Note 13 - Segment Information

9 Months Ended

Sep. 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 goods sold, variable sales costs, and other vendor and payroll expenses.

	Three Months Ended September 30,
	2025			2024
	(in thousands)
Net revenue	$	19,021		$	26,239
Less:
Cost of Goods Sold		8,350			10,411
Variable sales costs (1)		8,139			11,364
Other vendor and payroll expenses		3,438			3,967
Depreciation and amortization		406			421
Stock-based compensation expense		731			1,806
Other segment items(2)		238			43
Net loss	$	(2,281	)	$	(1,773	)

	Nine Months Ended September 30,
	2025			2024
	(in thousands)
Net revenue	$	53,843		$	74,438
Less:
Cost of Goods Sold		23,182			28,550
Variable sales costs (1)		24,561			33,709
Other vendor and payroll expenses		13,490			14,718
Depreciation and amortization		1,218			1,279
Stock-based compensation expense		1,636			6,394
Other segment items(2)		793			352
Net loss	$	(11,037	)	$	(10,564	)

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

(2) Other segment items primarily include income taxes, interest expense, other (income) 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.