Bark(BARK) - 2025 Q4 - Annual Results

Revenue Performance - Total revenue for Q4 2025 was $115.4 million, a decrease of 5.0$484.2 million, down 1.2%[5] - Direct to Consumer (DTC) revenue in Q4 2025 was $100.1 million, an 8.5$415.8 million, down 4.7%[8] - Commerce revenue in Q4 2025 was $15.4 million, up 26.5$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$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]