Allbirds 2025 Q3 Earnings Revenue Drops 23.3% Despite Narrowed Net Loss

Allbirds reported Q3 2025 results that missed revenue expectations and cut full-year guidance, with a 23.3% revenue decline to $32.99 million and a 7.1% improvement in net loss per share. The company attributed the revenue drop to international distributor transitions and U.S. store closures, while narrowing losses to $2.49 per share.

Revenue

Allbirds’ total revenue fell to $32.99 million in Q3 2025, a 23.3% decline from $43 million in the same period last year. The performance missed analyst estimates of $34.25 million, driven by structural changes including international distributor transitions and planned retail store closures.

Earnings/Net Income

The company narrowed its net loss to $20.32 million in Q3 2025, a 4.0% reduction from the $21.18 million loss in 2024 Q3, with EPS improving to -$2.49 from -$2.68. Despite this improvement, Allbirds has sustained losses for five consecutive years, underscoring ongoing financial challenges.

Price Action

Allbirds’ stock price fell 10.98% during the latest trading day, 33.33% over the past week, and 6.10% month-to-date. The shares sank nearly 10% in after-market trading following the guidance cut.

Post-Earnings Price Action Review

The stock’s post-earnings price action reflects investor disappointment with the revenue miss and revised guidance. While the narrowed net loss offered some optimism, structural headwinds—including international distributor transitions and store closures—weighed on market sentiment. The 10.98% daily drop and 33.33% weekly decline highlight the stock’s vulnerability to operational challenges and macroeconomic uncertainties.

CEO Commentary

CEO Joe Vernachio emphasized progress in product innovation, citing strong customer response to new launches like the Wool Cruiser and waterproof collection. He outlined strategic priorities to reduce costs, enhance liquidity, and pursue value-creating opportunities. However, he acknowledged structural challenges, including international distributor transitions and retail store closures, while reiterating a focus on comfort, style, and sustainability.

Guidance

Allbirds revised full-year 2025 revenue guidance to $161–166 million (prior: $165–180 million), factoring in $23–25 million in revenue impacts from distributor transitions and store closures. Q4 2025 revenue is expected at $56–61 million, with adjusted EBITDA loss of $16–10 million. The company reiterated cost-reduction efforts and liquidity management, aligning with Q3 results showing $23.7 million in cash and $12.3 million in borrowings under its $50 million credit facility.

Additional News

Allbirds is pivoting its wholesale strategy, planning to expand into 150 specialty retail stores by spring 2026. The company also relaunched its website to refine the customer experience and increased marketing spend by 19% year-over-year to $12 million in Q3. CFO Annie Mitchell highlighted a 30% reduction in SG&A expenses compared to 2024 Q3. Meanwhile, William Blair analysts noted that while new product launches elevated brand perception, foundational franchises like the original runner remain underperforming.

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