Aterian (ATER) AI Stock Analysis

• Market Cap: $5.67M
• Dividend Yield: N/A
• Average Volume (3M): 82.30K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.96
• Revenue Growth: -26.81%
• EPS Growth: 40.22%
• Country: US
• Employees: 97
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): -0.28
• Shares Outstanding: 10,027,046
• 10 Day Avg. Volume: 52,412
• 30 Day Avg. Volume: 82,304
• PEG Ratio: 0.02
• Price to Book (P/B): 0.57
• Price to Sales (P/S): 0.17
• P/FCF Ratio: 7.99
• Enterprise Value/Market Cap: 0.68
• Enterprise Value/Revenue: 0.05
• Enterprise Value/Gross Profit: 0.08
• Enterprise Value/Ebitda: -0.39
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: $0.69 ▲(20.88% Upside)
• Action: Reiterated Date: 01/09/26
• Date: Action: Reiterated 01/09/26

The score is held back primarily by weak financial performance—declining revenue, ongoing losses, and a return to negative operating/free cash flow—despite moderate balance-sheet leverage. Technicals show only early signs of recovery (above short-term averages but below longer-term trend). Earnings-call updates indicate operational progress and narrowing EBITDA losses, but revenue contraction and tariff/demand headwinds keep the overall profile below average.

Positive Factors

Proprietary tech-enabled DTC model

Aterian's proprietary platform and DTC focus enable faster product development, targeted marketing, and optimized supply chains. These structural capabilities support repeatable product launches, scalable e-commerce growth, and durable margin improvement over multiple quarters as efficiencies are realized.

Material annualized cost savings

Securing ~$5.5M in recurring cost cuts materially lowers the fixed-cost base, directly improving operating leverage. Over 2–6 months this enhances the runway to profitability, helps absorb revenue volatility, and supports sustainable adjusted EBITDA improvement if revenue stabilizes.

AI-driven operational gains

AI implementations that boost service levels and efficiency create durable reductions in operating expense and better customer retention. These productivity gains compound over time, lowering per-unit service costs and supporting scalable customer experience as sales channels expand.

Negative Factors

Sharp YoY revenue decline

A steep revenue drop erodes scale advantages, reduces absolute contribution dollars, and makes fixed-cost absorption harder. Persisting declines materially impair path to sustained profitability and magnify funding needs even as margins improve, posing a durable operational risk.

Negative operating and free cash flow

Negative OCF and FCF shrink financial flexibility and increase reliance on external financing or asset sales. Over the medium term this constrains investments in inventory, product development, and channel expansion, raising execution and solvency risk if cash generation does not sustainably recover.

Board-initiated strategic review

A formal strategic-alternatives process signals potential sale, asset disposals, or restructuring. While it may unlock value, it introduces near-to-medium-term uncertainty, can distract management from execution, and may lead to material changes in strategy or capital allocation over several months.

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 platform, which uses machine learning, natural language processing, and data analytics to design, develop, market, and sell products. Its platform offers home and kitchen appliances; kitchenware; heating, cooling, and health and beauty products; and air quality appliances, such as dehumidifiers, humidifiers, and air conditioners under the hOmeLabs, Vremi, Squatty Potty, Xtava, RIF6, Aussie Health, Holonix, Truweo, Mueller, Pursteam, Pohl and Schmitt, Healing Solutions, Photo Paper Direct, and Spiralizer brands. The company also sells essential oils. It primarily serves individual online consumers through Amazon and other e-commerce platforms, as well as through its owned and operated websites and other marketplaces. The company was formerly known as Mohawk Group Holdings, Inc. and changed its name to Aterian, Inc. in April 2021. Aterian, Inc. was founded in 2014 and is headquartered in New York, New York.

How the Company Makes Money

Aterian generates revenue primarily through the sale of its consumer products across e-commerce platforms such as Amazon, Walmart, and its own websites. The company employs a direct-to-consumer model, which allows for higher margins compared to traditional retail. Key revenue streams include sales of kitchen appliances, home goods, and personal care items, all supported by effective digital marketing strategies. Additionally, Aterian's proprietary technology platform aids in streamlining operations, reducing costs, and improving product visibility, which can enhance profitability. Significant partnerships with major online retailers and ongoing investments in data analytics further contribute to its revenue growth by enabling targeted advertising and optimized inventory management.

Aterian Financial Statement Overview

Summary

Overall fundamentals remain weak despite improvement: TTM revenue declined (-8.4%) and the company is still unprofitable (negative operating profit; ~-16% net margin). Cash generation worsened with TTM operating cash flow and free cash flow turning negative (-$9.9M). Balance sheet leverage is manageable (low debt vs. equity), but shrinking equity and very negative ROE (~-47%) cap the score.

Income Statement

TTM (Trailing-Twelve-Months) revenue declined (-8.4%), continuing a multi-year downtrend versus 2024 and 2023. Profitability has improved materially from the very large losses posted in 2022–2023, and gross margin remains strong (~59% TTM), but the company is still operating at a loss with negative operating profit and a net loss (about -16% net margin TTM). Overall: clear cost/profitability progress, but demand/revenue pressure and ongoing losses keep the score low.

Balance Sheet

Leverage looks manageable with relatively low total debt ($6.6M TTM) versus equity ($22.6M), and debt levels have come down substantially from earlier years. However, equity has also shrunk meaningfully over time, and returns remain negative (TTM return on equity around -47%), reflecting that losses are still eroding shareholder value. Overall: balance sheet risk appears moderate, but weakening equity and negative returns cap the score.

Cash Flow

Cash generation deteriorated in TTM (Trailing-Twelve-Months): operating cash flow turned negative (-$9.9M) versus positive in 2024, and free cash flow is also negative (-$9.9M). While free cash flow has improved dramatically compared with the deep cash burn in 2021–2023, the recent shift back to cash outflows raises near-term funding and execution risk. Overall: improving trend versus prior years, but current cash burn drives a below-average score.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	78.45M	99.05M	142.57M	221.17M	247.77M	185.70M
Gross Profit	46.27M	61.49M	70.28M	105.52M	121.86M	84.75M
EBITDA	-9.78M	-9.00M	-69.42M	-186.45M	-214.92M	-57.49M
Net Income	-12.34M	-11.86M	-74.56M	-196.29M	-236.02M	-63.13M
Balance Sheet
Total Assets	40.15M	49.54M	61.87M	156.44M	313.57M	157.45M
Cash, Cash Equivalents and Short-Term Investments	8.60M	18.00M	20.02M	43.57M	30.32M	26.72M
Total Debt	6.61M	7.41M	12.15M	22.75M	40.42M	86.50M
Total Liabilities	17.51M	19.52M	25.84M	54.49M	89.34M	134.07M
Stockholders Equity	22.64M	30.02M	36.03M	101.95M	224.23M	23.38M
Cash Flow
Free Cash Flow	-9.91M	2.12M	-13.51M	-17.56M	-42.00M	6.00M
Operating Cash Flow	-9.86M	2.17M	-13.39M	-17.48M	-41.97M	6.09M
Investing Cash Flow	-46.00K	-242.00K	-244.00K	-677.00K	-44.91M	-39.05M
Financing Cash Flow	-60.00K	-4.91M	-11.11M	27.00M	95.57M	32.32M

Aterian Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.57
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATER, the sentiment is Negative. The current price of 0.57 is below the 20-day moving average (MA) of 0.64, below the 50-day MA of 0.71, and below the 200-day MA of 1.07, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 34.05 is Neutral, neither overbought nor oversold. The STOCH value of 23.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ATER.

Aterian Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
CRWS	52 Neutral	$31.56M	-3.31	-22.07%	12.12%	-1.49%	-399.62%
NTZ	50 Neutral	$33.81M	-1.62	-39.99%	―	-4.94%	11.35%
ATER	47 Neutral	$5.67M	-0.35	-46.32%	―	-26.81%	40.22%
NCL	42 Neutral	$4.09M	-0.08	-179.41%	―	-16.56%	-39.85%
FGI	41 Neutral	$11.00M	-2.81	-18.10%	―	6.66%	-1404.42%

Aterian Corporate Events

Aterian Explores Strategic Alternatives for Shareholder Value

On December 8, 2025, Aterian, Inc. announced that its Board of Directors has initiated a formal process to explore strategic alternatives to maximize shareholder value. This process may involve a potential sale of assets, a sale of the company, a business combination, or a merger. Despite having a strong portfolio of consumer brands and a global omni-channel sales presence, the company believes its market valuation does not reflect the true value of its brand portfolio. A.G.P / Alliance Global Partners and Paul Hastings LLP have been engaged to assist in this strategic review.

The most recent analyst rating on (ATER) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on Aterian stock, see the ATER Stock Forecast page.