What is Aterian's gross profit margin?

Did Aterian beat or miss consensus estimates last quarter?

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What does Aterian do and what are its main business segments?

What were the key takeaways from Aterian's earnings call?

What is the revenue and EPS growth rate for Aterian year over year?

What is Aterian's latest dividend and current dividend yield?

What factors drove the changes in Aterian's revenue and profit?

- **Revenue decline but stabilization**: Q3 2025 revenue $19M (-27.5% YoY) due to price hikes and reduced demand, but EBITDA loss narrowed to $0.4M (from $2.2M in Q2).
- **Cost savings and AI efficiency**: $5.5M fixed cost reductions, AI-driven 30% improvement in customer service metrics.
- **Growth strategy shift**: Paused Asian-sourced launches, focusing on U.S.-sourced consumables (e.g., wipes) and international expansion (UK, EU).
- **Liquidity focus**: $7.6M cash, suspended share buybacks to navigate tariff uncertainty.

**【CEO Summary Section】**
- Q3 2025 revenue was $19 million, down 27.5% YoY, driven by strategic price increases and reduced consumer demand due to tariffs.
- Contribution margin improved to 15.5% (from 7.8% in Q2 2025), with adjusted EBITDA loss narrowing to $0.4 million (from $2.2 million in Q2 2025).
- Implemented $5.5 million in fixed cost savings, including AI-driven efficiency improvements (e.g., 30% better service level metrics) and headcount reductions.
- Paused new product launches in high-tariff categories, restarting in 2026 with U.S.-sourced consumables (e.g., Squatty Potty Wipes, Healing Solution tallow products).
- Expanded sales channels (Home Depot, Best Buy, Walmart) and international markets (UK, EU), though U.S. e-commerce (Amazon) still dominates (>95% revenue).

**【CFO Financial Commentary】**
- Net loss of $2.3 million (vs. $1.8 million in Q3 2024), with cash reserves at $7.6 million and inventory at $17.2 million (reflecting lower demand for seasonal products).
- Gross margin declined to 56.1% (from 60.3% YoY), impacted by tariffs and product mix.
- 2025 guidance: $36-38 million net revenue, breakeven to $1 million adjusted EBITDA loss.
- Suspended share repurchases to preserve liquidity amid tariff uncertainty.

**【Q&A Key Highlights】**
- **Channel Performance**: Amazon accounts for >95% revenue; new channels (Home Depot, Best Buy) are early-stage investments for 2026 growth.
- **Launch Strategy**: Cautious marketing for U.S.-sourced consumables (e.g., wipes) due to tariff-related demand softness; 2026 focus on scalable, high-margin products.
- **Sourcing Flexibility**: Beverage refrigerators and other high-tariff products being sourced outside China; 2026 plans to diversify supply chains further.
- **International Expansion**: UK market showing early success with core SKUs; EU expansion planned for 2026.
- **Liquidity Management**: No immediate plans to raise equity; focused on cost discipline and inventory drawdown in 2026.

Aterian, Inc. (ATER) Q3 2025 Earnings Call Transcript

- **Revenue Down 30.5% YoY**: Q2 net revenue $19.5M vs. $28M, driven by price hikes and consumer softness.
- **Tariff Mitigation Success**: 65% dehumidifiers now from Indonesia vs. 100% China; $5.5M fixed cost savings achieved.
- **New Growth Driver**: U.S.-sourced flushable wipes launching Q3 with premium formula and health focus.
- **H2 Turnaround**: Expect $36-38M revenue (vs. $34.8M H1) and EBITDA breakeven to $1M loss (vs. $4.7M loss H1).
- **Key Risk**: Algorithmic sales velocity penalty from price changes persists.

**【CEO Summary Section】**
- **Q2 Revenue Decline**: Net revenue fell 30.5% YoY to $19.5 million, driven by strategic price increases, delayed summer season, and consumer softness. Adjusted EBITDA loss was $2.2 million vs. $0.2 million gain in Q2 2024.
- **Tariff Mitigation Strategy**: 6 key actions include:
  1. Fixed cost reduction ($5.5M annualized savings)
  2. Resourcing manufacturing (65% dehumidifiers now from Indonesia vs. 100% China)
  3. Paused new category launches
  4. Inventory optimization ($3M excess stock)
  5. Strategic pricing adjustments
  6. U.S.-sourced consumables launch (e.g., Squatty Potty flushable wipes)
- **New Product Launch Highlight**: Flushable wipes launching in U.S. and U.K. in Q3, with 100% U.S.-sourced, premium formula targeting health-conscious consumers.
- **H2 Outlook**: Expect $36-38M net revenue (vs. $34.8M H1) and adjusted EBITDA breakeven to $1M loss (vs. $4.7M loss H1). Focus on stabilizing business through cost savings and U.S.-sourced growth.

**【CFO Financial Commentary】**
- **Financial Results**: 
  - Gross margin: 54.3% (down from 60.4%)
  - Operating loss: $4.5M (up from $3.2M)
  - Cash: $10.5M (down from $18M)
  - Inventory: $18.5M (up 35% YoY)
- **Key Initiatives**: 
  - $5.5M fixed cost savings (35% from headcount, 15% from vendor savings)
  - AI implementation in customer service
  - U.S.-sourced products with higher margins
- **H2 Guidance**: 
  - Revenue growth vs. H1
  - EBITDA improvement through cost control and U.S.-sourced products

**【Q&A Key Highlights】**
- **Consumables Expansion**: Beyond wipes, exploring health/beauty products with U.S. sourcing and higher margins.
- **Manufacturing Diversification**: 65% dehumidifiers from Indonesia in 2025 vs. 100% China in 2024; U.K. diversification for tariff avoidance.
- **Latin America Growth**: Mercado Libre expansion in Mexico/South America is long-term play with potential 2-3 year impact.
- **M&A Strategy**: No current focus; prioritizing business stabilization.
- **Stock Price Compliance**: Focus on business growth to support long-term value.
- **Marketing Efficiency**: Optimized spend post-Q2 inefficiencies; social media push for consumables (e.g., Instagram, TikTok).

Aterian, Inc. (ATER) Q2 2025 Earnings Call Transcript

- **Revenue decline**: Q1 2025 revenue down 24% to $15.4M, driven by SKU rationalization and Amazon changes.
- **Strategic responses**: 
  - Target 30%+ China manufacturing by end-2025.
  - Launch US-made consumables (Flushable Wipes Q3 2025).
  - Implement $5-6M annual cost savings (40% from headcount).
- **Financial resilience**: Narrowed operating loss 30% to $3.7M, net loss down 25% to $3.9M.
- **Tariff risks**: Withdrew 2025 guidance, but expect to moderate losses in Q2/Q3.

**【CEO Summary Section】**
- Q1 2025 net revenue declined 24% to $15.4 million (from $20.2 million in Q1 2024), driven by SKU rationalization and Amazon affiliate program changes.
- Adjusted EBITDA loss improved to $2.5 million (from $2.6 million in Q1 2024).
- Key strategic responses to tariffs:
  1. Accelerate manufacturing diversification: Target 30%+ of goods manufactured in China by end-2025 (vs. prior 40%+ by mid-2026).
  2. Shift to US-made consumables: Launch Flushable Wipes in Q3 2025, pause Asian-sourced hard goods.
  3. Price increases to offset margin pressure.
  4. Fixed cost reduction: $5-6M annualized savings ($4M from headcount reductions, $1-2M from operational efficiencies).
- Withdraw 2025 guidance due to macro volatility, but expect to moderate losses in Q2/Q3 before potential tariff impact in Q4.

**【CFO Financial Commentary】**
- Q1 2025 gross margin declined to 61.4% (from 65.1%), driven by product mix.
- Contribution margin 13.4% (vs. 14.1%), with variable costs improving to 48% of revenue.
- Operating loss narrowed 30% to $3.7 million (from $5.3 million), net loss improved 25% to $3.9 million.
- Cash balance $14.3 million (down from $18 million at end-2024), with $7.5 million credit facility utilization.
- Inventory $18.1 million (up from $13.7 million in Q4 2024), reflecting seasonal build.
- Paused share buyback program due to macro uncertainty.

**【Q&A Highlights】**
- Inventory management: Paused China shipments post-tariff announcement, using diversified shipping channels.
- Pricing impact: Mixed consumer response, but maintaining top rankings despite price increases.
- Manufacturing diversification: Moving as fast as possible while maintaining quality, prioritizing consumables.
- Shareholder questions:
  - Dividends: No plans due to cash preservation needs.
  - Stock options: Maintain equity incentives to attract talent, offsetting cash comp.

Aterian, Inc. (ATER) Q1 2025 Earnings Call Transcript

- **Revenue Recovery**: 2024 adjusted EBITDA loss reduced by 91% to $2.1M; 2025 targets break-even with 5-7% revenue growth.
- **Strategic Expansion**: UK market entry in H2 2025, 2+ new channels, and 5 new SKUs (e.g., Squatty Potty Wipes).
- **Tariff Resilience**: 50% cost offset via price hikes; 75% China sourcing to drop to 25% by 2026.
- **Share Buyback**: $3M program reflects confidence in undervalued stock and long-term growth.

**【CEO Summary Section】**
- **2024 Strategic Achievements**: Focused on 6 core brands (e.g., hOmeLabs, Pursteam, Squatty Potty), reduced adjusted EBITDA loss by 91% to $2.1M, and streamlined supply chain with 75% China-sourced products.
- **2025 Growth Plan**: Target 5-7% revenue growth ($104-106M) and break-even adjusted EBITDA. Key drivers include:
  - **Channel Expansion**: UK Amazon Seller Fulfilled Prime launch in H2, Target Plus expansion, and 2+ new channels in H2.
  - **Product Innovation**: 5 new SKUs (e.g., Squatty Potty Flushable Wipes, sourced from Italy in 2025 and US in 2026) and consumable-based products for repeat purchases.
  - **Tariff Mitigation**: 50% cost offset via price increases; aim to reduce China sourcing to 25% by 2026.
- **Share Repurchase Program**: $3M over 2 years, reflecting confidence in undervalued stock.

**【CFO Financial Commentary】**
- **Q4 2024 Results**: Net revenue $24.6M (-25% YoY, +4% ex-SKU rationalization), adjusted EBITDA near breakeven vs. -$5.6M YoY, net loss $1.3M (-83% YoY).
- **2025 Financial Outlook**: 
  - **Revenue**: $104-106M (+6% YoY, +11% ex-discontinued SKUs).
  - **Tariff Impact**: $3.5M cost increase, 50% mitigated via price hikes.
  - **Liquidity**: End 2025 cash $16-17M, sufficient for growth without capital raises.
  - **Long-Term CAGR**: 10-12% (2025-2027) via new products, channels, and geos.

**【Q&A Key Highlights】**
- **Target Plus Performance**: Steam mops and humidifiers performed well in Q4; 2025 expansion to include seasonal products.
- **Seasonality Shift**: Q1 2025 sales ~15% of annual (vs. historical 20%), offset by stronger Q4 with new product launches.
- **Tariff Strategy**: 7-10% price increases on most products; cautious on further tariff escalation risks.
- **Long-Term Growth**: Diversified brand portfolio (e.g., value vs. premium) and social media engagement to drive engagement and retention.

Aterian (ATER)-18 Mar 25-2024 Q4 Earnings call transcript

Aterian (ATER)-11 Nov 24-2024 Q3 Earnings call transcript

Aterian (ATER)-8 Aug 24-2024 Q2 Earnings call transcript

Aterian (ATER)-7 May 24-2024 Q1 Earnings call transcript

- **Revenue decline and strategic focus**: Q4 2023 revenue down 40.3% to $32.8M due to SKU rationalization, with sustained revenue at $25.2M. Focused on core SKUs and brands, discontinuing 1,700+ SKUs.
- **Gross margin improvement**: 51.0% in Q4 (vs. 37.1% YoY), driven by product mix and reduced high-cost inventory liquidation.
- **Adjusted EBITDA target**: Q1 2024 loss of $2.5-3.5M (48% sequential improvement). Target: 2H 2024 adjusted EBITDA profitability.
- **Market expansion**: Planning Amazon Canada and Mercado Libre (Mexico) launches. Testing TikTok with limited results.
- **Balance sheet strength**: $20M cash, $11.1M credit facility (expanded to $17M). Inventory reduced to $20.4M.
- **NASDAQ compliance**: Aims to regain compliance via reverse stock split by April 22, 2024.


**【CEO Summary Section】**
- **Revenue decline and strategic focus**: Q4 2023 revenue dropped 40.3% to $32.8 million due to SKU rationalization, with sustained revenue down 15.6% to $25.2 million. Management emphasized focusing on core SKUs and brands, discontinuing 1,700+ SKUs, and reducing seller accounts from 31 to 8.
- **New product initiatives**: Expanded essential oils portfolio with chemical-free products and launched variations of existing products (e.g., Squatty Potty). Invested in a butter brand via M&A to enter new categories.
- **Market expansion**: Launched on TikTok (results not material yet), planning Amazon Canada and Mercado Libre (Mexico) expansions. 
- **NASDAQ compliance**: Aims to regain compliance via reverse stock split by April 22, 2024.

**【CFO Financial Commentary】**
- **Gross margin improvement**: 51.0% in Q4 (vs. 37.1% YoY), driven by product mix and reduced high-cost inventory liquidation.
- **Adjusted EBITDA path**: Q4 loss of $5.6 million (65.4% YoY improvement). Q1 2024 guidance: $18-21 million revenue (45% YoY decline), adjusted EBITDA loss of $2.5-3.5 million (48% sequential improvement). Target: 2H 2024 adjusted EBITDA profitability.
- **Balance sheet strength**: $20 million cash, $11.1 million credit facility (expanded to $17 million with 2-year extension). Inventory reduced to $20.4 million (from $43.7 million YoY).

**【Q&A Highlights】**
- **Demand trends**: Sustained revenue decline due to SKU cuts and macro challenges, but optimistic about 2024 product launches and cost savings ($4 million+ fixed cost reductions).
- **TikTok and diversification**: Testing TikTok as a discovery platform, with limited results so far. Exploring production diversification beyond China (e.g., beverage coolers) to mitigate tariffs.
- **Profitability risks**: Acknowledged macro uncertainty but confident in 2H 2024 EBITDA target with current initiatives.


Actual				-6.0046	1.7427	-0.6	-25.44	-37.8	-14.76	-37.56	-1.32	-9.36	-3.12	-21.72	-3.24	-4.08	-5.4	-0.96	-1.2	-0.76	-0.52	-0.25	-0.18	-0.52	-0.63	-0.28
Forecast				-4.76	-3.6	-3.33	-3.6	-3.76	-2.04	-5.712	-3.288	-3.192	-2.208	-3.072	-2.976	-1.83	-1.8	-1.62	-1.59	-1.12	-0.7067	-0.5467	-0.515	-0.69	-0.54	-0.63
Surprise	0.00%	0.00%	0.00%	-26.15%	+148.41%	+81.98%	-606.67%	-905.32%	-623.53%	-557.56%	+59.85%	-193.23%	-41.30%	-607.03%	-8.87%	-122.95%	-200.00%	+40.74%	+24.53%	+32.14%	+26.42%	+54.27%	+65.05%	+24.64%	-16.67%	+55.56%

ATER

ATER fundamentals

ATER Q3 2025 Earnings

Earnings Call

You can ask Aime

ATER

ATER fundamentals

ATER Q3 2025 Earnings

Earnings Call

ATER Earnings Call Summary for Q3/20255:00 PM on Nov 13, 2025

ATER Earnings Call Summary for Q2/20255:00 PM on Aug 13, 2025

ATER Earnings Call Summary for Q1/20255:00 PM on May 14, 2025

ATER Earnings Call Summary for Q4/20245:00 PM on Mar 18, 2025

ATER Earnings Call Summary for Q3/20245:00 PM on Nov 11, 2024

You can ask Aime