Allbirds (BIRD) Q3 2025 earnings summary

Executive summary

• Q3 net revenue was $33 million, down 23.3% year-over-year and in line with guidance, driven by strong new product launches but offset by underperformance in legacy franchises.

• Net loss for Q3 was $20.3 million ($2.49 per share), with adjusted EBITDA loss of $15.7 million, a slight improvement from the prior year.

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

• Brand revitalization efforts and new collections like Wool Cruiser and Waterproof Collection outperformed, while foundational franchises lagged.

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

Financial highlights

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

• SG&A expense in Q3 was $21.7 million, down from $31.0 million a year ago, reflecting cost controls.

• Marketing expense rose to $12 million in Q3, up 19% year-over-year, driven by digital ad spend for new product launches.

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

• Adjusted EBITDA loss for nine months was $46.9 million, slightly improved from $50.9 million a year ago.

Outlook and guidance

• Full-year net revenue expected between $161 million and $166 million, revised down from prior guidance.

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

• Full-year Adjusted EBITDA loss expected between $63 million and $57 million; Q4 Adjusted EBITDA loss guidance is $16 million-$10 million.

• Management expects continued net losses and negative cash flows, raising substantial doubt about the ability to continue as a going concern.

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