Aeries Technology (NASDAQ:AERT) reported higher revenue and net income for its fiscal second quarter, although gross profit, operating income and adjusted EBITDA declined from a year earlier.
Revenue rose 4.5% to $18.1 million for the quarter ended September 30, 2026, from $17.3 million a year earlier, Chief Executive Officer Ajay Khare said on the company’s earnings call. Net income increased to $1.3 million from $0.6 million.
Khare said Aeries continued to work with existing clients on artificial intelligence transformation and enterprise operations while pursuing new business opportunities. The company also reaffirmed its full-year revenue and adjusted EBITDA guidance.
Quarterly margins and operating income decline
Gross profit fell to $4.1 million from $5 million in the prior-year quarter. Gross margin narrowed to 22.4% from 28.9%.
Selling, general and administrative expenses were approximately $3.2 million, or 17.4% of revenue, compared with 17.5% of revenue a year earlier. Income from operations declined to $0.9 million from $2 million.
Adjusted EBITDA was $2.1 million, compared with $2.6 million in the prior-year quarter. The company reported an adjusted EBITDA margin of 11.6% for the latest period. Adjusted EBITDA is a non-GAAP measure; the company said reconciliations to the most directly comparable GAAP measures are available in its earnings release and on its website.
First-half revenue and cash flow rise
For the first half of fiscal 2027, revenue increased 23% to $40.1 million. That figure included a previously disclosed $2.7 million customer buyout recognized in the first quarter.
First-half net income rose to $3.6 million from $2.3 million a year earlier. Adjusted EBITDA increased to $6.2 million from $3.6 million, including the customer buyout.
Operating cash flow for the six-month period was $4.7 million, up approximately 98% from $2.39 million in the prior-year period. Cash and cash equivalents stood at $3.8 million as of September 30.
Khare said the company is managing its capital allocation with a focus on supporting operations and meeting financial obligations. He also identified client relationships, operational and financial discipline, and capability building as ongoing priorities.
AI offerings and full-year outlook
Aeries introduced AxAI, an agentic AI solution offering, in September. Khare said AxAI expands the company’s ability to help clients design, deploy and manage AI solutions alongside AeriesOne, its AI-native enterprise operations platform. The company plans to continue developing the offerings in line with client requirements and broader business priorities.
Aeries reaffirmed its fiscal 2027 guidance for revenue of $80 million to $84 million and adjusted EBITDA of $10 million to $12 million. For the rest of the fiscal year, Khare said priorities include client delivery, disciplined execution, operational performance and management of financial resources.
About Aeries Technology (NASDAQ:AERT)
Aeries Technology, Inc. (NASDAQ: AERT) is a global professional services and consulting company that helps businesses and investment firms manage transformation, transition, and growth initiatives. The company provides technology-enabled solutions designed to support clients’ operational, financial, and strategic needs. Its services include finance and accounting, tax and audit support, technology consulting, digital transformation, data and analytics, and managed services. Aeries Technology also offers talent and staffing solutions, helping clients access specialized professionals and scalable teams for business operations and technology projects.
