Allbirds, Inc. reported a decline in financial performance for the third quarter of 2025, with net revenue of $32.99 million, down 23.3% from $42.99 million in the same period last year. For the nine months ending September 30, 2025, revenue totaled $104.79 million, a decrease of 21.7% compared to $133.91 million in 2024. The company also recorded a net loss of $20.32 million for the quarter, slightly improved from a loss of $21.18 million in the prior year, while the nine-month net loss was $57.70 million, down from $67.64 million in 2024. The gross margin for the quarter was 43.2%, a decrease from 44.4% in the previous year, attributed to a higher mix of digital and international distributor sales.
Operationally, Allbirds has been undergoing significant changes, including a strategic transformation plan aimed at improving capital efficiency and profitability. The company has closed several retail locations, reducing its store count to 23 as of September 30, 2025, down from 34 a year earlier. This transition includes moving international operations to third-party distributors in various regions, which has impacted revenue from those markets. The company’s marketing expenses increased by 18.9% to $11.72 million in the latest quarter, reflecting investments in digital advertising to support new product launches.
Allbirds reported a total employee headcount of 1,200 as of September 30, 2025, a reduction from previous periods due to restructuring efforts. The company continues to focus on enhancing its product offerings and brand awareness, which it views as critical for attracting new customers and increasing sales. The filing also noted that the company is exploring additional capital opportunities to support its operations, as it anticipates ongoing net losses and negative cash flows.
Looking ahead, Allbirds remains cautious about the macroeconomic environment, which includes inflation and changing consumer spending patterns. The company plans to leverage its existing credit facility, which has a borrowing capacity of $50 million, to maintain liquidity. Allbirds is also committed to its sustainability goals, which it believes will resonate with consumers increasingly focused on responsible purchasing. The company’s outlook emphasizes the need for continued innovation and operational efficiency to navigate the challenges ahead and achieve long-term profitability.
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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