Aterian Q3 2025 Earnings Revenue Misses, Net Loss Widens 28.7% to $2.28M

Aterian (ATER) reported Q3 2025 earnings on Nov 13, 2025, with revenue falling short of expectations and net losses expanding. The company maintained its H2 2025 guidance but reiterated challenges from tariffs and consumer demand shifts.

Revenue

Aterian’s total revenue declined 27.5% year-over-year to $19.02 million in Q3 2025. Heating, cooling, and air quality led with $5.71 million, followed by health and beauty at $2.99 million. Kitchen appliances and housewares contributed $1.88 million and $3.77 million, respectively, while home office and essential oils added $1.44 million and $2.91 million. Cookware and tools accounted for $328,000, and other segments totaled $4,000. The decline reflected tariff-driven price hikes and reduced consumer spending, though sequential revenue rose 2% from Q2 2025.

Earnings/Net Income

The company’s net loss widened to $2.28 million, or $0.28 per share, a 28.7% increase from the $1.77 million loss in Q3 2024. This marked the eighth consecutive year of losses for the same quarter. The EPS and net loss underscore a significant deterioration in profitability.

Post-Earnings Price Action Review

Aterian’s stock has fallen 1.63% in the latest trading day, 1.19% for the week, and 21.92% month-to-date. A backtested strategy of buying shares on quarterly report release dates and holding for 30 days yielded a -12.4% return over three years. The 12-quarter period saw all negative returns, with the largest loss at -25.4% in Q1 2023 and the smallest at -3.5% in Q4 2024. The average 30-day return post-release was -8.6%, highlighting persistent investor skepticism.

CEO Commentary

CEO Arturo Rodriguez noted a 700-basis-point improvement in contribution margin to 15%, attributed to cost reductions and pricing discipline. He emphasized AI-driven efficiency, supply chain diversification, and a 2026 relaunch of hard electronics. Despite challenges, he expressed confidence in “building a growing profitable company” through stabilized operations and new market channels.

Guidance

Aterian maintained Q4 2025 guidance for $36–38 million in net revenue and breakeven to a $1 million adjusted EBITDA loss. The company plans to leverage U.S.-sourced consumables and expanded retail partnerships in 2026 to drive margin improvements. CFO Joshua Feldman confirmed sufficient liquidity to avoid equity raises, citing inventory drawdowns and working capital benefits.

Additional News

Aterian expanded into new retail channels, including Home Depot, Best Buy, and Bed Bath & Beyond, alongside Amazon and Walmart. The company also launched U.S.-sourced consumables with higher margins and paused Asian product launches for 2025. Management emphasized AI-driven operational efficiency and a 2026 focus on “sustainable top-line growth.”