Allbirds Reports Q1 2025 Financial Results

Allbirds, Inc. Class A ( (BIRD) ) has released its Q1 earnings. Here is a breakdown of the information Allbirds, Inc. Class A presented to its investors.

Allbirds, Inc. is a global lifestyle footwear brand known for its commitment to sustainability, using materials like Merino wool and sugarcane to create environmentally friendly products. The company recently released its financial results for the first quarter of 2025, reporting net revenue of $32.1 million, which aligns with its guidance range but marks an 18.3% decrease from the previous year. Despite the revenue decline, Allbirds managed to achieve an adjusted EBITDA loss of $18.6 million, which was better than anticipated.

Key financial highlights from the quarter include a gross margin of 44.8%, a decrease of 210 basis points from the previous year, and a net loss of $21.9 million. The company attributed the revenue decline to planned retail store closures and transitions to international distributors. However, Allbirds saw a decrease in selling, general, and administrative expenses, which were reduced to 78.5% of net revenue, down from 101% the previous year.

Allbirds launched a new brand marketing campaign, ‘Cards on the Table,’ featuring Stanley Tucci, which contributed to an increase in marketing expenses to $12 million. The campaign aims to boost brand awareness ahead of upcoming product launches. The company ended the quarter with $39.1 million in cash and no outstanding borrowings, positioning it well for future endeavors.

Looking ahead, Allbirds maintains its full-year 2025 financial guidance, projecting net revenue between $175 million and $195 million, despite anticipated revenue impacts from its strategic shift to a distributor model in certain international markets. The company remains optimistic about its long-term growth trajectory, focusing on product innovation, marketing, and customer experience to drive future success.