Allbirds (BIRD) Q4 2025 earnings summary

Executive summary

• Net revenue for 2025 was $152.5 million, down 19.7% year-over-year, with a net loss of $77.3 million and adjusted EBITDA loss of $59.4 million.

• Gross margin declined to 41.0% from 42.7% in 2024, primarily due to a higher mix of digital and international distributor sales and lower average selling prices.

• The company closed all remaining full-price U.S. stores in Q1 2026 and entered into an agreement to sell substantially all assets to an affiliate of American Exchange Group.

• Substantial doubt exists about the ability to continue as a going concern, with $26.7 million in cash and $17.4 million outstanding on its credit facility at year-end.

Financial highlights

• Net revenue decreased by $37.3 million (19.7%) year-over-year, driven by declines in U.S. direct business and international distributor transitions.

• Gross profit fell by $18.5 million (22.8%), and gross margin dropped by 1.7 percentage points.

• Operating expenses decreased by $36.1 million (20.2%), mainly from lower personnel, rent, depreciation, and stock-based compensation.

• Marketing expense increased by $3.6 million (8.6%) due to upper funnel marketing investments.

• Non-cash impairment charges of $3.5 million were recorded for retail store assets.

• Adjusted EBITDA improved by $10.6 million year-over-year, but margin declined to (39.0)%.

Outlook and guidance

• The company does not expect to continue operations following the asset sale and plans to dissolve and distribute proceeds to shareholders.

• If the asset sale is not completed, additional capital or strategic transactions would be required to meet future liquidity needs.