Allbirds, Inc. reported a net revenue of $152.5 million for the fiscal year ending December 31, 2025, a decline of 19.7% from $189.8 million in 2024. The company also recorded a net loss of $77.3 million, compared to a loss of $93.3 million the previous year. The decrease in revenue was primarily attributed to a significant drop in the U.S. direct business, which fell by $23.1 million due to retail and e-commerce declines linked to store closures. Additionally, international revenue decreased by $11.9 million, largely due to the transition to third-party distributors in various markets.
In terms of operational changes, Allbirds closed 10 retail stores in 2025 and subsequently shut down all remaining full-price stores in the U.S. in early 2026. This strategic shift aims to focus resources on e-commerce and international distribution channels, which the company believes will provide greater flexibility and operational leverage. As of December 31, 2025, Allbirds operated 23 retail locations, down from 33 the previous year, with plans to continue optimizing its store fleet.
The company’s gross margin decreased to 41.0% from 42.7% in 2024, influenced by a higher mix of digital and international distributor sales, increased duties, and lower average selling prices in the U.S. Despite a reduction in selling, general, and administrative expenses by 30.7% to $92.5 million, marketing expenses rose by 8.6% to $45.2 million as Allbirds invested in brand marketing initiatives. The company also recorded an impairment expense of $4.2 million, reflecting non-cash charges related to long-lived assets.
Looking ahead, Allbirds faces substantial challenges, including ongoing net losses and negative cash flows, raising doubts about its ability to continue as a going concern. The company has initiated a strategic alternatives process, culminating in an agreement to sell substantially all its assets to American Exchange Group for $39 million, which is expected to close in the second quarter of 2026. This sale is part of a broader effort to address liquidity concerns and streamline operations, with the company planning to dissolve and distribute proceeds to stockholders following the asset sale.
About Allbirds, Inc.
Allbirds, Inc. is a purpose-driven lifestyle brand specializing in sustainable footwear and apparel made from natural and recycled materials like merino wool, tree fibers, and sugarcane. Its core products include innovative, comfortable shoes such as the Dasher and Runner, complemented by apparel. Serving environmentally conscious consumers primarily in the U.S. and select international markets, Allbirds operates a vertically integrated, digitally-led direct-to-consumer and selective wholesale business model focused on sustainability and design.
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