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Allbirds (BIRD)
NASDAQ:BIRD
US Market

Allbirds (BIRD) AI Stock Analysis

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Allbirds

(NASDAQ:BIRD)

Rating:56Neutral
Price Target:
$11.00
▲(3.58%Upside)
The overall score is primarily influenced by financial difficulties, including persistent losses and liquidity challenges. Despite positive technical indicators and proactive corporate strategies, the valuation concerns and financial performance issues weigh heavily on the stock's outlook.
Positive Factors
Operational Efficiency
Transitioning to a distributor model and closing underperforming stores are creating a more favorable working capital dynamic and improving inventory management.
Sustainability and Branding
Allbirds is focusing on a business model that capitalizes on its brand with sustainable, profitable sales growth, appealing to consumers interested in eco-friendly products.
Valuation and Market Position
Shares are trading at a discount to the peer average, indicating potential for valuation growth.
Negative Factors
Cash Flow and Profitability
Investor focus remains on the lack of profitability and the increasing cash burn rate, which is not expected to improve in the near term.
Financial Performance
Fundamentals are highly challenged with sales and adjusted EBITDA margin both significantly down year-over-year.
Guidance and Expectations
Sales guidance for the second quarter is about 12.5% below expectations, representing a considerable year-over-year decline.

Allbirds (BIRD) vs. SPDR S&P 500 ETF (SPY)

Allbirds Business Overview & Revenue Model

Company DescriptionAllbirds, Inc. manufactures and sells footwear and apparel products for men and women. It offers shoes, such as running shoes, everyday sneakers, high-tops, slip-ons, boat shoes, flats, weather repellent shoes, and sandals. The company's apparel products include activewear, tops, bottoms, dresses, sweaters, underwear, and socks. It sells its products through its retail stores in the United States and internationally, as well as online. Allbirds, Inc. was formerly known as Bozz, Inc. Allbirds, Inc. was incorporated in 2015 and is based in San Francisco, California.
How the Company Makes MoneyAllbirds generates revenue through the sale of its footwear and apparel products directly to consumers via its e-commerce platform and physical retail stores. The company's revenue model centers on a direct-to-consumer approach that allows it to maintain control over the brand experience and customer interactions. Key revenue streams include online sales, which constitute a significant portion of its income, and sales from its retail locations in various countries. Allbirds also emphasizes sustainable production processes, which are integral to its brand identity and help attract environmentally conscious consumers. Additionally, collaborations and partnerships with like-minded brands can contribute to Allbirds' earnings by expanding its market reach and product offerings.

Allbirds Earnings Call Summary

Earnings Call Date:May 08, 2025
(Q1-2025)
|
% Change Since: 96.30%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Neutral
The earnings call presented a balanced view, highlighting strong execution in product launches and marketing strategies, which are expected to drive future growth. However, the company faces challenges with gross margin pressures and an uncertain macroeconomic environment due to tariffs. Despite these challenges, management expressed confidence in achieving top-line growth in the fourth quarter.
Q1-2025 Updates
Positive Updates
Exceeding Bottom-Line Guidance
The company's adjusted EBITDA loss exceeded expectations, showing an improvement of 11% year-over-year, reflecting better-than-expected gross profit and strict cost control.
Successful Product Launches
New products, including the Canvas Piper and utility products, ranked in the top five of sales, illustrating strong consumer response and supporting sales growth.
Innovative Marketing Campaign
The 'Cards on the Table' marketing campaign generated over 25 million Instagram views, improving brand visibility and re-engagement with customers.
Inventory Management Efficiency
Inventory levels were down 29% compared to the previous year, reflecting effective inventory management strategies.
Positive Revenue Outlook
Despite challenges, the company expects a return to top-line growth in Q4, driven by new product offerings and marketing initiatives.
Negative Updates
Gross Margin Pressure
Q1 gross margins declined by 210 basis points year-over-year due to a higher mix of international sales and costs related to sunsetting products.
Macroeconomic and Tariff Challenges
The evolving tariff landscape and macroeconomic uncertainty may impact consumer behavior and supply chain stability.
Choppy Consumer Behavior
Consumer behavior has been unpredictable, with fluctuations in traffic and conversion rates since early April.
Company Guidance
During the Allbirds, Inc.'s First Quarter 2025 Earnings Conference Call, the company provided guidance indicating a positive trajectory toward growth and profitability. The net revenue for Q1 was reported at $32 million, aligning with their guidance, while the gross margin stood at 44.8%, slightly down by 210 basis points year-over-year but surpassing expectations. The adjusted EBITDA loss was $19 million, reflecting an 11% improvement from the previous year. For the full year 2025, Allbirds anticipates net revenue between $175 million and $195 million, factoring in an $18 million to $23 million negative impact due to distributor transition and store closures. The guidance for the second quarter is a net revenue range of $36 million to $41 million, with an adjusted EBITDA loss between $19 million and $16 million. The company aims for a return to top-line growth by Q4, driven by new product offerings and marketing initiatives. Despite the challenges posed by tariffs and macroeconomic uncertainties, Allbirds remains cautiously optimistic about achieving mid-forties gross margins for the year.

Allbirds Financial Statement Overview

Summary
Allbirds is facing significant financial challenges with declining revenues and persistent losses. The company's negative cash flow and increased leverage are concerning, despite a strong gross profit margin.
Income Statement
45
Neutral
Allbirds has faced declining revenues, with a revenue decrease from $297.8 million in 2022 to $189.8 million in 2024. The company has consistently reported negative net income, with a worsening net profit margin, currently at -49.2% for 2024. Despite a high gross profit margin of 42.7% in 2024, the EBIT and EBITDA margins are negative, indicating challenges in efficiently managing operating expenses.
Balance Sheet
50
Neutral
The balance sheet shows a concerning trend with decreasing stockholders' equity, now at $101.7 million in 2024, down from $316.8 million in 2022. The debt-to-equity ratio has increased, currently standing at 0.53. This indicates rising leverage, though the company has managed to keep a positive equity ratio of 53.8%, reflecting some stability in asset management.
Cash Flow
40
Negative
Allbirds' cash flow statement reveals significant challenges, with a negative free cash flow of $-67.96 million in 2024. The operating cash flow to net income ratio is negative, suggesting inefficiencies in operational cash generation. The free cash flow has been consistently negative, indicating ongoing liquidity concerns.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue182.54M189.76M254.06M297.77M277.47M219.30M
Gross Profit74.52M81.06M104.23M129.63M146.66M112.74M
EBITDA-83.15M-81.56M-97.85M-83.93M-34.36M-22.59M
Net Income-87.86M-93.32M-152.46M-101.35M-45.37M-25.86M
Balance Sheet
Total Assets147.26M188.88M312.70M462.36M488.43M244.04M
Cash, Cash Equivalents and Short-Term Investments39.06M66.73M130.03M167.14M288.58M126.55M
Total Debt43.63M53.67M93.95M105.85M0.00204.05M
Total Liabilities64.44M87.19M127.38M145.59M91.42M269.55M
Stockholders Equity82.82M101.69M185.33M316.77M397.00M-25.51M
Cash Flow
Free Cash Flow-69.16M-67.95M-41.09M-121.95M-75.03M-48.93M
Operating Cash Flow-65.54M-63.86M-30.22M-90.58M-50.85M-34.58M
Investing Cash Flow2.67M2.12M-7.71M-32.29M-25.64M-16.28M
Financing Cash Flow257.00K287.00K640.00K3.58M238.15M102.19M

Allbirds Technical Analysis

Technical Analysis Sentiment
Positive
Last Price10.62
Price Trends
50DMA
7.81
Positive
100DMA
6.86
Positive
200DMA
7.81
Positive
Market Momentum
MACD
0.75
Positive
RSI
58.39
Neutral
STOCH
72.99
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BIRD, the sentiment is Positive. The current price of 10.62 is above the 20-day moving average (MA) of 10.37, above the 50-day MA of 7.81, and above the 200-day MA of 7.81, indicating a bullish trend. The MACD of 0.75 indicates Positive momentum. The RSI at 58.39 is Neutral, neither overbought nor oversold. The STOCH value of 72.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BIRD.

Allbirds Risk Analysis

Allbirds disclosed 77 risk factors in its most recent earnings report. Allbirds reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Allbirds Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$17.59B75.1615.84%34.75%60.65%
62
Neutral
C$5.24B11.0818.82%3.79%5.08%6.52%
56
Neutral
$86.44M-72.29%-23.63%41.36%
56
Neutral
$258.03M1,320.000.23%3.01%
51
Neutral
$521.95M-27.37%-8.48%55.77%
47
Neutral
$52.16M-47.54%-8.79%-15.17%
42
Neutral
$82.67M-27.53%-4.21%-292.04%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BIRD
Allbirds
10.62
0.44
4.32%
TLYS
Tilly's
1.73
-3.76
-68.49%
ZUMZ
Zumiez
14.52
-6.04
-29.38%
DLTH
Duluth Holdings
2.20
-1.35
-38.03%
SFIX
Stitch Fix
4.00
-0.23
-5.44%
ONON
On Holding AG
54.31
16.38
43.18%

Allbirds Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
Allbirds Secures $75M Credit Facility for Growth
Positive
Jul 1, 2025

On June 30, 2025, Allbirds announced a new $75 million credit facility with Second Avenue Capital Partners and a sales agreement with TD Securities to sell up to $50 million of Class A common stock. These financial strategies aim to enhance liquidity and support Allbirds’ growth plans, including new product launches and marketing initiatives. The company is focused on improving customer experience and maintaining financial discipline to drive long-term growth and shareholder value.

The most recent analyst rating on (BIRD) stock is a Hold with a $20.00 price target. To see the full list of analyst forecasts on Allbirds stock, see the BIRD Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Allbirds Elects New Director at Annual Meeting
Positive
Jun 10, 2025

On June 6, 2025, Allbirds, Inc. held its Annual Meeting of Stockholders where two major proposals were voted on. Ann Freeman was elected as a Class I director to serve until the 2028 Annual Meeting, and Deloitte & Touche LLP was ratified as the independent registered public accounting firm for the fiscal year ending December 31, 2025. These decisions are expected to impact the company’s governance and financial oversight positively.

The most recent analyst rating on (BIRD) stock is a Hold with a $20.00 price target. To see the full list of analyst forecasts on Allbirds stock, see the BIRD Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Allbirds Director Neil Blumenthal to Step Down
Neutral
Apr 24, 2025

On April 23, 2025, Neil Blumenthal, a member of Allbirds‘ Board of Directors since August 2018, announced he will not seek reelection at the 2025 Annual Meeting of Stockholders. His decision is not due to any disagreements with the company, and he will continue his role until the meeting, indicating a smooth transition for the company.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 01, 2025