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

Did Aterian beat or miss consensus estimates last quarter?

What is Aterian's gross profit margin?

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

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

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

- **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

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

ATER

ATER fundamentals

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