Allbirds (BIRD) Q1 2026 earnings summary

Executive summary

• Net revenue for Q1 2026 was $22.3 million, down 30.5% year-over-year, primarily due to lower U.S. direct sales and retail store closures.

• Gross margin declined to 27.8% from 44.8% in Q1 2025, reflecting lower average selling prices, promotional activity, and higher duty costs.

• Net loss was $20.7 million, a slight improvement from $21.9 million in Q1 2025, driven by reduced operating expenses.

• The company closed all remaining full-price U.S. retail stores and is transitioning away from its historical footwear business.

• An Asset Sale agreement was signed to divest the footwear business for $39 million, expected to close in Q2 2026.

• Post-sale, the company plans to rebrand and pursue an Electronics Infrastructure Business focused on GPU and computing asset monetization.

Financial highlights

• Net revenue decreased by $9.8 million (30.5%) year-over-year.

• Gross profit fell by $8.2 million (56.9%) year-over-year.

• Adjusted EBITDA loss improved to $17.2 million from $18.6 million year-over-year.

• Cash and cash equivalents were $14.4 million as of March 31, 2026.

• Net cash used in operating activities was $12.1 million for Q1 2026.

Outlook and guidance

• The company does not expect to continue its existing footwear business after the Asset Sale.

• Future operations will focus on the Electronics Infrastructure Business, which is at an early, speculative stage and subject to significant risks.

• The Asset Sale Dividend is anticipated in Q3 2026, subject to closing and escrow release.