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Allbirds, Inc. (BIRD)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 revenue was $32.1M, down 18.3% year over year but within guidance; EPS was -$2.73, beating S&P Global consensus of -$3.90*, and revenue exceeded consensus $30.0M* .
  • Gross margin was 44.8% (down 210 bps YoY), supported by ~$2M gift card breakage (~400 bps benefit) and strict cost control; adjusted EBITDA loss of $18.6M was above guidance .
  • Management reiterated full-year 2025 guidance (net revenue $175–$195M; adj. EBITDA loss $65–$55M) and introduced Q2 guidance (revenue $36–$41M; adj. EBITDA loss $19–$16M) .
  • Stock catalysts: back-half product launch (large wave of new products, waterproof collection, Elevated and Relaxed categories) and ongoing brand campaign “Cards on the Table” (25M Instagram views) to drive a planned return to top-line growth in Q4 .

What Went Well and What Went Wrong

What Went Well

  • Beat/inline vs consensus: EPS (-$2.73 vs -$3.90*) and revenue ($32.1M vs $30.0M*) were better than S&P Global expectations; adjusted EBITDA outperformed company guidance .
    “We’re pleased to report another quarter of progress... delivering financial results within or above our expectations.” — CEO Joe Vernachio .
  • SG&A down >$14M YoY as cost actions took hold; Q1 SG&A $25.2M vs $39.7M in Q1 2024 .
  • Marketing traction: “Cards on the Table” campaign generated 25M Instagram views and lowered CAC; conversion improved, supporting top-of-funnel momentum .

What Went Wrong

  • Top-line contraction persists: revenue declined 18.3% YoY, driven by planned retail closures and international distributor transitions .
  • Gross margin down YoY (44.8% vs 46.9%), pressured by distributor mix, promotions, and higher per-unit freight (partially offset by ~$2M gift card breakage) .
  • Macro/tariff headwinds and choppy traffic/conversion since early April; management expects minor tariff impact in Q2, rising in Q3/Q4 (mitigation via pricing, conservative buys) .

Financial Results

P&L and Margins: Actuals vs Prior Periods

MetricQ3 2024Q4 2024Q1 2025
Revenue ($USD Millions)$43.0 $55.9 $32.1
Gross Margin %44.4% 31.3% 44.8%
Net Loss ($USD Millions)$(21.2) $(25.7) $(21.9)
Net Loss Margin %49.3% 46.0% 68.1%
Diluted EPS ($USD)$(2.68) $(3.23) $(2.73)
Adjusted EBITDA ($USD Millions)$(16.2) $(19.2) $(18.6)
Adjusted EBITDA Margin %(37.8)% (34.3)% (58.1)%

Notes:

  • Q1 gross margin benefited by ~400 bps from ~$2M gift card breakage .
  • Management frames “restated” Q1 GM for comparability at ~41% excluding breakage, expecting sequential improvement through FY25 .

Consensus vs Actuals (S&P Global)

MetricQ3 2024Q4 2024Q1 2025
Revenue Consensus ($USD)$41.7M*$55.9M*$30.0M*
Revenue Actual ($USD)$43.0M $55.9M $32.1M
EPS Consensus ($USD)$(3.04)*$(3.51)*$(3.90)*
EPS Actual ($USD)$(2.68) $(3.23) $(2.73)
EBITDA Consensus ($USD)$(17.8)M*$(21.5)M*$(26.5)M*
EBITDA Actual ($USD)$(18.9)M*$(21.8)M*$(20.9)M*

Values with * retrieved from S&P Global.

Segment Revenue Breakdown

SegmentQ1 2024Q4 2024Q1 2025
United States ($USD Millions)$29.2 $46.0 $25.6
International ($USD Millions)$10.1 $9.9 $6.5
Total ($USD Millions)$39.3 $55.9 $32.1

KPIs and Balance Sheet

KPIQ1 2024Q4 2024Q1 2025
Store Count (US)42 30 25
Store Count (International)15 3 3
Total Stores57 33 28
Inventory ($USD Millions)$44.1 $44.1 $42.9
Cash & Equivalents ($USD Millions)$66.7 $66.7 $39.1
Marketing Expense (% Revenue)19.7% 22.0% 37.4%
Operating Cash Use ($USD Millions)——$(27.9)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Net Revenue ($USD Millions)FY 2025$175–$195 $175–$195 Maintained
U.S. Net Revenue ($USD Millions)FY 2025$145–$160 $145–$160 Maintained
International Net Revenue ($USD Millions)FY 2025$30–$35 $30–$35 Maintained
Adjusted EBITDA Loss ($USD Millions)FY 2025$(65)–$(55) $(65)–$(55) Maintained
Net Revenue ($USD Millions)Q1 2025$28–$33 —N/A (actual delivered $32.1)
Adjusted EBITDA Loss ($USD Millions)Q1 2025$(28)–$(25) —N/A (actual delivered $(18.6))
Net Revenue ($USD Millions)Q2 2025—$36–$41 New
Adjusted EBITDA Loss ($USD Millions)Q2 2025—$(19)–$(16) New

Notes:

  • FY25 guidance includes ~$18–$23M negative revenue impact from distributor transitions and U.S. store closures .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 2024)Previous Mentions (Q4 2024)Current Period (Q1 2025)Trend
Product pipelineReignited product to market in 2025 Expect 2H improvement, return to growth in Q4 Broad fall launch, waterproof line; Elevated/Relaxed categories; >50% of H2 SKUs are new Building toward H2 inflection
International distributor modelChina transition; Europe agreement Distributor transitions impacting revenue New distributor agreements in Iberia and LatAm announced post-Q1 Expansion via distributors
Gross margin managementGM +90 bps YoY (Q3) FY24 GM 42.7% (+170 bps YoY) Q1 GM 44.8%; ~400 bps breakage benefit; sequential GM improvement expected Improving ex-breakage; mid-40s FY25 target
Tariffs & macroNot a focusNot a focusManaging 10% incremental tariff on Vietnam goods; choppy traffic/conversion since early April Headwind managed via pricing/BUYS
Marketing enginePreparing for 2025 Product/marketing engines reignited “Cards on the Table” strong reach; CAC down, conversions up Positive traction
Retail footprint/experienceOngoing store closures referenced Continued cost and footprint rationalization New store prototype; warm, interactive layouts; lifting daily sales Elevating retail experience

Management Commentary

  • “Our first quarter results were in line with our expectations on the top line and exceeded guidance on the bottom line.” — CEO Joe Vernachio .
  • “Gross margin was also impacted by higher per unit freight costs... offset by approximately $2 million of gift card breakage (~400 bps).” — CFO Annie Mitchell .
  • “Assuming no material shift in the macro... we are positioned to return to top line growth in the fourth quarter.” — CEO Joe Vernachio .
  • “We continue to expect that marketing expense... will increase on a full year basis compared to 2024.” — CFO Annie Mitchell .
  • “We’ve trimmed the very back half of Q4 purchase orders... but the full expression of the product offering is intact.” — CEO Joe Vernachio .

Q&A Highlights

  • Gross margin trajectory: management guided sequential GM improvement from a ~41% “restated” Q1 (excluding breakage) to mid-40s for FY25; tariff impact minor in Q2, larger in Q3/Q4, mitigated by modest price increases and conservative buys .
  • Inventory strategy: conservative buys for Fall ’25 and Spring ’26 while maintaining flexibility to chase into demand to support Q4 growth .
  • Back-half conviction: >50% of H2 assortment new; product and marketing alignment set to drive planned Q4 top-line growth despite macro uncertainty .
  • Retail prototype: low-cost store enhancements (more touchpoints; interactive footwear displays) lifting daily sales; rollout to SoHo and Stanford underway .

Estimates Context

  • Q1 2025 beat: EPS -$2.73 vs -$3.90*; revenue $32.1M vs $30.0M*; EBITDA -$20.9M* vs -$26.5M* (note: S&P EBITDA is not company “adjusted EBITDA”) .
  • Prior quarters: Q3 2024 revenue $43.0M vs $41.7M*; EPS -$2.68 vs -$3.04*; Q4 2024 revenue in line ($55.9M vs $55.9M*), EPS beat (-$3.23 vs -$3.51*). Values with * retrieved from S&P Global.

Key Takeaways for Investors

  • Q1 was a “setup” quarter: within top-line guidance and above bottom-line guidance, while investing heavily in marketing; consensus beats on EPS and revenue support estimate stability or modest upward revisions for Q2 .
  • Sequential margin path looks constructive: excluding breakage, GM ~41% with management targeting mid-40s for FY25 despite tariffs; pricing and inventory discipline are key levers .
  • Back-half growth thesis hinges on product: large-scale new assortment (>50% new SKUs), waterproof line, Elevated/Relaxed categories, and improved retail experience; watch execution milestones in late summer .
  • Distribution strategy de-risks international and extends reach (Iberia, LatAm); expect continued regional mix shifts and lower direct exposure to U.S. tariff impacts .
  • Liquidity and cost control provide runway: $39.1M cash, no revolver borrowings, SG&A down significantly YoY; operating cash use elevated seasonally in Q1 .
  • Near-term risks: tariff implementation timing/size, choppy consumer demand, freight cost per unit; monitor Q2 trends and marketing ROI cadence .
  • Actionable: position for H2 catalysts—product drops and marketing scale—while tracking sequential GM, tariff impacts, and Q2 guidance execution.

Values with * retrieved from S&P Global.

Citations:
Press release and 8-K:
Q1 2025 call transcript:
Q4 2024 press release:
Q3 2024 press release:
Other Q1-related press: