Note 13 - Segment Information

6 Months Ended

Jun. 30, 2025

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

13. SEGMENT INFORMATION

Aterian, Inc. is a consumer products company that predominantly operates through online retail channels such as Amazon, Walmart, and Target and its own direct to consumer websites. The Company operates its owned brands, which were either incubated or purchased, selling products in multiple categories, including home and kitchen appliances, kitchenware, air quality appliances, health and beauty products and essential oils. The Company has determined that it has one operating segment. The Company's chief operating decision maker ("CODM") is its chief executive officer, who reviews financial information presented on a consolidated basis. The CODM uses consolidated operating margin and net income to assess financial performance and allocate resources. These financial metrics are used by the CODM to make key operating decisions, such as the determination of the rate at which the Company seeks to grow operating margin and the allocation of budget between cost of sales, variable sales costs, and other vendor and payroll expenses.

	Three Months Ended
	June 30, 2025			June 30, 2024
Net revenue	$	19,462		$	27,984
Less:
Cost of Sales		8,896			11,093
Variable sales costs (1)		9,048			12,024
Other vendor and payroll expenses		5,497			4,721
Depreciation and amortization		404			430
Stock-based compensation expense		122			2,921
Other segment items(2)		355			424
Net loss	$	(4,860	)	$	(3,629	)

	Six Months Ended
	June 30, 2025			June 30, 2024
Net revenue	$	34,822		$	48,199
Less:
Cost of Sales		14,832			18,139
Variable sales costs (1)		16,421			22,345
Other vendor and payroll expenses		10,053			10,751
Depreciation and amortization		812			858
Stock-based compensation expense		905			4,588
Other segment items(2)		555			309
Net loss	$	(8,756	)	$	(8,791	)

(1) Variable sales costs primarily include e-commerce platform commissions, online advertising, and selling and logistics expenses.

(2) Other segment items primarily include incomes taxes, interest expense, and the change in fair value of warrant liabilities.

The CODM does not use total assets as a financial metric when making key operating decisions.