Allbirds narrows quarterly losses following shift to distributor model

Footwear brand Allbirds outlined its results for the first quarter of 2025, one reflective of its transition from a direct selling model to a distributor model across certain international markets.

During the quarter ended March 31, 2025, the company posted a net revenue decrease of 18.3 percent to 32.1 million dollars, compared to the same period last year. Allbirds cited its retail store closures in the US and its business transformation as the key causes.

Gross profit also fell YoY from 18.5 million dollars to 14.4 million dollars, while its gross margin declined 210 basis points to 44.8 percent compared to 46.9 percent. Its selling, general and administrative expenses sat at 25.2 million dollars, or 78.5 percent of net revenue.

While profit and revenue fell, Allbirds did manage to narrow its losses over the quarter. Compared to last year’s 27.3 million dollars, the company reported a net loss of 21.9 million dollars, with a net loss margin of 68.1 percent. It also narrowed its adjusted EBITDA loss, from 20.9 million dollars to 18.6 million dollars.

Allbirds is standing firm on its financial guidance for 2025, which it said includes the negative impacts of around 18 to 23 million dollars of revenue linked to its recent transition and the closure of certain stores. The company is anticipated to see a net revenue between 175 to 195 million dollars, while its adjusted EBITDA loss is forecast to sit between 65 and 55 million dollars.