Allbirds, Inc. Reports 2024 Financial Results and 2025 Outlook

Allbirds, Inc. Class A ( (BIRD) ) has released its Q4 earnings. Here is a breakdown of the information Allbirds, Inc. Class A presented to its investors.

Allbirds, Inc. is a global lifestyle brand known for its commitment to sustainability, offering innovative footwear and apparel made from natural materials. In its latest earnings report, Allbirds announced a significant decrease in both fourth quarter and full year 2024 net revenue, with figures dropping by 22.4% and 25.3% respectively. Despite these declines, the company managed to improve its full-year gross margin by 170 basis points, reaching 42.7%. The company also reported a net loss of $93.3 million for the year, although this was an improvement from the previous year’s loss of $152.5 million.

Key financial metrics revealed a challenging year for Allbirds, with a fourth quarter net loss of $25.7 million and an adjusted EBITDA loss of $19.2 million. The decrease in revenue was attributed to lower unit sales and the transition to international distributor agreements, alongside planned retail store closures. However, the company achieved cost reductions in selling, general, and administrative expenses, and significantly reduced its impairment expenses compared to the previous year.

For 2025, Allbirds has set a financial guidance with expected net revenue between $175 million to $195 million, reflecting the impact of transitioning to a distributor model internationally and further store closures in the U.S. The company aims to reduce its adjusted EBITDA loss to between $65 million and $55 million. Management remains focused on improving product offerings, marketing strategies, and customer experience to drive future growth.

Looking ahead, Allbirds is optimistic about regaining top-line growth and enhancing its operational efficiencies. The company plans to continue its strategic transformation, focusing on expanding its international presence and optimizing its business model to achieve long-term profitability.