Group 1 - The article does not provide any specific content related to a company or industry [1]

Financial Data and Key Metrics Changes - Net revenue for Q3 2025 was $19 million, a 27.5% decline from $26.2 million in Q3 2024, but only a 2% decrease from Q2 2025 [7][22] - Contribution margin improved to over 15% in Q3 2025, up from 7.8% in Q2 2025 [7][20] - Adjusted EBITDA loss improved by over 80% compared to Q2 2025, narrowing to just over $400,000 from a loss of $2.2 million [8][20] - Overall gross margin decreased to 56.1% from 60.3% in the year-ago quarter, primarily due to product mix and tariff impacts [23] Business Line Data and Key Metrics Changes - Launch revenue was $0.2 million in Q3 2025, down from $0.6 million in Q3 2024, reflecting postponed product launches [22] - The contribution margin decreased to 15.5% in Q3 2025 from 17% in Q3 2024, mainly due to reduced gross margin [23] Market Data and Key Metrics Changes - The decline in revenue was attributed to strategic price increases to offset tariff costs and a general slowdown in consumer spending [10][22] - Despite maintaining bestseller rankings, fewer units were sold due to reduced overall consumer demand [10] Company Strategy and Development Direction - The company is focusing on cost reductions, product launch strategies, and pricing adjustments to navigate the tariff environment [11][19] - Plans to diversify the supply chain and explore sourcing opportunities outside of China are ongoing, especially for high-tariff products [14][15] - The push into consumables is seen as a strong strategic objective, with new product launches primarily sourced from the U.S. [16][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the core products and brands, despite challenges posed by tariffs and reduced consumer demand [11][19] - The focus for 2026 will be on sustainable top-line growth and profitability, with a disciplined approach to marketing and cash management [28] Other Important Information - Cash reserves decreased to approximately $7.6 million from $18 million at the end of 2024, but cash used in operations was significantly reduced in Q3 [25] - Inventory levels increased to $17.2 million, attributed to lower expected demand for seasonal products [26] Q&A Session Summary Question: What percentage of revenue in Q3 were sales through the Amazon channel versus other platforms? - Amazon accounted for over 95% of revenue for the quarter, with new channels like Home Depot being more of a setup for future sales [32] Question: How is launch revenue tracking against plans? - Launch revenue was muted due to wholesale sales to Amazon and limited marketing spend due to tariff impacts, but the quality of products is expected to drive long-term growth [34][35] Question: How quickly can sourcing be adjusted once new sourcing is identified? - The speed of sourcing adjustments depends on manufacturer capabilities, with some products already being sourced outside of China to mitigate tariff impacts [37]

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 For the quarterly period ended September 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) Delaware 83-1739858 (State or other jurisdiction of incorporation ...

Financial Performance - Net revenue for Q3 2025 was $19.0 million, down from $26.2 million in Q3 2024, primarily due to macroeconomic challenges and lower unit volumes from tariff-related price increases[6]. - Gross margin decreased to 56.1% from 60.3%, attributed to changes in product mix and tariff impacts on pricing and cost of goods sold[6]. - Adjusted EBITDA loss narrowed by over 80% compared to Q2 2025, with a loss of $(0.4) million compared to a gain of $0.5 million in Q3 2024[6]. - Operating loss for Q3 2025 was $(2.0) million, compared to $(1.7) million in Q3 2024[6]. - For the nine months ended September 30, 2025, the net loss was $11,037,000 compared to a net loss of $10,564,000 for the same period in 2024, representing an increase in loss of approximately 4.5%[19]. - Gross profit for the nine months ended September 30, 2025, was $30,661,000, down from $45,888,000 in 2024, indicating a decrease of about 33.2%[30]. - Contribution margin for the nine months ended September 30, 2025, was $6,525,000, which is a decline from $12,179,000 in 2024, reflecting a decrease of approximately 46.3%[30]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $(5,121,000), compared to $(1,974,000) in 2024, indicating a worsening of approximately 159.5%[31]. - The net loss as a percentage of net revenue for the nine months ended September 30, 2025, was (20.5)%, compared to (14.2)% in 2024, indicating a deterioration in performance[31]. - For the three months ended September 30, 2025, net revenue was $19,021,000, a decrease from $26,239,000 in the same period of 2024, representing a decline of approximately 27.7%[35]. - Gross profit for the three months ended September 30, 2025, was $10,671,000, down from $15,828,000 in the same period of 2024, indicating a decrease of about 32.5%[35]. - For the nine months ended September 30, 2025, net revenue was $53,843,000, down from $74,438,000 in the same period of 2024, a decline of about 27.7%[36]. - Gross profit for the nine months ended September 30, 2025, was $30,661,000, compared to $45,888,000 in the same period of 2024, representing a decrease of approximately 33.2%[36]. Operating Expenses - Total operating expenses decreased to $12.7 million from $17.6 million, reflecting the impact of cost reduction initiatives[6]. - Operating expenses for the three months ended September 30, 2025, totaled $12,714,000, compared to $17,558,000 in the same period of 2024, reflecting a reduction of approximately 27.9%[35]. - Operating expenses for the nine months ended September 30, 2025, amounted to $40,905,000, down from $56,100,000 in the same period of 2024, indicating a reduction of about 27.2%[36]. - Sales and distribution expenses for the three months ended September 30, 2025, were $9,835,000, compared to $13,912,000 in the same period of 2024, a decrease of approximately 29.5%[35]. - The company’s fixed costs included $6,928,000 in the nine months ended September 30, 2025, compared to $9,120,000 in the same period of 2024, a decrease of approximately 24.0%[36]. - The company’s general and administrative expenses for the three months ended September 30, 2025, were $2,879,000, down from $3,646,000 in the same period of 2024, indicating a reduction of about 18.7%[35]. Cash Flow and Balance Sheet - Cash balance as of September 30, 2025, was $7.6 million, down from $18.0 million at December 31, 2024[6]. - Cash used in operating activities for the nine months ended September 30, 2025, was $(9,853,000), a significant decline from cash provided of $2,174,000 in 2024[19]. - Cash and restricted cash at the end of the period was $8,727,000, down from $18,719,000 at the end of the same period in 2024, representing a decrease of about 53.5%[19]. Product Development and Market Expansion - The company launched new products including Squatty Potty wipes and a Tallow Skin Care line, expanding its market presence[6]. - The company secured new digital shelf space at leading retailers and entered the consumables market with two new products[2]. - Aterian expects net revenue for the six months ending December 31, 2025, to be between $36 million and $38 million, compared to $34.8 million for the previous six months[7]. - Aterian anticipates further operational efficiencies in 2026 from workforce reductions and vendor savings initiatives[2]. Stock-Based Compensation and Warrant Liabilities - The company incurred stock-based compensation expenses of $1,636,000 for the nine months ended September 30, 2025, compared to $6,394,000 in 2024, a decrease of approximately 74.5%[31]. - The company reported a change in fair value of warrant liabilities of $(108,000) for the nine months ended September 30, 2025, compared to $(730,000) in 2024, showing an improvement of approximately 85.2%[31].

Core Insights - Aterian, Inc. reported improved margins, reduced operating expenses, and significantly narrowed losses in Q3 2025 compared to Q2 2025, despite facing revenue challenges due to tariffs [1][2] - The company reiterated its net revenue and Adjusted EBITDA guidance for the six months ending December 31, 2025, expecting net revenue between $36 million and $38 million [1][7] Financial Performance - Net revenue for Q3 2025 was $19.0 million, down from $26.2 million in Q3 2024, primarily due to macroeconomic conditions and lower unit volumes from price increases related to tariffs [5] - Gross margin decreased to 56.1% from 60.3%, while contribution margin fell to 15.5% from 17.0% [5] - Total operating expenses decreased to $12.7 million from $17.6 million, reflecting cost reduction initiatives [5] - Adjusted EBITDA loss was $(0.4) million compared to an Adjusted EBITDA gain of $0.5 million in Q3 2024 [5] Operational Highlights - The company launched new products, including Squatty Potty wipes and a Tallow Skin Care line, expanding its market reach [5][6] - Aterian secured new digital shelf space with leading retailers and entered the consumables market with two new products [2] - The company received an Orchestrators Innovation Award from Genesys for its implementation of AI to enhance customer service [5] Guidance and Future Outlook - Aterian expects to achieve net revenue of $36 million to $38 million and an Adjusted EBITDA loss of $(1.0) million for the six months ending December 31, 2025 [7] - The company anticipates further operational efficiencies in 2026 due to workforce reductions and vendor savings initiatives [2]

Company Overview - Aterian, Inc. is a consumer products company that builds and acquires leading e-commerce brands across multiple categories, including home and kitchen appliances, health and wellness, and air quality devices [2] - The company sells products through major online marketplaces such as Amazon, Walmart, and Target, as well as 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] Financial Results Announcement - Aterian, Inc. will issue its financial results for the third quarter ended September 30, 2025, on November 13, 2025, after the close of the stock market [1] - A conference call will be held at 5:00 p.m. ET on the same day to discuss the financial results [1] - Investors can participate in the call via phone or through a live webcast, with an archived replay available for a limited time afterward [1]

Core Points - Aterian, Inc. announced the availability of its hOmeLabs brand line of dehumidifiers on Home Depot's website, enhancing its digital presence and sales strategy [1][3] - The hOmeLabs dehumidifiers are designed for improved health and efficiency, featuring user-friendly controls, Energy Star ratings, portability, and Wi-Fi capabilities [2] - Aterian aims to strengthen its brand presence and omni-channel sales approach through this partnership with Home Depot, a leading retail brand in the U.S. [3] Company Overview - Aterian, Inc. is a consumer products company that develops and acquires e-commerce brands across various categories, including home appliances 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 channels [5] - Aterian's brand portfolio includes well-known names like Mueller Living, PurSteam, hOmeLabs, and Squatty Potty [5] Home Depot Overview - Home Depot is the largest home improvement specialty retailer globally, operating over 2,353 retail stores and more than 325 distribution centers [4] - The company employs over 470,000 associates and is included in the Dow Jones Industrial Average and S&P 500 index [4]

Core Insights - Aterian, Inc. has launched a new Tallow Skin Care line under its Healing Solutions brand, featuring beef tallow-based balms and salves [1][2] - The products are made with 100% grass-fed, grass-finished beef tallow and include natural ingredients like manuka honey and organic jojoba seed oil [1][4] - The Tallow Skin Care line is now available for purchase on major online platforms such as Amazon and Walmart [1] Product Details - The Tallow Skin Care line consists of seven products, including both scented and unscented options, designed for various skin care needs [2][4] - Key ingredients include soluble vitamins A, D, E, and K, which are known for their skin care benefits [4] - The product range includes Whipped Tallow Balms for daily moisturizing and Tallow Salves for deeper nourishment [4][7] Company Overview - Aterian, Inc. is a consumer products company that focuses on building and acquiring e-commerce brands across multiple categories, including health and wellness [5] - The company sells products through major online marketplaces and its own direct-to-consumer websites [5] - Aterian's brand portfolio includes well-known names such as Mueller Living, PurSteam, and Healing Solutions [5]

Core Insights - Aterian, Inc. has launched select products from its brands on Bed Bath & Beyond's online platform, enhancing its digital presence and omni-channel sales strategy [1][2] - The products available include offerings from hOmeLabs, Squatty Potty, PurSteam, and Mueller Living, which are designed to improve everyday living [1][6] Company Overview - Aterian, Inc. is a consumer products company that builds and acquires e-commerce brands across various categories, including home and kitchen appliances, health and wellness, and air quality devices [4] - The company sells products on major online marketplaces such as Amazon, Walmart, and Target, as well as through its own direct-to-consumer websites [4] Bed Bath & Beyond Overview - Bed Bath & Beyond, Inc. is an e-commerce-focused retailer that owns various retail brands, including Bed Bath & Beyond, Overstock, buybuy BABY, and Kirkland's Home [3] - The company aims to enhance customers' everyday lives through quality, style, and value [3]

Core Insights - Aterian, Inc. has announced its October Prime Day lineup, offering discounts of up to 32% on products from its e-commerce brands, including hOmeLabs, Squatty Potty, PurSteam, Mueller Living, Healing Solutions, and Photo Paper Direct [1][2] Product Offerings - The Prime Day deals will be available from October 7-8, 2025, while supplies last [1] - Aterian's CEO highlighted the strong demand for their products during the July Prime Day and emphasized the opportunity for consumers to find gifts ahead of the holiday season [2] hOmeLabs - hOmeLabs focuses on home-comfort appliances, featuring products like a 50-Pint Dehumidifier at 25% off (originally $279.99, now $212.49) and an 8-Pint Dehumidifier at 30% off (originally $179.99, now $142.49) [7] Squatty Potty - Squatty Potty offers ergonomic toilet stools designed for improved digestive health, with the Original Stool available at 15% off (originally $29.99, now $25.49) [4] PurSteam - PurSteam provides home-care solutions, including a 1750W Steam Iron at 19% off (originally $49.99, now $40.35) and a Scrub Master Pro Steam Mop at 19% off (originally $129.99, now $104.99) [8] Mueller Living - Mueller Living specializes in small kitchen appliances, with the Hand Blender available at 32% off (originally $34.99, now $23.72) [9] Healing Solutions - Healing Solutions offers natural wellness products, featuring LAB BULK Eucalyptus Essential Oil at 27% off (originally $26.99, now $19.59) [10] Photo Paper Direct - Photo Paper Direct provides professional-quality printable media, with PPD Printable Fabric Sheets at 26% off (originally $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]