Bark(BARK) - 2026 Q1 - Quarterly Report

PART I. Financial Information Financial Statements (Unaudited) Presents BARK, Inc.'s unaudited condensed consolidated financial statements for Q2 2025, covering balance sheets, operations, cash flows, and notes Condensed Consolidated Balance Sheets Balance Sheet Highlights (in thousands) | Balance Sheet Item | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | Cash and cash equivalents | $84,665 | $94,022 | | Inventory | $98,124 | $88,126 | | Total Assets | $259,951 | $260,635 | | Total current liabilities | $130,491 | $124,040 | | Total liabilities | $165,982 | $161,109 | | Total stockholders' equity | $93,969 | $99,526 | Condensed Consolidated Statements of Operations and Comprehensive Loss Statement of Operations Highlights (in thousands, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Revenue | $102,861 | $116,212 | | Gross Profit | $64,077 | $73,266 | | Total Operating Expenses | $72,430 | $83,858 | | Loss from Operations | $(8,353) | $(10,592) | | Net Loss | $(7,030) | $(10,039) | | Net loss per share | $(0.04) | $(0.06) | Condensed Consolidated Statements of Cash Flows Cash Flow Summary (in thousands) | Cash Flow Activity | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(5,440) | $1,792 | | Net cash used in investing activities | $(708) | $(2,043) | | Net cash used in financing activities | $(2,130) | $(4,300) | | Net decrease in cash | $(8,328) | $(4,530) | | Cash, cash equivalents and restricted cash - end of period | $89,203 | $126,174 | Notes to Condensed Consolidated Financial Statements Detailed notes cover accounting policies, revenue disaggregation, debt, equity, stock compensation, leases, legal contingencies, and segment reporting - The company operates in two reportable segments: Direct to Consumer (DTC) and Commerce, with CODM evaluating segment performance based on gross profit[90][92] Revenue by Segment (in thousands) | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Direct to Consumer | $89,176 | $107,059 | | Commerce | $13,685 | $9,153 | | Total Revenue | $102,861 | $116,212 | - As of June 30, 2025, the company had $42.9 million of outstanding borrowings under the 2025 Convertible Notes, maturing on December 1, 2025[54][59] - During the three months ended June 30, 2025, the company repurchased 1.3 million shares of its common stock for $1.8 million, completing its authorized repurchase programs[66] Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses Q2 2025 financial results, highlighting an 11.5% revenue decrease, improved net loss, segment performance, and liquidity Key Performance Indicators | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Total Orders (in thousands) | 2,819 | 3,442 | | Average Order Value | $30.80 | $30.94 | - Direct to Consumer (DTC) revenue decreased by 16.7% primarily due to an 18.1% decrease in Total Orders, partially offset by $2.3 million in revenue from the new BARK Air initiative[129] - Commerce revenue grew 49.5% due to increased sales volume from both new and existing retail customers[130] Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | Line Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net Loss | $(7,030) | $(10,039) | | Adjustments (Interest, D&A, Stock Comp, etc.) | $7,118 | $8,243 | | Adjusted EBITDA | $88 | $(1,796) | - As of June 30, 2025, the company had cash and cash equivalents of $84.7 million and believes this is sufficient to fund operations for at least the next 12 months[153] Quantitative and Qualitative Disclosures about Market Risk The company discloses minimal exposure to market risks, including interest rate, inflation, and foreign exchange, deeming them immaterial - The company does not anticipate material risks from changes in interest rates, holding $84.7 million in cash and cash equivalents with no outstanding borrowings as of June 30, 2025[175][176] - Management does not believe that inflation has had a material effect on the business, financial condition, or results of operations[177] - Foreign currency translation risk is not expected to have a material impact as the company operates primarily within the United States and transacts mostly in U.S. dollars[178] Controls and Procedures Management concluded disclosure controls and procedures were effective, with no material changes in internal control over financial reporting - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures are effective[179] - There were no changes in internal control over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal controls[179] PART II. Other Information Legal Proceedings The company is involved in a putative class action lawsuit related to its merger, with potential liability unquantifiable - A putative class action complaint, Kenville v. Northern Star Sponsor LLC, et al., is pending against certain former officers and directors of Northern Star Acquisition Corp. and its sponsor[181] - The claims alleged are for breach of fiduciary duty and unjust enrichment, with the company currently unable to quantify any potential liability from this litigation[181] Risk Factors This section details numerous risks, including consumer spending reliance, customer acquisition, supply chain, competition, and cybersecurity - The business depends on consumer discretionary spending, which can be negatively impacted by economic downturns, inflation, and other macroeconomic conditions[195][197] - The company faces challenges in acquiring and retaining customers cost-effectively and depends on digital channels, which are subject to algorithm and policy changes[187][188] - There is a critical reliance on a limited number of suppliers and manufacturers, primarily located in Asia, introducing risks related to trade policies, tariffs, and geopolitical developments[200][202] - The company is subject to risks from online payment methods, reliance on third-party SaaS technologies, and potential compromises of its computer networks and databases containing personal information[210][212][216] Unregistered Sales of Equity Securities and Use of Proceeds No unregistered sales of equity securities occurred; the company repurchased 1.3 million shares for $1.8 million, completing its program Issuer Purchases of Equity Securities (For the three months ended June 30, 2025) | Period | Total Number of Shares Purchased | Average Price Paid Per Share | Approximate Dollar Value that May Yet be Purchased | | :--- | :--- | :--- | :--- | | April 1-30, 2025 | 1,310,627 | $1.35 | $— | | Total | 1,310,627 | $1.35 | $— | - The repurchase of 1.3 million shares for $1.8 million in April 2025 completed the company's total authorized stock repurchase program of $26.5 million[249] Defaults Upon Senior Securities The company reports no defaults upon senior securities during the period - None[250] Mine Safety Disclosures This item is not applicable to the company - Not applicable[251] Other Information No directors or officers adopted or terminated Rule 10b5-1 trading plans during the reporting period - No directors or officers adopted or terminated any Rule 10b5-1(c) trading plans during the period covered by the report[252] Exhibits This section lists exhibits filed with the Form 10-Q, including CEO/CFO certifications and interactive data files (Inline XBRL) - Exhibits filed with the report include CEO and CFO certifications pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act[255] - The filing also includes Inline XBRL Instance, Schema, Calculation, Definition, Label, and Presentation documents[255]