Aterian, Inc. Segments Disclosure
| 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 | ) | ||
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| (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.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 23, 2026 | Showing above |
| 2024 | Mar 25, 2025 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.