Aterian (ATER) AI Stock Analysis

• Market Cap: $9.76M
• Dividend Yield: N/A
• Average Volume (3M): 99.55K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.05
• Revenue Growth: -28.98%
• EPS Growth: 53.51%
• Country: US
• Employees: 97
• Sector: Consumer Cyclical
• Sector Strength: 83
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): -0.63
• Shares Outstanding: 9,985,104
• 10 Day Avg. Volume: 54,855
• 30 Day Avg. Volume: 99,546
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: 0.10
• Enterprise Value/Gross Profit: 0.17
• Enterprise Value/Ebitda: -0.93
• 1Y Price Target: $1.00
• Price Target Upside: 2.04% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 46 Neutral
• Price Target: $1.00 ▲(2.04% Upside)

Aterian's stock score is primarily impacted by its financial performance, which is hindered by profitability issues and declining revenues. Technical analysis indicates bearish momentum, and valuation metrics are unattractive due to negative earnings. While the earnings call suggests potential improvements, significant challenges remain.

Positive Factors

Financial Performance

ATER reached EBITDA breakeven a quarter ahead of plan.

Product Expansion

Plans to expand its omnichannel footprint hold promise with ATER poised to launch on Target's Target Plus marketplace and other brick & mortar stores possible.

Negative Factors

Consumer Environment

The general consumer environment looks uncertain as inflation could re-emerge and interest rates could be stickier than anticipated.

Market Competition

The consumer environment is still difficult and the Amazon Marketplace is highly competitive.

Tariffs and Sourcing

Higher tariffs look highly likely and ATER sources the large majority of its product from China.

Aterian Business Overview & Revenue Model

Company Description

Aterian, Inc. is a technology-driven consumer products company that specializes in creating and marketing a diverse range of innovative household and kitchen products. Leveraging advanced data analytics and a proprietary technology platform, Aterian operates primarily within the e-commerce sector, with a focus on optimizing product development and supply chain efficiencies. The company's core offerings include a variety of home and lifestyle products, which are sold through various online retail channels, including Amazon and its own direct-to-consumer websites.

How the Company Makes Money

Aterian generates revenue primarily through the sale of its consumer products on e-commerce platforms. The company utilizes a data-driven approach to identify high-demand products, enabling it to optimize its product portfolio and marketing strategies. Key revenue streams include direct sales from its branded products and partnerships with major online retailers, particularly Amazon, where it has established a significant presence. Additionally, Aterian benefits from economies of scale in manufacturing and distribution, enhancing its profitability. The company's innovative technology platform also allows for continuous improvement in product development and customer engagement, thus contributing to sustained revenue growth.

Aterian Financial Statement Overview

Summary

Aterian faces significant profitability challenges with declining revenues and negative profit margins. Despite a stable balance sheet and improved cash flow, operational inefficiencies and persistent net losses are concerning.

Income Statement

The company has faced declining revenues over recent years, with a significant drop from 2019 to 2024. Gross profit margin stands at 62.0% for 2024, indicating a strong ability to convert revenue into gross profit, yet the net profit margin is deeply negative at -12.0%, reflecting continued net losses. EBIT and EBITDA margins are also negative, suggesting operating challenges. Overall, profitability remains a significant concern.

Balance Sheet

Aterian's balance sheet shows a manageable debt-to-equity ratio of 0.25 in 2024, indicating a moderate level of debt relative to equity. Stockholders' equity has decreased from 2021, but the company maintains a positive equity ratio of 60.6%, suggesting reasonable financial stability. The return on equity is negative due to losses, pointing to inefficiencies in generating returns on shareholder investment.

Cash Flow

The cash flow statement shows improvement with positive free cash flow of $2.12 million in 2024, a turnaround from negative flows in previous years. Operating cash flow is positive, yet the ratio of operating cash flow to net income indicates a challenge in converting earnings into cash. Free cash flow to net income is also negative, reflecting underlying profitability issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	85.67M	99.05M	142.57M	221.17M	247.77M	185.70M
Gross Profit	51.42M	61.49M	70.28M	105.52M	121.86M	84.75M
EBITDA	-9.47M	-9.00M	-69.42M	-186.45M	-214.92M	-57.49M
Net Income	-11.83M	-11.86M	-74.56M	-196.29M	-236.02M	-63.13M
Balance Sheet
Total Assets	45.42M	49.54M	61.87M	156.44M	312.09M	157.45M
Cash, Cash Equivalents and Short-Term Investments	10.49M	18.00M	20.02M	43.57M	30.32M	26.72M
Total Debt	7.61M	7.41M	12.15M	22.75M	40.42M	86.50M
Total Liabilities	21.13M	19.52M	25.84M	54.49M	89.34M	134.07M
Stockholders Equity	24.29M	30.02M	36.03M	101.95M	225.53M	23.38M
Cash Flow
Free Cash Flow	-9.02M	2.12M	-13.51M	-17.56M	-42.00M	5.01M
Operating Cash Flow	-9.02M	2.17M	-13.39M	-17.48M	-41.97M	6.09M
Investing Cash Flow	194.00K	-242.00K	-244.00K	-677.00K	-44.91M	-39.05M
Financing Cash Flow	-2.19M	-4.91M	-11.11M	27.00M	95.57M	32.32M

Aterian Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.98
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 0.98 is below the 20-day moving average (MA) of 1.05, below the 50-day MA of 1.25, and below the 200-day MA of 1.86, indicating a bearish trend. The MACD of -0.08 indicates Negative momentum. The RSI at 36.90 is Neutral, neither overbought nor oversold. The STOCH value of 21.25 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	$17.92B	12.81	-3.11%	2.97%	1.30%	-14.28%
PRPL	51 Neutral	$122.50M	―	-331.75%	―	-13.19%	20.95%
NTZ	47 Neutral	$38.33M	―	-30.18%	―	-5.41%	-21.60%
ATER	46 Neutral	$9.76M	―	-42.87%	―	-28.98%	53.51%
NVFY	42 Neutral	$102.49M	―	-126.29%	―	-0.01%	77.86%
NCL	42 Neutral	$14.13M	―	-161.11%	―	-20.88%	49.32%
IRBT	40 Underperform	$101.63M	―	-273.81%	―	-25.36%	13.62%

Aterian Corporate Events

Aterian Holds Annual Meeting, Elects New Director

On August 12, 2025, Aterian, Inc. held its Annual Meeting of Stockholders, where 55.3% of the company’s shares were represented. During the meeting, stockholders voted on four key proposals, including the election of Arturo Rodriguez as a Class III director and the ratification of UHY LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025. These decisions are expected to influence the company’s governance and financial oversight.

Aterian Board Member Sarah Liebel to Retire

On June 24, 2025, Sarah Liebel informed Aterian Inc. that she will not seek reelection at the company’s 2025 Annual Meeting of Stockholders and will retire from the Board following the meeting. Her decision is due to personal reasons related to increased responsibilities in her current professional role and is not due to any disagreements with the company.