Allbirds Second Quarter 2025 Financial Performance [Second Quarter 2025 Overview](index=1&type=section&id=Second%20Quarter%202025%20Overview) The company met Q2 guidance despite declining revenue and prepares for growth with new financing and lower inventory - The company expects to return to **top-line growth in the fourth quarter of 2025**, fueled by a continuous flow of new modern lifestyle footwear[3](index=3&type=chunk) - Completed a comprehensive financing package, including a new **three-year $75 million revolving credit facility**, enhancing financial flexibility[8](index=8&type=chunk) Q2 2025 Key Financial Metrics | Metric | Value | Change (YoY) | | :--- | :--- | :--- | | Net Revenue | $39.7 million | -23.1% | | Gross Margin | 40.7% | -980 bps | | Net Loss | $15.5 million | N/A | | Adjusted EBITDA Loss | $12.6 million | Improved from $13.7M loss | | Inventory | $42.2 million | -21.3% | [Second Quarter Operating Results](index=1&type=section&id=Second%20Quarter%20Operating%20Results) Q2 revenue and gross margin declined due to strategic shifts, but reduced operating expenses improved the adjusted EBITDA loss - The year-over-year decrease in net revenue is primarily attributed to **planned retail store closures and international distributor transitions**[4](index=4&type=chunk) - Gross margin declined mainly due to **increased promotional activity**, inventory adjustments related to the European market transition, a higher mix of international distributor business, and increased freight costs[5](index=5&type=chunk) Q2 2025 vs Q2 2024 Operating Results (in millions) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Revenue | $39.7 | $51.6 | -23.1% | | Gross Profit | $16.2 | $26.1 | -38.0% | | SG&A Expense | $24.2 | $33.6 | -28.0% | | Marketing Expense | $8.5 | $11.7 | -27.3% | | Net Loss | $15.5 | $19.1 | Improved | | Adjusted EBITDA Loss | $12.6 | $13.7 | Improved | [Six Month Operating Results](index=3&type=section&id=Six%20Month%20Operating%20Results) First-half revenue and gross margin fell, though net loss and adjusted EBITDA loss showed year-over-year improvement - Marketing expenses increased to **28.6% of net revenue in H1 2025** from 21.4% in H1 2024, driven by investments in a new brand marketing campaign during the first quarter[13](index=13&type=chunk) First Half 2025 vs First Half 2024 Operating Results (in millions) | Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Revenue | $71.8 | $90.9 | -21.0% | | Gross Profit | $30.6 | $44.5 | -31.2% | | Gross Margin | 42.6% | 49.0% | -640 bps | | Net Loss | $37.4 | $46.5 | Improved | | Adjusted EBITDA Loss | $31.2 | $34.6 | Improved | [Balance Sheet Highlights](index=3&type=section&id=Balance%20Sheet%20Highlights) The balance sheet shows cash of $33.1 million, new borrowings of $5.0 million, and a 21.3% year-over-year inventory reduction - Inventory levels **decreased by 21.3%** compared to the same period last year, indicating successful inventory management[14](index=14&type=chunk) Balance Sheet Key Items (as of June 30, 2025) | Item | Value | | :--- | :--- | | Cash and cash equivalents | $33.1 million | | Outstanding borrowings | $5.0 million | | Inventories | $42.2 million | 2025 Financial Guidance [Full Year 2025 Guidance](index=3&type=section&id=Full%20Year%202025) The company lowered its full-year revenue guidance but reiterated its adjusted EBITDA loss forecast - The guidance includes an estimated **$20 million to $25 million negative revenue impact** from the transition to a distributor model in certain international markets and U.S. store closures, an increase from the prior estimate of $18 million to $23 million[15](index=15&type=chunk) Full Year 2025 Financial Guidance | Metric | New Guidance | Previous Guidance | | :--- | :--- | :--- | | Net Revenue | $165M - $180M | $175M - $195M | | Adjusted EBITDA Loss | $65M - $55M | $65M - $55M (Reiterated) | [Third Quarter 2025 Guidance](index=4&type=section&id=Third%20Quarter%202025) The company projects Q3 net revenue between $33 million and $38 million and an adjusted EBITDA loss of $16 million to $20 million Third Quarter 2025 Financial Guidance | Metric | Guidance Range | | :--- | :--- | | Net Revenue | $33M - $38M | | - U.S. Net Revenue | $27M - $31M | | - International Net Revenue | $6M - $7M | | Adjusted EBITDA Loss | $20M - $16M | Appendix: Financial Statements & Reconciliations [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The Q2 statement of operations shows lower revenue but an improved net loss due to reduced operating expenses Q2 2025 vs Q2 2024 Statement of Operations (in thousands) | Line Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net revenue | $39,685 | $51,582 | | Gross profit | $16,154 | $26,055 | | Total operating expense | $32,681 | $46,245 | | Loss from operations | $(16,527) | $(20,190) | | Net loss | $(15,501) | $(19,133) | [Condensed Consolidated Balance Sheets](index=9&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet reflects reduced total assets and liabilities, driven by lower cash and lease obligations Balance Sheet Comparison (in thousands) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $33,144 | $66,732 | | Inventory | $42,243 | $44,121 | | Total current assets | $94,284 | $130,558 | | Total assets | $136,818 | $188,879 | | Total liabilities | $65,457 | $87,194 | | Total stockholders' equity | $71,361 | $101,685 | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash used in operations improved in H1 2025, with financing activities providing a net cash inflow Six Months Ended June 30 Cash Flow Summary (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(36,575) | $(41,791) | | Net cash used in investing activities | $(894) | $95 | | Net cash provided by financing activities | $2,152 | $183 | | Net decrease in cash | $(33,583) | $(42,605) | [Reconciliation of GAAP to Non-GAAP Financial Measures](index=11&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Measures) This section reconciles the Q2 GAAP net loss of $15.5 million to a non-GAAP adjusted EBITDA loss of $12.6 million Q2 2025 Net Loss to Adjusted EBITDA Reconciliation (in thousands) | Line Item | Amount | | :--- | :--- | | Net loss (GAAP) | $(15,501) | | Stock-based compensation | $2,048 | | Depreciation and amortization | $1,907 | | Other adjustments | $(1,021) | | Adjusted EBITDA (Non-GAAP) | $(12,572) | [Net Revenue and Store Count by Primary Geographical Market](index=12&type=section&id=Net%20Revenue%20and%20Store%20Count%20by%20Primary%20Geographical%20Market) Revenue declined across all geographic markets, accompanied by a significant reduction in the global store count - The reduction in store count is a result of **deliberate closures in the U.S.** and transitioning international stores to third-party distributors[43](index=43&type=chunk) Net Revenue by Geography (in thousands) | Region | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | United States | $28,649 | $36,627 | | International | $11,036 | $14,955 | | **Total** | **$39,685** | **$51,582** | Store Count Trend | Region | June 30, 2023 | June 30, 2024 | June 30, 2025 | | :--- | :--- | :--- | :--- | | United States | 44 | 32 | 21 | | International | 18 | 11 | 3 | | **Total** | **62** | **43** | **24** |

Core Insights - Allbirds celebrates the 10th anniversary of its iconic Wool Runner by launching the Wool Runner NZ, a modern reinterpretation of the original shoe that emphasizes comfort, design, and sustainability [1][3][8] Company Background - Allbirds was founded in 2015, with the Wool Runner being its first product, which gained popularity through a successful Kickstarter campaign [2][10] - The brand focuses on using natural materials, such as Merino wool, tree fiber, and sugarcane, to create comfortable footwear [10] Product Details - The Wool Runner NZ features a wool-blend upper and a new dual-density insole called Allbirds Featherbed™, designed for enhanced comfort [4][5] - The shoe maintains a minimalist design while incorporating sophisticated details like updated eyelet construction and concentric outsole design [6] - It will be available in full and half sizes for both men and women, retailing at $110 USD starting August 5, 2025 [9] Design Philosophy - The redesign was led by Chief Design Officer Adrian Nyman, focusing on blending iconic comfort with refined simplicity and sustainable materials [3][5] - The "NZ" in the product name pays tribute to Allbirds' origins in New Zealand, where the brand was founded by Tim Brown and Joey Zwillinger [7] Marketing and Future Plans - In conjunction with the product launch, Allbirds is enhancing its e-commerce experience and rolling out advertisements in major cities like New York and San Francisco [8] - The company aims to continue its commitment to sustainability and innovation as it moves into the next decade [8]

Core Concept - Allbirds is launching the Tree Runner NZ, an updated version of its original Tree Runner, focusing on enhanced comfort, sleek design, and sustainability [1][5] Product Features - The Tree Runner NZ features an updated SweetFoam™ midsole with a new underfoot contour, providing a stack height of 10.2mm at the forefoot and 20.0mm at the heel for a supportive stride [2] - It includes a wool-blend collar and tongue lining for a snug fit, enhancing comfort [2] - A new dual-density insole combines cushioned memory foam with a wool-blend sockliner for long-lasting comfort, validated through extensive testing of over 45 variations [3] Design Philosophy - The redesign emphasizes comfort, fit, and material quality, representing a new era of Allbirds design characterized by bold simplicity and modern sustainability [4] - The upper is made from a tree knit fiber blend, combining TENCEL™ Lyocell and recycled polyester, ensuring breathability and durability [4] Brand Heritage and Availability - The "NZ" in Tree Runner NZ reflects Allbirds' New Zealand heritage, with the product priced at $110 USD [5] - The Tree Runner NZ became available in stores on July 8, 2025, and online on July 15, 2025 [5] Company Overview - Allbirds, founded in 2015, is committed to creating footwear using natural and recycled materials, focusing on superior comfort and sustainability [6]

Core Insights - Allbirds, Inc. has signed three new distribution agreements in Eurasia, expanding its global distribution network to 16 companies [1][5] Group 1: Distribution Agreements - Beosport will serve as the exclusive distributor for Allbirds in the Balkans starting January 2026 [5] - 911 Fashion will become the exclusive distributor in Israel effective October 2025 [5] - Tradist Distribution will be the exclusive distributor in Turkiye and Central Asia from July 2025 [5] Group 2: Strategic Approach - The transition to a distributor model in international markets has been successful, enhancing brand reach and profitability [2] - The partnerships with distributors are aimed at aligning with companies that share a commitment to sustainability and innovation [2][3][4] Group 3: Distributor Profiles - Beosport, based in Serbia, specializes in premium sportswear and has a strong retail network in Southeast Europe [2] - 911 Fashion, based in Tel Aviv, focuses on ethical and sustainable fashion brands, operating 35 retail locations [3] - Tradist Distribution, headquartered in Istanbul, emphasizes brand-building and omni-channel growth across Turkiye and Central Asia [4] Group 4: Company Overview - Allbirds is a modern lifestyle footwear brand founded in 2015, known for its commitment to sustainability and innovative materials [6]

Core Viewpoint - Allbirds, Inc. has announced a comprehensive financing strategy aimed at optimizing working capital and enhancing financial flexibility to support long-term growth plans [1][2]. Financing Agreements - The company has established a new $75 million asset-based revolving credit facility, which includes a $50 million tranche and a $25 million accordion feature, replacing the previous $50 million facility [6]. - A sales agreement with TD Cowen allows the company to sell up to $50 million of Class A common stock through an At-the-Market (ATM) program [6]. - As of March 31, 2025, Allbirds reported $39.1 million in cash and cash equivalents, indicating a strong financial position [2]. Strategic Initiatives - The financing strategy supports Allbirds' initiatives to reignite product and marketing efforts, with new product launches expected in the coming weeks [2]. - The company plans to introduce over 15 new styles in its fall product lineup, focusing on modern design and unique materials [6]. - A new marketing strategy, under the "Allbirds by Nature" brand platform, aims to build long-term brand equity [6]. Operational Focus - Allbirds is committed to enhancing customer experience both online and in-store, with a store refresh program and a website redesign scheduled for July [6]. - The company emphasizes operational discipline and aims for long-term profitable growth while building durable value for shareholders [3].

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than the traditional "buying low and selling high" approach, aiming for quicker profits [1] Group 1: Momentum Investing Strategy - Investors are attracted to fast-moving stocks, but determining the right entry point can be challenging, as stocks may lose momentum if future growth does not justify their high valuations [2] - A safer strategy involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify promising candidates [3] Group 2: Allbirds, Inc. (BIRD) Analysis - Allbirds, Inc. (BIRD) has shown significant recent price momentum, with a four-week price change of 42.1%, indicating growing investor interest [4] - Over the past 12 weeks, BIRD's stock has gained 68.5%, and it has a beta of 1.69, suggesting it moves 69% more than the market [5] - BIRD has a Momentum Score of A, indicating a favorable time to invest, and it has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates [6][7] - The stock is trading at a Price-to-Sales ratio of 0.44, suggesting it is undervalued, as investors pay only 44 cents for each dollar of sales [7] Group 3: Additional Investment Opportunities - Besides BIRD, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [9]

Company Performance - Allbirds, Inc. (BIRD) has returned approximately 69.6% year-to-date, significantly outperforming the average gain of 1.2% in the Retail-Wholesale sector [4] - The Zacks Consensus Estimate for BIRD's full-year earnings has increased by 11.3% over the past three months, indicating improved analyst sentiment and earnings outlook [4] - Allbirds, Inc. is currently ranked 2 (Buy) in the Zacks Rank system, which focuses on earnings estimates and revisions [3] Industry Comparison - Allbirds, Inc. belongs to the Retail - Apparel and Shoes industry, which consists of 39 companies and is currently ranked 168 in the Zacks Industry Rank [6] - The average performance of stocks in the Retail - Apparel and Shoes industry has declined by 13.6% this year, highlighting BIRD's superior performance [6] - In contrast, Herbalife Ltd (HLF), another outperforming stock in the Retail-Wholesale sector, has returned 23.5% year-to-date and is part of the Retail - Pharmacies and Drug Stores industry, which has gained 21.9% this year [5][7]

Group 1: Allbirds, Inc. (BIRD) - Allbirds, Inc. shares increased by 12.1% to close at $11.82, with a significant trading volume compared to normal sessions, and a total gain of 57.3% over the past four weeks [1] - The company is focusing on brand marketing, product innovation, and customer experience, which is expected to drive top-line momentum in the second half of the year [1] - The consensus EPS estimate for the upcoming quarter has been revised 5.2% higher, indicating a positive trend that may lead to price appreciation [3] Group 2: Levi Strauss (LEVI) - Levi Strauss' consensus EPS estimate for the upcoming report remains unchanged at $0.13, reflecting an 18.8% decrease compared to the previous year [4] - The stock closed at $17.10, with a 1.3% decline in the last trading session and a return of -1.1% over the past month [3][4] - Levi Strauss currently holds a Zacks Rank of 3 (Hold), indicating a neutral outlook [4]

Momentum investing is essentially an exception to the idea of "buying low and selling high." Investors following this style of investing are usually not interested in betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.Everyone likes betting on fast-moving trending stocks, but it isn't easy to determine the right entry point. These stocks often lose momentum when their future growth potenti ...

Summary of Allbirds (BIRD) FY Conference Call - June 03, 2025 Company Overview - **Company**: Allbirds (BIRD) - **Industry**: Footwear and Apparel - **Focus**: Transformation and growth strategy post-IPO in 2021 Key Focus Areas 1. **Product Development** - Introduction of 19 new products planned between July and December 2025, following 4 new products introduced from January to July 2025 [7][8] - Emphasis on iconic materials and silhouettes, including waterproof shoes and cozy wool products [9][11] - New product lines aimed at casual lifestyle footwear, targeting various use occasions [20][21] 2. **Marketing Strategy** - Reintroduction of the brand through storytelling and engaging content, including a marketing campaign featuring Stanley Tucci [23][24] - Increased marketing spend planned for 2025 to enhance brand awareness, currently at only 15% aided awareness [48][50] - Focus on creating a strong brand identity that resonates with consumers [25][52] 3. **Customer Experience** - Enhancing the purchasing experience both online and in-store, recognizing that many consumers prioritize experience over immediate purchases [4][5] - Commitment to maintaining healthy inventory levels to support customer satisfaction and future growth [33][34] Financial Insights - **Core Consumer Demographics**: Households with an income of $150,000, typically married couples with children, aged 30-50 [12][18] - **Tariff Impact**: Current footwear production in Vietnam faces a 10% tariff, with scenario planning for potential increases [15][17] - **Operational Improvements**: Focus on reducing costs in product COGS and SG&A, leading to improved cash flows and positioning for profitability [29][30] Distribution Strategy - **Balanced Marketplace Approach**: Combination of direct-to-consumer (DTC) and wholesale strategies, with a focus on building a robust product engine for wholesale [31][32] - **International Expansion**: Transitioning to distributor models in various international markets, resulting in immediate profitability [35][56] Product and Market Positioning - **Performance Angle**: Allbirds emphasizes comfort as its performance angle, appealing to consumers seeking lifestyle footwear that is both stylish and comfortable [40][41] - **Sustainability Proposition**: Commitment to sustainable materials and practices, enhancing the brand's appeal to environmentally conscious consumers [43][44] Future Outlook - **Growth Potential**: Anticipation of significant growth opportunities in the casual lifestyle footwear market, with a focus on innovative product offerings and enhanced marketing efforts [63][66] - **Excitement for Upcoming Products**: Confidence in the upcoming product launches from July 2025 onwards, with a strong belief in the company's ability to return to profitability [66][67] Conclusion - Allbirds is undergoing a significant transformation aimed at revitalizing its brand through product innovation, strategic marketing, and enhanced customer experiences, positioning itself for growth and profitability in the coming years.