Allbirds, Inc., the one-time direct-to-consumer (DTC) darling brand, announced that it has entered into a definitive agreement to be acquired by the American Exchange Group for $39 million.
The sale was negotiated by a committee of independent directors and received unanimous approval from Allbirds’ Board of Directors, subject to approval by Allbirds’ common stockholders.
The deal, which could see price adjustments before finalizing, is expected to close in the second quarter of 2026 with distributions including costs to wind down the public company.
American Exchange Group (AXNY) has been an active acquirer in the brand management space in recent years, with a portfolio of owned and licensed brands that includes Aerosoles, Jonathan Adler, White Mountain, Ed Hardy, Rampage, Alexis Bendel, Born, and Island Surf Company.
Joe Vernachio, CEO of Allbirds, stated, “We are incredibly thankful to our teams for the work they have been doing to fuel our product engine, build awareness of Allbirds and deliver an engaging customer experience. Over the past decade, Allbirds has evolved into a lifestyle footwear brand known for modern design, innovative materials and unparalleled comfort. This next chapter with AXNY builds on the foundational work already completed and sets up the brand to thrive in the years ahead.”
Allbirds, founded in 2015 by Tim Brown and Joey Zwillinger in San Francisco, CA, built one of the most talked-about DTC brands of the past decade, reaching nearly $300 million in revenue by 2022 on the strength of sustainable materials and word-of-mouth buzz. After going public in 2021, Allbirds aggressively expanded into physical retail while entering adjacent product categories — leggings, jackets and performance running shoes — that failed to connect with consumers. Amid mounting losses and numerous restructuring efforts, Allbirds earlier this year moved to close nearly all its remaining stores, which peaked at over 60 globally in 2023, in a pivot back to e-commerce to restore profitability.
Allbirds continues to operate two outlet stores in the U.S. and two full-price stores in London while also selling through wholesale partnerships.
The $39 million purchase price is about one-tenth of the $348 million it raised in its 2021 IPO and a fraction of the more than $4 billion valuation it briefly commanded on its first day of trading. Allbirds underwent a 1-for-20 reverse stock split in 2024.
The purchase price still represents a premium versus recent trading levels. On Monday, March 29, Allbirds’ stock closed at $2.98, giving the company a market capitalization of $24.5 million. Shares were up about 50 cents, or 16 percent, in after-hours trading on the acquisition news.
Allbirds’ third-quarter revenues declined 23.3 percent to $33.0 million while its net losses in the period totaled $20.3 million, or $2.49 per share. At the time, the company lowered its full-year sales guidance to $161 million to $166 million, down from $189.8 million in 2024, $254.1 million in 2023 and $297.8 million in 2022. The company expected an adjusted EBITDA loss of $ 57 million to $ 63 million, compared with an adjusted EBITDA loss of $70.0 million in 2024.
As a result of the sales announcement, Allbirds will not issue an earnings release or hold its originally scheduled earnings call on March 31, 2026. The company said it intends to file its Annual Report on Form 10-K with the U.S. Securities and Exchange Commission for the year ended December 31, 2025 on March 31, 2026.
Image courtesy Allbirds, Inc.
