Executive Summary
Aeries Technology reported QQ1 2026 revenue of $15.33 million, with gross profit of $3.778 million and a gross margin of 24.64%, reflecting a stable core services mix. Operating income came in at $0.82 million, yielding an operating margin of 5.35%, while net income reached $1.512 million and earnings per share $0.032. The quarter benefited from $1.187 million of other income, contributing to a resilient bottom line despite a yoy revenue decline. EBITDA stood at $2.382 million, delivering an EBITDA margin of approximately 15.5%. Free cash flow was positive at $1.11 million and operating cash flow was $1.369 million, underscoring meaningful cash generation from ongoing activities.
On the balance sheet, total assets were $38.825 million against total liabilities of $43.253 million, producing negative stockholders’ equity of $4.292 million. Liquidity remained a concern with current assets $20.089 million and current liabilities $30.710 million, yielding a current ratio of roughly 0.65. The company ended the period with cash and equivalents of $2.137 million and net debt of $13.755 million. These balance sheet characteristics imply leverage risk and potential flexibility constraints, even as cash flow supports debt service in the near term.
From a growth and outlook perspective, the revenue decline of 8.02% YoY (and -19.53% QoQ) contrasts with substantial improvements in profitability metrics, notably a doubling of net income YoY and solid margin discipline. The limited availability of peer benchmarks for AERT in publicly disclosed data makes external benchmarking challenging; however, the combination of positive operating leverage and cash generation suggests potential for a positive earnings trajectory if revenue trends stabilize and the balance sheet is managed, particularly through working capital optimization and potential deleveraging.
Key Performance Indicators
QoQ: -19.53% | YoY:-8.02%
QoQ: -25.82% | YoY:-5.79%
QoQ: 126.47% | YoY:104.99%
QoQ: 126.27% | YoY:110.20%
QoQ: 132.69% | YoY:108.23%
Key Insights
Revenue: $15.33 million; YoY change: -8.02%; QoQ change: -19.53%
Gross Profit: $3.778 million; Gross Margin: 24.64%; YoY gross profit change: -5.79%; QoQ: -25.82%
Operating Income: $0.82 million; Operating Margin: 5.35%; YoY: +104.99%; QoQ: +126.47%
Net Income: $1.512 million; Net Margin: 9.86%; YoY: +110.20%; QoQ: +126.27%
EPS (diluted): $0.0321; YoY: +108.23%; QoQ: +132.69%
EBITDA: $2.382 million; EBITDA Margin: ~15.54%
Cash Flow: Operating cash flow $1.369 million; Free cash flow $1.11 millio...
Financial Highlights
Revenue: $15.33 million; YoY change: -8.02%; QoQ change: -19.53%
Gross Profit: $3.778 million; Gross Margin: 24.64%; YoY gross profit change: -5.79%; QoQ: -25.82%
Operating Income: $0.82 million; Operating Margin: 5.35%; YoY: +104.99%; QoQ: +126.47%
Net Income: $1.512 million; Net Margin: 9.86%; YoY: +110.20%; QoQ: +126.27%
EPS (diluted): $0.0321; YoY: +108.23%; QoQ: +132.69%
EBITDA: $2.382 million; EBITDA Margin: ~15.54%
Cash Flow: Operating cash flow $1.369 million; Free cash flow $1.11 million; Net change in cash: -$0.627 million; Cash at end of period $2.137 million; Cash at beginning of period $2.764 million
Balance Sheet: Total assets $38.825 million; Total liabilities $43.253 million; Shareholders’ equity: -$4.292 million; Current ratio ~0.65; Total debt $15.892 million; Net debt $13.755 million; Cash $2.137 million; Accounts receivable $9.547 million; Working capital change (WC): +$0.805 million
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
15.33M |
-8.02% |
-19.53% |
| Gross Profit |
3.78M |
-5.79% |
-25.82% |
| Operating Income |
820.00K |
104.99% |
126.47% |
| Net Income |
1.51M |
110.20% |
126.27% |
| EPS |
0.03 |
108.23% |
132.69% |
Management Commentary
Note: No earnings call transcript content was provided in the data set. As a result, key management quotes and verbatim insights could not be extracted. The following highlights reflect likely themes based on the disclosed financial results and typical management commentary in QQ1 calls:
- Strategy and growth focus: Emphasis typically centers on leveraging private equity sponsorships, expanding digital transformation services, and cross-selling ERP/CRM capabilities to portfolio companies.
- Operational execution: Management often discusses utilization, pricing discipline, and cost controls as drivers of margin expansion even in a revenue-constrained environment.
- Market conditions: Commentary on demand for consulting services in the Industrials sector, pipeline health, and competitive dynamics is common; investors watch for signs of pipeline refresh and duration of sales cycles.
- Balance sheet and liquidity: Given negative equity and modest cash on hand, management frequently addresses liquidity management, potential debt refinancing, and working capital optimization.
Transcript data not provided in the input; unable to extract management quotes.
— Management
Transcript data not provided in the input; unable to extract management quotes.
— Management
Forward Guidance
No explicit numeric forward guidance was provided in the supplied data. Qualitative observations suggest management may be focusing on stabilizing revenue through targeted client wins in private equity-backed portfolios, while continuing to optimize margins through service mix efficiency and discretionary cost control. Investors should monitor: (1) trajectory of revenue in QQ2–QQ4 2026, (2) working capital dynamics and cash conversion, (3) any changes to debt facilities or refinancing plans, and (4) the evolution of the client mix and backlog. In the broader Industry landscape, demand for digital transformation and cybersecurity services remains a secular tailwind, which could support improved utilization and higher-value engagements if pursued aggressively.