Aeries Technology, Inc. Reports Strong Fiscal Year 2026 Results With Return to Profitability and Upbeat FY27 Outlook

Key Financial Highlights

• Full-Year Revenue: \$70 million in FY2026, nearly flat year-over-year.
• Adjusted EBITDA: \$8.3 million (11.9% margin), exceeding raised guidance of \$7–8 million and reversing a prior-year loss.
• Net Income: \$3.5 million, a significant turnaround from a \$(21.6) million loss in FY2025.
• Income From Operations: \$4.5 million, compared to a \$(28.8) million loss last year.
• Operating Cash Flow: \$6.8 million, with the fourth consecutive quarter of positive generation.

Management Commentary

Ajay Khare, CEO of Aeries Technology, highlighted FY2026 as a year of “meaningful operational progress.” The company returned to profitability, exceeded EBITDA guidance, and achieved positive cash flow for the fourth straight quarter. This financial turnaround was attributed to disciplined execution, automation initiatives, and expanding multi-year Global Capability Center (GCC) engagements across North America, India, and Mexico.

Strategic and Operational Milestones

• Launch of AeriesOne A1 GCC Platform: Introduced AI-enabled automation across GCC operations, supporting improved efficiency, scalability, and real-time decision-making for clients.
• Expansion in Mexico: Enhanced delivery presence, supporting North American clients with nearshore-offshore models.
• Strengthened Private Equity Relationships: Deepened ties within the private equity ecosystem, driving growth in the mid-market segment.

FY2027 Guidance Reaffirmed

• Revenue: Expected between \$80 million and \$84 million, indicating growth of 14.3% at the midpoint.
• Adjusted EBITDA: Guided between \$10 million and \$12 million, implying further margin expansion and continued profitability.

Management’s confidence is underpinned by a strong pipeline of signed contracts and ongoing client expansions, focusing on profitable growth and disciplined operational execution.

Detailed Financial Analysis

Balance Sheet and Liquidity

• Cash & Equivalents: \$4.9 million, up 75% year-over-year.
• Total Assets: \$41.9 million (up from \$39.8 million).
• Total Liabilities: \$44.5 million (down slightly from \$45.9 million).
• Shareholders’ Deficit: Improved to \$(3.0) million from \$(6.1) million.

Improved operating metrics and strong cash flow have strengthened the company’s liquidity and reduced its deficit, although the company still carries a shareholders’ deficit.

Non-GAAP Measures

Aeries defines Adjusted EBITDA as net income (loss) before interest, taxes, depreciation, amortization, stock-based compensation, M&A costs, severance, and changes in derivative liabilities. This measure is considered important by management and investors for evaluating operating performance, but excludes some cash and non-cash items that may be significant.

Forward-Looking Statements & Risks

Management cautions that the outlook and forward-looking statements are subject to risks including macroeconomic volatility, geopolitical events, currency fluctuations, regulatory changes, and execution risk. The report highlights ongoing risks such as global conflicts, inflation, cybersecurity, and regulatory developments in key operating geographies.

Shareholder-Relevant, Potentially Price-Sensitive Factors

• Return to Profitability: After a significant loss in FY2025, the company’s return to net income and strong cash flow could drive a positive re-rating by investors.
• Guidance Beat and Reiteration: Exceeding raised EBITDA guidance and reaffirming strong growth for FY2027 should boost confidence in management’s execution.
• AI-Driven Platform Launch: The debut of the AeriesOne A1 GCC Platform, embedding AI and automation, positions the firm for operational leverage and could drive higher margins and client wins.
• Operational Turnaround: SG&A expenses have been slashed by 72%, supporting a dramatic profitability improvement.
• Expansion in North America and Mexico: Strengthened delivery capabilities and private equity relationships signal continued growth tailwinds.
• Ongoing Shareholders’ Deficit: While improved, the company still carries a deficit, warranting ongoing attention from investors.

Conference Call Details

Investors can join the company’s financial results conference call on June 8, 2026 at 8 AM ET. Details are available on the investor relations website.

Disclaimer: This report is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell securities. Investors should conduct their own due diligence and consider consulting a financial advisor before making any investment decisions. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected.

View Aeries Technology, Inc. Historical chart here