Aterian(US:ATER) Globenewswireยท2025-08-13 20:10Core 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].