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]