income / (expense) | ||||||||||||||
| Change in fair value of forward purchase agreement put option liability | 4585 | 14,765 | (10,180 | ) | (69 | )% | ||||||||
| Change in fair value of derivative liabilities | 738 | 1,402 | (664 | ) | (47 | )% | ||||||||
| Gain on settlement of forward purchase agreement put option liability | 581 | – | 581 | 100 | % | |||||||||
| Interest income | 326 | 275 | 51 | 19 | % | |||||||||
| Interest expense | (751 | ) | (462 | ) | (289 | ) | 63 | % | ||||||
| Other income, net | 624 | 160 | 464 | 290 | % | |||||||||
| Total other income | 6,103 | 16,140 | (10,037 | ) | (62 | )% | ||||||||
| (Loss) / income before income taxes | (22,667 | ) | 19,127 | (41,794 | ) | (219 | )% | |||||||
| Income tax benefit / (expenses) | 1,072 | (1,871 | ) | 2,943 | (157 | )% | ||||||||
| Net (loss) / income | $ | (21,595 | ) | $ | 17,256 | $ | (38,851 | ) | (225 | )% | ||||
| Less: Net (loss) / income attributable noncontrolling interest | (1,163 | ) | 202 | (1,365 | ) | (676 | )% | |||||||
| Less: Net (loss) / income attributable to redeemable noncontrolling interests | (718 | ) | 1.397 | (2,115 | ) | (151 | )% | |||||||
| Net (loss) / income attributable to the shareholders of Aeries Technology, Inc. | $ | (19,714 | ) | $ | 15,657 | $ | (35,371 | ) | (226 | )% | ||||
| RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (In thousands, except percentages) |
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| Year Ended March 31, |
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| 2025 | 2024 | |||||
| Net (loss) / income | $ | (21,595 | ) | $ | 17,256 | |
| Income tax (benefit) / expense | (1,072 | ) | 1,871 | |||
| Interest income | (326 | ) | (275 | ) | ||
| Interest expense | 751 | 462 | ||||
| Depreciation and amortization | 1,384 | 1,352 | ||||
| Impairment loss | 1,693 | – | ||||
| EBITDA | $ | (19,165 | ) | $ | 20,666 | |
| Adjustments | ||||||
| (+) Stock-based compensation | 12,746 | 1,626 | ||||
| (+) Business Combination and M&A transaction related costs | 6,993 | 3,067 | ||||
| (+) Severance Pay | 678 | – | ||||
| (-) Change in fair value of derivative liabilities | (5,323 | ) | (16,167 | ) | ||
| (-) Gain on settlement of forward purchase agreement put option liability | (581 | ) | – | |||
| Adjusted EBITDA | $ | (4,652 | ) | $ | 9,192 | |
| Revenue | 70,198 | 72,509 | ||||
| Adjusted EBITDA margin [Adjusted EBITDA / Revenue] | (6.6 | )% | 12.7 | % | ||
| ADJUSTED EBITDA TO CORE ADJUSTED EBITDA (In thousands) |
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| Year Ended March 31, |
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| 2025 | 2024 | |||||
| Adjusted EBITDA | $ | (4,652 | ) | $ | 9,192 | |
| (+) Loss / (Profit) from non-core business | 12,058 | (7,600 | ) | |||
| Core adjusted EBITDA | $ | 7,406 | $ | 1,592 | ||
| Revenue | 70,198 | 72,509 | ||||
| Core adjusted EBITDA margin [Core adjusted EBITDA / Revenue] | 10.6 | % | 2.2 | % | ||
| CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW (In thousands) |
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| Year Ended | ||||||||||||
| March 31, | ||||||||||||
| 2025 | 2024 | $ Change | % Change | |||||||||
| Cash and Cash Equivalent at the beginning of period | $ | 2,084 | $ | 1,131 | $ | 953 | 84 | % | ||||
| Net cash used in operating activities | (1,009 | ) | (4,299 | ) | 3,290 | 77 | % | |||||
| Net cash used in investing activities | (858 | ) | (1,740 | ) | 882 | 51 | % | |||||
| Net cash provided by financing activities | 2,432 | 7,056 | (4,624 | ) | (66 | )% | ||||||
| Effects of exchange rates on cash | 115 | (64 | ) | 179 | 280 | % | ||||||
| Cash and Cash Equivalent at the end of period | $ | 2,764 | $ | 2,084 | $ | 680 | 33 | % | ||||
| CONSOLIDATED BALANCE SHEET (In thousands) |
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| As of March 31, |
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| 2025 |
2024 | |||||
| ASSETS | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 2,764 | $ | 2,084 | ||
| Accounts receivable, net of allowance of $3,574 and $1,263 as of March 31, 2025 and March 31, 2024, respectively | 10,982 | 23,757 | ||||
| Prepaid expenses and other current assets, net of allowance of $0 and $1, as of March 31, 2025 and March 31, 2024, respectively | 7,581 | 6,995 | ||||
| Total current assets | $ | 21,327 | $ | 32,836 | ||
| Property and equipment, net | 1,570 | 3,579 | ||||
| Operating right-of-use assets | 9,602 | 7,318 | ||||
| Deferred tax assets, net | 4,064 | 1,933 | ||||
| Long-term investments, net of allowance of $76 and $126, as of March 31, 2025 and March 31, 2024, respectively | 1,830 | 1,612 | ||||
| Other assets, net of allowance of $0 and $1, as of March 31, 2025 and March 31, 2024, respectively | 1,440 | 2,129 | ||||
| Total assets | $ | 39,833 | $ | 49,407 | ||
| LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND SHAREHOLDERS’ EQUITY / (DEFICIT) | ||||||
| Current liabilities: | ||||||
| Accounts payable | $ | 8,154 | $ | 6,616 | ||
| Accrued compensation and related benefits, current | 2,432 | 3,119 | ||||
| Operating lease liabilities, current | 2,543 | 2,080 | ||||
| Short-term borrowings | 6,504 | 6,778 | ||||
| Forward purchase agreement put option liability | 5,034 | 10,244 | ||||
| Other current liabilities | 7,753 | 9,288 | ||||
| Total current liabilities | $ | 32,420 | $ | 38,125 | ||
| Long term debt | 1,096 | 1,440 | ||||
| Operating lease liabilities, noncurrent | 7,483 | 5,615 | ||||
| Derivative warrant liabilities | 629 | 1,367 | ||||
| Deferred tax liabilities | 139 | 92 | ||||
| Other liabilities | 4,170 | 3,948 | ||||
| Total liabilities | $ | 45,937 | $ | 50,587 | ||
| Commitments and contingencies | ||||||
| Redeemable noncontrolling interest | (42 | ) | 734 | |||
| Shareholders’ equity / (deficit) | ||||||
| Preference shares, $0.0001 par value; 5,000,000 shares authorized; noneissued or outstanding | – | – | ||||
| Class A ordinary shares, $0.0001 par value; 500,000,000 shares authorized; 47,152,626 shares issued and outstanding as of March 31, 2025; 15,619,004 shares issued and outstanding as of March 31, 2024 | 5 | 2 | ||||
| Class V ordinary shares, $0.0001 par value; 1 share authorized, issued and outstanding | – | – | ||||
| Net shareholders’ investment and additional paid-in capital | 27,203 | – | ||||
| Less : Common Stock held in treasury at cost; 1,285,392 shares as on March 31, 2025 and 0 shares as on March 31, 2024 | (724 | ) | – | |||
| Accumulated other comprehensive loss | (908 | ) | (574 | ) | ||
| Accumulated deficit | (31,380 | ) | (11,668 | ) | ||
| Total Aeries Technology, Inc. shareholders’ deficit | $ | (5,804 | ) | $ | (12,240 | ) |
| Noncontrolling interest | (258 | ) | 10,326 | |||
| Total shareholders’ deficit | (6,062 | ) | (1,914 | ) | ||
| Total liabilities, redeemable noncontrolling interest and shareholders’ deficit | $ | 39,833 | $ | 49,407 | ||
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