Aterian, Inc.
For the period ended Nov 13, 2025. Filed Nov 13, 2025.
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Nov 13, 2025 · Filed Nov 13, 2025
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EX-99.1 · Adjusted EBITDA
Adjusted EBITDA
The following table provides a reconciliation of EBITDA and Adjusted EBITDA to net loss, which is the most directly comparable financial measure presented in accordance with GAAP:
| Three Months Ended September 30, | Nine Months Ended September 30, | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| (in thousands, except percentages) | ||||
| Net loss | $(2,281) | $(1,773) | $(11,037) | $(10,564) |
| Add: | ||||
| Provision (benefit) for income taxes | 19 | (210) | 50 | 66 |
| Interest expense, net | 259 | 189 | 656 | 741 |
| Depreciation and amortization | 406 | 421 | 1,218 | 1,279 |
| EBITDA | (1,597) | (1,373) | (9,113) | (8,478) |
| Other (income) expense, net | (22) | 225 | 195 | 275 |
| Change in fair market value of warrant liabilities | (18) | (161) | (108) | (730) |
| Restructuring expense(1) | 49 | (10) | 1,844 | 565 |
| Product remediation costs(2) | 425 | — | 425 | — |
| Stock-based compensation expense | 731 | 1,806 | 1,636 | 6,394 |
| Adjusted EBITDA | $(432) | $487 | $(5,121) | $(1,974) |
| Net loss as a percentage of net revenue | (12.0)% | (6.8)% | (20.5)% | (14.2)% |
| Adjusted EBITDA as a percentage of net revenue | (2.3)% | 1.9% | (9.5)% | (2.7)% |
| (1) | Restructuring expenses include non-recurring employee severance costs relating to the Company reorganization executed during the three and nine months ended September 30, 2025 and 2024. |
| (2) | During the three months ended September 30, 2025, the Company accrued approximately $0.4 million for estimated costs associated with addressing a product performance matter involving certain houseware appliances that the Company ceased selling during the year ended December 31, 2024. These costs are included in cost of goods sold on the Condensed Consolidated Statement of Operations. |
Each of our products typically goes through the Launch phase and depending on its level of success is moved to one of the other phases as further described below:
i. Launch phase: During this phase, we leverage technology and market data to target opportunities. This phase also includes revenue from new product variations and relaunches. During this period of time, due to the combination of discounts and investment in marketing, our net margin for a product could be as low as approximately negative 35%. Net margin is calculated by taking net revenue less the cost of goods sold, less fulfillment, online advertising and selling expenses. These primarily reflect the estimated variable costs related to the sale of a product.
ii Sustain phase: Our goal is for every product we launch to enter the sustain phase and become profitable, with a target of positive 15% net margin for most products, within approximately three months of launch on average. Net margin primarily reflects a combination of manual and automated adjustments in price and marketing spend.
iii. Liquidate phase: If a product does not enter the sustain phase or if the customer satisfaction of the product (i.e., ratings) is not satisfactory, then it will go to the liquidate phase and we will sell through the remaining inventory. Products can also be liquidated as part of inventory normalization especially when steep discounts are required.
The following tables present our results of operations for the three- and nine-month periods ended September 30, 2025 and 2024, broken down by product phase (in thousands):
| Sustain | Launch | Liquidation/ Other | Fixed Costs | Stock Based Compensation | Total | |
|---|---|---|---|---|---|---|
| Net revenue | $18,796 | $225 | $— | $— | $— | $19,021 |
| Cost of goods sold | 7,855 | 70 | 425 | — | — | 8,350 |
| Gross profit | 10,941 | 155 | (425) | — | — | 10,671 |
| Operating expenses: | ||||||
| Sales and distribution expenses | 7,949 | 189 | — | 1,649 | 48 | 9,835 |
| General and administrative | — | — | — | 2,196 | 683 | 2,879 |
| Sustain | Launch | Liquidation/ Other | Fixed Costs | Stock Based Compensation | Total | |
| Net revenue | $24,704 | $603 | $932 | $— | $— | $26,239 |
| Cost of goods sold | 9,923 | 169 | 319 | — | — | 10,411 |
| Gross profit | 14,781 | 434 | 613 | — | — | 15,828 |
| Operating expenses: | ||||||
| Sales and distribution expenses | 10,557 | 318 | 489 | 2,091 | 457 | 13,912 |
| General and administrative | — | — | — | 2,297 | 1,349 | 3,646 |
| Sustain | Launch | Liquidation/ Other | Fixed Costs | Stock Based Compensation | Total | |
|---|---|---|---|---|---|---|
| Net revenue | $52,477 | $944 | $422 | $— | $— | $53,843 |
| Cost of goods sold | 21,764 | 781 | 637 | — | — | 23,182 |
| Gross profit | 30,713 | 163 | (215) | — | — | 30,661 |
| Operating expenses: | ||||||
| Sales and distribution expenses | 23,629 | 700 | 231 | 6,928 | 365 | 31,853 |
| General and administrative | — | — | — | 7,781 | 1,271 | 9,052 |
| Sustain | Launch | Liquidation/ Other | Fixed Costs | Stock Based Compensation | Total | |
| Net revenue | $69,211 | $1,482 | $3,745 | $— | $— | $74,438 |
| Cost of goods sold | 26,476 | 508 | 1,566 | — | — | 28,550 |
| Gross profit | 42,735 | 974 | 2,179 | — | — | 45,888 |
| Operating expenses: | ||||||
| Sales and distribution expenses | 30,388 | 778 | 2,543 | 6,877 | 1,702 | 42,288 |
| General and administrative | — | — | — | 9,120 | 4,692 | 13,812 |
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