Bark(US:BARK)2025-11-10 12:13Financial 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]