Aterian (ATER) AI Stock Analysis

• Market Cap: $8.53M
• Dividend Yield: N/A
• Average Volume (3M): 82.30K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.94
• 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: 9,985,104
• 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: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: $0.91 ▲(18.31% Upside)

Aterian's overall stock score is primarily impacted by its financial performance challenges, including declining revenues and persistent losses. While technical indicators and valuation suggest bearish sentiment, strategic initiatives and cost improvements provide some optimism for future growth.

Positive Factors

Technology Platform

The technology platform enhances supply chain efficiency and product development, supporting rapid market entry and scalability.

Cost Management

Effective cost management through headcount and vendor savings improves profitability and financial stability.

Marketplace Expansion

Expanding sales channels diversifies revenue streams and enhances market presence, supporting long-term growth.

Negative Factors

Revenue Decline

Significant revenue decline indicates challenges in maintaining sales volume, impacting financial health and growth potential.

Gross Margin Pressure

Decreased gross margin suggests cost pressures and pricing challenges, affecting profitability and competitive positioning.

Strategic Uncertainty

Exploring strategic alternatives introduces uncertainty, potentially impacting long-term strategic direction and operational focus.

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

Aterian faces significant profitability challenges with declining revenues and negative net profit margins. Despite a stable balance sheet and recent improvements in cash flow, the company's financial health is hindered by persistent net losses and operational inefficiencies.

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	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: Neutral
• Last Price: 0.77
• 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 Neutral. The current price of 0.77 is below the 20-day moving average (MA) of 0.79, below the 50-day MA of 0.92, and below the 200-day MA of 1.39, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 55.50 is Neutral, neither overbought nor oversold. The STOCH value of 62.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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%
FGI	61 Neutral	$9.86M	-3.50	-18.10%	―	6.66%	-1404.42%
ATER	48 Neutral	$8.53M	―	-46.32%	―	-26.81%	40.22%
CRWS	45 Neutral	$29.79M	-2.90	-22.07%	12.17%	-1.49%	-399.62%
NTZ	42 Neutral	$29.74M	-1.28	-39.95%	―	-5.98%	-29.87%
NCL	42 Neutral	$11.46M	-0.37	-179.41%	―	-16.56%	-39.85%

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.

Aterian CTO Roi Zahut Resigns Amid Transition

On October 30, 2025, Aterian, Inc. announced the resignation of its Chief Technology Officer, Roi Zahut, effective November 3, 2025. Zahut’s departure is amicable and not due to any disagreements with the company’s operations or policies, and he will assist with the transition until his departure.