Bark(BARK) - 2026 Q1 - Quarterly Results

Executive Summary & Q1 FY26 Highlights BARK achieved positive adjusted EBITDA and advanced diversification in Q1 FY26, exceeding revenue guidance and improving DTC gross margin CEO Commentary BARK's Co-Founder and CEO, Matt Meeker, reported solid progress in Q1 FY26, successfully maintaining positive adjusted EBITDA and advancing diversification efforts beyond subscription boxes - BARK's two clear priorities for fiscal 2026 are to maintain positive adjusted EBITDA and accelerate diversification beyond subscription boxes[3] - Revenue came in ahead of guidance, and the company achieved its strongest DTC gross margin quarter to date, driven by a shift toward higher-value Super Chewer customers[3] - The Commerce segment grew 50% year-over-year, and BARK Air surpassed $2 million in revenue[3] Fiscal First Quarter 2026 Key Financial Highlights BARK reported Q1 FY26 total revenue of $102.9 million, exceeding guidance despite an 11.5% year-over-year decline, with Commerce revenue surging and Adjusted EBITDA turning positive Q1 FY26 Key Financial Highlights | Metric | Q1 FY26 (Millions) | YoY Change | | :---------------------- | :----------------- | :--------- | | Total Revenue | $102.9 | -11.5% | | Commerce Revenue | $13.7 | +49.5% | | Direct-to-consumer gross margin | 67.0% | +250 bps | | Net Loss | $(7.0) | +$3.0M (improvement) | | Adjusted EBITDA | $0.1 | +$1.9M (improvement) | Q1 FY26 Detailed Financial Performance This section details BARK's Q1 FY26 financial results, including revenue declines in DTC, strong Commerce growth, improved DTC gross margin, and reduced operating expenses leading to positive Adjusted EBITDA Revenue Analysis Total revenue for Q1 FY26 was $102.9 million, an 11.5% decrease year-over-year, primarily due to fewer total orders and a strategic management of marketing spend Q1 FY26 Revenue Breakdown | Revenue Segment | Q1 FY26 (Millions) | YoY Change | Primary Driver/Reason |\ | :-------------------- | :----------------- | :--------- | :-------------------- |\ | Total Revenue | $102.9 | -11.5% | Fewer total orders, focus on profitability |\ | Direct to Consumer | $89.2 | -16.7% | Fewer total orders, marketing spend management |\ | Commerce | $13.7 | +49.5% | Strong growth at Costco, Amazon, Chewy, TJX | Gross Profit and Margin Gross profit for Q1 FY26 decreased by 12.5% year-over-year to $64.1 million, primarily influenced by the decline in total revenue, while Direct-to-Consumer gross margin improved by 250 basis points Q1 FY26 Gross Profit and Margin | Metric | Q1 FY26 (Millions) | Q1 FY25 (Millions) | YoY Change | | :---------------------- | :----------------- | :----------------- | :--------- | | Gross Profit | $64.1 | $73.3 | -12.5% | | Consolidated Gross Margin | 62.3% | 63.0% | -0.7% | | DTC Gross Margin | 67.0% | 64.5% | +250 bps | Operating Expenses Operating expenses saw reductions in Q1 FY26, with advertising and marketing expenses decreasing to $15.2 million and general and administrative expenses also declining year-over-year Q1 FY26 Operating Expenses | Expense Category | Q1 FY26 (Millions) | Q1 FY25 (Millions) | YoY Change | | :------------------------ | :----------------- | :----------------- | :--------- | | Advertising and marketing | $15.2 | $20.4 | -25.5% |\ | General and administrative| $57.3 | $63.4 | -9.6% | Net Loss and Adjusted EBITDA BARK demonstrated significant improvement in profitability for Q1 FY26, with net loss decreasing by $3.0 million and Adjusted EBITDA turning positive at $0.1 million Q1 FY26 Net Loss and Adjusted EBITDA | Metric | Q1 FY26 (Millions) | Q1 FY25 (Millions) | YoY Change | | :-------------- | :----------------- | :----------------- | :--------- | | Net Loss | $(7.0) | $(10.0) | +$3.0M (improvement) | | Adjusted EBITDA | $0.1 | $(1.8) | +$1.9M (improvement) | Balance Sheet Highlights BARK's balance sheet as of June 30, 2025, shows cash and equivalents at $84.7 million, increased inventory, stable total assets, and a rise in total liabilities Key Balances as of June 30, 2025 As of June 30, 2025, BARK's cash and cash equivalents stood at $84.7 million, with inventory increasing to $98.1 million, while total liabilities rose to $166.0 million Balance Sheet Key Figures (June 30, 2025 vs. March 31, 2025) | Metric | June 30, 2025 (Thousands) | March 31, 2025 (Thousands) | Change (QoQ) | | :-------------------------- | :------------------------ | :------------------------- | :----------- | | Cash and cash equivalents | $84,665 | $94,022 | $(9,357) | | Inventory | $98,124 | $88,126 | +$9,998 | | Total Current Assets | $201,687 | $201,637 | +$50 | | Total Assets | $259,951 | $260,635 | $(684) | | Total Current Liabilities | $130,491 | $124,040 | +$6,451 | | Total Liabilities | $165,982 | $161,109 | +$4,873 | | Total Stockholders' Equity | $93,969 | $99,526 | $(5,557) | Cash Flow Highlights BARK's Q1 FY26 cash flow saw net cash used in operating activities, primarily due to increased inventory, resulting in negative free cash flow Q1 FY26 Cash Flow Summary In Q1 FY26, BARK reported net cash used in operating activities of $(5.4) million, a shift from cash provided in the prior year, primarily driven by a $10.0 million net increase in inventory Q1 FY26 Cash Flow Summary | Cash Flow Activity | Q1 FY26 (Millions) | Q1 FY25 (Millions) | | :---------------------------------- | :----------------- | :----------------- | | Net cash (used in) provided by operating activities | $(5.4) | $1.8 | | Capital expenditures | $(0.7) | $(2.0) | | Free Cash Flow | $(6.1) | $(0.3) | | Net cash used in financing activities | $(2.1) | $(4.3) | | Net decrease in cash | $(8.3) | $(4.5) | - The $10.0 million net increase in inventory and $1.8 million of share repurchases contributed to the cash usage in the quarter[10] Q2 FY26 Financial Outlook BARK projects Q2 FY26 total revenue between $102.0 million and $105.0 million and Adjusted EBITDA between $(2.0) million and $2.0 million, withholding full-year guidance due to tariff uncertainties Guidance for Fiscal Second Quarter 2026 BARK provided its financial outlook for Q2 FY26, projecting total revenue between $102.0 million and $105.0 million, and Adjusted EBITDA in the range of $(2.0) million to $2.0 million Q2 FY26 Financial Guidance | Metric | Q2 FY26 Guidance Range (Millions) | | :-------------- | :------------------------------- | | Total Revenue | $102.0 - $105.0 | | Adjusted EBITDA | $(2.0) - $2.0 | - BARK will not be providing full-year guidance at this time due to ongoing uncertainty surrounding tariffs and their impact on overall demand and operating costs[8] Conference Call Information Details for BARK's Q1 FY26 earnings conference call, held on August 7, 2025, including dial-in numbers and webcast access Conference Call Details A conference call to discuss BARK's first quarter fiscal year 2026 results was scheduled for August 7, 2025, at 8:30 a.m. ET, accessible via dial-in or live audio webcast - A conference call to discuss Q1 FY26 results was held on August 7, 2025, at 8:30 a.m. ET[12] - Access details include a U.S. dial-in number (1-888-596-4144), international number (1-646-968-2525), passcode (5515653), and a live audio webcast at **https://investors.bark.co/**[13](index=13&type=chunk) About BARK BARK, founded in 2011, is a leading omnichannel dog brand dedicated to dog happiness through innovative products, services, and content, including subscriptions and specialized food Company Overview BARK, founded in 2011, is a leading global omnichannel dog brand committed to enhancing dog happiness through innovative products, services, and content - BARK is the world's most dog-centric company, devoted to making dogs happy with the best products, services, and content[14] - Founded in 2011, BARK offers themed toys and treats subscriptions (BarkBox and BARK Super Chewer), custom product collections through retail partners (Target and Amazon), high-quality nutritious meals (BARK Food), and dental care products (BARK Bright®)[14] Forward-Looking Statements This section cautions that the press release contains forward-looking statements subject to risks and uncertainties, advising investors to consult the Company's Form 10-Q for detailed risk factors Disclaimer and Risk Factors This section highlights that the press release contains forward-looking statements based on current expectations, which are subject to various risks and uncertainties - This press release contains forward-looking statements based on current expectations, forecasts, and assumptions, which involve risks and uncertainties[15] - Actual results could differ materially due to factors including the uncertainty of projected financial information, risks related to pet spending, customer conversion, product line expansion, competition, and macroeconomic events[15] - Undue reliance should not be placed on these statements, and investors should refer to the 'Risk Factors' and 'Management's Discussion and Analysis of Financial Condition and Results of Operations' in the Company's Form 10-Q for more information[16] Key Performance Indicators This section defines and presents key performance indicators for Q1 FY26, including Total Orders and Average Order Value, alongside Direct to Consumer Gross Profit and Margin Definitions of Key Performance Indicators BARK defines 'Total Orders' as the aggregate number of Direct-to-Consumer (DTC) orders shipped, and 'Average Order Value' (AOV) as DTC revenue divided by Total Orders - Total Orders are defined as the total number of DTC orders shipped in a given period, including all orders across all product categories, regardless of subscription, auto-ship, or one-off basis[17] - Average Order Value (AOV) is calculated by dividing Direct to Consumer revenue for the period by Total Orders for the same period[18] Key Performance Indicator Data For the three months ended June 30, 2025, Total Orders decreased to 2,819 thousand, Average Order Value slightly declined, and Direct to Consumer Gross Margin increased to 69.3% Key Performance Indicators (Three Months Ended June 30) | Metric | June 30, 2025 | June 30, 2024 | | :------------------------------ | :------------ | :------------ | | Total Orders (in thousands) | 2,819 | 3,442 | | Average Order Value | $30.80 | $30.94 | | Direct to Consumer Gross Profit (in thousands) | $60,183 | $69,270 | | Direct to Consumer Gross Margin | 69.3% | 65.1% | Condensed Consolidated Statement of Operations and Comprehensive Loss BARK's Q1 FY26 consolidated statement of operations shows a net loss of $(7.0) million, an improvement from the prior year, driven by reduced operating expenses despite lower total revenue Q1 FY26 Consolidated Statement of Operations For Q1 FY26, BARK reported a net loss of $(7.0) million, an improvement from $(10.0) million in the prior year, with total revenue at $102.9 million and reduced operating expenses Condensed Consolidated Statement of Operations (Three Months Ended June 30) | Metric | June 30, 2025 (Thousands) | June 30, 2024 (Thousands) | | :-------------------------- | :------------------------ | :------------------------ | | REVENUE | $102,861 | $116,212 | | COST OF REVENUE | $38,784 | $42,946 | | Gross profit | $64,077 | $73,266 | | General and administrative | $57,252 | $63,426 | | Advertising and marketing | $15,178 | $20,432 | | Total operating expenses | $72,430 | $83,858 | | LOSS FROM OPERATIONS | $(8,353) | $(10,592) | | NET LOSS AND COMPREHENSIVE LOSS | $(7,030) | $(10,039) | Disaggregated Revenue This section details BARK's Q1 FY26 revenue, showing a decline in Direct to Consumer revenue, particularly in Toys & Accessories, offset by significant growth in Commerce revenue and BARK Air contributions Q1 FY26 Revenue by Segment and Category In Q1 FY26, Direct to Consumer (DTC) revenue decreased to $89.2 million, while Commerce revenue significantly increased by 49.5% to $13.7 million, with BARK Air contributing $2.3 million Disaggregated Revenue (Three Months Ended June 30) | Revenue Category | June 30, 2025 (Thousands) | June 30, 2024 (Thousands) | | :------------------------ | :------------------------ | :------------------------ | | Direct to Consumer: | | | | Toys & Accessories | $51,800 | $70,569 | | Consumables | $35,030 | $35,904 | | Other (BARK Air) | $2,346 | $586 | | Total Direct to Consumer | $89,176 | $107,059 | | Commerce | $13,685 | $9,153 | | Total Revenue | $102,861 | $116,212 | Gross Profit by Segment BARK's Q1 FY26 gross profit by segment shows a decrease in Direct to Consumer gross profit, while Commerce segment gross profit increased despite higher cost of revenue Q1 FY26 Gross Profit by Segment For Q1 FY26, the Direct to Consumer (DTC) segment generated a gross profit of $59.7 million, a decrease from the prior year, while the Commerce segment's gross profit increased to $4.3 million Gross Profit by Segment (Three Months Ended June 30) | Segment | June 30, 2025 (Thousands) | June 30, 2024 (Thousands) | | :------------------------ | :------------------------ | :------------------------ | | Direct to Consumer: | | | | Revenue | $89,176 | $107,059 | | Cost of revenue | $29,431 | $38,051 | | Gross profit | $59,745 | $69,008 | | Commerce: | | | | Revenue | $13,685 | $9,153 | | Cost of revenue | $9,353 | $4,895 | | Gross profit | $4,332 | $4,258 | | Consolidated Gross profit | $64,077 | $73,266 | Consolidated Balance Sheets This section presents BARK's consolidated balance sheets, highlighting total assets, liabilities, and stockholders' equity as of June 30, 2025, compared to the prior quarter Balance Sheet Overview as of June 30, 2025 As of June 30, 2025, BARK's total assets were $259.9 million, with cash and cash equivalents at $84.7 million and inventory at $98.1 million, while total liabilities increased to $166.0 million Consolidated Balance Sheets (June 30, 2025 vs. March 31, 2025) | Asset/Liability/Equity | June 30, 2025 (Thousands) | March 31, 2025 (Thousands) | | :------------------------------ | :------------------------ | :------------------------- | | Cash and cash equivalents | $84,665 | $94,022 | | Inventory | $98,124 | $88,126 | | Total current assets | $201,687 | $201,637 | | 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 | Consolidated Statements of Cash Flows BARK's Q1 FY26 consolidated cash flow statements show net cash used in operating activities, primarily due to inventory increases, alongside investing and financing activities Q1 FY26 Cash Flow Activities For Q1 FY26, BARK reported net cash used in operating activities of $(5.4) million, largely due to a $10.3 million increase in inventory, alongside reduced investing and financing cash usage Consolidated Statements of Cash Flows (Three Months Ended June 30) | Cash Flow Activity | June 30, 2025 (Thousands) | June 30, 2024 (Thousands) | | :---------------------------------- | :------------------------ | :------------------------ | | Net loss | $(7,030) | $(10,039) | | Inventory change | $(10,283) | $2,521 | | Net cash (used in) provided by operating activities | $(5,440) | $1,792 | | Capital expenditures | $(708) | $(2,043) | | Net cash used in investing activities | $(708) | $(2,043) | | Payments to repurchase common stock | $(1,770) | $(4,286) | | Net cash used in financing activities | $(2,130) | $(4,300) | | NET DECREASE IN CASH | $(8,328) | $(4,530) | Non-GAAP Financial Measures This section defines BARK's non-GAAP financial measures, including Adjusted Net Loss, Adjusted EBITDA, and Free Cash Flow, used to provide a clearer view of underlying business performance Definitions of Non-GAAP Measures BARK utilizes several non-GAAP financial measures, including Adjusted Net Loss, Adjusted EBITDA, and Free Cash Flow, to offer investors supplementary information on its operating performance - Non-GAAP measures include Adjusted Net Loss, Adjusted Net Loss Margin, Adjusted Net Loss Per Common Share, Adjusted EBITDA, Adjusted EBITDA Margin, and Free Cash Flow[31] - Adjusted Net Loss excludes stock-based compensation, change in fair value of warrants and derivatives, sales and use tax income, restructuring charges, litigation expenses, warehouse restructuring costs, impairment of assets, technology modernization costs, and other items[32] - Adjusted EBITDA further excludes interest income/expense, depreciation and amortization, and capitalized cloud computing amortization from Net Loss, in addition to items excluded from Adjusted Net Loss[34] - Free Cash Flow is defined as net cash provided by (used in) operating activities less capital expenditures[36] Adjusted Net Loss Reconciliation For Q1 FY26, BARK's Adjusted Net Loss was $(2.8) million, an improvement from $(4.0) million in Q1 FY25, after adjusting for non-cash and non-recurring items Adjusted Net Loss Reconciliation (Three Months Ended June 30) | Metric | June 30, 2025 (Thousands) | June 30, 2024 (Thousands) | | :------------------------------ | :------------------------ | :------------------------ | | Net Loss | $(7,030) | $(10,039) | | Stock compensation expense | $3,594 | $2,941 | | Change in fair value of warrants and derivatives | $(782) | $391 | | Sales and use tax income | $(240) | $(1,303) | | Restructuring | $423 | $773 | | Litigation expenses | $176 | $387 | | Warehouse restructuring costs | $726 | $539 | | Impairment of assets | — | $799 | | Technology modernization | $323 | $707 | | Other items | $57 | $820 | | Adjusted net loss | $(2,753) | $(3,985) | | Adjusted net loss margin | (2.68)% | (3.43)% | | Adjusted net loss per common share | $(0.02) | $(0.02) | Adjusted EBITDA Reconciliation BARK achieved a positive Adjusted EBITDA of $0.1 million in Q1 FY26, a significant improvement from $(1.8) million in Q1 FY25, after various adjustments to net loss Adjusted EBITDA Reconciliation (Three Months Ended June 30) | Metric | June 30, 2025 (Thousands) | June 30, 2024 (Thousands) | | :------------------------------ | :------------------------ | :------------------------ | | Net Loss | $(7,030) | $(10,039) | | Interest income | $(809) | $(1,479) | | Interest expense | $709 | $711 | | Depreciation and amortization expense | $2,520 | $2,879 | | Stock compensation expense | $3,594 | $2,941 | | Change in fair value of warrants and derivatives | $(782) | $391 | | Cloud computing amortization | $421 | $78 | | Sales and use tax income | $(240) | $(1,303) | | Restructuring | $423 | $773 | | Litigation expenses | $176 | $387 | | Warehouse restructuring costs | $726 | $539 | | Impairment of assets | — | $799 | | Technology modernization | $323 | $707 | | Other items | $57 | $820 | | Adjusted EBITDA | $88 | $(1,796) | | Adjusted EBITDA margin | 0.09% | (1.55)% | Free Cash Flow Reconciliation Free Cash Flow for Q1 FY26 was $(6.1) million, a decrease from $(0.3) million in Q1 FY25, derived from net cash used in operating activities less capital expenditures Free Cash Flow Reconciliation (Three Months Ended June 30) | Metric | June 30, 2025 (Thousands) | June 30, 2024 (Thousands) | | :-------------------------------------- | :------------------------ | :------------------------ | | Net cash (used in) provided by operating activities | $(5,440) | $1,792 | | Capital expenditures | $(708) | $(2,043) | | Free cash flow | $(6,148) | $(251) | Contacts This section provides contact information for BARK's investor relations and media inquiries Investor and Media Relations This section provides the contact information for BARK's investor relations and media inquiries - Investor relations contact: Michael Mougias at investors@barkbox.com[46] - Media contact: Garland Harwood at press@barkbox.com[46]