Investment Thesis
Allbirds faces severe financial distress with accelerating revenue decline of 25.3% YoY, negative operating cash flow of -51.8M, and massive operating losses of -59.2M. The company is burning cash at an unsustainable rate with negative free cash flow of -54.1M, creating an existential threat to viability despite adequate near-term liquidity and reasonable leverage ratios.
Strengths
- Healthy gross margin of 42.7% demonstrates underlying product profitability and pricing power
- Current ratio of 2.37x and quick ratio of 1.10x provide near-term liquidity cushion with 23.7M in cash
- Conservative debt-to-equity ratio of 0.24x limits financial leverage risk
Risks
- Severe revenue contraction of 25.3% YoY indicates loss of market demand and competitive position deterioration
- Massive operating losses of -59.2M and negative operating cash flow of -51.8M signal core business model failure
- Negative free cash flow of -54.1M with -51.6% FCF margin means company is depleting cash reserves at unsustainable rate, limiting runway
- Net loss of -57.7M and ROE of -111.1% demonstrate shareholder value destruction with no clear path to profitability
Key Metrics to Watch
- Revenue stabilization and return to growth trajectory
- Operating cash flow improvement and path to positive FCF
- Gross margin sustainability as company navigates revenue decline
- Operating expense reduction and timeline to EBITDA positivity
- Cash burn rate and estimated runway given current cash balances
Financial Metrics
Revenue
104.8M
Net Income
-57.7M
EPS (Diluted)
$-7.13
Free Cash Flow
-54.1M
Total Assets
119.9M
Cash
23.7M
Profitability Ratios
Gross Margin
42.7%
Operating Margin
-56.5%
Net Margin
-55.1%
ROE
-111.1%
ROA
-48.1%
FCF Margin
-51.6%
Balance Sheet & Liquidity
Current Ratio
2.37x
Quick Ratio
1.10x
Debt/Equity
0.24x
Debt/Assets
56.7%
Interest Coverage
-553.66x
Long-term Debt
12.3M
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-03-21T02:46:15.220233 |
Data as of: 2025-09-30 |
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