Aterian(US:ATER)2025-06-25 08:00Financial Performance & Turnaround - Aterian initiated a turnaround plan in late 2023, leading to a significant improvement in Adjusted EBITDA by over $20 million in 2024 [11] - Net revenue decreased from $1426 million in 2023 to $990 million in 2024, reflecting SKU rationalization and inventory management [27] - Gross profit margin increased from 493% in 2023 to 621% in 2024 due to successful SKU rationalization and improved inventory profile [27] - Operating loss improved from $(762) million in 2023 to $(118) million in 2024 [27] - Net loss improved from $(746) million in 2023 to $(119) million in 2024 [27] - Cash flow from operations improved from $(134) million in 2023 to $(21) million in 2024 [27] Strategic Initiatives & Outlook - The company is implementing tariff-response initiatives and a cost optimization plan targeting $5-$6 million in pre-tax cost savings, with $5 million expected by the end of 2025 [12, 33] - Aterian aims to reduce China-manufactured goods to no more than 30% by the end of 2025, shifting sourcing to countries like Indonesia and Thailand [34] - The company is focusing on strategic price adjustments, delaying reorders, and launching new products to maintain revenue, conserve cash, preserve margin, maximize cash flow, and optimize cost structure [38, 39] Geographic & Brand Focus - North America accounted for 94% of net revenue in 2024 [14] - Aterian has rationalized its product portfolio to focus on six foundational brands [21]