Aterian Reports 2025 Second Quarter Financial Results and Provides Guidance for the Second Half of 2025
SUMMIT, N.J., Aug. 13, 2025 (GLOBE NEWSWIRE) -- Aterian, Inc. (NASDAQ:ATER) ("Aterian" or the "Company"), a consumer products company, today announced financial results for the second quarter ended June 30, 2025 ("Q2 2025") and provided net revenue and Adjusted EBITDA guidance for the six months ending December 31, 2025.
"The second quarter tested our resilience against significant tariff volatility, and our team responded with swift, decisive actions to put the business back on a path towards stabilization. We believe the most disruptive impacts are now behind us," said Arturo Rodriguez, Chief Executive Officer. "By focusing on those areas that we can control, we met our goals with respect to fixed cost reduction, optimized our supply chain, and made strides towards diversifying our manufacturing footprint. We remain on track for additional new product introductions this year, highlighted by our entrance into the consumables market with the scheduled September 2025 full launch of our Squatty Potty flushable wipes. This will be the first major step in our strategic expansion toward the higher margin consumables market."
Josh Feldman, Chief Financial Officer, commented, "Our previously announced workforce reductions and vendor savings initiatives are expected to generate annual pre-tax savings of approximately $5.5 million, with initial benefits realized in the second half of this year and the full effect taking hold in 2026. These anticipated cost savings, combined with enhanced operating efficiencies, omnichannel sales expansion, and new product introductions, are expected to produce higher revenues and a substantial decline in our Adjusted EBITDA loss for the second half of 2025 compared to the first half of the year. We incurred the majority of the estimated $2.3 million in restructuring costs related to the plan in Q2 2025. We remain focused on preserving our balance sheet and our liquidity position."
Guidance Commentary
Aterian expects net revenue for the six months ending December 31, 2025 of $36 million to $38 million, and Adjusted EBITDA of $0 to a loss of $(1.0) million. This compares to net revenues of $34.8 million and an Adjusted EBITDA loss of $(4.7) million for the six months ended June 30, 2025.
Second Quarter 2025 HighlightsAll comparisons are to the second quarter ended June 30, 2024 ("Q2 2024")
Net revenue was $19.5 million compared to $28.0 million, primarily reflecting the overall macroeconomic environment and lower unit volume on certain products due to price increases related to tariffs.
Gross margin was 54.3% compared to 60.4%, reflecting a change in product mix and impact of tariffs on pricing and cost of goods sold.
Contribution margin decreased to 7.8% from 17.4%.
Total operating expenses declined to $15.1 million from $20.1 million. Operating expenses in Q2 2025 included restructuring costs of $1.8 million and $0.1 million of non-cash stock compensation while Q2 2024 operating loss included $2.9 million of non-cash stock compensation.
Operating loss was $(4.5) million compared to an operating loss of $(3.2) million.
Net loss was $(4.9) million compared to a net loss of $(3.6) million.
Adjusted EBITDA loss was $(2.2) million compared to Adjusted EBITDA of $0.2 million.
Total cash balance at June 30, 2025 was $10.5 million compared to $18.0 million at December 31, 2024.
Select Operating Highlights
Launched the PurSteam Steam Station Max and the Mueller Living Cordless Portable Vacuum Sealer into Walmart locations across the country.
Launched select products from our flagship brands—including Squatty Potty, hOmeLabs, Healing Solutions, Mueller Living, and PurSteam—on Temu.
Expanded our presence on Mercado Libre, Latin America's leading e-commerce platform, by offering select products from PurSteam, Mueller, and Squatty Potty on Mercado Libre's platforms in Chile, Colombia, and Argentina.
Advanced our product resourcing and diversification initiatives away from high-tariff regions, including manufacturing dehumidifiers in Indonesia (which will ship in the second half of 2025) instead of China. In 2025, we sourced approximately 65% of our dehumidifiers from China, down from 100% in 2024.
Collaborated with Chinese manufacturers and supply chain partners to import the majority of goods in Q2 2025 at an average incremental 2025 tariff of 30%, predominantly avoiding the peak tariffs of 145%.
Commenced the implementation of AI in our customer service operations, which has improved service quality metrics and efficiencies.
Webcast and Conference Call Information
Aterian will host a live conference call to discuss financial results today, August 13, 2025, at 5:00 p.m. Eastern Time, which will be accessible by telephone and the internet. Investors interested in participating in the live call can dial:
(800) 715-9871 (Domestic)
(646) 307-1963 (International)
Passcode: 6644814
Participants may also access the call through a live webcast at https://ir.aterian.io. The archived online replay will be available for a limited time after the call in the investors section of the Aterian corporate website.
Non-GAAP Financial MeasuresFor more information on our non-GAAP financial measures and a reconciliation of GAAP to non-GAAP measures, please see the "Non-GAAP Financial Measures" section below. The most directly comparable GAAP financial measure for EBITDA and adjusted EBITDA is net loss and we are reporting a net loss for the quarter ending June 30, 2025 due primarily to our operating losses, which includes stock-based compensation expense, and interest expense. We are unable to reconcile the forward-looking statements of EBITDA and adjusted EBITDA in this press release to their nearest GAAP measures because the nearest GAAP financial measures are not accessible on a forward-looking basis and reconciling information is not available without unreasonable effort.
About Aterian, Inc.Aterian, Inc. (NASDAQ:ATER) is a consumer products company that builds and acquires leading e-commerce brands with top-selling consumer products, in multiple categories, including home and kitchen appliances, health and wellness and air quality devices. The Company sells across the world's largest online marketplaces with a focus on Amazon, Walmart and Target in the U.S. and on its own direct to consumer websites. Our primary brands include Squatty Potty, hOmeLabs, Mueller Living, PurSteam, Healing Solutions and Photo Paper Direct.
Forward Looking StatementsAll statements other than statements of historical facts included in this press release that address activities, events or developments that we expect, believe or anticipate will or may occur in the future are forward-looking statements including, in particular, the statements regarding our ability to continue to successfully implement our tariff mitigation and cost optimization plans, and to realize the anticipated financial and operating benefits in the second half of 2025 and beyond, even under prolonged tariff pressure and an inflationary environment. These forward-looking statements are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties and other factors, all of which are difficult to predict and many of which are beyond our control and could cause actual results to differ materially and adversely from those described in the forward-looking statements. These risks include, but are not limited to, those related to our ability to continue as a going concern, the effect of tariffs and other costs on our results, our ability to continue to operate following our reduction in workforce, our ability to meet financial covenants with our lenders, our ability to maintain and to grow market share in existing and new product categories; our ability to continue to profitably sell the SKUs we operate; our ability to maintain Amazon's Prime badge on our seller accounts or reinstate the Prime badge in the event of any removal of such badge by Amazon; our ability to create operating leverage and efficiency when integrating companies that we acquire, including through the use of our team's expertise, the economies of scale of our supply chain and automation driven by our platform; those related to our ability to grow internationally and through the launch of products under our brands and the acquisition of additional brands; those related to consumer demand, our cash flows, financial condition, forecasting and revenue growth rate; our supply chain including sourcing, manufacturing, warehousing and fulfillment; our ability to manage expenses, working capital and capital expenditures efficiently; our business model and our technology platform; our ability to disrupt the consumer products industry; our ability to generate profitability and stockholder value; international tariffs and trade measures; inventory management, product liability claims, recalls or other safety and regulatory concerns; reliance on third party online marketplaces; seasonal and quarterly variations in our revenue; acquisitions of other companies and technologies and our ability to integrate such companies and technologies with our business; our ability to continue to access debt and equity capital (including on terms advantageous to the Company) and the extent of our leverage; and other factors discussed in the "Risk Factors" section of our most recent periodic reports filed with the Securities and Exchange Commission ("SEC"), all of which you may obtain for free on the SEC's website at www.sec.gov.
Although we believe that the expectations reflected in our forward-looking statements are reasonable, we do not know whether our expectations will prove correct. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, even if subsequently made available by us on our website or otherwise. We do not undertake any obligation to update, amend or clarify these forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
Investor Contact:The Equity Group
Devin Sullivan Managing Director
Conor Rodriguez Associate
ATERIAN, INC.Condensed Consolidated Balance Sheets (Unaudited)(in thousands, except share and per share data)
June 30, 2025
December 31,2024
ASSETS
Current assets:
Cash
$
10,495
$
17,998
Accounts receivable, net
3,032
3,782
Inventory
18,496
13,749
Prepaid and other current assets
3,287
3,190
Total current assets
35,310
38,719
Property and equipment, net
720
685
Intangibles, net
8,975
9,757
Other non-current assets
416
381
Total assets
$
45,421
$
49,542
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Credit facility
$
7,248
$
6,948
Accounts payable
6,124
3,080
Seller notes
365
466
Accrued and other current liabilities
7,149
8,804
Total current liabilities
20,886
19,298
Other liabilities
242
227
Total liabilities
21,128
19,525
Commitments and contingencies (Note 10)
Stockholders' equity:
Common stock, $0.0001 par value, 500,000,000 shares authorized and 10,013,759 and 8,750,741 shares outstanding at June 30, 2025 and December 31, 2024, respectively
9
9
Additional paid-in capital
745,140
742,591
Accumulated deficit
(720,433
)
(711,677
)
Accumulated other comprehensive loss
(423
)
(906
)
Total stockholders' equity
24,293
30,017
Total liabilities and stockholders' equity
$
45,421
$
49,542
ATERIAN, INC.Condensed Consolidated Statements of Operations (Unaudited)(in thousands, except share and per share data)
Three Months EndedJune 30,
Six Months Ended June 30,
2025
2024
2025
2024
Net revenue
$
19,462
$
27,984
$
34,822
$
48,199
Cost of goods sold
8,896
11,093
14,832
18,139
Gross profit
10,566
16,891
19,990
30,060
Operating expenses:
Sales and distribution
12,357
15,162
22,018
28,376
General and administrative
2,714
4,934
6,173
10,166
Total operating expenses
15,071
20,096
28,191
38,542
Operating loss
(4,505
)
(3,205
)
(8,201
)
(8,482
)
Interest expense, net
222
228
397
552
Change in fair value of warrant liabilities
(35
)
(52
)
(90
)
(569
)
Other expense, net
157
43
217
50
Loss before provision for income taxes
(4,849
)
(3,424
)
(8,725
)
(8,515
)
Provision for income taxes
11
205
31
276
Net loss
$
(4,860
)
$
(3,629
)
$
(8,756
)
$
(8,791
)
Net loss per share, basic and diluted
$
(0.63
)
$
(0.52
)
$
(1.16
)
$
(1.28
)
Weighted-average number of shares outstanding, basic and diluted
7,674,910
6,973,218
7,564,523
6,881,648
ATERIAN, INC.Condensed Consolidated Statement of Cash Flows (Unaudited)(in thousands)
Six Months Ended June 30,
2025
2024
OPERATING ACTIVITIES:
Net loss
$
(8,756
)
$
(8,791
)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization
