Aterian (ATER)
NASDAQ:ATER
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Aterian
(NASDAQ:ATER)
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Rating:45Neutral
Price Target:
$0.70
▲(22.81% Upside)
Action:ReiteratedDate:04/05/26
Score is held down primarily by weak financial fundamentals—continued revenue decline, ongoing net losses, and renewed cash burn—despite improved operating performance and a cleaner balance sheet. Technicals remain neutral-to-weak with the stock below key longer-term moving averages. Corporate events add some upside optionality via strategic alternatives and short-term covenant relief, but uncertainty keeps the overall score subdued.
Positive Factors
Leverage Reduction
Eliminating reported debt materially lowers interest burden and financial default risk, improving cash-flow flexibility and lender negotiation leverage. Over a 2–6 month horizon, zero reported debt supports operational resilience and creates optionality for restructuring, reinvestment, or strategic transactions without near-term debt service constraints.
Negative Factors
Persistent Revenue Decline
Multi-year top-line contraction erodes scale advantages and marketplace negotiating power. Shrinking revenue reduces fixed-cost absorption, weakens advertising ROI on e-commerce platforms, and makes sustaining brand investments harder. Continued decline materially raises execution risk and limits long-term margin recovery potential.
Read all positive and negative factors
Positive Factors
Negative Factors
Leverage Reduction
Eliminating reported debt materially lowers interest burden and financial default risk, improving cash-flow flexibility and lender negotiation leverage. Over a 2–6 month horizon, zero reported debt supports operational resilience and creates optionality for restructuring, reinvestment, or strategic transactions without near-term debt service constraints.
Read all positive factors
Aterian (ATER) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.30M
Dividend YieldN/A
Average Volume (3M)82.30K
Price to Earnings (P/E)―
Beta (1Y)1.09
Revenue Growth-26.81%
EPS Growth40.22%
CountryUS
Employees97
SectorConsumer Cyclical
Sector Strength84
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)-0.79
Shares Outstanding10,823,802
10 Day Avg. Volume52,412
30 Day Avg. Volume82,304
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.36
Price to Sales (P/S)0.08
P/FCF Ratio-0.50
Enterprise Value/Market Cap0.97
Enterprise Value/Revenue0.10
Enterprise Value/Gross Profit0.18
Enterprise Value/Ebitda-0.66
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-1.98
Revenue Forecast (FY)$75.11M
Aterian Business Overview & Revenue Model
Company Description
Aterian, Inc., together with its subsidiaries, operates as a technology-enabled consumer products company in North America and internationally. The company provides Artificial Intelligence Marketplace e-Commerce Engine, a software technology platf...
How the Company Makes Money
Aterian primarily makes money by selling its owned consumer-product brands directly to end customers through e-commerce channels. Its main revenue stream is product sales (net of returns, discounts, and marketplace-related considerations) fulfille...
Aterian Earnings Call Summary
Earnings Call Date:Nov 13, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:May 12, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. While Aterian showed significant improvements in contribution margin and cost reductions, the company faced substantial challenges, including a notable decline in net revenue attributed to tariff impacts and decreased consumer spending. The strategic initiatives, such as AI implementation and expansion into new sales channels, indicate positive steps forward, but the overall financials reflect ongoing difficulties.Positive Updates
Improved Contribution Margin
Q3 2025 contribution margin improved by over 700 basis points from Q2 2025, back to over 15%.
Negative Updates
Net Revenue Decline
Net revenue for Q3 2025 was $19 million, a 27.5% decrease from $26.2 million in Q3 2024.
Read all updates
Q3-2025 Updates
Positive
Negative
Improved Contribution Margin
Q3 2025 contribution margin improved by over 700 basis points from Q2 2025, back to over 15%.
Read all positive updates
Company Guidance
During Aterian, Inc.'s Q3 2025 earnings call, the company provided guidance for the remainder of the fiscal year and beyond, emphasizing a focus on navigating the challenging tariff environment and positioning for growth in 2026. Net revenue for Q3 2025 was reported at $19 million, marking a 2% decrease from the previous quarter and a 27.5% decline compared to Q3 2024. The contribution margin improved by over 700 basis points from Q2 2025 to over 15%, and the adjusted EBITDA loss narrowed by over 80%, reaching just over $400,000. The company aims to achieve net revenue of $36 million to $38 million and an adjusted EBITDA ranging from breakeven to a $1 million loss for the six months ending December 31, 2025. Aterian has made strategic moves in cost reduction, supply chain diversification, and product launches, particularly in consumables sourced from the US, to mitigate the impact of tariffs and improve profitability. Looking ahead, the company plans to expand its marketplace channels and leverage AI for operational efficiency, with a renewed focus on sustainable growth and profitability in 2026.Aterian Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
46
Neutral
Cash Flow
34
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 68.97M | 99.05M | 142.57M | 221.17M | 247.77M |
| Gross Profit | 39.15M | 61.49M | 70.28M | 105.52M | 121.86M |
| EBITDA | -10.63M | -9.00M | -69.42M | -186.45M | -214.92M |
| Net Income | -18.98M | -11.86M | -74.56M | -196.29M | -236.02M |
Balance Sheet | |||||
| Total Assets | 29.56M | 49.54M | 61.87M | 156.44M | 313.57M |
| Cash, Cash Equivalents and Short-Term Investments | 4.86M | 18.00M | 20.02M | 43.57M | 30.32M |
| Total Debt | 4.63M | 7.41M | 12.15M | 22.75M | 40.42M |
| Total Liabilities | 14.35M | 19.52M | 25.84M | 54.49M | 89.34M |
| Stockholders Equity | 15.21M | 30.02M | 36.03M | 101.95M | 224.23M |
Cash Flow | |||||
| Free Cash Flow | -10.95M | 2.12M | -13.51M | -17.56M | -42.00M |
| Operating Cash Flow | -10.89M | 2.17M | -13.39M | -17.48M | -41.97M |
| Investing Cash Flow | -51.00K | -242.00K | -244.00K | -677.00K | -44.91M |
| Financing Cash Flow | -2.52M | -4.91M | -11.11M | 27.00M | 95.57M |
Aterian Technical Analysis
Neutral
0.57
Price Trends
0.61
Positive
0.68
Negative
0.91
Negative
Market Momentum
0.02
Negative
58.63
Neutral
89.01
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATER, the sentiment is Neutral. The current price of 0.57 is below the 20-day moving average (MA) of 0.61, below the 50-day MA of 0.61, and below the 200-day MA of 0.91, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 58.63 is Neutral, neither overbought nor oversold. The STOCH value of 89.01 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ATER.
Aterian Risk Analysis
Aterian disclosed 26 risk factors in its most recent earnings report. Aterian reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Aterian Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
52 Neutral | $27.92M | 4.73 | -23.80% | 12.12% | -1.49% | -399.62% | |
50 Neutral | $31.72M | -1.43 | -35.17% | ― | -4.94% | 11.35% | |
45 Neutral | $7.30M | -0.29 | -47.45% | ― | -26.81% | 40.22% | |
44 Neutral | $7.05M | -1.78 | -18.10% | ― | 6.66% | -1404.42% | |
| ― | $3.57M | -3.59 | -179.41% | ― | -16.56% | -39.85% |
* Consumer Cyclical Sector Average
ATER
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Aterian Corporate Events
Business Operations and Strategy
Aterian Continues Strategic Alternatives Review to Unlock Value
Positive
Mar 23, 2026
On March 23, 2026, Aterian, Inc., a Nasdaq-listed consumer products company, reported that its previously announced Strategic Alternative Process, initiated after a December 2025 announcement, is progressing with constructive discussions and activ...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Aterian Amends Credit Agreement to Ease Liquidity Covenants
Positive
Mar 17, 2026
On March 13, 2026, Aterian entered into a fifth amendment to its existing Credit and Security Agreement with its lenders and Midcap Funding IV Trust as administrative agent, modifying key liquidity terms for the company and its borrowing subsidiar...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.