Investment Thesis
Aterian exhibits severe financial distress with revenue collapsed to $18K (-30.4% YoY), generating $6.1M net losses against minimal top-line. Long-term debt of $28.7M exceeds total assets of $22.2M, indicating technical insolvency; the company burns cash operationally (-$363K) with no pathway to profitability visible at current scale.
Strengths
- Gross margin of 55.6% indicates underlying product economics could work at higher volumes
- Current ratio of 1.70x provides near-term liquidity cushion
- Cash reserves of $2.3M provide runway for operational continuation
Risks
- Revenue collapse of 30.4% YoY with absolute revenue of $18K indicates business failure or dormancy
- Long-term debt of $28.7M exceeds total assets of $22.2M - technical insolvency risk
- Operating cash flow negative at -$363K with negative free cash flow of -$367K indicates ongoing cash burn with no revenue generation
Key Metrics to Watch
- Revenue trajectory and return to baseline operations
- Operating cash flow and path to cash flow breakeven
- Debt refinancing or restructuring announcements given asset coverage concerns
Financial Metrics
Revenue
18.0K
Net Income
-6.1M
EPS (Diluted)
$-0.78
Free Cash Flow
-367.0K
Total Assets
22.2M
Cash
2.3M
Profitability Ratios
Gross Margin
55.6%
Operating Margin
-17,827.8%
Net Margin
-34,066.7%
ROE
-64.4%
ROA
-27.6%
FCF Margin
-2,038.9%
Balance Sheet & Liquidity
Current Ratio
1.70x
Quick Ratio
1.70x
Debt/Equity
3.01x
Debt/Assets
57.1%
Interest Coverage
-13.71x
Long-term Debt
28.7M
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-16T08:00:00.740261 |
Data as of: 2026-03-31 |
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