Aterian Inc. reported its third‑quarter 2025 financial results, posting net revenue of $19.02 million—down 27.5% from $26.2 million a year earlier and 4.5% lower than the $20.6 million reported in Q2 2025. The decline reflects weaker consumer demand and the impact of tariff‑related cost increases that forced higher selling prices.
Despite the revenue shortfall, the company narrowed its adjusted EBITDA loss to $0.4 million from $1.0 million in the prior quarter, a 60% improvement driven by a 1.8‑percentage‑point rise in gross margin to 56.1% (down 4.2 points from 60.3% YoY). Management attributed the margin lift to a shift toward higher‑margin consumables and a reduction in product remediation charges.
Earnings per share came in at –$0.28 versus the consensus estimate of –$0.63, a beat of $0.35 or 55%. The upside was largely the result of disciplined cost control, which offset the revenue decline and allowed the company to maintain profitability on a per‑share basis.
Aterian reiterated its guidance for the remainder of 2025, forecasting net revenue of $36 million to $38 million for the six months ending December 31 and an adjusted EBITDA range of $0 to –$1.0 million. The guidance signals management’s confidence that the cost‑reduction program and new product launches will stabilize top‑line growth while keeping losses contained.
CEO Arturo Rodriguez emphasized that the company’s focus on expanding its consumables line and securing new retail partnerships—such as early‑stage agreements with Home Depot and Best Buy—will drive future revenue growth. CFO Josh Feldman noted that the suspension of the share‑repurchase program in May was a prudent move to preserve capital amid tariff uncertainty, and that the company remains committed to revisiting buybacks once the macro environment stabilizes.
Market reaction was muted, with analysts noting that the revenue miss weighed on sentiment while the margin improvement and narrowed loss provided a counterbalance. The company’s ability to turn around its profitability metrics amid a challenging environment is seen as a positive sign for its long‑term trajectory.
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