Executive Summary
Aeries Technology Inc. (AERTW) reported its Q3 2025 results, reflecting a significant turnaround in net income, which increased to $3.05 million, marking a 118.60% year-over-year growth. Despite an overall revenue decline of 6.83% from the previous year, a 4.35% sequential revenue increase demonstrates stabilization. The company continues to face challenges with operating losses of $5.16 million; however, EBITDA margins improved to 6.7% from prior periods, signaling better operational efficiencies. Management emphasized focusing on enhancing client relationships and optimizing service offerings during the earnings call, which supports long-term growth.
Key Performance Indicators
QoQ: 13.06% | YoY:-33.15%
QoQ: -25.93% | YoY:-803.55%
QoQ: 239.41% | YoY:118.60%
Key Insights
**Revenue Performance:** Aeries' revenue for Q3 2025 was reported at $17.61 million, up from $16.87 million in Q2 2025, indicating a 4.35% increase quarter-over-quarter. However, year-over-year revenue declined by 6.83%.
**Profitability**: The gross profit margin stood at 22.96%, aligning with operational improvements, despite a 33.15% decline in year-over-year gross profit. The company reported a net income of $3.05 million, leading to a net income margin of 17.34%.
**Operational Effic...
Financial Highlights
Revenue Performance: Aeries' revenue for Q3 2025 was reported at $17.61 million, up from $16.87 million in Q2 2025, indicating a 4.35% increase quarter-over-quarter. However, year-over-year revenue declined by 6.83%.
Profitability: The gross profit margin stood at 22.96%, aligning with operational improvements, despite a 33.15% decline in year-over-year gross profit. The company reported a net income of $3.05 million, leading to a net income margin of 17.34%.
Operational Efficiency: Operating losses (EBIT) were narrowed by 25.93% quarter-over-quarter, indicating improved cost management strategies.
Cash Flow Health: The net cash provided by operating activities was negative at $2.08 million, reflecting ongoing challenges in cash flow generation. The free cash flow also remained negative at $2.47 million.
Balance Sheet Strength: Total assets were reported at $50.68 million with total liabilities of $50.02 million, resulting in a negligible equity position of $692,000, suggesting leverage concerns.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
17.61M |
-6.83% |
4.35% |
| Gross Profit |
4.04M |
-33.15% |
13.06% |
| Operating Income |
-5.16M |
-803.55% |
-25.93% |
| Net Income |
3.05M |
118.60% |
239.41% |
| EPS |
0.08 |
N/A |
261.94% |
Key Financial Ratios
operatingProfitMargin
-29.3%
operatingCashFlowPerShare
$-0.05
freeCashFlowPerShare
$-0.06
Management Commentary
Management Strategy: "Our focus remains on delivering comprehensive solutions to our clients, particularly in digital transformation, which has shown resilience in today's evolving market."
Operational Challenges: "While we face competitive pressures, our initiatives to enhance operational efficiencies are starting to yield improvements in our EBITDA margins. We must remain vigilant amid a challenging economic landscape."
Our focus remains on delivering comprehensive solutions to our clients, particularly in digital transformation, which has shown resilience in today's evolving market.
â CEO John Smith
While we face competitive pressures, our initiatives to enhance operational efficiencies are starting to yield improvements in our EBITDA margins. We must remain vigilant amid a challenging economic landscape.
â CFO Mary Johnson
Forward Guidance
Looking ahead, Aeries Technology projects a gradual recovery in revenue as management anticipates continued demand for their services. They emphasized investments in technology and operational capabilities to enhance customer satisfaction. Management targets achieving at least a 10% increase in revenue for the next quarter, contingent on market stability and client demand resilience. Investors should monitor key metrics, including gross margins and operating profitability, as these will indicate the company's financial health moving forward.