Allbirds 2025 Q3 Earnings Narrowed Losses by 4% Amid Revenue Decline

Allbirds (BIRD) reported fiscal 2025 Q3 earnings on Nov 7, 2025, with revenue declining 23.3% to $32.99 million and net losses narrowing by 4% year-over-year. The company reduced its full-year revenue guidance to $161–166 million from $165–180 million, reflecting ongoing challenges from international distributor transitions and U.S. store closures.

Revenue

Allbirds’ total revenue for Q3 2025 fell to $32.99 million, a 23.3% decrease compared to $43 million in the same period in 2024. The decline was attributed to structural changes, including international distributor transitions and planned retail store closures, which impacted sales by $23–25 million. The company’s focus on cost management and liquidity improvement has offset some of these headwinds, but revenue remains below expectations.

Earnings/Net Income

The company narrowed its net loss to $20.32 million in Q3 2025, a 4% reduction from $21.18 million in Q3 2024. Earnings per share improved to -$2.49 from -$2.68, reflecting disciplined cost control. Despite sustained losses over five years, the reduction in net loss suggests progress in operational efficiency.

Post-Earnings Price Action Review

A strategy of buying BIRD when its revenue beats expectations and holding for 30 days has shown strong performance, outperforming the SPY benchmark with a 15.84% annualized return and a 11.78% maximum drawdown. This approach highlights the stock’s potential for capital appreciation while managing risk effectively.

CEO Commentary

CEO Joe Vernachio emphasized progress in product innovation and marketing, citing strong consumer response to new launches like the Wool Cruiser and waterproof collections. The company plans to enhance liquidity, reduce costs, and expand its presence in 150 specialty retail stores by spring 2026. Vernachio balanced cautious optimism about growth with urgency to address operational challenges.

Guidance

Allbirds revised full-year 2025 revenue guidance to $161–166 million, down from $165–180 million, with adjusted EBITDA loss projected at $63–57 million. Q4 revenue is expected to range between $56–61 million, with adjusted EBITDA loss of $16–10 million. The company attributes the revised outlook to international distributor transitions and U.S. store closures, while reiterating a focus on cost reduction and liquidity management.

Additional News

Recent non-earnings developments include strategic initiatives to expand into 150 specialty retail stores by spring 2026, a relaunched website to enhance customer experience, and a shift in marketing strategy emphasizing influencer partnerships and product utility. The company also announced a 25% year-over-year reduction in inventory to $43 million, reflecting disciplined inventory management. Additionally, Allbirds plans to leverage its new waterproof collection and Wool Cruiser to drive growth during the holiday season.

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