Core Insights - Allbirds, Inc. has signed distribution agreements to expand its presence in Central and South America, as well as Southern Europe [1][2] - Kiwi Life Group and Trendy King have been appointed as exclusive distributors for Allbirds in their respective regions [2][4] Group 1: Distribution Agreements - Allbirds has partnered with Kiwi Life Group for exclusive distribution in Central America, the Caribbean, Chile, and Colombia [2] - Trendy King will serve as the exclusive distributor for Allbirds in Spain and Portugal [2] Group 2: Strategic Goals - The company aims to build a strong presence in new geographies to drive long-term profitable growth [3] - Allbirds is focused on enhancing its product, marketing, and customer experience initiatives [3] Group 3: Distributor Insights - Kiwi Life Group is dedicated to introducing innovative footwear brands to Latin America and the Caribbean, emphasizing sustainability [3] - Trendy King has over 30 years of experience in the fashion industry and specializes in multichannel commercial solutions [4] Group 4: Company Overview - Allbirds is a modern lifestyle footwear brand founded in 2015, known for its commitment to sustainability and comfort [5] - The brand utilizes natural materials such as Merino wool, tree fiber, and sugarcane in its products [5]

Part I—Financial Information [Item 1. Financial Statements (Unaudited)](index=8&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) Unaudited Q1 2025 financials show decreased revenue, a net loss of $21.9 million, reduced assets, and negative operating cash flow, adjusted for a 1-for-20 reverse stock split - On August 30, 2024, the company executed a **1-for-20 reverse stock split** of its Class A and Class B common stock, effective September 4, 2024 All share and per-share data in the financial statements have been retroactively adjusted to reflect this split[37](index=37&type=chunk)[84](index=84&type=chunk)[85](index=85&type=chunk) - In Q1 2025, the company updated its accounting estimate for gift card breakage based on more historical data, resulting in a one-time cumulative adjustment that increased net revenues and gross profit by approximately **$1.9 million**[52](index=52&type=chunk) [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets decreased to $147.3 million from $188.9 million, driven by reduced cash, while total liabilities and stockholders' equity also declined Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Current Assets** | | | | Cash and cash equivalents | $39,056 | $66,732 | | Inventory | $42,873 | $44,121 | | Total current assets | $97,788 | $130,558 | | **Total Assets** | **$147,259** | **$188,879** | | **Liabilities & Equity** | | | | Total current liabilities | $30,441 | $44,369 | | Total liabilities | $64,437 | $87,194 | | Total stockholders' equity | $82,822 | $101,685 | | **Total Liabilities and Stockholders' Equity** | **$147,259** | **$188,879** | [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) Q1 2025 net revenue was $32.1 million (down from $39.3 million), with a gross profit of $14.4 million and a net loss of $21.9 million, an improvement from $27.3 million in Q1 2024 Statement of Operations Highlights (in thousands, except per share data) | Metric | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Net revenue | $32,114 | $39,327 | | Gross profit | $14,400 | $18,456 | | Loss from operations | $(22,830) | $(29,810) | | Net loss | $(21,875) | $(27,331) | | Net loss per share, basic and diluted | $(2.73) | $(3.52) | [Condensed Consolidated Statements of Cash Flows](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For Q1 2025, net cash used in operating activities was $27.9 million, leading to a net decrease in cash of $27.7 million, with an end-of-period balance of $39.9 million Cash Flow Highlights (in thousands) | Cash Flow Activity | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(27,883) | $(26,201) | | Net cash used in investing activities | $(214) | $(766) | | Net cash provided by financing activities | $3 | $33 | | Net decrease in cash, cash equivalents, and restricted cash | $(27,674) | $(27,748) | | Cash, cash equivalents, and restricted cash—end of period | $39,910 | $102,925 | [Notes to Condensed Consolidated Financial Statements](index=14&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, the 1-for-20 reverse stock split impact, a $1.9 million revenue increase from gift card breakage, and ongoing securities class action lawsuits - The company is involved in two substantially similar securities class action lawsuits filed in April and May 2023, alleging violations of the Securities Exchange Act The company is vigorously defending against these lawsuits[120](index=120&type=chunk) - As of March 31, 2025, the company had no amounts outstanding under its **$50.0 million** revolving credit facility, which matures on April 17, 2026[83](index=83&type=chunk) - Total unrecognized compensation cost for unvested stock options, RSUs, and PSUs was approximately **$11.4 million** as of March 31, 2025, expected to be recognized over a weighted-average period of **1.88 to 2.34 years**[115](index=115&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the 18.3% revenue decline to store closures and international distributor transition, with reduced operating expenses leading to an improved net loss of $21.9 million Q1 2025 vs. Q1 2024 Performance (in thousands) | Metric | Q1 2025 | Q1 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Net Revenue | $32,114 | $39,327 | $(7,213) | (18.3)% | | Gross Profit | $14,400 | $18,456 | $(4,056) | (22.0)% | | Gross Margin | 44.8% | 46.9% | - | - | | SG&A Expense | $25,212 | $39,706 | $(14,494) | (36.5)% | | Marketing Expense | $12,018 | $7,760 | $4,258 | 54.9% | | Net Loss | $(21,875) | $(27,331) | $5,456 | 20.0% | - The decrease in net revenue was primarily driven by a **$6.9 million decline** in the direct business, which includes a **$4.1 million impact** from store closures, and a **$2.8 million impact** from the transition to third-party distributors internationally[164](index=164&type=chunk) - The company has significantly reduced its physical retail footprint, with the total number of stores decreasing from **57** at the end of Q1 2024 to **28** at the end of Q1 2025[141](index=141&type=chunk)[143](index=143&type=chunk) Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | Line Item | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Net loss | $(21,875) | $(27,331) | | Stock-based compensation | $2,284 | $3,344 | | Depreciation and amortization | $1,902 | $4,771 | | Restructuring expense | $— | $800 | | Other adjustments | $(1,025) | $(2,718) | | **Adjusted EBITDA** | **$(18,644)** | **$(20,895)** | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=43&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section is not applicable for the reporting period [Item 4. Controls and Procedures](index=43&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective as of March 31, 2025, with no material changes in internal control over financial reporting - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[206](index=206&type=chunk) - There were no changes in internal control over financial reporting during the quarter ended March 31, 2025, that materially affected, or are reasonably likely to materially affect, internal controls[208](index=208&type=chunk) Part II—Other Information [Item 1. Legal Proceedings](index=44&type=section&id=Item%201.%20Legal%20Proceedings) The company faces two consolidated securities class action lawsuits and two shareholder derivative suits, which it intends to vigorously defend - Allbirds and certain executives are defendants in two consolidated securities class action lawsuits filed in 2023, alleging violations of federal securities laws by making false or misleading statements The company's motion to dismiss was granted with leave to amend, and a motion to dismiss the amended complaint is pending[120](index=120&type=chunk)[368](index=368&type=chunk) - The company is also a defendant in two shareholder derivative suits with allegations similar to the class actions These cases are currently stayed pending the outcome of the securities class action[121](index=121&type=chunk) [Item 1A. Risk Factors](index=44&type=section&id=Item%201A.%20Risk%20Factors) The company outlines numerous risks, including challenges in executing its strategic transformation, continued net losses, manufacturer concentration, and the unique duties as a Public Benefit Corporation - The company may be unable to successfully execute its strategic transformation plan, which aims to reignite the brand, optimize U.S stores, transition its international go-to-market strategy, and improve cost savings[213](index=213&type=chunk) - The company has a history of significant net losses, including **$93.3 million** in 2024, and anticipates incurring losses for the foreseeable future due to ongoing investments and operational costs[238](index=238&type=chunk) - The business is subject to manufacturer concentration risk, having transitioned all new footwear manufacturing to a **single manufacturer** in Vietnam during 2023, though efforts to add more manufacturers are underway[252](index=252&type=chunk) - As a Public Benefit Corporation (PBC), the board has a fiduciary duty to balance stockholder interests with its public benefit purpose, which could lead to decisions that do not maximize short-term financial returns for stockholders[372](index=372&type=chunk)[373](index=373&type=chunk) - The company's dual-class stock structure concentrates significant voting control with its co-founders and their affiliates, limiting the influence of other stockholders on corporate matters[388](index=388&type=chunk) - The company faces risks from potential tariffs on imports from key manufacturing countries like Vietnam and China, which could increase product costs and harm financial results[351](index=351&type=chunk)[354](index=354&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=86&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) There were no unregistered sales of equity securities, no use of proceeds from registered securities, and no stock repurchases during the quarter [Item 3. Defaults Upon Senior Securities](index=87&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section is not applicable [Item 4. Mine Safety Disclosures](index=87&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section is not applicable [Item 5. Other Information](index=87&type=section&id=Item%205.%20Other%20Information) On March 15, 2025, director Joey Zwillinger adopted a Rule 10b5-1 trading plan to sell up to 50,000 shares of common stock over a one-year period - On March 15, 2025, director Joey Zwillinger adopted a Rule 10b5-1 trading plan to sell up to **50,000 shares** of the company's common stock The plan has a **one-year duration** starting June 13, 2025[427](index=427&type=chunk) [Item 6. Exhibits](index=88&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Quarterly Report on Form 10-Q, including corporate documents and certifications

Core Insights - Allbirds, Inc. reported revenue of $32.11 million for the quarter ended March 2025, reflecting an 18.4% decrease year-over-year, but exceeding the Zacks Consensus Estimate of $30.87 million by 4.03% [1] - The company's EPS was -$2.73, an improvement from -$3.60 in the same quarter last year, and surpassed the consensus EPS estimate of -$3.85 by 29.09% [1] Financial Performance - The net revenue from the United States was $25.63 million, which is a 12.3% decline year-over-year, and it exceeded the average estimate of $23.92 million [4] - International net revenue was reported at $6.49 million, down 35.7% year-over-year, compared to the average estimate of $6.68 million [4] Market Performance - Over the past month, Allbirds, Inc. shares have returned +8.8%, while the Zacks S&P 500 composite increased by +11.3% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Insights - Allbirds, Inc. reported a quarterly loss of $2.73 per share, which was better than the Zacks Consensus Estimate of a loss of $3.85, representing an earnings surprise of 29.09% [1] - The company generated revenues of $32.11 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 4.03%, although this is a decline from $39.33 million in the same quarter last year [2] - Allbirds has consistently surpassed consensus EPS estimates over the last four quarters [2] Financial Performance - The company has shown a loss of $3.60 per share in the same quarter last year, indicating an improvement in performance year-over-year [1] - The current consensus EPS estimate for the upcoming quarter is -$2.44 on revenues of $45.76 million, and for the current fiscal year, it is -$10.96 on revenues of $176.06 million [7] Market Position - Allbirds shares have declined approximately 21.8% since the beginning of the year, contrasting with the S&P 500's decline of 4.3% [3] - The Zacks Industry Rank for Retail - Apparel and Shoes is in the bottom 37% of over 250 Zacks industries, suggesting a challenging environment for the sector [8] Future Outlook - The sustainability of Allbirds' stock price movement will largely depend on management's commentary during the earnings call and future earnings expectations [3][4] - The estimate revisions trend for Allbirds is currently mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6]

Allbirds (BIRD) Q1 2025 Earnings Call May 08, 2025 05:00 PM ET Company Participants Christine Greany - Managing DirectorJoe Vernachio - CEO, President, Secretary & DirectorAnnie Mitchell - CFOJanine Stitcher - Retail analystAlex Straton - Equity Research Managing Director Conference Call Participants Tom Forte - Managing Director & Senior Consumer Internet AnalystDylan Carden - Research Analyst Operator Ladies and gentlemen, thank you for standing by, and welcome to Allbird's First Quarter twenty twenty fiv ...

Allbirds (BIRD) Q1 2025 Earnings Call May 08, 2025 05:00 PM ET Speaker0 Ladies and gentlemen, thank you for standing by, and welcome to Allbird's First Quarter twenty twenty five Earnings Conference Call. All participants have been placed in a listen only mode. After management prepared remarks, there will be a question and answer session at which time instructions will follow. I would like now to turn the conference over to Christine Greaney, Investor Relations. Please go ahead. Speaker1 Good afternoon, ev ...

First Quarter 2025 Overview "We're pleased to report another quarter of progress against our plans, delivering financial results within or above our expectations," said Joe Vernachio, CEO. "The foundational work we have done over the past year is converging with our key focus areas of Product, Marketing and Customer Experience and positioning us to generate expected topline momentum in the second half of the year. During the quarter, we launched our new brand marketing campaign – Cards on the Table, featuri ...

Core Insights - Allbirds, Inc. reported first quarter 2025 financial results that were in line with or above guidance ranges, while reiterating its full year 2025 outlook and providing second quarter guidance [1][11]. Financial Performance - Net revenue for Q1 2025 decreased by 18.3% to $32.1 million compared to $39.3 million in Q1 2024, primarily due to planned retail store closures and international distributor transitions [4][9]. - Gross profit for the quarter was $14.4 million, down from $18.5 million in Q1 2024, with gross margin declining by 210 basis points to 44.8% [5][9]. - Selling, general, and administrative expenses were $25.2 million, representing 78.5% of net revenue, a significant decrease from 101.0% in Q1 2024 [6][9]. - Marketing expenses increased to $12.0 million, or 37.4% of net revenue, compared to $7.8 million, or 19.7% in Q1 2024, driven by investments in a new brand marketing campaign [7][9]. - The net loss for Q1 2025 was $21.9 million, or $2.73 per share, an improvement from a net loss of $27.3 million in Q1 2024 [7][9]. - Adjusted EBITDA loss improved to $18.6 million from a loss of $20.9 million in Q1 2024, with adjusted EBITDA margin declining to (58.1)% [8][9]. Balance Sheet Highlights - As of March 31, 2025, Allbirds had $39.1 million in cash and cash equivalents, with no outstanding borrowings under its $50.0 million revolving credit facility [9][27]. - Inventory at the end of the quarter was $42.9 million, a decrease of 29.3% compared to the previous year [9][27]. Guidance and Strategic Initiatives - The company reiterated its financial guidance for 2025, anticipating negative impacts of approximately $18 million to $23 million in revenue due to the transition from a direct selling model to a distributor model in certain international markets and the closure of specific U.S. stores [11][17]. - Allbirds launched a new brand marketing campaign, "Cards on the Table," featuring Stanley Tucci, aimed at increasing brand awareness ahead of fall product launches [3][11].

Core Viewpoint - The market anticipates a year-over-year decline in Allbirds, Inc. (BIRD) earnings due to lower revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - Allbirds is expected to report a quarterly loss of $3.85 per share, reflecting a -6.9% change year-over-year [3]. - Revenue is projected to be $30.87 million, down 21.5% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised 1.67% lower in the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate is lower than the Zacks Consensus Estimate, leading to an Earnings ESP of -1.04%, suggesting a bearish outlook [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict earnings deviation, but its predictive power is significant mainly for positive readings [7][8]. - Stocks with a positive Earnings ESP and a Zacks Rank of 1, 2, or 3 have historically shown a nearly 70% chance of a positive surprise [8]. Historical Performance - In the last reported quarter, Allbirds was expected to post a loss of $3.52 per share but delivered a loss of $3.23, resulting in a surprise of +8.24% [12]. - Over the past four quarters, Allbirds has beaten consensus EPS estimates four times [13]. Conclusion - Allbirds does not appear to be a compelling earnings-beat candidate, and investors should consider other factors when making decisions regarding the stock ahead of the earnings release [16].

NEW YORK, April 25, 2025 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of  Allbirds, Inc. (“Allbirds” or the “Company”) (NASDAQ: BIRD).  Such investors are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, ext. 7980. The investigation concerns whether Allbirds and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.  [Click here for information about joining the class action] On March 11, ...