BarkBox CEO Matt Meeker apologized after a leaked message from a staffer on Reddit exposed the company’s plans to axe marketing for its Pride campaign out of fear it would “feel more like a political statement.”The subscription service delivers dog toys and treats to customers’ door fronts monthly, and has been selling Pride-themed products as optional add-ons for the past four years.“While celebrating Pride is something we may value, we need to acknowledge that the current climate makes this promotion feel ...

Financial Data and Key Metrics Changes - The company achieved its first-ever positive adjusted EBITDA for the fiscal year, with Q4 delivering $5.2 million and a full-year total of $5.4 million, marking a significant turnaround from a loss of $58 million three years ago [6][22][23] - Revenue for Q4 was $115.4 million, bringing full-year revenue to $484.2 million, a decrease of 1.2% year-over-year [18][22] - Gross margins improved to 63.6% in Q4 and 62.4% for the full year, reflecting a 73 basis point improvement over the previous fiscal year [10][21] Business Line Data and Key Metrics Changes - The commerce segment grew by 27% year-over-year, achieving $68.3 million for the full year, representing 14% of total revenue [8][19] - Bark Air generated $1.8 million in revenue for Q4 and nearly $6 million for the full year, indicating strong early demand [20] - Direct-to-consumer (DTC) business faced challenges due to a deliberate pullback in marketing spend, impacting subscriber growth [18][48] Market Data and Key Metrics Changes - The company noted a slowdown in consumer sentiment, which affected order placements, particularly in Q4 and Q1 [46][53] - Retail partners adopted a cautious approach due to tariff uncertainties, leading to a temporary slowdown in order placements [70] Company Strategy and Development Direction - The company plans to accelerate diversification of revenue streams away from Bark Box subscriptions, which accounted for approximately 85% of revenue last year [13][14] - Investments will shift towards new product lines, distribution channels, and services, including consumables and AI-driven applications for pets [12][14] - The company is reassessing its supply chain in response to tariff increases, with plans to diversify manufacturing outside of China [24][25] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertainty created by tariffs and economic conditions but expressed confidence in maintaining positive adjusted EBITDA [10][28] - The company is unable to provide full-year guidance due to macroeconomic volatility but remains focused on driving efficiency and agility [27][30] - Management expects Q1 total revenue to be between $99 million and $101 million, reflecting a 14% decline at the midpoint compared to the previous year [29] Other Important Information - The company ended the fiscal year with $94 million in cash, down $21 million in the quarter due to share repurchases and working capital timing [23] - Total marketing expenses in Q4 were $17.3 million, down from the prior year, reflecting a cautious approach in response to macroeconomic conditions [21] Q&A Session Summary Question: Can you provide more details on diversifying your supplier base outside of China? - Management is exploring alternative geographies for manufacturing and has the flexibility to shift production outside of China by the end of the fiscal year [36] Question: Update on progress migrating to the Shopify platform? - The migration to Shopify is mostly complete, with active subscribers now being directed to the new platform, which allows for more nimble operations and experimentation [40] Question: What dynamics are affecting the direct-to-consumer business? - The company experienced strong customer acquisition during the holiday quarter but faced challenges in Q1 due to consumer sentiment and tariff impacts, leading to a strategic shift in marketing focus [46][48] Question: How has demand in the commerce segment changed? - Demand in the commerce segment remains strong, with a 27% growth in fiscal 2025, although there was a temporary slowdown in order placements due to tariff concerns [52][54] Question: Should the company consider more aggressive share buybacks? - Management is cautious about share buybacks given the current environment but remains open to opportunities if the stock is undervalued [62][64]

Financial Data and Key Metrics Changes - The company achieved its first-ever positive adjusted EBITDA for the fiscal year, with Q4 delivering $5.2 million and a full-year total of $5.4 million, marking a significant turnaround from a loss of $58 million three years ago [5][22][23] - Revenue for Q4 was $115.4 million, bringing full-year revenue to $484.2 million, a decrease of 1.2% year-over-year [17][22] - Gross margins improved to 63.6% in Q4 and 62.4% for the full year, reflecting a 73 basis point improvement over FY '24 and a 480 basis point improvement over FY '23 [8][20] Business Line Data and Key Metrics Changes - The commerce segment grew by 27% year-over-year, achieving $68.3 million for the full year, representing 14% of total revenue, up from 11% the previous year [7][19] - Bark Air generated $1.8 million in revenue for Q4 and nearly $6 million for the full year, indicating strong early demand for this new service [20] Market Data and Key Metrics Changes - The company faced headwinds in the direct-to-consumer (DTC) business due to a deliberate pullback in marketing spend in response to tariff uncertainties and weakening consumer sentiment [16][17] - The domestic market is experiencing challenges related to USPS rate changes, but the company is confident in its ability to mitigate these issues [26] Company Strategy and Development Direction - The company plans to accelerate the diversification of its revenue streams, moving away from a heavy reliance on Bark Box subscriptions, which accounted for approximately 85% of revenue last year [12][13] - Future investments will focus on new product lines, distribution channels, and services, including consumables and AI-driven applications for dogs [12][13] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertainty created by tariffs and economic conditions but expressed confidence in the company's ability to remain EBITDA positive and navigate these challenges [9][15][26] - The company is shifting its supply chain strategy to diversify sourcing and mitigate tariff impacts, with plans to start manufacturing in other regions [24][25] Other Important Information - The company ended the fiscal year with $94 million in cash, down $21 million in the quarter, reflecting share repurchases and working capital timing [23] - Total marketing expenses in Q4 were $17.3 million, down approximately $1.5 million from the prior year, as the company adopted a more cautious approach [21] Q&A Session Summary Question: Can you provide more details on diversifying your supplier base outside of China? - The company is exploring alternative manufacturing locations across various continents and has the flexibility to shift all toy production outside of China by the end of the fiscal year [34] Question: Update on progress migrating to the Shopify platform? - The migration is mostly complete, with active subscribers now primarily coming through the new platform, which allows for more nimble testing and experimentation [36][38] Question: What dynamics are affecting the direct-to-consumer business? - The company experienced strong customer acquisition during the holiday quarter but faced pressure from consumer sentiment and tariff noise, leading to a strategic pullback in marketing spend [44][46] Question: How has demand in the commerce segment changed? - Demand in the commerce segment has remained strong, with a 27% growth in fiscal 25, although there was a temporary slowdown in order placements due to tariff concerns [50][52] Question: What is the outlook for share buybacks given the current environment? - The company has been aggressive with share buybacks but is also focused on maintaining cash reserves for potential investments and navigating uncertainties [62][64] Question: How are conversations with retailers trending since the tariff rate changes? - Following the reduction in tariffs, demand and order placements have started to recover, with positive traction expected as seasonal demand picks up [70]

Revenue Performance - BARK's total revenue for fiscal 2025 was approximately $430 million, with Direct-to-Consumer (DTC) sales representing 85.9% of total revenue[23]. - Revenue from the commerce segment, which includes retail sales, totaled $68 million, reflecting a 27.2% increase compared to fiscal 2024[42]. - Total revenue for the fiscal year ended March 31, 2025, was $484.2 million, a decrease of 1.2% compared to $490.2 million in fiscal 2024[192]. - Direct to Consumer revenue decreased by $20.6 million, or 4.7%, primarily due to a 5.1% decrease in Total Orders and a 1.0% decrease in Average Order Value[193]. - Commerce revenue increased by $14.6 million, or 27.2%, driven by sales volume from existing and new customers[194]. - Total revenue for the fiscal year ended March 31, 2025, was $490.2 million, a decrease of $45.1 million, or 8.4%, compared to the previous year[203]. Product Categories - The consumables category, which includes treats, kibble, and supplements, accounted for about one-third of total revenue in fiscal 2025, indicating significant growth potential[32]. - BARK's toys & accessories revenue was approximately $262.3 million in fiscal 2025, down 8% from fiscal 2024, prompting a strategic shift towards consumables[27]. - BARK Air, a new service offering for dog travel, generated $5.8 million in revenue in its first fiscal year, showcasing strong customer demand[33]. - The company aims to expand its product offerings, particularly in the consumables category, to increase average order value and attract new customers[162]. Operational Efficiency - The company achieved its first full year of positive Adjusted EBITDA in fiscal 2025, driven by operational efficiency and improved gross margins[44]. - Operating expenses decreased by 3.0% to $337.1 million in fiscal 2025, compared to $347.7 million in fiscal 2024[192]. - General and administrative expenses decreased by $15.0 million, or 5.6%, to $253.4 million for the fiscal year ended March 31, 2025, primarily due to reduced shipping costs and headcount[197]. Market Trends and Challenges - The annual spend on pets in the U.S. was approximately $152 billion in 2024, representing a 3% increase from 2023, highlighting a growing market opportunity[21]. - The company faces macroeconomic challenges, including rising inflation and supply chain disruptions, which may impact consumer spending and overall business performance[165]. - Economic downturns and macroeconomic conditions can adversely affect consumer discretionary spending, impacting BARK's revenue[77]. Customer Engagement and Technology - BARK's unified e-commerce platform, launched on Shopify, aims to enhance customer experience and cross-selling capabilities across its product suite[43]. - The company serves over 200,000 customers each month through its customer service team, leveraging data from these interactions for product development[158]. - The reliance on third-party SaaS technologies for critical business functions poses risks; any service interruptions could disrupt operations and increase expenses[95]. Risks and Compliance - The company is subject to various regulations affecting its operations, including those related to consumer protection, data security, and product safety[61][64]. - The company faces risks related to customer acquisition costs, which may exceed expectations, impacting revenue growth and operational efficiency[69]. - The company may face supply chain disruptions due to natural disasters, pandemics, or geopolitical developments, which could materially affect operations[86]. - The complexities of managing omnichannel operations could adversely impact inventory management and operational efficiency, affecting financial results[88]. Financial Metrics and Future Outlook - Adjusted Net Loss is calculated by excluding various expenses including stock-based compensation and restructuring charges[213]. - The company intends to retain future earnings for business expansion and does not expect to pay dividends in the foreseeable future[126]. - The stock price may be volatile and decline due to various factors, including fluctuations in revenue and results of operations[120].

Revenue Performance - Total revenue for Q4 2025 was $115.4 million, a decrease of 5.0% year-over-year, while full-year revenue was $484.2 million, down 1.2%[5] - Direct to Consumer (DTC) revenue in Q4 2025 was $100.1 million, an 8.5% decrease year-over-year, while full-year DTC revenue was $415.8 million, down 4.7%[8] - Commerce revenue in Q4 2025 was $15.4 million, up 26.5% year-over-year, and for the full year, it was $68.3 million, a 27.2% increase compared to the prior year[5] - Total revenue for the fiscal year ended March 31, 2025, was $484.182 million, a decrease of 11% from $535.315 million in 2024[27] - Direct to Consumer revenue decreased to $415.837 million in 2025 from $471.994 million in 2024, representing a decline of 12%[27] Profitability Metrics - Adjusted EBITDA for Q4 2025 was $5.2 million, marking a $3.0 million improvement, and for the full year, it was $5.4 million, an improvement of $16.0 million compared to the previous year[5] - The company reported a net loss of $32.878 million for the fiscal year 2025, an improvement from a net loss of $37.010 million in 2024[33] - The net loss for Q4 2025 was $(6.1) million, an increase of $1.2 million from the previous year, while the full-year net loss was $(32.9) million, a $4.1 million improvement[5] - The net loss margin for the fiscal year ended March 31, 2025, was (6.79)%, improving from (7.55)% in 2024[45] - Adjusted net income for the three months ended March 31, 2025, was $2,340,000, compared to an adjusted net loss of $(485,000) in 2024[44] - The adjusted net income (loss) margin for the fiscal year ended March 31, 2025, was (0.89)%, an improvement from (4.08)% in 2024[44] Cash Flow and Liquidity - The cash and cash equivalents balance as of March 31, 2025, was $94.0 million, which included $10.5 million in share repurchases during Q4[14] - Cash and cash equivalents decreased to $94.022 million as of March 31, 2025, compared to $125.495 million in 2024, indicating a decline of 25%[31] - Free cash flow for the three months ended March 31, 2025, was $(11,987,000), compared to $(3,174,000) for the same period in 2024[48] Operational Metrics - Total Orders for Q4 2025 were 3,166,000, down from 3,499,000 in the same period last year, while full-year Total Orders were 13,210,000, a decrease from 13,924,000[23] - Average Order Value (AOV) for Q4 2025 was $31.05, slightly down from $31.25 in the previous year, while full-year AOV was $31.04, compared to $31.34 in the prior year[23] Future Outlook - The company expects Q1 2026 revenue guidance of $99.0 million to $101.0 million, reflecting a decline from $116.2 million in the previous year due to reduced DTC marketing and tariff impacts[14] - The company plans to focus on new product development and market expansion strategies to drive future growth[27] Cost and Expenses - Capital expenditures for the fiscal year ended March 31, 2025, were $(6,157,000), down from $(8,831,000) in 2024[48] - The company recorded restructuring costs of $3,829,000 for the fiscal year ended March 31, 2025, compared to $1,660,000 in 2024[44] - Technology modernization costs for the fiscal year ended March 31, 2025, amounted to $2,400,000, reflecting ongoing investment in infrastructure[45] Balance Sheet Highlights - Total current liabilities increased to $124.040 million in 2025 from $75.478 million in 2024, marking a significant rise of 64%[31] - Inventory levels rose to $88.126 million in 2025, up from $84.177 million in 2024, indicating a 5% increase[31] - The company’s total assets decreased to $260.635 million in 2025 from $298.588 million in 2024, a decline of 13%[31]

Group 1 - BARK, Inc. (NYSE: BARK) was rated as a "Buy" due to the leadership of its co-founder and his stock purchases [1] - The company is perceived to have several positive attributes that support its investment potential [1]

Financial Data and Key Metrics Changes - Total revenue for the quarter was $126.4 million, a 1% increase year-over-year, marking the second consecutive quarter of year-over-year revenue growth after eight quarters of declines [27][28] - Adjusted EBITDA for the quarter was negative $1.6 million, an improvement of $4.9 million compared to last year, driven by improvements in gross margin percentage and reduced shipping and fulfillment costs [39] - Consolidated gross margin was 62.7%, up 90 basis points compared to last year, with a total increase of over 400 basis points over the last couple of years [34][19] Business Segment Data and Key Metrics Changes - Direct-to-Consumer (D2C) segment contributed $106.1 million in revenue, including $2 million from BARK Air, but declined 4% compared to last year [28] - The Commerce segment delivered $20.3 million in revenue, representing a 43% increase year-over-year and up 27% year-to-date [32] - BARK Air generated $2 million in revenue last quarter, achieving positive gross profit just seven months after its launch [7][17] Market Data and Key Metrics Changes - New subscriptions in the D2C segment grew 11% year-over-year at a lower customer acquisition cost [10][6] - Revenue from Amazon is expected to grow over 70% this year, with further expansion anticipated [15] - The company is expanding its international presence, recently launching on Amazon Europe and establishing partnerships with major retailers in the U.K. and Europe [33][105] Company Strategy and Development Direction - The company is transitioning all paid media traffic to a new Shopify platform, which is expected to modernize the customer experience and drive increased conversion over time [9][11] - A shift in marketing strategy is underway, focusing more on brand building rather than promotional advertising [12] - The leadership team has been strengthened to drive transformative results, with a focus on profitability and sustainable long-term growth [5][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the first full year of adjusted EBITDA profitability by the end of March [26][20] - The company anticipates mid- to high single-digit top line growth in fiscal year 2026, supported by a more profitable foundation [21][45] - Management acknowledged industry headwinds but emphasized the importance of addressing outdated customer solutions to position for growth [13][30] Other Important Information - The company has invested approximately $17 million to repurchase over 11 million shares, indicating confidence in its undervalued status [22][40] - The company expects to maintain a solid cash position, ending the quarter with $115 million in cash [40] Q&A Session Summary Question: DTC segment revenue trajectory and stabilization - Management confirmed that stabilization in the DTC segment is expected in fiscal 2026, with most growth anticipated from the Commerce channel [52][53] Question: Strategic vision for BARK Air - Management indicated that while BARK Air has shown early promise, it is too soon to determine its material impact on financials [54][55] Question: Fourth quarter guidance and shelf resets - Management acknowledged timing variability due to shelf resets, which typically occur in March and April, affecting visibility for the fourth quarter [64][66] Question: Performance with Chewy and SKU expansion - Management reported strong momentum with Chewy, expanding from 30 to over 150 SKUs, and positive sentiment regarding future growth [69][71] Question: Impact of marketing strategy on new customer acquisition - Management stated that the increase in new customers is primarily due to the transition to the Shopify platform and improved marketing strategies [76][78] Question: International growth opportunities - Management highlighted significant growth potential in international markets, particularly through partnerships and expanding product offerings [102][105]

Revenue and Profitability - Revenue for the three months ended December 31, 2024, was $126,449,000, a slight increase from $125,075,000 in the same period of 2023, representing a growth of 1.1%[16] - Gross profit for the three months ended December 31, 2024, was $79,260,000, compared to $77,244,000 in the prior year, indicating a growth of 2.6%[16] - For the three months ended December 31, 2024, total revenue was $126.4 million, a slight increase from $125.1 million in the same period of 2023[55] - Total revenue for the nine months ended December 31, 2024 was $368.8 million, a slight increase of $72, or 0.0%, compared to $368.7 million in the same period of 2023[152] - Total gross profit increased by $2.7 million, or 1.2%, to $228.6 million for the nine months ended December 31, 2024, with a gross margin of 62.0%[155] Net Loss and Adjusted Metrics - The net loss for the three months ended December 31, 2024, was $11,509,000, compared to a net loss of $10,108,000 for the same period in 2023, representing a decline of 13.9%[16] - Net loss for the nine months ended December 31, 2024, was $26.811 million, an improvement from a net loss of $32.108 million for the same period in 2023, representing a 16.5% reduction[25] - Basic and diluted net loss per share for the three months ended December 31, 2024, was $(0.07), compared to $(0.06) for the same period in 2023, representing a 16.67% increase in loss per share[11] - Adjusted net loss for the three months ended December 31, 2024, was $3.9 million, while for the same period in 2023, it was $8.6 million, indicating a decrease in adjusted net loss of approximately 54.5%[173] - The net loss margin for the three months ended December 31, 2024, was (9.10)%, compared to (8.08)% for the same period in 2023[175] Cash Flow and Liquidity - Cash and cash equivalents decreased to $115,259,000 as of December 31, 2024, down from $125,495,000 as of March 31, 2024, a decline of 8.9%[13] - The company had cash and cash equivalents of approximately $115.3 million as of December 31, 2024, which is expected to be sufficient to fund operations for at least the next 12 months[179] - Free cash flow for the three months ended December 31, 2024, was $(1.96) million, compared to $13.26 million for the same period in 2023, indicating a significant decrease in free cash flow[178] - The company experienced a net decrease in cash and restricted cash of $10.7 million for the nine months ended December 31, 2024, compared to a decrease of $46.6 million in 2023[192] Assets and Liabilities - Total current assets increased to $229,405,000 as of December 31, 2024, up from $221,747,000 as of March 31, 2024, reflecting a growth of 3.0%[13] - Total liabilities rose to $179,154,000 as of December 31, 2024, compared to $159,205,000 as of March 31, 2024, marking an increase of 12.5%[13] - The accumulated deficit increased to $373,668,000 as of December 31, 2024, compared to $346,820,000 as of March 31, 2024, reflecting a growth of 7.7%[13] - The company’s total stockholders' equity decreased to $113,038,000 as of December 31, 2024, down from $139,383,000 as of March 31, 2024, indicating a decline of 18.9%[13] Operating Expenses - Operating expenses for the three months ended December 31, 2024, totaled $91,505,000, slightly up from $91,213,000 in the same period of 2023, indicating an increase of 0.3%[16] - General and administrative expenses decreased by $2.0 million, or 3.0%, primarily due to a reduction in compensation and professional fees[146] - Advertising and marketing expenses increased by $2.3 million, or 9.0%, attributed to increased marketing spend[147] Revenue Segmentation - Direct to Consumer revenue for the nine months ended December 31, 2024, was $315.8 million, down from $327.1 million in 2023, representing a decrease of approximately 3.9%[55] - Total revenue for the Direct to Consumer segment for the three months ended December 31, 2024, was $106.1 million, a decrease of 3.55% from $110.9 million in 2023[102] - Commerce revenue increased by $6.2 million, or 43.5%, driven by sales volume from existing and new customers[141] Debt and Financing Activities - Long-term debt as of December 31, 2024, totaled $42.5 million, an increase from $39.9 million as of March 31, 2024[59] - Net cash used in financing activities was $9.433 million, significantly lower than $47.040 million in the previous year, indicating a decrease of 80.0%[25] - The company had outstanding borrowings of $42.9 million under the note purchase agreement as of December 31, 2024[186] Stock and Equity - The company repurchased 5,225,531 shares of common stock for $8.0 million at an average price of $1.54 during the nine months ended December 31, 2024[73] - The company approved an increase of 8,876,143 shares available for issuance under the 2021 Equity Incentive Plan in April 2023, with 12,036,865 shares available for grant as of December 31, 2024[76] Other Financial Metrics - The company recognized a gain on debt extinguishment of $1.8 million related to the repurchase of $45.0 million of the 2025 Convertible Notes[64] - Other income (expense)—net for the nine months ended December 31, 2024, was $4.758 million, compared to $(217) thousand in the same period of 2023[97] - Interest income decreased by $0.5 million, or 31.4%, due to a reduction in cash in interest-bearing deposit accounts[148] Compliance and Legal Matters - The company expects to comply with financial and non-financial covenants related to its borrowing agreements during the next 12 months[179] - The company is currently involved in litigation related to a putative class action complaint, but it is unable to quantify any potential liability at this time[209]

Revenue Performance - Total revenue for Q3 FY2025 was approximately $126.4 million, a 1.1% year-over-year increase, surpassing the high-end of the company's guidance range[10] - BARK Air generated $2 million in revenue during Q3 FY2025, showing encouraging progress[7] - The commerce segment grew over 25% year-to-date, contributing to strong momentum heading into fiscal 2026[7] - For FY2025, the company reaffirmed its revenue guidance of $490 million to $500 million, reflecting flat to 2.0% year-over-year growth[17] Profitability and Losses - Net loss for Q3 FY2025 was approximately $(11.5) million, $1.4 million greater than the same period last year, primarily due to a $1.8 million gain from debt extinguishment in the prior year[10] - Adjusted EBITDA for Q3 FY2025 was approximately $(1.6) million, within the company's guidance range and a $4.9 million year-over-year improvement[10] - Adjusted EBITDA guidance for FY2025 is $1.0 million to $5.0 million, reflecting a year-over-year improvement of $11.6 million to $15.6 million[17] Subscriber Growth and Marketing - New subscribers increased by 8% year-over-year, driven by strategic marketing investments[7] - The company migrated all paid media to the BARK.co platform, with initial results exceeding expectations[7] Technology and Operational Costs - Technology modernization costs, including consulting fees and payroll, were $545,000 for Q3 FY2025, considered discrete and non-recurring[23]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point for fast-moving stocks, which can lose momentum if future growth does not justify high valuations [2] - Investing in bargain stocks that have recently shown price momentum can be a safer strategy, utilizing tools like the Zacks Momentum Style Score to identify potential opportunities [3] Group 2: BARK Inc. Analysis - BARK Inc. (BARK) has shown a four-week price change of 1.6%, indicating growing investor interest [4] - The stock has gained 41% over the past 12 weeks, with a beta of 1.94, suggesting it moves significantly more than the market [5] - BARK has a Momentum Score of B, indicating a favorable time to invest based on momentum [6] - The stock has a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which attract more investor interest [7] - BARK is trading at a Price-to-Sales ratio of 0.70, suggesting it is undervalued at 70 cents for each dollar of sales [7] Group 3: Additional Investment Opportunities - Besides BARK, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [9]