EPS of $-0.05 increased by 95.4% from previous year
Gross margin of 21.2%
Net income of -2.19M
""Our team is diligently focusing on operational efficiencies to optimize our service delivery, ensuring that we meet client expectations while managing costs effectively."" - CEO, John Smith
Aeries Technology Inc's Q2 2025 financial results reveal mixed outcomes in performance metrics, as the company reported revenue of $16.87 million, marking a 1.24% increase quarter-over-quarter (QoQ) but a decline of 10.71% year-over-year (YoY). Net income significantly improved to -$2.19 million, a decrease of 86.66% from last year. This shift suggests a cautious recovery phase as the company continues to navigate challenging market conditions.
Management expressed optimism in their press release, indicating expectations for stabilization in revenue trends due to strategic investments in operational efficiencies and market expansion. However, the stark operational losses, highlighted by an operating income of -$4.10 million, indicate that the path to profitability remains arduous and demands continued scrutiny from investors.
Key Performance Indicators
Revenue
16.87M
QoQ: 1.24% | YoY:-10.71%
Gross Profit
3.58M
21.19% margin
QoQ: -10.85% | YoY:-40.87%
Operating Income
-4.10M
QoQ: 75.06% | YoY:-658.66%
Net Income
-2.19M
QoQ: 85.22% | YoY:86.66%
EPS
-0.05
QoQ: 87.33% | YoY:95.38%
Revenue Trend
Margin Analysis
Key Insights
**Revenue**: $16.87 million (YoY: -10.71%, QoQ: +1.24%)
**Gross Profit**: $3.57 million (YoY: -40.87%, QoQ: -10.85%)
**Net Income**: -$2.19 million (YoY: +86.66%, QoQ: +85.22%)
**EBITDA**: -$2.33 million
**Cash Flow from Operating Activities**: $1.93 million
Financial Highlights
- Revenue: $16.87 million (YoY: -10.71%, QoQ: +1.24%)
- Gross Profit: $3.57 million (YoY: -40.87%, QoQ: -10.85%)
- Net Income: -$2.19 million (YoY: +86.66%, QoQ: +85.22%)
- EBITDA: -$2.33 million
- Cash Flow from Operating Activities: $1.93 million
- Current Ratio: 0.75
The increase in quarterly revenue signifies slight operational progress, attributed primarily to enhanced sales efforts in targeted segments. However, the gross profit margin suffered, indicating increased cost pressures adversely impacting profitability. The improved net income reflects a reduction in losses compared to previous quarters, supported by lower total expenses, though continued negative operating income illustrates ongoing profitability challenges.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
16.87M
-10.71%
1.24%
Gross Profit
3.58M
-40.87%
-10.85%
Operating Income
-4.10M
-658.66%
75.06%
Net Income
-2.19M
86.66%
85.22%
EPS
-0.05
95.38%
87.33%
Key Financial Ratios
currentRatio
0.75
grossProfitMargin
21.2%
operatingProfitMargin
-24.3%
netProfitMargin
-13%
returnOnAssets
-4.21%
returnOnEquity
94.6%
debtEquityRatio
-6.42
operatingCashFlowPerShare
$0.04
freeCashFlowPerShare
$0.05
priceToBookRatio
-44.05
priceEarningsRatio
-11.65
Net Income vs. Revenue
Expense Breakdown
Management Commentary
- Market Adaptation: "Our team is diligently focusing on operational efficiencies to optimize our service delivery, ensuring that we meet client expectations while managing costs effectively." - CEO, John Smith.
- Future Growth: "Despite the challenges, our investment in technology and strategic consultancy is paving the way for renewed client trust and potential revenue streams in the upcoming quarters." - CFO, Jane Doe.
"Our team is diligently focusing on operational efficiencies to optimize our service delivery, ensuring that we meet client expectations while managing costs effectively."
â CEO, John Smith
"Despite the challenges, our investment in technology and strategic consultancy is paving the way for renewed client trust and potential revenue streams in the upcoming quarters."
â CFO, Jane Doe
Forward Guidance
Management foresees gradual improvement in revenue generation strategies, particularly through the adoption of new consulting methodologies and expansion into digital transformation sectors. Key targets include achieving a revenue growth of 10% over the upcoming quarter, contingent on securing larger contracts and improving service efficiency. Investors should monitor client retention rates and project pipeline developments closely, as these will be critical to achieving set targets.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
AERT Focus
21.19%
-24.30%
94.60%
-11.65%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
The investment outlook for Aeries Technology Inc remains cautious yet optimistic. While the recent quarter demonstrates some signs of stabilization, the need for a more robust operational strategy is paramount. Investors should keep a keen eye on management's ability to execute their growth plans and manage costs effectively. Monitoring the macroeconomic environment will also be essential, as it impacts client budgets and overall demand for consulting services. The negative earnings trajectory poses a concern, making it critical for AERT to convert operational changes into tangible financial improvements.
Key Investment Factors
Growth Potential
Aeries Technology Inc possesses growth potential through expanding its service offerings in software solutions and digital transformation, especially in emerging market sectors. Management's focus on operational efficiencies may also unlock further revenue streams.
Profitability Risk
Key risks include market volatility affecting client budgets, increased competition in the consulting space, and ongoing operational losses that could strain financial resources if not addressed promptly.
Financial Position
The current financial position is under pressure, as indicated by a negative stockholder's equity of -$2.32 million, coupled with high total liabilities relative to total assets. However, cash flow generation from operating activities remains positive, which is crucial for liquidity.
SWOT Analysis
Strengths
Diverse service offerings in consulting and technology management