Note 18 - Segment Information

12 Months Ended

Dec. 31, 2025

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

18. 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 (loss) 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.

	December 31,			December 31,
	2025			2024
Net revenue	$	68,975		$	99,045
Less:
Cost of goods sold		29,825			37,550
Variable sales costs (1)		32,392			44,553
Other vendor and payroll expenses		17,110			19,566
Depreciation and amortization		1,619			1,689
Impairment loss on intangibles		3,822			—
Stock-based compensation expense		2,180			7,510
Other segment items(2)		1,011			39
Net loss	$	(18,984	)	$	(11,862	)

(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.