Financial Data and Key Metrics Changes - Net revenue for Q2 2025 was $19.5 million, down from $28 million in Q2 2024, reflecting a decline driven by strategic price increases, a delayed summer season, and general consumer spending softness [8][9][30] - Adjusted EBITDA showed a loss of $2.2 million compared to a gain of $200,000 in the prior year, primarily due to lower revenue and increased marketing spend [9][33] - Gross margin decreased to 54.3% from 60.4% year-over-year, attributed to product mix and an obsolescence charge on long inventory [31] - Operating loss increased to $4.5 million from a loss of $3.2 million in the previous year, driven by reduced sales volume [33] Business Line Data and Key Metrics Changes - The company experienced a decline in sales velocity on Amazon due to price adjustments made to offset rising costs, which negatively impacted revenue [10][28] - Promotional efforts led to increased advertising spend, resulting in inefficiencies and additional one-time advertising costs of $900,000 [12] - The contribution margin for Q2 2025 was 7.8%, down from 7.4% in Q2 2024, primarily due to reduced gross margin and increased marketing costs [32] Market Data and Key Metrics Changes - The company noted broader consumer softness, with total sales volume at best seller ranks down year-over-year, indicating weaker overall consumer demand [13] - The competitive landscape in the dehumidifier space was highlighted, with Amazon 1P maintaining lower prices, making the company's products appear more expensive [11][20] Company Strategy and Development Direction - The company is focusing on a strategic pivot to consumables, with plans to launch products in the health and beauty space, leveraging existing brands [22][42] - A fixed cost reduction plan targeting $5 million to $6 million in annualized savings has been implemented, with approximately $5.5 million already identified [14][29] - The company is actively diversifying manufacturing away from China, reducing the percentage of products sourced from China from 100% to approximately 65% [16][46] Management's Comments on Operating Environment and Future Outlook - Management believes the worst of the tariff impacts is behind them and expects improved performance in the second half of 2025 [7][24] - The company anticipates net revenue for the second half of 2025 to be between $36 million and $38 million, with adjusted EBITDA expected to be breakeven to a loss of $1 million [37] - Management expressed confidence in the company's liquidity position to navigate the current environment without raising additional equity capital [37] Other Important Information - The company is leveraging AI to enhance productivity and improve customer service efficiency [15] - The launch of Squatty Potty flushable wipes is highlighted as a significant new product initiative, expected to contribute positively to the company's portfolio [22][38] Q&A Session Summary Question: Can you talk about expansion into other consumable products? - Management indicated a focus on health and beauty products, leveraging existing essential oil brands, with further announcements expected in October 2025 [41][42] Question: Are there updates on reducing Chinese-based manufacturing? - Management clarified that they aim to reduce Chinese manufacturing by approximately 40%, with a current shift to 65% sourced from China [44][46] Question: How is the performance in Latin American markets? - Management views the expansion into Latin America as a long-term play, expecting growth over the next two to three years [50][52] Question: What steps are being taken to ensure stock price compliance? - Management emphasized focusing on business growth as the best way to support long-term shareholder value, expressing optimism for the second half of the year [62] Question: What is the status of the share repurchase plan? - The share repurchase plan was suspended due to the macroeconomic environment, with a focus on preserving liquidity [64] Question: How have price increases impacted revenue? - Management noted that pricing volatility has made navigation difficult, but they expect stabilization and improved performance in the second half [66][69] Question: Will there be a scaling back in marketing spend to meet adjusted EBITDA guidance? - Management confirmed that marketing spend has been adjusted to be more focused and efficient, which should help reduce losses in the second half [71]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (347) 676-1681 (Registrant's telephone number, including area code) For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-38937 Aterian, Inc. (Exact name of registrant as specified in its charter) Del ...

Exhibit 99.1 Aterian Reports 2025 Second Quarter Financial Results and Provides Guidance for the Second Half of 2025 Tarif Mitigation Strategies, Cost Optimization Plan, New Product Introductions, and Sales Channel Expansion Position the Company for Improved Performance SUMMIT, NEW JERSEY, August 13, 2025 – 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 a ...

Core Insights - Aterian, Inc. reported financial results for Q2 2025, highlighting challenges due to tariff volatility and a strategic focus on cost optimization and new product launches [1][2]. Financial Performance - Net revenue for Q2 2025 was $19.5 million, down from $28.0 million in Q2 2024, primarily due to macroeconomic conditions and lower unit volumes from price increases related to tariffs [6]. - Gross margin decreased to 54.3% from 60.4%, attributed to changes in product mix and tariff impacts on pricing and cost of goods sold [6]. - Adjusted EBITDA loss for Q2 2025 was $(2.2) million compared to an Adjusted EBITDA of $0.2 million in Q2 2024 [6][33]. Cost Management and Strategic Initiatives - The company expects annual pre-tax savings of approximately $5.5 million from workforce reductions and vendor savings initiatives, with initial benefits anticipated in the second half of 2025 [2]. - Aterian is diversifying its manufacturing footprint, reducing reliance on high-tariff regions, and has sourced approximately 65% of its dehumidifiers from China in 2025, down from 100% in 2024 [11] [2]. Future Guidance - Aterian anticipates net revenue for the six months ending December 31, 2025, to be between $36 million and $38 million, with Adjusted EBITDA expected to range from a loss of $(1.0) million to break-even [3]. - The company aims to launch new products, including the Squatty Potty flushable wipes, in September 2025, marking its entry into the consumables market [2]. Operational Highlights - Total operating expenses decreased to $15.1 million in Q2 2025 from $20.1 million in Q2 2024, with restructuring costs of $1.8 million included in the Q2 2025 expenses [6]. - The total cash balance at June 30, 2025, was $10.5 million, down from $18.0 million at December 31, 2024 [6].

Group 1 - Aterian, Inc. will release its financial results for Q2 2025 on August 13, 2025, after market close [1] - A conference call to discuss the results will be held at 5:00 p.m. ET on the same day [1] - Investors can participate in the call via phone or through a live webcast [1] Group 2 - Aterian, Inc. is a consumer products company focused on building and acquiring e-commerce brands across various categories [2] - The company sells products on major online marketplaces such as Amazon, Walmart, and Target, as well as through its own direct-to-consumer websites [2] - Aterian's brand portfolio includes Mueller Living, PurSteam, hOmeLabs, Squatty Potty, Healing Solutions, and Photo Paper Direct [2]

Core Insights - Aterian, Inc. has launched its Prime Day lineup featuring discounts of up to 36% on products from six e-commerce brands [1][2] - The Prime Day deals will be available from July 8th to July 11th, while supplies last [2] Product Offerings - Featured brands include hOmeLabs, Squatty Potty, PurSteam, Mueller Living, Healing Solutions, and Photo Paper Direct, offering a range of home and wellness products [1][12] - hOmeLabs offers smart dehumidifiers with discounts of 21% and 15% on models originally priced at $269.99 and $179.99 respectively [7] - Squatty Potty features a Simple Stool at 32% off, originally priced at $24.99, now available for $16.99 [4] - PurSteam provides steam cleaning solutions with discounts on products like the 1750W Steam Iron and Therma Pro Steam Mop [8][5] - Mueller Living showcases kitchen appliances, including a Hand Blender at 32% off, originally priced at $34.99, now $23.73 [9] - Healing Solutions offers essential oils, with a 20% discount on a 16 oz Eucalyptus Essential Oil, originally $26.99, now $21.59 [10] - Photo Paper Direct features printable fabric sheets at 26% off, originally priced at $14.99, now $11.04 [11] Company Overview - Aterian, Inc. is a consumer products company that builds and acquires leading e-commerce brands across various categories, including home and kitchen appliances, health and wellness, and air quality devices [12] - The company sells products through major online marketplaces such as Amazon, Walmart, and Target, as well as its own direct-to-consumer websites [12]

Company Expansion - Aterian, Inc. has expanded its product offerings on Mercado Libre, Latin America's leading e-commerce platform, to include brands such as PurSteam, Mueller, and Squatty Potty in Chile, Colombia, and Argentina [1][2] - This expansion follows Aterian's initial launch on Mercado Libre's Mexico marketplace in 2024, indicating a strategic focus on home, kitchen, and wellness categories [1][2] Strategic Vision - The CEO of Aterian emphasized that the partnership with Mercado Libre aligns with the company's long-term vision to scale its e-commerce presence beyond the U.S. and tap into emerging markets [2] - The company is committed to building a durable brand ecosystem in Latin America, approaching this opportunity with focus and discipline [2] Company Overview - Aterian, Inc. is a consumer products company that builds and acquires leading e-commerce brands across various categories, including home and kitchen appliances, health and wellness, and air quality devices [3] - The company sells products on major online marketplaces such as Amazon, Walmart, and Target, as well as through its own direct-to-consumer websites [3]

Industry & Market Data Certain data in this presentation was obtained from various external sources. Neither Aterian, Inc. (the "Company") nor its affiliates, advisers or representatives have verified such data, with independent sources. Accordingly, neither the Company nor any of its affiliates, advisers or representatives make any representation as to the accuracy or completeness of that data or to update such data after the date of this presentation. Such data involves risks and uncertainties and is subj ...

Core Insights - Aterian, Inc. has launched select products from its flagship brands on Temu, a rapidly growing global e-commerce marketplace, enhancing consumer access and visibility [1][3][4] - The introduction of products on Temu is part of Aterian's strategy to diversify distribution channels and reach new customer segments [2][3] - Aterian aims to build strong household brands and accelerate omnichannel growth through this strategic move [4] Company Overview - Aterian, Inc. is a consumer products company that builds and acquires leading e-commerce brands across various categories, including home and kitchen appliances, health and wellness, and air quality devices [5] - The company sells products on major online marketplaces such as Amazon, Walmart, and Target, as well as through its own direct-to-consumer websites [5] - Aterian's brand portfolio includes well-known names like Mueller Living, PurSteam, hOmeLabs, Squatty Potty, and Healing Solutions [5]

Core Insights - Aterian, Inc. has launched two innovative home appliances, the PurSteam Steam Station Max and the Mueller Living Cordless Portable Vacuum Sealer, now available nationwide at Walmart [1][2] - The launches aim to enhance Aterian's omni-channel presence and strengthen its brand visibility and retail partnerships [2][5] Product Launch Descriptions - The PurSteam Steam Station Max features a rapid 1.5-minute preheat, strong continuous steam output, and a large 50.7 oz water tank, designed for speed and convenience [7] - The Mueller Living Cordless Portable Vacuum Sealer can seal up to 60 bags on a single charge, with universal compatibility and a fast 3-hour charging time, making it suitable for everyday kitchen use [7] Brand Information - PurSteam focuses on high-performance cleaning products, combining advanced technology and superior quality [3] - Mueller Living offers premium kitchen tools that blend comfort, design, and durability, catering to cooks of all levels [4] - Aterian, Inc. operates across multiple categories, including home and kitchen appliances, health and wellness, and air quality devices, selling through major online marketplaces [5]