Despite maintaining a robust 80.7% gross margin in 2026Q2, the company's revenue continues to decline, evidenced by a -1.7% year-over-year contraction.
| Sales/Revenue | 1.36M | 1.38M | 1.44M | 1.56M | 1.59M |
| Revenue Growth % | -3.33% | -4.11% | -7.42% | -1.93% | - |
| Cost of Goods Sold | 317.41K | 403.38K | 445.47K | 409.7K | 407.19K |
| COGS % of Revenue | - | 29.21% | 30.93% | 26.34% | 25.67% |
| Gross Profit | 1.04M | 977.47K | 994.63K | 1.15M | 1.18M |
| Gross Margin % | 76.65% | 70.79% | 69.07% | 73.66% | 74.33% |
| Gross Profit Growth % | - | -1.73% | -13.2% | -2.8% | - |
| Operating Expenses | 5.96M | 4.23M | 1.93M | 1.44M | 1.2M |
| OpEx % of Revenue | - | 306.32% | 134.3% | 92.67% | 75.68% |
| Selling, General & Admin | 5.78M | 4.18M | 1.78M | 1.34M | 1.2M |
| SG&A % of Revenue | - | 302.52% | 123.89% | 86.25% | 75.68% |
| Research & Development | 183.62K | 52.5K | 150K | 100K | 0 |
| R&D % of Revenue | - | 3.8% | 10.42% | 6.43% | - |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -4.92M | -3.25M | -939.44K | -295.75K | -21.41K |
| Operating Margin % | -362.16% | -235.53% | -65.23% | -19.01% | -1.35% |
| Operating Income Growth % | - | -246.2% | -217.65% | -1281.35% | - |
| EBITDA | -4.88M | -3.25M | -937.34K | -293.43K | -18.21K |
| EBITDA Margin % | -359.4% | -235.45% | -65.09% | -18.86% | -1.15% |
| EBITDA Growth % | -274.3% | -246.86% | -219.44% | -1511.27% | - |
| D&A (Non-Cash Add-back) | 37.46K | 1.06K | 2.09K | 2.32K | 3.2K |
| EBIT | -4.81M | -3.14M | -939.44K | -295.75K | -21.41K |
| Net Interest Income | 123.19K | 91.44K | 0 | 0 | 0 |
| Interest Income | 123.19K | 91.44K | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 167.11K | 116.32K | 0 | 0 | 0 |
| Pretax Income | -4.76M | -3.14M | -939.44K | -295.75K | -21.41K |
| Pretax Margin % | -349.86% | -227.11% | -65.23% | -19.01% | -1.35% |
| Income Tax | 0 | 5.3K | 0 | 0 | 0 |
| Effective Tax Rate % | 0% | -0.17% | 0% | 0% | 0% |
| Net Income | -4.76M | -3.14M | -939.44K | -277.38K | -14.99K |
| Net Margin % | -349.86% | -227.49% | -65.23% | -17.83% | -0.94% |
| Net Income Growth % | -262.32% | -234.38% | -238.69% | -1750.78% | - |
| Net Income (Continuing) | -4.76M | -3.14M | -939.44K | -295.75K | -21.41K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | -20.52K |
| EPS (Diluted) | -0.39 | -0.29 | -0.08 | -0.02 | -0.00 |
| EPS Growth % | -238.47% | -265.24% | -239.32% | - | - |
| EPS (Basic) | - | -0.29 | -0.08 | -0.02 | -0.00 |
| Diluted Shares Outstanding | 12.14M | 11.01M | 11.83M | 11.83M | 11.83M |
| Basic Shares Outstanding | 12.14M | 11.01M | 11.83M | 11.83M | 11.83M |
| Dividend Payout Ratio | - | - | - | - | - |
Persistent Revenue Contraction
As indicated by the provided financial data, ATHR has experienced a consistent decline in quarterly revenue, culminating in a -1.7% year-over-year contraction as of 2026Q2, which suggests that the company's subscription-based model is currently struggling to retain its user base or maintain pricing power.
The steady erosion of top-line figures implies that the platform's value proposition may be losing resonance within its niche market. Investors should monitor whether this downward trajectory reflects a broader cyclical lull in trader engagement or a structural shift toward lower-cost competitive alternatives.
According to the reported income statements, ATHR maintains a robust gross margin profile, reaching 80.7% in 2026Q2, which suggests that the underlying software delivery model remains efficient despite the company's inability to achieve profitability at the operating level due to elevated overhead costs.
The high gross margin indicates that the core data-as-a-service product possesses inherent scalability, provided the company can stabilize its revenue base. However, the disparity between these margins and the negative operating results highlights a significant disconnect between product-level economics and corporate-level expense management.
Based on the quarterly figures, ATHR exhibits a lack of operating leverage, as SG&A expenses have consistently outpaced gross profit, resulting in operating margins that have remained deeply negative throughout the observed period, including a -3.1% margin reported in the most recent quarter.
The inability to scale operating income alongside gross profit suggests that the current cost structure is overly burdensome for the existing revenue scale. This pattern warrants investigation into whether management's recent investments in R&D and marketing are yielding any tangible improvements in customer acquisition or retention.
As reported in the financial statements, ATHR's SG&A expenses have remained elevated relative to revenue, with the company spending $1.2 million on overhead in 2026Q2 alone, which significantly exceeds the $271.3 thousand in gross profit generated during the same three-month period.
This cost structure appears to be the primary driver of the company's persistent net losses, suggesting that the firm is currently operating in a high-burn phase. Without a clear path to rationalizing these expenses, the company may continue to face significant pressure on its cash reserves.
Quick answers to the most common questions about buying ATHR stock.
For fiscal year 2025, Aether Holdings, Inc. Common Stock (ATHR) reported total revenue of $1.4M. This represents a 12.9% decline compared to $1.6M in 2022.
Aether Holdings, Inc. Common Stock (ATHR) reported a net loss of $3.1M for the fiscal year ending 2025.
Aether Holdings, Inc. Common Stock (ATHR) reported an operating income of $-3.3M, resulting in an operating profit margin of -235.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Aether Holdings, Inc. Common Stock (ATHR) generated $1.0M in gross profit for the year, representing a gross profit margin of 70.8%. This demonstrates the company's core pricing power and production efficiency.