Aterian(US:ATER)2025-11-13 21:15Financial 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].