Allbirds Stock Closes Down On Weak 2025 Outlook Despite Narrower Losses In Q4

Allbirds, Inc. BIRD shares were volatile Tuesday following the release of the company’s fourth quarter and full-year 2024 financial results.

What To Know: The company reported fourth-quarter net revenue of $55.9 million beating estimates of $55.87 million. Gross margin declined by approximately 670 basis points to 31.3%, impacted by inventory adjustments, increased freight costs and a higher mix of international distributor business. The company posted a net loss of $25.7 million or $3.23 per share, beating analyst expectations of a $3.47 loss per share.

For the full year 2024, Allbirds reported net revenue of $189.8 million, down 25.3% from $254.1 million in 2023. The company recorded a net loss of $93.3 million or $11.87 per share. Gross margin improved by 170 basis points to 42.7%, driven by lower freight and duty costs per unit and fewer inventory adjustments. Adjusted EBITDA loss for the year totaled $70 million, compared to a loss of $78.4 million in 2023.

Allbirds ended 2024 with $66.7 million in cash and cash equivalents and no outstanding borrowings under its $50 million revolving credit facility. Inventory levels decreased by 23.6% year-over-year to $44.1 million.

The company issued weak guidance for 2025, which appears to be contributing to the stock’s decline. Allbirds expects full-year net revenue between $175 million and $195 million, below analysts’ estimates of $181.7 million. The forecast reflects an $18 million to $23 million revenue hit due to transitioning to a distributor model in international markets and the closure of 20 U.S. retail stores. The company anticipates an adjusted EBITDA loss of $65 million to $55 million for the year.

For the first quarter of 2025, Allbirds expects net revenue between $28 million and $33 million, missing the consensus estimate of $34.9 million. The company forecasts an adjusted EBITDA loss between $28 million and $25 million.

CEO Joe Vernachio highlighted operational progress in 2024, including cost reductions and gross margin improvements, while emphasizing plans to reignite the product and marketing strategy.

BIRD Price Action: Allbirds shares closed down Tuesday by 3.90% at $6.16 at market close, but were rising after-hours by 3.90% at $6.40, according to Benzinga Pro.