Allbirds, Inc. (NASDAQ:BIRD) Reports Q1 2026 Earnings and Announces Major Asset Sale

Font: Financial Modeling Prep  • Mar 31, 2026

• Allbirds (NASDAQ:BIRD) missed both EPS and revenue estimates for Q1 2026, reporting an EPS of -$2.35 and revenue of $47.68 million.
• The company’s stock surged 30.87% in after-hours trading following the announcement of a $39 million asset sale to American Exchange Group.
• The sale price is a premium over Allbirds’ market capitalization of $24.5 million, with proceeds to be distributed to shareholders after the transaction closes.

(NASDAQ:BIRD) is a footwear company known for its sustainable and innovative sneaker designs. The brand gained popularity, especially among the Silicon Valley crowd, for its eco-friendly wool sneakers. However, after its 2021 IPO, where it raised $348 million, the company faced challenges, including aggressive expansion into physical retail and new product categories.

On March 31, 2026, Allbirds reported an earnings per share (EPS) of -$2.35, missing the estimated EPS of -$2.25. The company's revenue was approximately $47.68 million, falling short of the estimated $56.29 million. Despite these disappointing financial results, Allbirds' stock experienced a significant surge in after-hours trading, jumping 30.87% to reach $3.90.

This stock price increase followed Allbirds' announcement of a definitive agreement to sell a substantial portion of its intellectual property and certain assets to American Exchange Group for approximately $39 million. This sale price is a premium over Allbirds' market capitalization of $24.5 million, as highlighted by Reuters. The transaction is pending shareholder approval and is expected to close in the second quarter of 2026.

The deal, which includes the sale of intellectual property and specific assets and liabilities, received unanimous approval from Allbirds' board of directors. Following the completion of the transaction and the company's wind-down process, Allbirds plans to distribute the net proceeds to its stockholders in the third quarter of 2026. This move marks a significant shift for the company as it navigates its financial challenges.

Allbirds' financial metrics for the quarter reflect its struggles. The company reported a net income loss of about $19.58 million, with a gross profit of $17.76 million. The operating income was a negative $20.72 million, and the EBITDA was also negative, at approximately $18.77 million. Despite these challenges, the sale to American Exchange Group represents a strategic decision to maximize shareholder value.