TSL Express Daily News

SAN FRANCISCO - Sustainable footwear brand Allbirds, Inc. (NASDAQ:BIRD), whose stock has surged nearly 50% year-to-date despite showing signs of financial strain according to InvestingPro data, announced Monday it has secured new financing agreements to enhance its financial flexibility and support long-term growth plans.

The company has entered into a new $75 million asset-based revolving credit facility with Second Avenue Capital Partners, which includes a $50 million tranche and a $25 million accordion feature. The facility, which replaces Allbirds’ previous $50 million revolving credit facility, will mature on June 30, 2028, and is priced at SOFR plus 575 basis points. While InvestingPro analysis shows the company operates with a moderate debt-to-equity ratio of 0.53 and maintains a healthy current ratio of 3.21, the new financing comes as the company faces significant cash burn challenges.

Additionally, Allbirds has established a sales agreement with TD Cowen for an At-the-Market (ATM) program that may allow the company to sell up to $50 million of Class A common stock shares.

These financing arrangements coincide with Allbirds’ upcoming product launches, with new fall styles scheduled to debut in mid-July. The company plans to introduce more than 15 new footwear styles across casual, elevated, and relaxed categories.

"We’re taking deliberate steps to strengthen our financial position as we enter this next chapter, while continuing to prioritize operational discipline and focus on driving long-term, profitable growth," said Joe Vernachio, CEO of Allbirds, in a press release statement.

The company reported $39.1 million in cash and cash equivalents as of March 31, 2025. Chief Financial Officer Annie Mitchell noted that the new credit facility provides a higher borrowing base and improved terms compared to the previous arrangement. According to InvestingPro data, Allbirds faces significant headwinds with a 23.6% revenue decline in the last twelve months and analysts projecting further sales decline this year. Get access to 12 more exclusive ProTips and comprehensive analysis in the Pro Research Report, helping you make more informed investment decisions.

TD Cowen served as exclusive financial advisor and sales agent to Allbirds for these transactions. A registration statement for $22.5 million of the Class A common stock to be sold under the ATM program has been filed with the SEC but is not yet effective.

In other recent news, Allbirds Inc. reported its Q1 2025 earnings, revealing a net revenue of $32 million, slightly surpassing its guidance midpoint. The company’s gross margin fell by 210 basis points year-over-year to 44.8%, but it managed to improve its adjusted EBITDA loss by 11% to $19 million. Allbirds introduced new product lines, such as a refreshed runner franchise and a waterproof collection, which are anticipated to drive future sales growth. The company also announced exclusive distribution agreements to expand its market into Central and South America and Southern Europe. Kiwi Life Group will handle distribution in Central America, the Caribbean, Chile, and Colombia, while Trendy King will cover Spain and Portugal. Furthermore, Allbirds provided a full-year 2025 net revenue outlook of $175-$195 million, with expectations of returning to top-line growth in Q4 2025. The company plans for a 10% net sales growth, excluding structural changes, and forecasts Q2 2025 net revenue between $36-$41 million. CEO Joe Vernaccio expressed confidence in the company’s growth trajectory, supported by these strategic expansions and product innovations.