Aeries Technology (AERT) Q2 Earnings call transcript Nov 20, 2025

Aeries Technology, a leading IT consulting and services provider, recently held its fiscal second quarter earnings call for the year 2025, revealing a mixed bag of results and strategic shifts. The call was led by CEO and Co-Founder Sudhir Panikassery, joined by Chief Investment Officer Daniel Webb and Chief Financial Officer Rajeev Nair.

Financial Performance

The company reported a decrease in overall revenues for the fiscal second quarter of 2025, which stood at $16.8 million, down 4% from the previous year. However, the North American revenue, which is Aeries' core market, showed a significant increase of over 13% to $15.7 million. The core business, consisting of high-quality, long-tenure U.S.-based clients, contributed positively to adjusted EBITDA, with a figure of $183,000.

Strategic Shifts

Aeries' strategic focus has been on reorienting and reinvesting in its business for sustainable long-term growth. This includes a decision to solely focus on the PE-backed portfolio businesses that serve its core clients. This move, which has led to the exit of consulting projects in the Middle East, is expected to yield higher-quality results and better customer retention. The company has also been actively cutting costs to enhance profitability and lay the foundation for future growth. Over $4 million in annualized expenses have been cut, with executives taking pay cuts to ensure a quick return to profitable growth.

Financial Outlook

Looking ahead, Aeries expects to generate a revenue range of $71 million to $73 million for fiscal 2025, with a core adjusted EBITDA range of $6 million to $7 million. This focus on the core business, particularly in the North American market, is expected to lead to sustained growth and value delivery to stakeholders.

Investor Relations

During the call, investors and shareholders asked questions about the company's marketing strategy for the new product, competitive challenges, and the impact of the strategic shift on the company's market position. Management's responses provided insights into the company's plans to differentiate itself in the market and address competitive challenges.

Conclusion

Aeries Technology's fiscal second quarter earnings call highlighted a period of strategic shifts and financial adjustments aimed at strengthening the company's core business and enhancing profitability for sustained growth. The decision to exit noncore markets and focus on the North American market, combined with cost control measures, is expected to yield positive results in the near and long term. As Aeries continues to navigate the challenges of the IT consulting industry, its strategic focus and financial outlook remain a key focus for investors and stakeholders.