Allbirds, Inc. reported that its 2025 first-quarter net revenue decreased 18.3 percent to $32.1 million compared to $39.3 million in the 2024 first quarter. The year-over-year (y/y) decrease was primarily attributable to planned retail store closures and international distributor transitions, partially offset by gift card breakage.

Gross profit totaled $14.4 million in Q1, compared to $18.5 million in the 2024 first quarter, and gross margin declined 210 basis points to 44.8 percent of net revenue, compared to 46.9 percent in the 2024 first quarter. The decline in gross margin was primarily due to a higher mix of business from international distributors, increased promotional activity and higher freight costs per unit in Direct business. The declines were partially offset by gift card breakage.

Selling, general and administrative (SG&A) expense was $25.2 million, or 78.5 percent of net revenue, compared to $39.7 million, or 101.0 percent of net revenue, in the 2024 first quarter. The decrease was primarily attributable to lower personnel expenses, depreciation and amortization expense, occupancy costs, professional services fees, and stock-based compensation expenses.

Marketing expense totaled $12.0 million, or 37.4 percent of net revenue, compared to $7.8 million, or 19.7 percent of net revenue, in the 2024 first quarter. The year-over-year increase was primarily driven by planned investments in the company’s new brand marketing campaign, which launched in March.

Net loss for the first quarter of 2025 was $21.9 million, compared to $27.3 million in the 2024 first quarter, and net loss margin was 68.1 percent compared to 69.5 percent in the 2024 first quarter.

Adjusted EBITDA loss for the first quarter of 2025 improved to $18.6 million, compared to a loss of $20.9 million in the 2024 first quarter, and adjusted EBITDA margin declined to negative 58.1 percent, compared to negative 53.1 percent in the 2024 first quarter.

“We’re pleased to report another quarter of progress against our plans, delivering financial results within or above our expectations,” said CEO Joe Vernachio. “The foundational work we have done over the past year is converging with our key focus areas of product, marketing and customer experience and positioning us to generate expected top-line momentum in the second half of the year.

“During the quarter, we launched our new brand marketing campaign, Cards on the Table, featuring Stanley Tucci, which is building awareness of Allbirds among new and existing customers leading up to our fall product launches. Despite the macro backdrop, positive indicators from our initial product and marketing initiatives, combined with strong execution, make us confident in our long-term trajectory.”

Balance Sheet Highlights
Allbirds had $39.1 million of cash and cash equivalents and no outstanding borrowings under its $50.0 million revolving credit facility at quarter-end.

Inventories totaled $42.9 million, a decrease of 29.3 percent versus quarter-end in Q1 2024, which is reportedly in line with expectations leading up to the launch of fall 2025 new product introductions planned in the latter part of Q3.

2025 Financial Guidance
Allbirds said it is reiterating the following financial guidance for 2025, which includes negative impacts of approximately $18 million to $23 million of revenue associated with the transition from a direct selling model to a distributor model in certain international markets and the closure of certain Allbirds stores in the U.S.

Full Year 2025

  • Net revenue of $175 million to $195 million;
  • U.S. net revenue of $145 million to $160 million;
  • International net revenue of $30 million to $35 million; and
  • Adjusted EBITDA loss of $65 million to $55 million.

Second Quarter 2025

  • Net revenue of $36 million to $41 million;
  • U.S. net revenue of $26 million to $30 million;
  • International net revenue of $10 million to $11 million; and
  • Adjusted EBITDA loss of $19 million to $16 million.

Image courtesy Allbirds, Inc.