Aterian Q2 Revenue Falls 30 Percent
Aterian (NASDAQ:ATER) reported Q2 2025 results on August 13, revealing a 30.5% year-over-year decrease in net revenue to $19.5 million and a swing to a $2.2 million adjusted EBITDA loss from a $200,000 gain in the prior year period. Management announced progress on cost cutting, supply chain diversification, and a strategic pivot to higher-margin consumables, while reaffirming second-half 2025 guidance for $36 million to $38 million in net revenue and breakeven to a $1 million adjusted EBITDA loss for the six months ending December 31, 2025 (non-GAAP).
There was a sharp decline in sales velocity on Amazon, Aterian’s largest channel, as aggressive pricing adjustments to accommodate increased tariff-driven costs were met with price inaction from Amazon 1P (products first-party sourced by Amazon), eroding relative competitiveness. Despite the decline, the company’s products maintained best seller rankings in several categories, highlighting that overall category demand fell rather than a loss of share.
The interplay between algorithm-driven pricing discipline and slow competitor response exposes Aterian to sustained market pressure, signaling that margin defense via price hikes can amplify volume risk with immediate impact on revenue and platform visibility.
Source Fool.com
