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Aterian
(NASDAQ:ATER)
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Rating:47Neutral
Price Target:
$0.64
▲(51.90% Upside)
Action:Reiterated
Date:09/29/26
The score is held down primarily by weak financial performance—sharp TTM revenue decline and continued net/operating losses—despite improved cash flow and a debt-free balance sheet. Technicals are neutral-to-weak (still below key longer-term moving averages), valuation is not supportive due to negative earnings, and corporate events add a modest positive offset via the CVR cash distribution and governance updates.
Positive Factors
Debt-free balance sheet
Zero total debt gives Aterian greater financial flexibility and removes near-term refinancing and interest burdens. This can help preserve cash for operations or restructuring while reducing vulnerability to tighter credit conditions, although shrinking equity still limits the overall cushion.
Negative Factors
Persistent revenue contraction
A prolonged and substantial revenue decline weakens operating scale, reduces the base over which fixed costs can be spread, and makes a return to profitability harder. Continued contraction also suggests that prior brand and channel activity has not yet produced durable top-line momentum.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt-free balance sheet
Zero total debt gives Aterian greater financial flexibility and removes near-term refinancing and interest burdens. This can help preserve cash for operations or restructuring while reducing vulnerability to tighter credit conditions, although shrinking equity still limits the overall cushion.
Read all positive factors
Aterian (ATER) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$157.89M
Dividend YieldN/A
Average Volume (3M)3.63M
Price to Earnings (P/E)―
Beta (1Y)1.79
Revenue Growth-60.10%
EPS Growth-15.00%
CountryUS
Employees74
SectorConsumer Cyclical
Sector Strength84
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)-1.98
Shares Outstanding259,828,900
10 Day Avg. Volume159,700
30 Day Avg. Volume3,630,843
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.36
Price to Sales (P/S)0.08
P/FCF Ratio-0.50
Enterprise Value/Market Cap0.05
Enterprise Value/Revenue0.25
Enterprise Value/Gross Profit0.45
Enterprise Value/Ebitda-0.85
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-1.98
Revenue Forecast (FY)$75.11M
Aterian Business Overview & Revenue Model
Company Description
Aterian, Inc., founded in 2014 and headquartered in New York, is an international, technology-driven consumer products company. Its core innovation is an Artificial Intelligence Marketplace e-Commerce Engine, a proprietary software platform that l...
How the Company Makes Money
Aterian makes money primarily by selling consumer products under its owned brands through e-commerce channels. The core revenue stream is product sales (gross merchandise value converted to net revenue) to end customers, with a significant portion...
Aterian Earnings Call Summary
Earnings Call Date:Nov 13, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Nov 16, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. While Aterian showed significant improvements in contribution margin and cost reductions, the company faced substantial challenges, including a notable decline in net revenue attributed to tariff impacts and decreased consumer spending. The strategic initiatives, such as AI implementation and expansion into new sales channels, indicate positive steps forward, but the overall financials reflect ongoing difficulties.Positive Updates
Improved Contribution Margin
Q3 2025 contribution margin improved by over 700 basis points from Q2 2025, back to over 15%.
Negative Updates
Net Revenue Decline
Net revenue for Q3 2025 was $19 million, a 27.5% decrease from $26.2 million in Q3 2024.
Read all updates
Q3-2025 Updates
Positive
Negative
Improved Contribution Margin
Q3 2025 contribution margin improved by over 700 basis points from Q2 2025, back to over 15%.
Read all positive updates
Company Guidance
During Aterian, Inc.'s Q3 2025 earnings call, the company provided guidance for the remainder of the fiscal year and beyond, emphasizing a focus on navigating the challenging tariff environment and positioning for growth in 2026. Net revenue for Q3 2025 was reported at $19 million, marking a 2% decrease from the previous quarter and a 27.5% decline compared to Q3 2024. The contribution margin improved by over 700 basis points from Q2 2025 to over 15%, and the adjusted EBITDA loss narrowed by over 80%, reaching just over $400,000. The company aims to achieve net revenue of $36 million to $38 million and an adjusted EBITDA ranging from breakeven to a $1 million loss for the six months ending December 31, 2025. Aterian has made strategic moves in cost reduction, supply chain diversification, and product launches, particularly in consumables sourced from the US, to mitigate the impact of tariffs and improve profitability. Looking ahead, the company plans to expand its marketplace channels and leverage AI for operational efficiency, with a renewed focus on sustainable growth and profitability in 2026.Aterian Financial Statement Overview
Summary
Income Statement
22
Negative
Balance Sheet
55
Neutral
Cash Flow
46
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 34.18M | 68.97M | 99.05M | 142.57M | 221.17M | 247.77M |
| Gross Profit | 19.17M | 39.15M | 61.49M | 70.28M | 105.52M | 121.86M |
| EBITDA | -10.15M | -16.37M | -9.00M | -69.42M | -186.45M | -214.92M |
| Net Income | -16.85M | -18.98M | -11.86M | -74.56M | -196.29M | -236.02M |
Balance Sheet | ||||||
| Total Assets | 23.53M | 29.56M | 49.54M | 61.87M | 156.44M | 313.57M |
| Cash, Cash Equivalents and Short-Term Investments | 2.55M | 4.86M | 18.00M | 20.02M | 43.57M | 30.32M |
| Total Debt | 38.00K | 4.63M | 7.41M | 12.15M | 22.75M | 40.42M |
| Total Liabilities | 10.91M | 14.35M | 19.52M | 25.84M | 54.49M | 89.34M |
| Stockholders Equity | 12.62M | 15.21M | 30.02M | 36.03M | 101.95M | 224.23M |
Cash Flow | ||||||
| Free Cash Flow | -2.60M | -10.95M | 2.12M | -13.51M | -17.56M | -42.00M |
| Operating Cash Flow | -2.53M | -10.89M | 2.17M | -13.39M | -17.48M | -41.97M |
| Investing Cash Flow | -63.00K | -51.00K | -242.00K | -244.00K | -677.00K | -44.91M |
| Financing Cash Flow | -5.23M | -2.52M | -4.91M | -11.11M | 27.00M | 95.57M |
Aterian Technical Analysis
Negative
0.42
Price Trends
0.57
Positive
0.83
Negative
0.78
Negative
Market Momentum
>-0.01
Positive
46.72
Neutral
34.56
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 0.42 is below the 20-day moving average (MA) of 0.65, below the 50-day MA of 0.57, and below the 200-day MA of 0.78, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 46.72 is Neutral, neither overbought nor oversold. The STOCH value of 34.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ATER.
Aterian Risk Analysis
Aterian disclosed 36 risk factors in its most recent earnings report. Aterian reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Aterian Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $26.15M | 5.21 | 12.79% | 11.11% | -3.42% | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
50 Neutral | $14.74M | -3.70 | -22.50% | ― | -5.30% | -40.48% | |
47 Neutral | $157.89M | -0.31 | -112.36% | ― | -60.10% | -15.00% |
* Consumer Cyclical Sector Average
ATER
Aterian
0.61
-0.45
-42.74%
CRWS
Crown Crafts
2.43
-0.19
-7.39%
EFOI
Energy Focus
2.89
-0.03
-1.03%
FGI
FGI Industries Ltd
7.63
1.92
33.63%
Aterian Corporate Events
Business Operations and StrategyExecutive/Board ChangesDividends
Aterian Announces Board Changes and CVR Cash Distribution
Positive
Sep 29, 2026
On September 23, 2026, Aterian director Avraham Ben‑Tzvi resigned from the board and all committees, effective September 25, 2026, with no dispute cited over company operations or governance. The same day, the board appointed renewable‑...
Business Operations and StrategyExecutive/Board ChangesDividendsM&A TransactionsPrivate Placements and FinancingShareholder MeetingsStock Split
Aterian completes asset sale and leadership restructuring
Neutral
Jul 20, 2026
On July 17, 2026, Aterian completed the sale of key consumer brand assets to Trademark Global for $18 million in cash and closed a $7 million preferred stock financing with investor David E. Lazar, while simultaneously repaying in full its outstan...
Business Operations and StrategyM&A TransactionsShareholder Meetings
Aterian Adjourns Special Meeting on Asset Sale Vote
Neutral
Jul 10, 2026
On July 10, 2026, Aterian convened a special meeting of stockholders but immediately adjourned it without conducting business after determining it lacked sufficient votes to approve the proposed sale of substantially all of the company’s ass...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.