NEW YORK--(BUSINESS WIRE)--The New York Stock Exchange ("NYSE†, the "Exchange†) announced today that the staff of NYSE Regulation has determined to commence proceedings to delist the warrants ("Warrants†) — ticker symbol BARK WS — each exercisable for one share of common stock of BARK, Inc. (the "Company†) from the NYSE. Trading in these Warrants on the NYSE will be suspended immediately. Trading in the Company's common stock — ticker symbol BARK — will continue on the NYSE. NYSE Regulation has. ...

Financial Data and Key Metrics Changes - Total revenue for the second quarter was $107 million, exceeding the high end of guidance, with adjusted EBITDA at negative $1.4 million within guidance range [5][12][18] - The company is now debt-free after paying off a $45 million convertible note, strengthening its balance sheet [4][12] Business Line Data and Key Metrics Changes - The commerce segment generated $24.8 million in revenue, up 6% year over year, contributing 24% to total revenue, marking an all-time high [5][12] - BARK Air revenue reached $3.6 million, up more than 138% year over year and 54% from the prior quarter, with a 99% five-star review rate [6][12] Market Data and Key Metrics Changes - Direct-to-consumer (D2C) revenue, excluding BARK Air, was $78.5 million, down from last year due to a smaller subscriber base and moderated marketing spend [12][13] - The company experienced the lowest customer acquisition cost since fiscal 2023, with two-thirds of new subscribers opting for premium offerings [9][10] Company Strategy and Development Direction - The company is focused on revenue diversification and maintaining bottom-line discipline, with plans to expand retail distribution and product assortment [5][12] - The partnership with the Girl Scouts for their annual cookie program is expected to enhance brand awareness and revenue opportunities [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in executing the plan despite external challenges such as tariffs and macroeconomic volatility, aiming for profitability by the end of the fiscal year [22][25] - The company anticipates improved gross margins in the second half of fiscal 2026 due to strategic sourcing and price increases [14][18] Other Important Information - The company ended the quarter with $63 million in cash, down $22 million sequentially due to working capital timing [17] - Guidance for the fiscal third quarter is set at total revenue between $101 million and $104 million, with adjusted EBITDA between negative $5 million and negative $1 million [18] Q&A Session Summary Question: What flexibility does being debt-free provide? - Management indicated that being debt-free allows for continued execution of the business plan without the burden of interest payments, focusing on reinvestment for growth [20][21] Question: Confidence in achieving full-year profitability? - Management maintains the goal of being EBITDA positive by year-end, acknowledging the volatility in tariffs and consumer sentiment [25] Question: Factors driving commerce growth? - Growth in the commerce segment is attributed to increased distribution, product availability, and timing benefits from orders shifting into Q2 [26][27] Question: Insights on subscriber acquisition and retention? - Improved retention is driven by a favorable mix of organic customer acquisition and enhancements in the subscription platform, leading to higher quality subscribers [30][34][40]

Revenue Performance - Revenue for the three months ended September 30, 2025, was $106,970,000, a decrease of 15.1% compared to $126,111,000 for the same period in 2024[16] - Total revenue for the three months ended September 30, 2025, was $106.97 million, a decrease of 15.2% compared to $126.11 million for the same period in 2024[136] - Total revenue for the six months ended September 30, 2025 was $209.8 million, a decrease of $32.5 million or 13.4% compared to $242.3 million in the same period of 2024[149] - Direct to Consumer revenue for the three months ended September 30, 2025, was $82.15 million, down 19.9% from $102.60 million in 2024[50] - Direct to Consumer revenue decreased by $38.3 million, or 18.3%, primarily due to a 20.1% decrease in Total Orders and a 0.3% decrease in Average Order Value (AOV)[150] - Commerce revenue increased by $1.3 million, or 5.6%, driven by sales volume from existing and new customers[139] Profit and Loss - Gross profit for the six months ended September 30, 2025, was $126,037,000, down from $149,378,000 in the prior year, reflecting a decline of 15.6%[16] - Net loss for the three months ended September 30, 2025, was $10,672,000, compared to a net loss of $5,263,000 for the same period in 2024, representing a 102.8% increase in losses[16] - For the six months ended September 30, 2025, the net loss was $17.7 million, compared to a net loss of $15.3 million for the same period in 2024, representing an increase in loss of approximately 15.7%[24] - Total gross profit for the three months ended September 30, 2025, was $62.0 million, compared to $76.1 million for the same period in 2024, reflecting a decrease of 18.5%[98] - The net loss attributable to common stockholders for the three months ended September 30, 2025 was $10,672,000, resulting in a net loss per share of $(0.06)[91] Cash Flow and Liquidity - Cash flows from operating activities resulted in a net cash used of $23.5 million for the six months ended September 30, 2025, compared to a net cash provided of $4.6 million in the same period of 2024[24] - The company had cash and cash equivalents of approximately $63.4 million as of September 30, 2025, which is expected to be sufficient to fund operations for at least the next 12 months[176] - Free cash flow for the three months ended September 30, 2025, was $(19,926,000), a decrease from $966,000 in the same period in 2024[175] - The net decrease in cash and restricted cash for the six months ended September 30, 2025, was $28.9 million, significantly higher than the $5.8 million decrease in 2024[188] - The company incurred net cash used in investing activities of $2.6 million in 2025, a decrease from $3.9 million in 2024, primarily due to software development costs and capital expenditures[191] Assets and Liabilities - Total current assets decreased to $193,940,000 as of September 30, 2025, from $201,637,000 as of March 31, 2025, a decline of 3.4%[13] - Total liabilities increased slightly to $161,508,000 as of September 30, 2025, compared to $161,109,000 as of March 31, 2025[13] - Cash and cash equivalents decreased to $63,427,000 as of September 30, 2025, down from $94,022,000 as of March 31, 2025, a decline of 32.5%[13] - Total stockholders' equity decreased to $86,472,000 as of September 30, 2025, from $99,526,000 as of March 31, 2025, a decline of 13.1%[13] Operating Expenses - Operating expenses for the three months ended September 30, 2025, were $72,619,000, a decrease of 11.3% from $81,808,000 in the same period in 2024[16] - General and administrative expenses decreased by $5.92 million, or 9.4%, primarily due to lower shipping and fulfillment costs and decreased compensation expenses[144] - Advertising and marketing expenses decreased by $3.27 million, or 17.5%, attributed to reduced Direct to Consumer marketing spend[145] Stock and Equity - The Company had deferred revenue of $20.0 million as of September 30, 2025, compared to $21.3 million as of March 31, 2025[52] - The Company did not repurchase any shares during the three months ended September 30, 2025, but repurchased 1,310,627 shares for $1.8 million during the six months ended September 30, 2025[68] - The total number of stock options to purchase common stock as of September 30, 2025 was 8,958,512, down from 10,773,297 in 2024[92] - The Company granted equity awards for 25,000 and 1,087,500 shares of common stock during the six months ended September 30, 2025 and 2024, respectively, at weighted average exercise prices of $1.26 and $1.37[77] Future Outlook - The company expects its cash and cash equivalents will be sufficient to fund operations for at least the next twelve months despite recurring losses[32] - The company anticipates significant long-term growth in its consumables category, driven by new product offerings and market expansion[126] - The company is currently navigating challenges related to customer acquisition and retention, which may impact future revenue growth[206][208] - The company expects future capital requirements to depend on customer growth and investments in partnerships and unexplored channels, indicating potential for additional equity or debt financing[176]

Core Insights - Bark reported Q3 CY2025 results that exceeded market revenue expectations, with sales of $107 million, although this represents a 15.2% year-on-year decline [1][8] - The company's revenue guidance for the next quarter is $102.5 million, which is 4% below analysts' estimates [1] - Bark's non-GAAP loss per share was $0.03, missing analysts' consensus by $0.02 [1] Company Overview - Bark specializes in subscription-based, personalized pet products, gaining recognition through its BarkBox offering [4] Financial Performance - Bark's revenue growth over the last five years has been a compounded annual growth rate of 9.8%, which is below the benchmark for the consumer discretionary sector [5] - The company has experienced a decline in revenue over the past two years, with an annual decrease of 5.3% [6] - For Q3 CY2025, Bark's revenue was $107 million, beating analyst estimates of $104.3 million by 2.6% [7] - Adjusted EBITDA for the quarter was -$1.44 million, significantly missing analyst estimates [7] - The operating margin for the quarter was -10%, a decline from -4.5% in the same quarter last year [7] - Free cash flow was reported at -$19.93 million, down from $966,000 in the same quarter last year [7] Future Guidance - Management is guiding for an 18.9% year-on-year decline in sales for the next quarter [8] - EBITDA guidance for Q4 CY2025 is projected at -$3 million, below analyst estimates of -$1.43 million [7]

Financial Performance - Total revenue for Q2 FY 2026 was $107.0 million, exceeding the guidance range of $102.0 million to $105.0 million, but a 15.2% decline year-over-year [3][4] - Net loss for the quarter was $(10.7) million, compared to $(5.3) million in the same period last year [3][4] - Adjusted EBITDA was $(1.4) million, within the guidance range of $(2.0) million to $2.0 million, despite increased marketing investments [3][8] - The company expects Q3 FY 2026 revenue guidance between $101.0 million and $104.0 million, with Adjusted EBITDA between $(5.0) million and $(1.0) million [9][10] - The company will not provide full-year guidance due to uncertainties surrounding tariffs and their impact on demand and operating costs [10][11] - Consolidated revenue for the six months ended September 30, 2025, was $209.831 million, down from $242.323 million in the same period of 2024, representing a decrease of 13.4% [28] - Net loss for the six months ended September 30, 2025, was $17.702 million, compared to a net loss of $15.302 million in the same period of 2024, an increase of 15.7% [31] - For the three months ended September 30, 2025, the net loss was $10,672,000, compared to a net loss of $5,263,000 for the same period in 2024, reflecting an increase in net loss margin from (4.17)% to (9.98)% [43] - The net loss for the six months ended September 30, 2025, totaled $(17,702,000), compared to $(15,302,000) for the same period in 2024 [43] Revenue Breakdown - Commerce revenue increased by 5.6% year-over-year to $24.8 million, while BARK Air revenue surged by 138.0% to $3.6 million [3][4] - Direct to Consumer revenue decreased by 19.9% year-over-year to $82.1 million, attributed to carrying fewer subscriptions into the quarter [4][21] - Direct to Consumer revenue decreased to $82.148 million in Q3 2025 from $102.599 million in Q3 2024, a decline of 19.9% [28] Profitability Metrics - Gross profit for the quarter was $62.0 million, an 18.6% decrease compared to the previous year [4][23] - Gross profit for the Direct to Consumer segment was $51.973 million in Q3 2025, compared to $65.516 million in Q3 2024, a decrease of 20.6% [28] - Adjusted net loss for the six months ended September 30, 2025, was $(7,301,000), compared to $(2,726,000) for the same period in 2024, with an adjusted net loss margin of (3.48)% [43] - Adjusted EBITDA for the three months ended September 30, 2025, was $(1,438,000), a decrease from $3,486,000 in the same period of 2024, resulting in an adjusted EBITDA margin of (1.34)% [44] Cash Flow and Assets - The company reported a net cash used in operating activities of $23.514 million for the six months ended September 30, 2025, compared to a net cash provided of $4.566 million in the same period of 2024 [31] - Cash and cash equivalents decreased to $63.427 million as of September 30, 2025, down from $94.022 million as of March 31, 2025, a decrease of 32.5% [29] - Total current assets decreased to $193.940 million as of September 30, 2025, from $201.637 million as of March 31, 2025, a decline of 3.4% [29] Debt and Financing - The company repaid $45 million in convertible notes, making it debt-free as of November 6, 2025 [1][5] - A $35 million line of credit was extended to enhance operational flexibility [1][6] - Total liabilities as of September 30, 2025, were $161.508 million, slightly up from $161.109 million as of March 31, 2025 [29] Other Financial Metrics - The company incurred stock compensation expenses of $3,716,000 for the three months ended September 30, 2025, up from $2,957,000 in the same period of 2024 [44] - The company reported interest income of $(678,000) for the three months ended September 30, 2025, compared to $(1,353,000) in the same period of 2024 [44] - Free cash flow for the three months ended September 30, 2025, was $(19,926,000), compared to $966,000 for the same period in 2024 [45] - The weighted average common shares used to compute adjusted net loss per share for the three months ended September 30, 2025, was 170,762,090 shares [43]

Core Insights - BARK, Inc. has reported its financial results for the second quarter of fiscal year 2026, highlighting a focus on debt repayment and operational flexibility [1][2][4] Financial Performance - Total revenue for the quarter was $107.0 million, exceeding the company's guidance range of $102.0 million to $105.0 million [4][5] - Commerce revenue, which includes retail business, was $24.8 million, reflecting a 5.6% increase year-over-year [4][5] - BARK Air revenue reached $3.6 million, marking a significant increase of 138.0% compared to the previous year [4][5] - The company reported a net loss of $(10.7) million, compared to a net loss of $(5.3) million in the same quarter last year [4][5] - Adjusted EBITDA was $(1.4) million, which was within the company's guidance range [4][5] Debt Management - BARK repaid its $45 million convertible note in cash, making the company debt-free as of November 6, 2025 [2][6] - The company extended its $35 million line of credit to enhance financial flexibility [2][7] Strategic Focus - The company aims to diversify its revenue streams while maintaining profitability, with a focus on efficient subscriber growth and retention [2][5] - Marketing investments were reduced by 18% compared to the previous year, aligning with the strategy to focus on revenue diversification [5][6] Operational Metrics - Direct to Consumer (DTC) revenue was $82.1 million, a decrease of 19.9% year-over-year, attributed to fewer subscriptions carried into the quarter [5][6] - Total orders decreased to 2,544 thousand from 3,270 thousand year-over-year [19] - Average Order Value (AOV) remained relatively stable at approximately $30.87 [19] Balance Sheet Highlights - As of September 30, 2025, cash and cash equivalents stood at $63.4 million, with inventory at $101.0 million [13][21] - Total assets were reported at $247.98 million, while total liabilities were $161.51 million [21]

Core Insights - Bark is set to announce earnings results on Monday before market open, with analysts expecting a revenue decline of 17.3% year on year to $104.3 million, contrasting with a 2.5% increase in the same quarter last year [2] - Last quarter, Bark reported revenues of $102.9 million, which was an 11.5% year-on-year decline, and missed analysts' adjusted operating income estimates [1][3] - The company has missed Wall Street's revenue estimates twice in the past two years, indicating potential challenges in meeting expectations [3] Revenue Expectations - Analysts anticipate Bark's revenue to decline significantly this quarter, with expectations set at $104.3 million, down from the previous year's performance [2] - The adjusted loss per share is projected to be -$0.02, reflecting ongoing financial challenges [2] Peer Performance - In the toys and electronics segment, Funko reported a 14.3% year-on-year revenue decrease, while Hasbro saw an 8.3% revenue increase, indicating mixed performance among peers [4] - Funko's results led to a 10.3% increase in its stock price, while Hasbro's stock rose by 2.1% following its earnings report [4] Market Sentiment - Investors in the toys and electronics segment have maintained stable positions, with share prices remaining flat over the past month [5] - Bark's stock has increased by 10.2% during the same period, with an average analyst price target of $2.33 compared to its current share price of $0.85 [5]

Core Insights - The letter emphasizes the urgent need for BARK, Inc. to take decisive actions to enhance shareholder value, given its current undervaluation in the market [1][2][8] Financial Position - BARK, Inc. has a strong balance sheet with $85 million in cash reserves and $98 million in fully paid inventory, totaling $183 million in liquid assets [2] - After accounting for debt and other prepaid expenses, the net equity value is approximately $150 million, significantly higher than the current market capitalization of $137 million, indicating the stock is trading at negative equity [2] Proposed Initiatives - A minimum $25 million share buyback program is recommended to take advantage of the stock's depressed prices, which would benefit remaining shareholders and affirm the company's intrinsic value [4] - The company should secure inventory financing against the $98 million in paid inventory to free up capital for growth initiatives and marketing, optimizing the balance sheet [5] - Strategic plans should be developed to expand product categories, including vitamins, supplements, and DNA testing kits for dogs, leveraging proprietary data on over 6 million dogs for personalized health recommendations and new revenue streams [6][7]

Core Insights - Bark Inc. is shifting its investor relations strategy from traditional institutional investors to individual retail investors, recognizing the growing influence of this demographic in the market [1][5][6] - The company has achieved its first full year of positive EBITDA, prompting a focus on more effective navigation of public markets [3][4] - CEO Matt Meeker envisions expanding Bark beyond its BarkBox subscriptions, aiming to create a comprehensive ecosystem for pet products and experiences [7][8] Investor Relations Strategy - Meeker believes that traditional roadshows are a misallocation of resources for a company of Bark's size, as large institutional funds struggle to take meaningful positions [4] - The company is adapting to a new landscape where retail investors are more active and influential, emphasizing direct and authentic engagement on platforms like X and Discord [5][6] Financial Performance - Bark's stock closed at $0.83 per share, reflecting a year-to-date decline of 56.04% and a 47.75% drop over the last year, with a market capitalization of $137.64 million [9]

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