Executive Summary
In Q1 2025, Aeries Technology Inc (AERTW) faced significant challenges as evidenced by a revenue of $16.67 million, marking a 15.41% decline from the previous quarter, and a striking net loss of $14.82 million. This downturn reflects a broader trend in the consulting services sector, where firms are increasingly pressured to deliver value efficiency amidst rising operational costs. The Company has articulated its commitment to re-evaluate its operational strategies to restore profitability. Management emphasized the importance of cost management and optimal resource allocation during the earnings call, highlighting plans to streamline operations and enhance service delivery efficiency.
The operating income showed a staggering decrease, going from a net gain in earlier quarters to a -$16.42 million this quarter, an indicator of both reduced revenue and heightened operational expenses. Moving forward, Aeries Technology Inc is poised to execute significant changes aimed at stabilizing the workforce while enhancing strategic partnerships to outline new revenue streams.
Key Performance Indicators
QoQ: -182 344.44% | YoY:-927.87%
QoQ: -148.08% | YoY:-873.88%
Key Insights
**Revenue & Profitability**: Aeries Technology reported revenue of $16.67 million in Q1 2025, which is a 15.41% decrease from Q4 2024 and an alarming decrease of 873.88% year-over-year. The gross profit ratio dropped to 24.06%, while operating income turned negative at -$16.42 million, indicative of operational inefficiencies.
**Margins**: The operating profit margin spiked down to -98.52% due to a significant rise in selling, general, and administrative expenses (SG&A) totaling $20.43 ...
Financial Highlights
Revenue & Profitability: Aeries Technology reported revenue of $16.67 million in Q1 2025, which is a 15.41% decrease from Q4 2024 and an alarming decrease of 873.88% year-over-year. The gross profit ratio dropped to 24.06%, while operating income turned negative at -$16.42 million, indicative of operational inefficiencies.
Margins: The operating profit margin spiked down to -98.52% due to a significant rise in selling, general, and administrative expenses (SG&A) totaling $20.43 million. The net income margin fell significantly to -88.92%, compounded by interest and operational costs.
Balance Sheet: Aeries demonstrates a precarious balance sheet with total assets of $51.77 million against total liabilities of $50.85 million, yielding minimal shareholder equity of -$231,000. A current ratio of 0.87 indicates liquidity issues, relevant in an environment where short-term obligations are mustering pressure.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
16.67M |
N/A |
-15.41% |
| Gross Profit |
4.01M |
N/A |
-36.59% |
| Operating Income |
-16.42M |
-927.87% |
-182 344.44% |
| Net Income |
-14.82M |
-873.88% |
-148.08% |
| EPS |
-0.39 |
N/A |
-119.60% |
Key Financial Ratios
operatingProfitMargin
-98.5%
operatingCashFlowPerShare
$-0.05
freeCashFlowPerShare
$-0.06
Management Commentary
Strategic Adjustments: Management noted, ‘We are reassessing our operational strategies to address revenue challenges and enhance our service delivery model to align with market demands.’
Cost Management Focus: A company executive mentioned, ‘Control over SG&A expenses has been prioritized as we navigate these challenging market conditions,’ indicating preparatory steps to restore profitability through cost-cutting measures and efficiency optimization.
‘We are reassessing our operational strategies to address revenue challenges and enhance our service delivery model to align with market demands.’
— CEO of Aeries Technology Inc
‘Control over SG&A expenses has been prioritized as we navigate these challenging market conditions.’
— CFO of Aeries Technology Inc
Forward Guidance
Aeries Technology Inc forecasts a continued focus on restructuring its operations and potentially seeking new avenues for revenue generation as stressors on the consulting industry persist. Management notes upcoming partnerships and new service offerings are expected to drive growth, although exact revenue targets remain cautiously optimistic. Investors should monitor for key developments on contract renewals and new engagements, which will be pivotal in restoring market confidence.