Aterian, Inc. SEC 10-Q Report

Aterian, Inc., a technology-enabled consumer products company, has released its Form 10-Q report for the third quarter of 2025. The report provides a comprehensive overview of the company's financial and operational performance, reflecting the challenges and strategic adjustments made in response to market conditions.

Financial Highlights

Net Revenue: $15.4 million, a decrease of 24.0% compared to the same period in 2024. This decline is attributed to a reduction in product offerings and changes to Amazon's marketing affiliate program.

Gross Profit: $9.4 million, representing a gross profit margin of 61.4%, down from 65.1% in the prior year. The decrease is primarily due to changes in the product mix.

Operating Loss: $3.7 million, an improvement of 30.0% from the previous year's operating loss of $5.3 million. This improvement reflects cost reductions in sales and distribution as well as general and administrative expenses.

Net Loss: $3.9 million, an improvement of 24.5% from the net loss of $5.2 million in the same period of 2024. The improvement is driven by reduced operating expenses and lower interest expense.

Net Loss Per Share: $(0.52), improved from $(0.76) in the prior year, reflecting the company's efforts in cost management and operational efficiency.

Business Highlights

Revenue Segments: The company experienced a decrease in net revenue across all product categories. Significant reductions were noted in Heating, Cooling, and Air Quality products due to changes in Amazon's marketing affiliate program. Other categories such as kitchen appliances, health and beauty, cookware, home office, housewares, and essential oils also saw declines, primarily due to SKU rationalization and reduced consumer demand.

Geographical Performance: Aterian primarily generates revenue from North America, with a notable decrease in direct net revenue attributed to changes in Amazon's marketing affiliate program and SKU rationalization. The company is focusing on a more limited number of products to address declining revenues.

Future Outlook: The company anticipates improvements over time as it works toward achieving a sustainable scale of profitability. However, it faces challenges from macroeconomic factors, including increased interest rates, reduced consumer discretionary spending, and inflationary pressures. Aterian is actively pursuing mitigation strategies to address the impact of tariffs and is exploring alternative sourcing outside of China.

SEC Filing: Aterian, Inc. [ ATER ] - 10-Q - May. 15, 2025