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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: $1.00 ▼(-1.96% Downside)

Aterian's overall stock score is primarily impacted by its financial performance, which is marked by ongoing profitability challenges and declining revenues. Technical analysis indicates bearish momentum, further weighing on the score. While the earnings call highlighted some strategic improvements, the company's valuation remains unattractive due to negative earnings and lack of dividends.

Positive Factors

Proprietary Technology Platform

The proprietary technology platform allows Aterian to streamline operations and reduce costs, enhancing scalability and market responsiveness.

AI Implementation

AI implementation improves operational efficiency, potentially reducing costs and enhancing customer experience, supporting long-term growth.

Marketplace Channel Expansion

Expanding sales channels diversifies revenue streams and increases market reach, supporting sustainable revenue growth.

Negative Factors

Declining Revenue

Significant revenue decline indicates challenges in maintaining market share and consumer demand, impacting long-term financial stability.

Negative Net Profit Margin

Persistent negative net profit margins suggest ongoing profitability issues, potentially limiting reinvestment and growth opportunities.

Impact of Tariffs

Tariff impacts increase costs and pressure margins, potentially affecting competitiveness and profitability in the long term.

Aterian Business Overview & Revenue Model

Company Description

Aterian, Inc. is a technology-driven consumer products company that specializes in designing, manufacturing, and marketing innovative products across various sectors, including home goods, kitchen appliances, and personal care. Leveraging a proprietary technology platform, Aterian aims to optimize product development and enhance supply chain efficiency, enabling rapid market entry and scalability of its offerings. The company focuses on e-commerce sales channels, utilizing data analytics to identify consumer trends and preferences, thereby driving product innovation and customer engagement.

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: Negative
• Last Price: 1.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 1.02 is above the 20-day moving average (MA) of 0.85, above the 50-day MA of 0.97, and below the 200-day MA of 1.48, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 22.26 is Positive, neither overbought nor oversold. The STOCH value of 8.43 is Positive, 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%
ATER	45 Neutral	$8.53M	―	-46.32%	―	-26.81%	40.22%
CRWS	45 Neutral	$29.79M	-2.90	-22.07%	11.55%	-1.49%	-399.62%
FGI	42 Neutral	$9.86M	-3.50	-18.10%	―	6.66%	-1404.42%
NCL	42 Neutral	$11.46M	-0.37	-179.41%	―	-16.56%	-39.85%
NTZ	40 Underperform	$31.50M	-1.66	-39.95%	―	-5.98%	-29.87%

Aterian Corporate Events

Aterian, Inc. Earnings Call: Mixed Outlook Amid Challenges

The recent earnings call for Aterian, Inc. revealed a mixed sentiment, highlighting both progress and challenges. The company demonstrated significant improvements in contribution margin and cost reductions, signaling effective management strategies. However, these positive strides were overshadowed by a substantial decline in net revenue, primarily due to tariff impacts and decreased consumer spending. Strategic initiatives, such as AI implementation and expansion into new sales channels, suggest promising future prospects, yet the overall financials indicate ongoing difficulties.

Aterian, Inc. Reports Q3 2025 Financial Results

Aterian, Inc. is a consumer products company that specializes in building and acquiring e-commerce brands, offering a diverse range of products including home and kitchen appliances, health and wellness items, and air quality devices. The company primarily operates through major online marketplaces such as Amazon, Walmart, and Target.

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.

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.

Aterian, Inc. Earnings Call: Challenges and Strategic Initiatives

Aterian, Inc.’s recent earnings call conveyed a mixed sentiment, reflecting both challenges and strategic initiatives. The company is grappling with significant hurdles, including tariff impacts, a decline in revenue, and increased inventory levels. Despite these challenges, Aterian is taking proactive steps to stabilize and potentially grow by leveraging AI for operational efficiency, implementing cost reduction plans, and launching new products.

Aterian Amends Credit and Security Agreement

On August 29, 2025, Aterian entered into an amendment to its Credit and Security Agreement originally dated December 22, 2021. The amendment includes a reduction in the minimum liquidity covenant to $5.0 million, which can be increased to $6.8 million upon the company’s delivery of a liquidity certificate. Additionally, an availability reserve was established at $2.8 million during the reduction period and $1.0 million thereafter.

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.