Allbirds Reports First Quarter 2025 Financial Results

Delivers First Quarter Results in Line with and Above Guidance Ranges

Reiterates Full Year 2025 Outlook and Provides Second Quarter 2025 Guidance

SAN FRANCISCO, May 08, 2025 (GLOBE NEWSWIRE) -- Allbirds, Inc. (NASDAQ: BIRD), a global lifestyle brand that innovates with sustainable materials to make better products in a better way, today reported financial results for the quarter ended March 31, 2025.

First Quarter 2025 Overview

   -- First quarter net revenue of $32.1 million, within the Company's guidance 
      range, and a decrease of 18.3% versus a year ago. 
 
   -- First quarter gross margin declined 210 basis points to 44.8% versus a 
      year ago. 
 
   -- First quarter net loss of $21.9 million, or $2.73 per basic and diluted 
      share. 
 
   -- First quarter adjusted EBITDA loss1 of $18.6 million, above the Company's 
      guidance range. 
 
   -- Inventory at quarter end of $42.9 million, representing a decrease of 
      29.3% versus a year ago. 
 
   -- As of March 31, 2025, the Company had $39.1 million of cash and cash 
      equivalents and no outstanding borrowings under its $50.0 million 
      revolving credit facility. 

"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, featuring Stanley Tucci - which is building awareness of Allbirds among new and existing customers leading up to our fall product launches. Despite the macro backdrop, positive indicators from our initial product and marketing initiatives, combined with strong execution, make us confident in our long-term trajectory."

First Quarter Operating Results

In the first quarter of 2025, net revenue decreased 18.3% to $32.1 million compared to $39.3 million in the first quarter of 2024. The year-over-year decrease is primarily attributable to our planned retail store closures and international distributor transitions, partially offset by gift card breakage.

Gross profit totaled $14.4 million compared to $18.5 million in the first quarter of 2024, and gross margin declined 210 basis points to 44.8% compared to 46.9% in the first quarter of 2024. The decline in gross margin is primarily due to a higher mix of business from international distributors, increased promotional activity and higher freight costs per unit in our direct business. These declines were partially offset by gift card breakage.

Selling, general, and administrative expense was $25.2 million, or 78.5% of net revenue, compared to $39.7 million, or 101.0% of net revenue in the first quarter of 2024. The decrease is primarily attributable to lower personnel expenses, depreciation and amortization expense, occupancy costs, professional services fees, and stock-based compensation expenses.

Marketing expense totaled $12.0 million, or 37.4% of net revenue, compared to $7.8 million, or 19.7% of net revenue in the first quarter of 2024. The year-over-year increase was primarily driven by planned investments in the Company's new brand marketing campaign, which launched in March.

Net loss for the first quarter of 2025 was $21.9 million compared to $27.3 million in the first quarter of 2024, and net loss margin was 68.1% compared to 69.5% in the first quarter of 2024.

Adjusted EBITDA(1) loss for the first quarter of 2025 improved to $18.6 million compared to a loss of $20.9 million in the first quarter of 2024, and adjusted EBITDA margin(1) declined to (58.1)% compared to (53.1)% in the first quarter of 2024.

Balance Sheet Highlights

As of March 31, 2025, Allbirds had $39.1 million of cash and cash equivalents and no outstanding borrowings under its $50.0 million revolving credit facility. Inventories totaled $42.9 million, a decrease of 29.3% versus a year ago, which is in line with expectations leading up to the launch of fall 2025 new product introductions planned in the latter part of Q3.

2025 Financial Guidance

Allbirds is reiterating the following financial guidance for 2025, which includes negative impacts of approximately $18 million to $23 million of revenue associated with the transition from a direct selling model to a distributor model in certain international markets and the closure of certain Allbirds stores in the U.S.

Full Year 2025

   -- Net revenue of $175 million to $195 million 
 
          -- U.S. net revenue of $145 million to $160 million 
 
          -- International net revenue of $30 million to $35 million 
 
   -- Adjusted EBITDA2 loss of $65 million to $55 million 

Second Quarter 2025

   -- Net revenue of $36 million to $41 million 
 
          -- U.S. net revenue of $26 million to $30 million 
 
          -- International net revenue of $10 million to $11 million 
 
   -- Adjusted EBITDA2 loss of $19 million to $16 million 

Conference Call Information

Allbirds will host a conference call to discuss the results, followed by Q&A, at 5:00 p.m. Eastern Time today, May 8, 2025. A live webcast and replay of the conference call will be available on the investor relations section of the Allbirds website at https://ir.allbirds.com. Information on the Company's website is not, and will not be deemed to be, a part of this press release or incorporated into any other filings the Company may make with the Securities and Exchange Commission. A replay of the webcast will also be archived on the Allbirds website for 12 months.

About Allbirds, Inc.

Allbirds is a global modern lifestyle footwear brand, founded in 2015 with a commitment to make better things in a better way. That commitment inspired the company's first product, the now iconic Wool Runner; and today, inspires a growing assortment of products known for superior comfort. Allbirds designs its products to be materially different by turning away from convention toward nature's inspiration with materials like Merino wool, tree fiber and sugarcane. For more information, please visit www.allbirds.com.

(____________________1) For a reconciliation of each non-GAAP financial measure to its most directly comparable GAAP financial measure, please refer to the reconciliation tables in the section titled "Non-GAAP Financial Measures" below.

(2) A reconciliation of these non-GAAP financial measures to corresponding GAAP financial measures is not available on a forward-looking basis without unreasonable effort as we are currently unable to predict with a reasonable degree of certainty certain expense items that are excluded in calculating adjusted EBITDA, although it is important to note that these factors could be material to our results computed in accordance with GAAP. We have provided a reconciliation of GAAP to non-GAAP financial measures in the section titled "Reconciliation of GAAP to Non-GAAP Financial Measures" for our first quarter 2025 and 2024 results included in this press release.

Forward-Looking Statements

This press release and related conference call contain "forward-looking" statements, as the term is defined under federal securities laws, that are based on management's beliefs and assumptions and on information currently available to management. All statements other than statements of historical facts, including statements regarding our future financial performance, including our financial outlook on financial results and guidance targets, planned transition to a distributors model in certain international markets, anticipated profitability of distributor model, future profitability, focus on improving efficiencies and driving profitability, estimated and/or targeted cost savings, medium-term financial targets, market position, future results of operations, financial condition, business strategy and plans, marketing strategy and investment, materials innovation, retail store updates, new product launches, and objectives of management for future operations are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as "designed, " "objective," "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," or "would" or the negative of these words or other similar terms or expressions. Forward-looking statements are subject to numerous assumptions, risks and uncertainties which could cause actual results or facts to differ materially from those statements expressed or implied in the forward-looking statements, including, but not limited to: unfavorable economic conditions; our ability to execute our strategic transformation plans, simplification initiatives or our long-term growth strategy; fluctuations in our operating results; our ability to achieve the financial outlook and guidance targets; our ability to obtain additional capital; our ability to extend or replace our credit facility; our ability to complete transitions to a distributor model in certain international markets; our ability to achieve our cost savings targets by 2025; deteriorating economic conditions, including economic recession, inflation, tax rates, foreign currency exchange rates, or the availability of capital; impairment of long-lived assets; the strength of our brand; our introduction of new products; our net losses since inception; the competitive marketplace; our reliance on technical and materials innovation; our use of sustainable high-quality materials and environmentally friendly manufacturing processes and supply chain practices; our ability to attract new customers and increase sales to existing customers; the impact of climate change and government and investor focus on sustainability issues; our ability to

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