Allbirds Q2 net revenue down 23.1 percent, manages to reduce net loss

Allbirds, Inc. has reported its financial results for the second quarter of 2025, with CEO Joe Vernachio stating that the company is on a path to "reigniting the Allbirds brand."

The company's net revenue for the quarter was 39.7 million dollars, a 23.1 percent decrease year-over-year, which was at the high end of its guidance range. This decline was primarily attributed to planned retail store closures and the transition to a distributor model in certain international markets.

The company's gross margin fell by 980 basis points to 40.7 percent, largely due to increased promotional activity and inventory adjustments related to its European market transition. Allbirds' net loss for the quarter was 15.5 million dollars, an improvement from the 19.1 million dollars loss in the same period last year. Adjusted EBITDA loss also improved to 12.6 million dollars compared to a loss of 13.7 million dollars a year ago.

Despite these figures, Vernachio expressed confidence in the company's future, stating that strong execution in the first half of the year has set them up for a new phase of product, marketing, and customer experience initiatives this fall. The company has secured a comprehensive financing package, including a new 75 million dollars revolving credit facility, and has successfully reduced its inventory by 21.3 percent year-over-year to 42.2 million dollars. Allbirds projects a return to top-line growth in the fourth quarter of this year.

For the full year 2025, Allbirds has updated its guidance, with net revenue now expected to be between 165 million dollars and 180 million dollars. The company projects an adjusted EBITDA loss of between 65 million dollars and 55 million dollars. For the third quarter, net revenue is expected to be between 33 million dollars and 38 million dollars, with a projected adjusted EBITDA loss of between 20 million dollars and 16 million dollars.