Allbirds 2025 Q3 Earnings Revenue Misses, Net Loss Narrows Slightly

Allbirds (BIRD) reported Q3 2025 earnings with revenue declining 23.3% to $32.99 million, missing expectations. The company narrowed its net loss to $20.32 million, a 4.0% reduction from the prior year, and updated full-year guidance to $161–$166 million.

Revenue

The total revenue of Allbirds decreased by 23.3% to $32.99 million in 2025 Q3, down from $43 million in 2024 Q3. This decline was attributed to international distributor transitions, U.S. store closures, and structural changes aimed at streamlining operations.

Earnings/Net Income

Allbirds narrowed losses to $2.49 per share in 2025 Q3 from a loss of $2.68 per share in 2024 Q3 (7.1% improvement). Meanwhile, the company successfully narrowed its net loss to $-20.32 million in 2025 Q3, reducing losses by 4.0% compared to the $-21.18 million net loss reported in 2024 Q3. The EPS improvement reflects cost management efforts and a 30% year-over-year reduction in SG&A expenses, though the company has sustained losses for five consecutive years.

Post-Earnings Price Action Review

The stock price of Allbirds has tumbled 10.98% during the latest trading day, has plummeted 33.33% during the most recent full trading week, and has dropped 6.10% month-to-date. This sharp decline aligns with investor concerns over revenue underperformance and ongoing financial challenges, despite the company’s emphasis on cost discipline and product innovation.

CEO Commentary

Joe Vernachio, CEO of Allbirds, highlighted third-quarter results aligned with expectations, emphasizing strong customer response to new product launches. He underscored a focus on marketing to capture consumer mindshare and reignite growth, particularly during the holiday season, while prioritizing comfort, style, and sustainability. Vernachio acknowledged ongoing challenges but expressed optimism about accelerating the turnaround through cost reduction, liquidity enhancement, and value-creating opportunities. The tone was cautiously optimistic, balancing near-term hurdles with strategic initiatives to stabilize operations and drive long-term growth.

Guidance

Allbirds updated 2025 full-year revenue guidance to $161–$166 million (prior: $165–$180 million) and adjusted EBITDA loss of $63–$57 million (prior: $65–$55 million). Q4 2025 revenue is projected at $56–$61 million, with adjusted EBITDA loss of $16–$10 million. The guidance reflects impacts from international distributor transitions and U.S. store closures, structural changes aimed at streamlining operations. The company reiterated a focus on cost discipline and liquidity management while targeting growth through product innovation and marketing.

Additional News

Allbirds’ CEO Joe Vernachio emphasized a renewed focus on product innovation, citing the Wool Cruiser and waterproof collections as key drivers of customer engagement. The company plans to expand its presence to 150 specialty retail stores by spring 2026, signaling a strategic shift toward wholesale channels. Meanwhile, CFO Annie Mitchell highlighted a 30% reduction in SG&A expenses year-over-year, underscoring cost management as a priority. The company also outlined plans to enhance liquidity through capital-raising initiatives and operational efficiency.