Allbirds (BIRD) investor relations material

Executive summary

• Q3 net revenue was $33 million, down 23.3% year-over-year, in line with guidance, with strong new product launches but mixed legacy product performance.

• Net loss for Q3 was $20.3 million, with adjusted EBITDA loss of $15.7 million, slightly improved from the prior year due to cost controls.

• Inventory decreased 25% year-over-year to $43.1 million, aligning with expectations.

• Brand revitalization efforts and new product launches, such as Wool Cruiser and Waterproof Collection, exceeded expectations and drove consumer engagement.

• Management is focused on cost reduction, liquidity enhancement, and value-creating opportunities.

Financial highlights

• Q3 gross margin was 43.2%, down from 44.4% year-over-year, due to higher digital/international sales mix and increased U.S. duties.

• Q3 SG&A expenses were $21.7 million, down from $31 million a year ago, driven by lower personnel, occupancy, and stock-based compensation costs.

• Q3 marketing expense rose 19% to $12 million, supporting new product launches and digital ad spend.

• Q3 Adjusted EBITDA loss was $15.7 million, a slight improvement from $16.2 million loss a year ago.

• Nine-month net revenue fell 21.7% to $104.8 million; net loss for the period was $57.7 million.

Outlook and guidance

• Full-year net revenue expected between $161 million and $166 million, revised from prior $165 million-$180 million guidance, reflecting $23-$25 million impact from international distributor transitions and store closures.

• Q4 net revenue guidance is $56-$61 million, flat to up 9% year-over-year.

• Full-year Adjusted EBITDA loss guidance tightened to -$63 million to -$57 million.

• Management expects continued net losses and negative cash flows from operations for the foreseeable future, with substantial doubt about the company’s ability to continue as a going concern.

• Plans include cost reductions, further use of credit facilities, and potential additional capital raises or strategic transactions.