Allbirds Reports Second Quarter 2025 Financial Results
Allbirds (NASDAQ: BIRD) reported Q2 2025 financial results with net revenue of $39.7 million, a 23.1% decrease year-over-year but at the high end of guidance. The company posted a net loss of $15.5 million ($1.92 per share) and gross margin declined 980 basis points to 40.7%.
Key financial highlights include securing a new $75 million revolving credit facility and reducing inventory by 21.3% to $42.2 million. The company revised its full year 2025 revenue guidance downward to $165-180 million from previous $175-195 million, while maintaining its adjusted EBITDA loss guidance of $65-55 million.
Management expects revenue growth to resume in Q4 2025, driven by new product launches, marketing initiatives, and customer experience improvements. The company continues its transition to a distributor model in certain international markets and has implemented strategic store closures in the U.S.
Allbirds (NASDAQ: BIRD) ha riportato i risultati finanziari del secondo trimestre 2025 con un fatturato netto di 39,7 milioni di dollari, in calo del 23,1% su base annua, ma comunque al limite superiore delle previsioni. L'azienda ha registrato una perdita netta di 15,5 milioni di dollari (1,92 dollari per azione) e il margine lordo è sceso di 980 punti base al 40,7%.
I principali dati finanziari includono l'ottenimento di una nuova linea di credito rotativa da 75 milioni di dollari e una riduzione dell'inventario del 21,3%, attestandosi a 42,2 milioni di dollari. L'azienda ha rivisto al ribasso le previsioni di fatturato per l'intero 2025, portandole a 165-180 milioni di dollari rispetto ai precedenti 175-195 milioni, mantenendo però invariata la previsione di perdita adjusted EBITDA tra 65 e 55 milioni di dollari.
La direzione prevede una ripresa della crescita dei ricavi nel quarto trimestre 2025, trainata da nuovi lanci di prodotto, iniziative di marketing e miglioramenti nell'esperienza cliente. L'azienda continua la transizione verso un modello di distributore in alcuni mercati internazionali e ha attuato chiusure strategiche di negozi negli Stati Uniti.
Allbirds (NASDAQ: BIRD) informó los resultados financieros del segundo trimestre de 2025 con ingresos netos de 39,7 millones de dólares, una disminución del 23,1% interanual, pero en el extremo superior de la guía. La compañía registró una pérdida neta de 15,5 millones de dólares (1,92 dólares por acción) y el margen bruto cayó 980 puntos básicos hasta el 40,7%.
Los aspectos financieros clave incluyen la obtención de una nueva línea de crédito revolvente de 75 millones de dólares y la reducción del inventario en un 21,3% hasta 42,2 millones de dólares. La empresa revisó a la baja su pronóstico de ingresos para todo el año 2025 a 165-180 millones de dólares desde los anteriores 175-195 millones, manteniendo su guía de pérdida ajustada de EBITDA entre 65 y 55 millones.
La dirección espera que el crecimiento de ingresos se reanude en el cuarto trimestre de 2025, impulsado por nuevos lanzamientos de productos, iniciativas de marketing y mejoras en la experiencia del cliente. La compañía continúa su transición hacia un modelo de distribuidor en ciertos mercados internacionales y ha implementado cierres estratégicos de tiendas en EE.UU.
Allbirds (NASDAQ: BIRD)는 2025년 2분기 재무 실적을 발표하며 순매출액이 3,970만 달러로 전년 대비 23.1% 감소했으나 가이던스 상단에 위치했습니다. 회사는 1,550만 달러 순손실(주당 1.92달러)을 기록했으며, 총 마진은 980 베이시스 포인트 하락한 40.7%를 기록했습니다.
주요 재무 하이라이트로는 7,500만 달러의 신규 회전 신용 한도 확보와 재고를 21.3% 줄여 4,220만 달러로 감소시킨 점이 있습니다. 회사는 2025년 전체 매출 가이던스를 기존 1억 7,500만~1억 9,500만 달러에서 1억 6,500만~1억 8,000만 달러로 하향 조정했으나 조정 EBITDA 손실 가이던스 6,500만~5,500만 달러는 유지했습니다.
경영진은 2025년 4분기에 신제품 출시, 마케팅 이니셔티브, 고객 경험 개선을 통해 매출 성장이 재개될 것으로 예상하고 있습니다. 회사는 일부 해외 시장에서 유통업체 모델로 전환을 지속하며 미국 내 전략적 매장 폐쇄도 시행하고 있습니다.
Allbirds (NASDAQ : BIRD) a publié ses résultats financiers du deuxième trimestre 2025 avec un chiffre d'affaires net de 39,7 millions de dollars, soit une baisse de 23,1 % en glissement annuel, mais au haut de la fourchette des prévisions. La société a enregistré une perte nette de 15,5 millions de dollars (1,92 dollar par action) et la marge brute a diminué de 980 points de base pour atteindre 40,7 %.
Les points financiers clés incluent l'obtention d'une nouvelle facilité de crédit renouvelable de 75 millions de dollars et une réduction des stocks de 21,3 % pour s'établir à 42,2 millions de dollars. La société a révisé à la baisse ses prévisions de chiffre d'affaires pour l'ensemble de l'année 2025, les ramenant à 165-180 millions de dollars contre 175-195 millions auparavant, tout en maintenant ses prévisions de perte d'EBITDA ajusté entre 65 et 55 millions de dollars.
La direction s'attend à une reprise de la croissance du chiffre d'affaires au quatrième trimestre 2025, portée par de nouveaux lancements de produits, des initiatives marketing et des améliorations de l'expérience client. L'entreprise poursuit sa transition vers un modèle de distributeur sur certains marchés internationaux et a procédé à des fermetures stratégiques de magasins aux États-Unis.
Allbirds (NASDAQ: BIRD) meldete die Finanzergebnisse für das zweite Quartal 2025 mit einem Nettoumsatz von 39,7 Millionen US-Dollar, was einem Rückgang von 23,1 % im Jahresvergleich entspricht, jedoch am oberen Ende der Prognose lag. Das Unternehmen verzeichnete einen Nettoverlust von 15,5 Millionen US-Dollar (1,92 US-Dollar pro Aktie) und die Bruttomarge sank um 980 Basispunkte auf 40,7 %.
Wichtige finanzielle Highlights umfassen die Sicherung einer neuen revolvierenden Kreditlinie in Höhe von 75 Millionen US-Dollar und eine Reduzierung des Lagerbestands um 21,3 % auf 42,2 Millionen US-Dollar. Das Unternehmen hat die Umsatzprognose für das Gesamtjahr 2025 von zuvor 175-195 Millionen US-Dollar auf 165-180 Millionen US-Dollar gesenkt, behält jedoch die Prognose für den bereinigten EBITDA-Verlust von 65-55 Millionen US-Dollar bei.
Das Management erwartet, dass das Umsatzwachstum im vierten Quartal 2025 wieder anziehen wird, angetrieben durch neue Produkteinführungen, Marketinginitiativen und Verbesserungen im Kundenerlebnis. Das Unternehmen setzt seinen Übergang zu einem Vertriebsmodell in bestimmten internationalen Märkten fort und hat strategische Ladenschließungen in den USA umgesetzt.
- Secured new three-year $75 million revolving credit facility
- Inventory reduced by 21.3% year-over-year to $42.2 million
- SG&A expenses decreased to 60.9% of revenue from 65.0% year ago
- Q2 adjusted EBITDA loss improved to $12.6M from $13.7M year ago
- Net revenue decreased 23.1% year-over-year to $39.7M
- Gross margin declined 980 basis points to 40.7%
- Net loss of $15.5M or $1.92 per share
- Lowered full year 2025 revenue guidance to $165-180M from $175-195M
- Marketing expenses increased to 28.6% of revenue from 21.4% in first half
Insights
Allbirds shows concerning revenue decline and margin compression despite management's optimism about Q4 turnaround prospects.
Allbirds delivered Q2 revenue of
The company reported a net loss of
Inventory levels have been managed down by
Most concerning is the revised full-year 2025 revenue guidance of
Management's narrative focuses on product and marketing initiatives expected to drive Q4 growth, but the magnitude of current revenue declines and margin deterioration raises significant questions about the brand's consumer appeal and long-term trajectory. The stabilized adjusted EBITDA guidance despite lower revenue forecasts suggests accelerated cost-cutting measures are being implemented to offset top-line weakness.
Delivers Second Quarter Results in Line with and Above Guidance Ranges
Revises Full Year 2025 Revenue Outlook and Reiterates Adjusted EBITDA Guidance
Product, Marketing and Customer Experience Initiatives Expected to Fuel Revenue Growth in Q4 2025
SAN FRANCISCO, Aug. 07, 2025 (GLOBE NEWSWIRE) -- Allbirds, Inc. (NASDAQ: BIRD), a global lifestyle brand that innovates with sustainable materials to make better products in a better way, today reported financial results for the quarter ended June 30, 2025.
Second Quarter 2025 Overview
- Second quarter net revenue of
$39.7 million , at the high end of the Company’s guidance range, and a decrease of23.1% versus a year ago. - Second quarter gross margin declined 980 basis points to
40.7% versus a year ago. - Second quarter net loss of
$15.5 million , or$1.92 per basic and diluted share. - Second quarter adjusted EBITDA1 loss of
$12.6 million , above the Company’s guidance range. - Completed comprehensive financing package, including a new three-year
$75 million revolving credit facility, consisting of a$50 million tranche and a$25 million accordion feature. - Inventory at quarter end of
$42.2 million , representing a decrease of21.3% versus a year ago. - As of June 30, 2025, the Company had
$33.1 million of cash and cash equivalents and$5.0 million of outstanding borrowings under its$50.0 million revolving credit facility.
“Strong execution during the first half of the year has set us up for what’s ahead this fall,” said Joe Vernachio, CEO. “We are thrilled to be at the threshold of our product, marketing and customer experience initiatives coming together as we continue on our path to reigniting the Allbirds brand. In the weeks and months ahead, we’ll be delivering a continuous flow of modern lifestyle footwear that is distinctively Allbirds - modern design, unique materials and unmatched comfort. This debut, coupled with the operational and financial rigor we have embedded into the organization in recent years, gives us confidence in our expected return to top line growth in the fourth quarter of this year.”
Second Quarter Operating Results
In the second quarter of 2025, net revenue decreased
Gross profit totaled
Selling, general, and administrative expense (SG&A) was
Marketing expense totaled
Net loss for the second quarter of 2025 was
Adjusted EBITDA1 loss for the second quarter of 2025 improved to
Six Month Operating Results
Net revenue in the first half of 2025 decreased
Gross profit in the first half of 2025 totaled
SG&A in the first half of 2025 was
Marketing expense in the first half of 2025 totaled
Net loss in the first half of 2025 was
Adjusted EBITDA loss1 in the first half of 2025 was
Balance Sheet Highlights
As of June 30, 2025, Allbirds had
2025 Financial Guidance
Allbirds is providing the following financial guidance for 2025, which includes approximately
Full Year 2025
- Net revenue of
$165 million to$180 million compared to previous guidance of$175 million to$195 million - U.S. net revenue of
$132 million to$145 million - International net revenue of
$33 million to$35 million
- U.S. net revenue of
- Adjusted EBITDA2 loss of
$65 million to$55 million , in line with prior guidance
Third Quarter 2025
- Net revenue of
$33 million to$38 million - U.S. net revenue of
$27 million to$31 million - International net revenue of
$6 million to$7 million
- U.S. net revenue of
- Adjusted EBITDA loss2 of
$20 million to$16 million
Conference Call Information
Allbirds will host a conference call to discuss the results, followed by Q&A, at 5:00 p.m. Eastern Time today, August 7, 2025. A live webcast and replay of the conference call will be available on the investor relations section of the Allbirds website at https://www.ir.allbirds.com. Information on the Company’s website is not, and will not be deemed to be, a part of this press release or incorporated into any other filings the Company may make with the Securities and Exchange Commission. A replay of the webcast will also be archived on the Allbirds website for 12 months.
About Allbirds, Inc.
Allbirds is a global modern lifestyle footwear brand, founded in 2015 with a commitment to make better things in a better way. That commitment inspired the company’s second product, the now iconic Wool Runner; and today, inspires a growing assortment of products known for superior comfort. Allbirds designs its products to be materially different by turning away from convention toward nature’s inspiration with materials like Merino wool, tree fiber and sugarcane. For more information, please visit www.allbirds.com.
____________________
1 For a reconciliation of each non-GAAP financial measure to its most directly comparable GAAP financial measure, please refer to the reconciliation tables in the section titled “Non-GAAP Financial Measures” below.
2 A reconciliation of these non-GAAP financial measures to corresponding GAAP financial measures is not available on a forward-looking basis without unreasonable effort as we are currently unable to predict with a reasonable degree of certainty certain expense items that are excluded in calculating adjusted EBITDA, although it is important to note that these factors could be material to our results computed in accordance with GAAP. We have provided a reconciliation of GAAP to non-GAAP financial measures in the section titled “Reconciliation of GAAP to Non-GAAP Financial Measures” for our second quarter 2025 and 2024 results included in this press release.
Forward-Looking Statements
This press release and related conference call contain “forward-looking” statements, as the term is defined under federal securities laws, that are based on management’s beliefs and assumptions and on information currently available to management. All statements other than statements of historical facts, including statements regarding our future financial performance, including our financial outlook on financial results and guidance targets, planned transition to a distributors model in certain international markets, anticipated profitability of distributor model, future profitability, focus on improving efficiencies and driving profitability, estimated and/or targeted cost savings, medium-term financial targets, market position, future results of operations, financial condition, business strategy and plans, marketing strategy and investment, materials innovation, retail store updates, new product launches, and objectives of management for future operations are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as “designed,” “objective,” “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” or “would” or the negative of these words or other similar terms or expressions. Forward-looking statements are subject to numerous assumptions, risks and uncertainties which could cause actual results or facts to differ materially from those statements expressed or implied in the forward-looking statements, including, but not limited to: unfavorable economic conditions; our ability to execute our long-term growth strategy; fluctuations in our operating results; our ability to achieve the financial outlook and guidance targets; our ability to obtain additional capital; our ability to achieve our cost savings targets by 2025; deteriorating economic conditions, including economic recession, inflation, tax rates, foreign currency exchange rates, or the availability of capital; impairment of long-lived assets; the strength of our brand; our introduction of new products; our net losses since inception; the competitive marketplace; our reliance on technical and materials innovation; our use of sustainable high-quality materials and environmentally friendly manufacturing processes and supply chain practices; our ability to attract new customers and increase sales to existing customers; the impact of climate change and government and investor focus on sustainability issues; our ability to anticipate product trends and consumer preferences, including with respect to the product launches we have planned for 2025; breaches of security or privacy of business information; and our ability to forecast consumer demand. Moreover, we operate in a very competitive and rapidly changing environment in which new risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause our actual results or performance to differ materially from those contained in any forward-looking statements we may make.
A further discussion of these and other factors that could cause our financial results, performance, and achievements to differ materially from any results, performance, or achievements anticipated, expressed, or implied by these forward-looking statements is included in the filings we make with the SEC, including our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, and other reports we may file with the SEC from time to time. The forward-looking statements contained in this press release and related conference call relate only to events as of the date stated or, if no date is stated, as of the date of this press release and related conference call. We undertake no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions or expectations disclosed in or expressed by, and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments.
Use of Non-GAAP Financial Measures
This press release and accompanying financial tables include references to adjusted EBITDA and adjusted EBITDA margin, which are non-GAAP financial measures. We believe that providing these non-GAAP financial measures, when reviewed in conjunction with GAAP financial measures, and not in isolation or as substitutes for analysis of our results of operations under GAAP, are useful to investors as they are widely used measures of performance, and the adjustments we make to these non-GAAP financial measures may provide investors further insight into our profitability and additional perspectives in comparing our performance to other companies and in comparing our performance over time on a consistent basis. These non-GAAP financial measures should not be considered as alternatives to net loss or net loss margin as calculated and presented in accordance with GAAP.
Adjusted EBITDA is defined as net loss before stock-based compensation expense, depreciation and amortization expense, impairment expense, restructuring expense (consisting of professional fees, personnel and related expenses, and other related charges resulting from our strategic initiatives), non-cash gains or losses on the sales of businesses relating to our strategic initiatives, other income or expense (consisting of non-cash gains or losses on foreign currency, non-cash gains or losses on sales of property and equipment, and non-cash gains or losses on modifications or terminations of leases), interest income or expense, and income tax provision or benefit.
Adjusted EBITDA margin is defined as adjusted EBITDA divided by net revenue.
Other companies, including companies in our industry, may calculate these adjusted financial measures differently, which reduces their usefulness as comparative measures. Because of these limitations, we consider, and investors should consider, these adjusted financial measures together with other operating and financial performance measures presented in accordance with GAAP.
Investor Relations:
ir@allbirds.com
Media Contact:
press@allbirds.com
| Condensed Consolidated Statements of Operations and Comprehensive Loss (in thousands, except share, per share amounts, and percentages) (unaudited) | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Net revenue | $ | 39,685 | $ | 51,582 | $ | 71,798 | $ | 90,909 | |||||||
| Cost of revenue | 23,531 | 25,527 | 41,244 | 46,398 | |||||||||||
| Gross profit | 16,154 | 26,055 | 30,554 | 44,511 | |||||||||||
| Operating expense: | |||||||||||||||
| Selling, general, and administrative expense | 24,156 | 33,552 | 49,368 | 73,258 | |||||||||||
| Marketing expense | 8,525 | 11,739 | 20,543 | 19,499 | |||||||||||
| Restructuring expense | – | 954 | – | 1,753 | |||||||||||
| Total operating expense | 32,681 | 46,245 | 69,911 | 94,510 | |||||||||||
| Loss from operations | (16,527 | ) | (20,190 | ) | (39,357 | ) | (49,999 | ) | |||||||
| Net loss from the sales of businesses | – | (194 | ) | – | (194 | ) | |||||||||
| Interest income | 86 | 1,228 | 379 | 2,248 | |||||||||||
| Other income | 1,021 | 575 | 1,749 | 2,273 | |||||||||||
| Loss before provision for income taxes | (15,420 | ) | (18,581 | ) | (37,229 | ) | (45,672 | ) | |||||||
| Income tax provision | (81 | ) | (552 | ) | (147 | ) | (791 | ) | |||||||
| Net loss | $ | (15,501 | ) | $ | (19,133 | ) | $ | (37,376 | ) | $ | (46,463 | ) | |||
| Net loss per share data: | |||||||||||||||
| Net loss per share attributable to common stockholders, basic and diluted | $ | (1.92 | ) | $ | (2.45 | ) | $ | (4.64 | ) | $ | (5.96 | ) | |||
| Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted | 8,090,259 | 7,824,200 | 8,055,136 | 7,796,614 | |||||||||||
| Other comprehensive income (loss): | |||||||||||||||
| Foreign currency translation gain (loss) | 1,894 | (312 | ) | 2,584 | (1,525 | ) | |||||||||
| Total comprehensive loss | $ | (13,607 | ) | $ | (19,445 | ) | $ | (34,792 | ) | $ | (47,988 | ) | |||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||
| Statements of Operations Data, as a Percentage of Net Revenue: | |||||||||||
| Net revenue | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||
| Cost of revenue | 59.3 | % | 49.5 | % | 57.4 | % | 51.0 | % | |||
| Gross profit | 40.7 | % | 50.5 | % | 42.6 | % | 49.0 | % | |||
| Operating expense: | |||||||||||
| Selling, general, and administrative expense | 60.9 | % | 65.0 | % | 68.8 | % | 80.6 | % | |||
| Marketing expense | 21.5 | % | 22.8 | % | 28.6 | % | 21.4 | % | |||
| Restructuring expense | – | % | 1.8 | % | – | % | 1.9 | % | |||
| Total operating expense | 82.4 | % | 89.7 | % | 97.4 | % | 104.0 | % | |||
| Loss from operations | (41.6 | )% | (39.1 | )% | (54.8 | )% | (55.0 | )% | |||
| Net loss from the sale of business | – | % | (0.4 | )% | – | % | (0.2 | )% | |||
| Interest income | 0.2 | % | 2.4 | % | 0.5 | % | 2.5 | % | |||
| Other income | 2.6 | % | 1.1 | % | 2.4 | % | 2.5 | % | |||
| Loss before provision for income taxes | (38.9 | )% | (36.0 | )% | (51.9 | )% | (50.2 | )% | |||
| Income tax provision | (0.2 | %) | (1.1 | )% | (0.2 | )% | (0.9 | )% | |||
| Net loss | (39.1 | )% | (37.1 | )% | (52.1 | )% | (51.1 | )% | |||
| Other comprehensive income (loss): | |||||||||||
| Foreign currency translation gain (loss) | 4.8 | % | (0.6 | )% | 3.6 | % | (1.7 | )% | |||
| Total comprehensive loss | (34.3 | )% | (37.7 | )% | (48.5 | )% | (52.8 | )% | |||
| Condensed Consolidated Balance Sheets (in thousands, except share amounts) (unaudited) | |||||||
| June 30, | December 31, | ||||||
| 2025 | 2024 | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 33,144 | $ | 66,732 | |||
| Accounts receivable | 7,814 | 6,168 | |||||
| Inventory | 42,243 | 44,121 | |||||
| Prepaid expenses and other current assets | 11,083 | 13,536 | |||||
| Total current assets | 94,284 | 130,558 | |||||
| Property and equipment–net | 15,386 | 17,825 | |||||
| Operating lease right-of-use assets | 22,227 | 38,082 | |||||
| Other assets | 4,921 | 2,414 | |||||
| Total assets | $ | 136,818 | $ | 188,879 | |||
| Liabilities and stockholders' equity | |||||||
| Current liabilities: | |||||||
| Accounts payable | 12,087 | 10,773 | |||||
| Accrued expenses and other current liabilities | 13,601 | 18,821 | |||||
| Current lease liabilities | 9,656 | 10,879 | |||||
| Deferred revenue | 1,602 | 3,896 | |||||
| Total current liabilities | 36,946 | 44,369 | |||||
| Non-current liabilities: | |||||||
| Non-current lease liability | 23,482 | 42,796 | |||||
| Long-term debt | 5,000 | – | |||||
| Other long-term liabilities | 29 | 29 | |||||
| Total non-current liabilities | 28,511 | 42,825 | |||||
| Total liabilities | $ | 65,457 | $ | 87,194 | |||
| Commitments and contingencies (Note 11) | |||||||
| Stockholders' equity: | |||||||
| Class A Common Stock, | 1 | 1 | |||||
| Class B Common Stock, | – | – | |||||
| Additional paid-in capital | 596,350 | 591,882 | |||||
| Accumulated other comprehensive loss | (3,097 | ) | (5,681 | ) | |||
| Accumulated deficit | (521,893 | ) | (484,517 | ) | |||
| Total stockholders' equity | 71,361 | 101,685 | |||||
| Total liabilities and stockholders' equity | $ | 136,818 | $ | 188,879 | |||
3 Amounts have been adjusted to reflect the 1-for-20 reverse stock split that became effective on September 4, 2024.
| Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited) | |||||||
| Six Months Ended June 30, | |||||||
| 2025 | 2024 | ||||||
| Cash flows from operating activities: | |||||||
| Net loss | $ | (37,376 | ) | $ | (46,463 | ) | |
| Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
| Depreciation and amortization | 3,802 | 7,334 | |||||
| Amortization of debt issuance costs | – | 8 | |||||
| Stock-based compensation | 4,399 | 6,273 | |||||
| Inventory write-down | 1,984 | 866 | |||||
| Provision for bad debt | – | 802 | |||||
| Loss from sale of business | – | 194 | |||||
| Deferred taxes | – | 393 | |||||
| Gift card breakage | (1,990 | ) | – | ||||
| Changes in assets and liabilities: | |||||||
| Accounts receivable | (1,587 | ) | (3,208 | ) | |||
| Inventory | 393 | 1,492 | |||||
| Prepaid expenses and other current assets | 2,731 | 2,976 | |||||
| Operating lease right-of-use assets and current and noncurrent lease liabilities | (4,733 | ) | (8,897 | ) | |||
| Accounts payable and accrued expenses | (3,890 | ) | (3,438 | ) | |||
| Other long-term liabilities | – | – | |||||
| Deferred revenue | (308 | ) | (123 | ) | |||
| Net cash used in operating activities | (36,575 | ) | (41,791 | ) | |||
| Cash flows from investing activities: | |||||||
| Purchase of property and equipment | (1,371 | ) | (2,427 | ) | |||
| Changes in security deposits | 91 | 1,173 | |||||
| Proceeds from sale of businesses | 386 | 1,349 | |||||
| Net cash used in investing activities | (894 | ) | 95 | ||||
| Cash flows from financing activities: | |||||||
| Proceeds from line of credit | 5,000 | – | |||||
| Proceeds from the exercise of stock options | 8 | 34 | |||||
| Taxes withheld and paid on employee stock awards | (4 | ) | (1 | ) | |||
| Proceeds from issuance of common stock under employee stock purchase plan | 67 | 150 | |||||
| Payment of deferred financing costs | (2,919 | ) | – | ||||
| Net cash provided by financing activities | 2,152 | 183 | |||||
| Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash | 1,734 | (1,092 | ) | ||||
| Net decrease in cash, cash equivalents, and restricted cash | (33,583 | ) | (42,605 | ) | |||
| Cash, cash equivalents, and restricted cash–beginning of period | 67,584 | 130,673 | |||||
| Cash, cash equivalents, and restricted cash–end of period | $ | 34,001 | $ | 88,068 | |||
| Supplemental disclosures of cash flow information: | |||||||
| Cash paid for interest | $ | 50 | $ | 73 | |||
| Cash paid for taxes | $ | 133 | $ | 1,169 | |||
| Noncash investing and financing activities: | |||||||
| Purchase of property and equipment included in accounts payable | $ | 48 | $ | 2 | |||
| Stock-based compensation included in capitalized internal-use software | $ | 70 | $ | 173 | |||
| Reconciliation of cash, cash equivalents, and restricted cash: | |||||||
| Cash and cash equivalents | $ | 33,144 | $ | 87,224 | |||
| Restricted cash included in prepaid expenses and other current assets | 857 | 845 | |||||
| Total cash, cash equivalents, and restricted cash | $ | 34,001 | $ | 88,068 | |||
| Reconciliation of GAAP to Non-GAAP Financial Measures (in thousands, except share, per share amounts, and percentages) (unaudited) | |||||||||||||||
| The following tables present a reconciliation of adjusted EBITDA to its most comparable GAAP measure, net loss, and presentation of net loss margin and adjusted EBITDA margin for the periods indicated: | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| (in thousands) | |||||||||||||||
| Net loss | $ | (15,501 | ) | $ | (19,133 | ) | $ | (37,376 | ) | $ | (46,463 | ) | |||
| Add (deduct): | |||||||||||||||
| Stock-based compensation expense | 2,048 | 2,929 | 4,332 | 6,273 | |||||||||||
| Depreciation and amortization expense | 1,907 | 2,574 | 3,808 | 7,354 | |||||||||||
| Restructuring expense | – | 954 | – | 1,753 | |||||||||||
| Net loss from sale of business | – | 194 | – | 194 | |||||||||||
| Other income | (1,021 | ) | (575 | ) | (1,749 | ) | (2,273 | ) | |||||||
| Interest income | (86 | ) | (1,228 | ) | (379 | ) | (2,248 | ) | |||||||
| Income tax provision | 81 | 552 | 147 | 791 | |||||||||||
| Adjusted EBITDA | $ | (12,572 | ) | $ | (13,733 | ) | $ | (31,217 | ) | $ | (34,619 | ) | |||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| (in thousands) | |||||||||||||||
| Net revenue | $ | 39,685 | $ | 51,582 | $ | 71,798 | $ | 90,909 | |||||||
| Net loss | $ | (15,501 | ) | $ | (19,133 | ) | $ | (37,376 | ) | $ | (46,463 | ) | |||
| Net loss margin | (39.1 | )% | (37.1 | )% | (52.1 | )% | (51.1 | )% | |||||||
| Adjusted EBITDA | $ | (12,572 | ) | $ | (13,733 | ) | $ | (31,217 | ) | $ | (34,619 | ) | |||
| Adjusted EBITDA margin | (31.7 | )% | (26.6 | )% | (43.5 | )% | (38.1 | )% | |||||||
| Net Revenue and Store Count by Primary Geographical Market (in thousands, except for store count) (unaudited) | |||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
| (in thousands) | 2025 | 2024 | 2025 | 2024 | |||||||
| United States | $ | 28,649 | $ | 36,627 | $ | 54,274 | $ | 65,859 | |||
| International | 11,036 | 14,955 | 17,524 | 25,050 | |||||||
| Total net revenue | $ | 39,685 | $ | 51,582 | $ | 71,798 | $ | 90,909 | |||
| Store Count by Primary Geographical Market | |||||||||||||||||
| June 30, 2023 | September 30, 2023 | December 31, 2023 | March 31, 2024 | June 30, 2024 | September 30, 2024 | December 30, 2024 | March 31, 2025 | June 30, 2025 | |||||||||
| United States1 | 44 | 45 | 45 | 42 | 32 | 31 | 30 | 25 | 21 | ||||||||
| International2 | 18 | 15 | 15 | 15 | 11 | 3 | 3 | 3 | 3 | ||||||||
| Total stores | 62 | 60 | 60 | 57 | 43 | 34 | 33 | 28 | 24 | ||||||||
1 In the first quarter of 2024, we closed the operations of three stores in the U.S. In the second quarter of 2024, we closed the operations of ten stores in the U.S. In the third quarter of 2024, we closed the operations of one store in the U.S. In the fourth quarter of 2024, we closed the operations of one store in the U.S. In the first quarter of 2025, we closed the operations of five stores in the U.S. In the second quarter of 2025, we closed the operations of four stores in the U.S.
2 In the third quarter of 2023, we transitioned the operations of three international stores to distributors. In the second quarter of 2024, we transitioned the operations of two stores in Japan and one store in New Zealand to unrelated third-party distributors and closed one store in Europe. In the third quarter of 2024, we transitioned the operations of six stores in China to an unrelated third-party distributor and closed two stores in Europe.
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