San Francisco-based footwear company Allbirds (Nasdaq: BIRD) has reported Q3 2025 net revenue of $43.2 million, a 25 percent year-on-year decrease from the $57.2 million of Q3 2024.
The decline was driven by continued softness in US retail and reduced wholesale volumes, partially offset by international gains. The company has reaffirmed its turnaround plan, focused on core products, sustainability and profitability by 2026.
By the numbers
The company reports a gross margin of 35.4 percent, down from 40.8 percent in the same period last year, while the net loss narrowed to $21.1 million from $25.2 million in Q3 2024. Allbirds held $109.3 million in cash and equivalents at quarter’s end. For the full year 2025, the company now expects revenue of $183 to $188 million, narrowing its guidance and projecting a 22 to 24 percent decline from 2024.
Strategic context
The company is executing key initiatives in its turnaround plan: simplifying its product portfolio around core franchises, such as the Wool Runner and Tree Dasher; optimizing its US retail footprint while expanding in Europe and Asia; strengthening wholesale partnerships, including those with Nordstrom and Zalando; and continuing to invest in material innovation, such as sugarcane-based EVA foam and regenerative wool.
Industry relevance
Allbirds’ performance reflects wider challenges in the sustainable and direct-to-consumer footwear segment, where premium positioning and environmental credentials face pressure from both mass-market competition and evolving consumer price sensitivity. The brand’s pivot towards operational discipline and channel diversification recalls similar realignments in the athletic and outdoor sectors.
“We’re making solid progress on resetting our foundation, simplifying the business and focusing on our core customer,” said CEO Joe Vernachio.
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