📊 ATER Key Takeaways
Is Aterian, Inc. (ATER) a Good Investment?
Aterian exhibits severe financial distress with revenue collapsed to $18K (-30.4% YoY), generating $6.1M net losses against minimal top-line. Long-term debt of $28.7M exceeds total assets of $22.2M, indicating technical insolvency; the company burns cash operationally (-$363K) with no pathway to profitability visible at current scale.
Aterian’s fundamentals remain weak: revenue fell 30.5% YoY, operating margins are deeply negative, and the business continues to burn cash with negative free cash flow. While net losses have improved and gross margin is relatively strong, the combination of shrinking sales, weak coverage of interest costs, and meaningful leverage points to a fragile financial position.
Aterian, Inc. Key Strengths (ATER)
- Gross margin of 55.6% indicates underlying product economics could work at higher volumes
- Current ratio of 1.70x provides near-term liquidity cushion
- Cash reserves of $2.3M provide runway for operational continuation
- Gross margin of 56.9% suggests the company can still generate solid product-level economics
- Net income and diluted EPS improved materially year over year, indicating some cost or operating discipline
- Current ratio of 1.76x provides a modest near-term liquidity buffer
ATER Stock Risks: Aterian, Inc. Investment Risks
- Revenue collapse of 30.4% YoY with absolute revenue of $18K indicates business failure or dormancy
- Long-term debt of $28.7M exceeds total assets of $22.2M - technical insolvency risk
- Operating cash flow negative at -$363K with negative free cash flow of -$367K indicates ongoing cash burn with no revenue generation
- Revenue contraction of 30.5% YoY raises concern about demand durability and growth quality
- Negative operating income, negative free cash flow, and -13.7x interest coverage indicate an unsustainable earnings and cash flow profile
- Leverage is elevated with debt/equity of 1.27x and ROE/ROA deeply negative
Key Metrics to Watch
- Revenue trajectory and return to baseline operations
- Operating cash flow and path to cash flow breakeven
- Debt refinancing or restructuring announcements given asset coverage concerns
- Revenue growth stabilization and operating margin improvement
- Operating cash flow/free cash flow burn relative to cash balance and debt obligations
Aterian, Inc. (ATER) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Aterian, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
ATER Profit Margin, ROE & Profitability Analysis
ATER vs Utilities Sector: How Aterian, Inc. Compares
How Aterian, Inc. compares to Utilities sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Aterian, Inc. Stock Overvalued? ATER Valuation Analysis 2026
Based on fundamental analysis, Aterian, Inc. shows some fundamental concerns relative to the Utilities sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Aterian, Inc. Balance Sheet: ATER Debt, Cash & Liquidity
ATER Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Aterian, Inc.'s revenue has declined by 60% over the 5-year period, indicating business contraction. The most recent EPS of $-6.67 indicates the company is currently unprofitable.
ATER Revenue Growth, EPS Growth & YoY Performance
ATER Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $18.0K | -$3.9M | $-0.52 |
| Q3 2025 | $19.0M | -$1.8M | $-0.25 |
| Q2 2025 | $19.5M | -$3.6M | $-0.52 |
| Q1 2025 | $15.4M | -$3.9M | $-0.52 |
| Q3 2024 | $26.2M | -$1.8M | $-0.25 |
| Q2 2024 | $28.0M | -$3.6M | $-0.52 |
| Q1 2024 | $20.2M | -$5.2M | $-0.76 |
| Q3 2023 | $39.7M | -$6.3M | $-0.08 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Aterian, Inc. Dividends, Buybacks & Capital Allocation
ATER SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Aterian, Inc. (CIK: 0001757715)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ATER
What is the AI rating for ATER?
Aterian, Inc. (ATER) has a Combined AI Grade of D from Claude (D) and ChatGPT (D) with 92% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ATER's key strengths?
Claude: Gross margin of 55.6% indicates underlying product economics could work at higher volumes. Current ratio of 1.70x provides near-term liquidity cushion. ChatGPT: Gross margin of 56.9% suggests the company can still generate solid product-level economics. Net income and diluted EPS improved materially year over year, indicating some cost or operating discipline.
What are the risks of investing in ATER?
Claude: Revenue collapse of 30.4% YoY with absolute revenue of $18K indicates business failure or dormancy. Long-term debt of $28.7M exceeds total assets of $22.2M - technical insolvency risk. ChatGPT: Revenue contraction of 30.5% YoY raises concern about demand durability and growth quality. Negative operating income, negative free cash flow, and -13.7x interest coverage indicate an unsustainable earnings and cash flow profile.
What is ATER's revenue and growth?
Aterian, Inc. reported revenue of $18.0K.
Does ATER pay dividends?
Aterian, Inc. does not currently pay dividends.
Where can I find ATER SEC filings?
Official SEC filings for Aterian, Inc. (CIK: 0001757715) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ATER's EPS?
Aterian, Inc. has a diluted EPS of $-0.78.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is ATER's fundamental grade?
Based on our AI fundamental analysis in June 2026, Aterian, Inc. has a D grade with 92% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is ATER stock overvalued or undervalued?
Valuation metrics for ATER: ROE of -64.4% (sector avg: 10%), net margin of -34,066.7% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is ATER's AI grade for 2026?
Our dual AI analysis gives Aterian, Inc. a combined D grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is ATER's free cash flow?
Aterian, Inc.'s operating cash flow is $-363.0K, with capital expenditures of $4.0K. FCF margin is -2,038.9%.
How does ATER compare to other Utilities stocks?
Vs Utilities sector averages: Net margin -34,066.7% (avg: 12%), ROE -64.4% (avg: 10%), current ratio 1.70 (avg: 0.8).
Is Aterian, Inc. carrying too much debt?
ATER has a debt-to-equity ratio of 3.01x, which is above the Utilities sector average of 1.4x. However, the current ratio of 1.70 suggests adequate short-term liquidity.