Aeries Technology 2025 Q4 Earnings Misses Targets as Net Income Plummets 118.7%

Aeries Technology (AERT) reported its fiscal 2025 Q4 earnings on Jul 02nd, 2025. The results fell short of expectations, with a significant decline in net income from the previous year. The company maintained its fiscal year 2026 guidance, projecting revenues between $74 million and $80 million and Adjusted EBITDA in the range of $6 million to $8 million, indicating stable expectations despite current challenges.

Revenue
The total revenue of Aeries Technology decreased by 3.3% to $19.05 million in 2025 Q4, down from $19.70 million in 2024 Q4.

Earnings/Net Income
Aeries Technology swung to a loss of $0.12 per share in 2025 Q4 from a profit of $1.97 per share in 2024 Q4 (106.2% negative change). Meanwhile, the company reported a net loss of $-6.02 million in 2025 Q4, reflecting a 118.7% deterioration from the net income of $32.14 million achieved in 2024 Q4. The EPS performance was significantly negative.

Price Action
The stock price of Aeries Technology has climbed 6.09% during the latest trading day, has surged 15.09% during the most recent full trading week, and has surged 102.62% month-to-date.

Post-Earnings Price Action Review
The strategy of purchasing Aeries Technology shares after a quarter-over-quarter revenue decline on the financial report release date and holding for 30 days led to considerable underperformance. This approach resulted in an 86.59% loss, in stark contrast to a 42.91% gain for the benchmark, yielding an excess return of -129.50%. The compound annual growth rate (CAGR) was -70.31%, highlighting substantial depreciation over a three-year period. The peak-to-trough drawdown reached -93.55%, and the Sharpe ratio stood at -0.60, reflecting a challenging risk-return profile throughout the period.

CEO Commentary
Ajay Khare, Chief Executive Officer of Aeries Technology, emphasized that FY2025 was a transformative year, with Core Adjusted EBITDA reaching $7.4 million, a substantial 365% increase from the prior year, surpassing initial forecasts of $6-7 million. He highlighted the company's strategic exit from non-core markets, particularly in the Middle East, and a renewed focus on the North American market, where revenue grew 15% year-over-year to $65.5 million. Khare noted enhanced cost controls and strengthened engagement with private equity-backed businesses, positioning Aeries for future growth with a scalable platform and sustained momentum.

Guidance
Aeries Technology is reiterating its guidance for fiscal year 2026, projecting revenues between $74 million and $80 million, and Adjusted EBITDA in the range of $6 million to $8 million. The company aims to focus primarily on its core business model and remains committed to driving growth through its Global Capability Centers, leveraging its expertise in AI and automation to enhance service offerings.

Additional News
Aeries Technology recently signed a Letter of Intent with Cority, a leading SaaS platform developer, to establish AI-driven Global Capability Centers (GCCs) in India and Mexico. This strategic partnership aims to support Cority's innovation and efficiency goals, with the GCCs initially focusing on core business functions before expanding capabilities as the company scales. Additionally, Aeries appointed Eli Mendoza as Chief Growth & Strategy Officer to accelerate private equity-focused expansion, leveraging his expertise to drive AI-driven transformation and global scale-up for portfolio value creation. Finally, Aeries announced a strategic partnership with Fortra to set up GCCs in India and Mexico, further expanding its footprint in key markets.