Companies

Allbirds lowers full year outlook

Nov 17, 2025 United States

The US-based company has lowered its full year outlook after posting another decline in third quarter revenue. Structural changes and ongoing turnaround efforts are continuing to impact sales

“We’re pleased to deliver third quarter results in line with our expectations, highlighted by a robust flow of new product introductions - many of which met with strong customer response. Entering the final months of the year, we will continue to support our product engine with compelling marketing content to capture consumer mindshare and reignite growth”, commented Joe Vernachio, CEO.

Third Quarter Results

In the third quarter of the 2025 financial year, the company’s net revenue totalled 33.0 million US dollars, a 23.3% decrease on a comparable basis to the same period of the last year. This was primarily due to structural changes, including the impact of international distributor transitions and planned retail store closures.

Allbirds reported a gross margin of 43.2% for the third quarter, reflecting a year-on-year decline of 120 basis points from 44.4% in the same period last year. This was due to a higher proportion of sales through digital channels and international distributors, as well as increased duties on our US business; these factors offset the higher average selling price.

During the quarter, selling, general and administrative expenses fell to 21.7 million US dollars, as compared to 31.0 million US dollars in the third quarter of 2024, reflecting lower costs relating to personnel, occupancy, stock-based compensation and depreciation.

Meanwhile, marketing expenses increased to 11.7 million US dollars, up from 9.9 million US dollars in the same period the previous year, largely due to higher spending on digital advertising to support new product launches.

Allbirds reported a net loss of 20.3 million US dollars in the third quarter, which is slightly improved from a net loss of 21.2 million US dollars in the same quarter of the previous year. However, the net loss margin widened to 61.6% from 49.3% in the third quarter of 2024. Adjusted EBITDA loss improved to 15.7 million US dollars from 16.2 million US dollars; however, the adjusted EBITDA margin declined to minus 47.7% from minus 37.8%.

Full Year Outlook

The California-based company now expects full year net revenue to be between 161 and 166 million US dollars, down from previous guidance of between 165 and 180 million US dollars. The adjusted EBITDA loss is expected to be between 63 and 75 million US dollars, down from the previous guidance of between 55 and 65 million US dollars.

“Our teams are focused on accelerating progress under our turnaround in the quarters ahead. At the same time, we are taking definitive steps to further reduce costs, enhance liquidity, and pursue value-creating opportunities”, added Vernachio.

Image Credits: finance.yahoo.com

United States Allbirds Companies Footwear Quarter Results Results