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Jun 30
Allbirds Q2 2025 Earnings Report
Allbirds reported its second quarter 2025 financial results, with net revenue at the high end of guidance and an improved adjusted EBITDA loss.
Key Takeaways
Allbirds reported second quarter 2025 net revenue of $39.7 million, which was at the high end of their guidance range, despite a 23.1% decrease year-over-year. The company also improved its adjusted EBITDA loss to $12.6 million, exceeding its guidance range. Net loss for the quarter was $15.5 million.
Second quarter net revenue was $39.7 million, aligning with the high end of the company's guidance.
Gross margin declined to 40.7% due to increased promotional activity and international distributor transitions.
Adjusted EBITDA loss improved to $12.6 million, surpassing the company's guidance.
The company completed a comprehensive financing package, including a new $75 million revolving credit facility.
Allbirds
Allbirds
Allbirds Revenue by Geographic Location
Revenue by Geographic Location
United States Revenue
CapyFin.comInternational Revenue
CapyFin.com Forward Guidance
Allbirds revised its full-year 2025 net revenue outlook downwards but reiterated its adjusted EBITDA guidance. The company expects a return to top-line growth in Q4 2025 driven by new product, marketing, and customer experience initiatives.
Positive Outlook
- Reiterated full-year 2025 Adjusted EBITDA loss guidance of $65 million to $55 million.
- Product, marketing, and customer experience initiatives are expected to fuel revenue growth in Q4 2025.
- Expected return to top-line growth in the fourth quarter of this year.
- New three-year $75 million revolving credit facility provides financial flexibility.
- Anticipated continuous flow of modern lifestyle footwear with distinct Allbirds design and comfort.
Challenges Ahead
- Revised full-year 2025 net revenue outlook downwards to $165 million to $180 million from previous guidance of $175 million to $195 million.
- Approximately $20 million to $25 million impact to revenue associated with the transition from a direct selling model to a distributor model in certain international markets.
- Closure of certain Allbirds stores in the U.S. contributing to revenue impact.
- Third-quarter 2025 net revenue guidance of $33 million to $38 million indicates continued decline.
- Third-quarter 2025 Adjusted EBITDA loss guidance of $20 million to $16 million suggests ongoing losses.
Revenue & Expenses
Visualization of income flow from segment revenue to net income