Allbirds reports drop in Q3 sales and earnings amid turnaround efforts

Allbirds, Inc. reported third-quarter 2025 financial results that were in line with management's expectations, despite ongoing structural headwinds related to its turnaround efforts. Net revenue decreased 23.3 percent year-over-year to 33 million dollars, primarily due to planned retail store closures and the transition of international markets to a distributor model.

The net loss for the quarter was 20.3 million dollars, and the adjusted EBITDA loss slightly exceeded guidance at 15.7 million dollars.

CEO Joe Vernachio highlighted the progress being made on the product front, stating, “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.” Vernachio confirmed the dual focus of the company's strategy: supporting the product engine with compelling marketing to "reignite growth" for the holiday season, while simultaneously accelerating internal changes. He added, "Our teams are focused on accelerating progress under our turnaround in the quarters ahead," emphasizing that the company is "taking definitive steps to further reduce costs, enhance liquidity, and pursue value-creating opportunities."

Inventory management remained disciplined, decreasing 25 percent to 43.1 million dollars, and the company adjusted its full-year 2025 net revenue guidance downward to between 161 million dollars and 166 million dollars, reflecting the significant impact of the strategic structural transitions.