Allbirds Reports Third Quarter 2025 Financial Results

Core Insights - Allbirds, Inc. reported third quarter results that were in line with expectations, with a focus on new product introductions and marketing strategies to drive growth [3][4] - The company updated its full year 2025 revenue outlook, adjusting the guidance range for net revenue and adjusted EBITDA loss [16][19] Financial Performance - Net revenue for Q3 2025 decreased by 23.3% to $33.0 million compared to $43.0 million in Q3 2024, primarily due to structural changes including international distributor transitions and planned retail store closures [4][10] - Gross profit for Q3 2025 was $14.2 million, down from $19.1 million in Q3 2024, with a gross margin decline of 120 basis points to 43.2% [5][9] - Selling, general, and administrative expenses (SG&A) were $21.7 million, or 65.7% of net revenue, compared to $31.0 million, or 72.0% of net revenue in Q3 2024, reflecting cost reductions [6][9] - Marketing expenses increased to $11.7 million, or 35.5% of net revenue, driven by higher digital advertising spend [7][9] - The net loss for Q3 2025 was $20.3 million, or $2.49 per share, compared to a net loss of $21.2 million in Q3 2024 [7][9] Year-to-Date Results - For the first nine months of 2025, net revenue decreased by 21.7% to $104.8 million compared to $133.9 million in the same period of 2024 [10][11] - Gross profit for the first nine months of 2025 was $44.8 million, with a gross margin decline to 42.7% [11][14] - SG&A expenses for the first nine months were $71.0 million, or 67.8% of net revenue, down from $104.2 million, or 77.8% of net revenue in the same period of 2024 [12][14] - The net loss for the first nine months of 2025 was $57.7 million, compared to $67.6 million in the same period of 2024 [13][14] Balance Sheet and Cash Flow - As of September 30, 2025, Allbirds had $23.7 million in cash and cash equivalents, with $12.3 million in outstanding borrowings under its $50.0 million revolving credit facility [15][33] - Inventory at the end of Q3 2025 was $43.1 million, a decrease of 25.0% compared to the previous year [9][15] Guidance and Future Outlook - The company provided updated financial guidance for 2025, projecting net revenue between $161 million and $166 million, and an adjusted EBITDA loss between $63 million and $57 million [19][16]