Allbirds Reports 23.1% Revenue Decline in Q2 2025, Net Loss Improves

Allbirds, Inc. reported a decline in financial performance for the second quarter of 2025, with net revenue of $39.7 million, down 23.1% from $51.6 million in the same period last year. For the first half of 2025, revenue totaled $71.8 million, a decrease of 21% compared to $90.9 million in the first half of 2024. The company attributed this decline primarily to reduced sales in its direct business, particularly from retail store closures, and a transition to third-party distributors in international markets, which impacted revenue by approximately $5.2 million.

The company's gross profit also fell significantly, with a gross margin of 40.7% for the second quarter, down from 50.5% in the prior year. This decline was driven by increased promotional activity, higher inventory write-downs, and a shift in sales mix towards international distributors, which typically yield lower margins. Allbirds reported a net loss of $15.5 million for the second quarter, an improvement from a net loss of $19.1 million in the same quarter of 2024. For the first half of 2025, the net loss was $37.4 million, compared to $46.5 million in the previous year.

Operationally, Allbirds has been undergoing a strategic transformation plan aimed at improving capital efficiency and profitability. The company closed nine stores in the U.S. during the first half of 2025, continuing a trend of reducing its physical retail footprint. As of June 30, 2025, Allbirds operated 24 stores, down from 43 a year earlier. The company has also transitioned its international operations to distributor models in several markets, including South Korea and Europe, which it believes will enhance brand reach and operational efficiency.

In terms of financial health, Allbirds had cash and cash equivalents of $33.1 million as of June 30, 2025, a decrease from $66.7 million at the end of 2024. The company entered into a $50 million revolving credit agreement to bolster its liquidity, with plans to use these funds to support ongoing operations and strategic initiatives. Looking ahead, Allbirds anticipates continued challenges in consumer spending due to macroeconomic conditions but remains focused on enhancing brand awareness and customer acquisition strategies to drive future growth.