Allbirds (BIRD) Q1 2025 earnings summary

Executive summary

• Q1 2025 net revenue was $32.1 million, down 18.3% year-over-year, in line with guidance, primarily due to retail store closures and international distributor transitions.

• Net loss improved to $21.9 million from $27.3 million in Q1 2024, driven by reduced operating expenses.

• Adjusted EBITDA loss for Q1 was $18.6 million, an 11% year-over-year improvement and above guidance.

• Gross margin declined to 44.8% from 46.9% year-over-year, impacted by lower average selling prices, higher freight costs, and a higher distributor mix.

• Foundational changes include reduced retail footprint, transition to distributor model internationally, right-sized inventory, and cost reductions.

Financial highlights

• Q1 net revenue was $32.1 million, down $7.2 million or 18.3% year-over-year.

• Gross profit fell by $4.1 million, or 22.0%, year-over-year.

• SG&A expenses decreased by $14.5 million, or 36.5%, due to lower personnel, depreciation, occupancy, and stock-based compensation costs.

• Marketing expense increased by $4.3 million, or 54.9%, to $12 million (37.4% of revenue), reflecting investment in upper funnel marketing.

• Ended Q1 with $39.1 million in cash and no outstanding borrowings; inventory was $42.9 million, down 29.3% year-over-year.

Outlook and guidance

• Full-year 2025 net revenue expected between $175 million and $195 million, including $18–$23 million negative impact from distributor transitions and store closures.

• Excluding structural changes, net sales expected to grow ~10% at midpoint versus 2024.

• Full-year adjusted EBITDA loss projected at $65–$55 million.

• Q2 net revenue guidance is $36–$41 million, with adjusted EBITDA loss of $19–$16 million.

• The company believes existing cash, cash equivalents, and available credit will be sufficient for the next 12 months.