Aterian, Inc. (NASDAQ: ATER) announced that its Board of Directors has authorized a formal process to evaluate strategic alternatives, including a potential sale, merger, or other transaction, with no timetable set for completion. The decision follows a series of quarterly results that show declining revenue and shrinking gross margins.
In the most recent quarter, Aterian reported net revenue of $19.0 million, down 27% from $26.2 million in Q3 2024, and a gross margin of 56.1%, a drop of 4.2 percentage points from 60.3% in the prior year. The decline is largely attributed to tariff‑related cost increases and a shift in product mix toward lower‑margin items.
CEO Arturo Rodriguez said the company believes its current market valuation does not reflect the sum‑of‑the‑parts value of its brand portfolio. He added that the strategic review is intended to unlock hidden value for shareholders, citing the company’s strong brand equity and global omni‑channel presence as key assets that could be better leveraged through a sale or merger.
A.G.P./Alliance Global Partners has been retained as the financial advisor for the review, while Paul Hastings LLP will provide legal counsel. The engagement signals that Aterian is preparing for a rigorous evaluation of all viable options, including a potential business combination that could provide scale and cost synergies.
The announcement comes at a time when Aterian’s cash balance has fallen from $18.0 million at the end of 2024 to $7.6 million as of September 30 2025, and the company has faced “substantial doubt about going concern” and tightened liquidity covenants. The strategic alternatives review is therefore a critical step in addressing liquidity pressures and restoring investor confidence.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.