Cash flow generation is inconsistent, evidenced by an OCF/NI ratio of -7.18 in 2026Q4 and FCF margins that swung from a peak of 17.2% in 2026Q3 to a trough of -24.3% in 2024Q4.
| Cash from Operations | 6.77M | -1.01M | -4.3M | 2.11M | 3.16M |
| Operating CF Margin % | 9.67% | -1.44% | -5.93% | 3.98% | 7.71% |
| Operating CF Growth % | 771.16% | 76.53% | -303.65% | -33.28% | - |
| Net Income | 3.47M | -21.59M | 17.26M | 1.71M | 4.74M |
| Depreciation & Amortization | 837K | 1.38M | 1.35M | 1.17M | 1.14M |
| Stock-Based Compensation | 293K | 12.75M | 1.63M | 3.81M | 0 |
| Deferred Taxes | 173K | -2.11M | -718K | -161K | -190K |
| Other Non-Cash Items | -893K | 6.89M | -15.29M | -107K | 342K |
| Working Capital Changes | 2.89M | 1.67M | -8.52M | -4.3M | -2.86M |
| Change in Receivables | -3.28M | 261K | -11.74M | -6.12M | -4.42M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 2.72M | 3.7M | -568K | 1.02M | 653K |
| Cash from Investing | -1.42M | -858K | -1.74M | -1.56M | -437K |
| Capital Expenditures | 0 | -1.48M | -1.52M | -1.6M | -1.65M |
| CapEx % of Revenue | 1.59% | 2.11% | 2.1% | 3.01% | 4.03% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - |
| Other Investing | -1.42M | 626K | -220K | 43K | 1.22M |
| Cash from Financing | -3.02M | 2.43M | 7.06M | 252K | -3.54M |
| Debt Issued (Net) | -2.14M | -1.01M | 1.15M | 933K | -3.57M |
| Equity Issued (Net) | -573K | 3.95M | 8.67M | 0 | 32K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -580K | -724K | 0 | 0 | 0 |
| Other Financing | -304K | -511K | -2.75M | -681K | 0 |
| Net Change in Cash | 2.11M | 680K | 953K | 780K | -827K |
| Free Cash Flow | 5.66M | -2.49M | -5.82M | 511K | 1.51M |
| FCF Margin % | 8.08% | -3.55% | -8.03% | 0.96% | 3.68% |
| FCF Growth % | 327% | 57.16% | -1238.75% | -66.16% | - |
| FCF per Share | 0.94 | -0.46 | -3.00 | 0.14 | 0.42 |
| FCF Conversion (FCF/Net Income) | 2.65x | 0.05x | -0.27x | 1.46x | 0.78x |
| Interest Paid | 346K | 910K | 465K | 273K | 472K |
| Taxes Paid | 1.28M | 2.5M | 1.01M | 1.23M | 1.42M |
PE deal flow sensitivity
As reported in the quarterly cash flow statements, AERT's OCF/NI ratio has fluctuated wildly, reaching a low of -7.18 in 2026Q4, which suggests that reported net income is frequently decoupled from the actual cash-generating capacity of the underlying consulting operations.
The persistent divergence between net income and operating cash flow indicates that non-cash charges and accounting adjustments are significantly distorting the firm's profitability profile. Investors should interpret these figures as a sign that the company's earnings quality is currently low, necessitating a focus on cash-based metrics rather than GAAP net income.
Based on the provided financial data, AERT's FCF margins have swung from a peak of 17.2% in 2026Q3 to a trough of -24.3% in 2024Q4, highlighting a lack of consistent cash flow generation that appears tied to the cyclical nature of its private equity client base.
The inability to maintain positive free cash flow across consecutive quarters suggests that the business model is highly sensitive to operational disruptions or shifts in project timing. This volatility may indicate that the company lacks the scale to absorb the cash flow impact of its project-based revenue structure.
According to recent financial filings, working capital changes have been a primary driver of cash flow volatility, with swings ranging from a $3.1M inflow in 2025Q2 to a $3.7M outflow in 2024Q4, suggesting significant friction in the company's cash conversion cycle.
These large fluctuations in working capital imply that the timing of client payments and the management of receivables are not yet optimized for a stable cash flow profile. Such instability warrants further investigation into the company's credit terms and the potential for future liquidity constraints if collection cycles lengthen.
As indicated by the historical data, AERT maintains a modest capital intensity, with CapEx/Revenue ratios generally remaining below 4%, which suggests that the firm's primary investment requirements are focused on human capital rather than heavy physical infrastructure.
While the low capital intensity is typical for a consulting firm, the inconsistent nature of these expenditures may reflect a lack of a disciplined, long-term investment strategy. Investors should monitor whether future capital spending is sufficient to support the automation tools necessary to improve the company's thin operating margins.
Quick answers to the most common questions about buying AERT stock.
Aeries Technology, Inc (AERT) generated $6.8M in net cash from operating activities in 2026. This reflects the cash generated directly from core business operations.
Aeries Technology, Inc (AERT) generated $5.7M in free cash flow in 2026. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Aeries Technology, Inc (AERT) spent $0.0M on capital expenditures in 2026. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2026, Aeries Technology, Inc (AERT) spent $0.6M on share repurchases. This shows the company's commitment to returning capital to its equity investors.