Allbirds 2025 Q2 Earnings Losses Narrow, Revenue Declines

Allbirds (BIRD) reported its fiscal 2025 Q2 earnings on Aug 8th, 2025. The company faced a significant revenue decline, with total revenue dropping 23.1% year-over-year to $39.69 million. Meanwhile, it narrowed its per-share loss to $1.92, an improvement of 21.6% from $2.45 in the prior-year quarter. Although the company reported a net loss of $-15.50 million, it marked a 19.0% reduction compared to $-19.13 million in 2024 Q2, it has reported losses in this quarter for five consecutive years.

Revenue
Total revenue for Allbirds dropped 23.1% to $39.69 million in 2025 Q2, compared to $51.58 million in the same period in 2024. This marked a significant decline in the company's top-line performance.

Earnings/Net Income
Allbirds narrowed its per-share loss to $1.92, representing a 21.6% improvement compared to $2.45 in the prior-year quarter. The company also reduced its net loss to $-15.50 million, a 19.0% decrease from $-19.13 million in 2024 Q2. However, the company has sustained losses for five consecutive years, indicating ongoing financial challenges despite the reduction in losses.

Price Action
The stock price of Allbirds has experienced a sharp decline, plummeting 22.37% on the latest trading day, 26.95% over the most recent full trading week, and 36.91% month-to-date. This significant drop reflects investor concerns over the company’s financial performance and future outlook.

Post-Earnings Price Action Review
A strategy of buying Allbirds shares 30 days after its earnings release following a quarter-over-quarter revenue increase over the past three years delivered poor performance. The strategy’s compound annual growth rate (CAGR) was -27.99%, with a total return of -58.06%, significantly underperforming the benchmark return of 60.34%. The strategy exhibited a maximum drawdown of 0.00% and a Sharpe ratio of -0.90, highlighting poor risk management and an inability to generate returns, making it an unviable approach for investors seeking both safety and returns.

CEO Commentary
Joe Vernachio, CEO of Allbirds, expressed optimism about the company’s future, stating that Allbirds is at the threshold of product, marketing, and customer experience initiatives converging to reignite the brand. The company plans to launch a continuous flow of modern lifestyle footwear with Allbirds’ signature design, materials, and comfort. These initiatives, combined with operational and financial improvements, are expected to drive a return to top-line growth in Q4 2025.

Guidance
The company revised its full-year 2025 revenue outlook but reiterates its adjusted EBITDA guidance. Allbirds expects to see a return to top-line growth in the fourth quarter of 2025, driven by product launches and marketing efforts, while maintaining operational and financial discipline.

Additional News
There have been no significant M&A activities or C-Level changes reported within the last three weeks. Additionally, there were no dividend or buyback announcements related to Allbirds. However, broader market trends include Trump’s recent tariff announcements impacting U.S. equity markets and geopolitical tensions between global leaders, which could influence investor sentiment towards consumer brands like Allbirds.