Bark(US:BARK)2026-02-05 21:22Financial Performance - Total revenue for the three months ended December 31, 2025, was $98,447,000, a decrease of 22.2% compared to $126,449,000 for the same period in 2024[16] - Gross profit for the three months ended December 31, 2025, was $61,562,000, representing a gross margin of 62.5%[16] - Net loss for the three months ended December 31, 2025, was $8,646,000, compared to a net loss of $11,509,000 for the same period in 2024, indicating a 25.5% improvement[16] - Operating expenses for the three months ended December 31, 2025, totaled $70,546,000, down from $91,505,000 in the same period of 2024, a reduction of 22.9%[16] - For the nine months ended December 31, 2025, the net loss was $26.347 million, a slight improvement from a net loss of $26.811 million for the same period in 2024[23] - Total revenue for the nine months ended December 31, 2025, was $308.3 million, a decrease of $60.5 million or 16.4% compared to $368.8 million in 2024[149] - Total gross profit for the nine months ended December 31, 2025, was $187.6 million, down $41.0 million or 17.9% from $228.6 million in 2024[152] Assets and Liabilities - Total current assets decreased to $137,878,000 as of December 31, 2025, down from $201,637,000 as of March 31, 2025, reflecting a decline of 31.6%[13] - Total liabilities decreased to $107,425,000 as of December 31, 2025, down from $161,109,000 as of March 31, 2025, a reduction of 33.3%[13] - Cash and cash equivalents were $21,683,000 as of December 31, 2025, significantly lower than $94,022,000 as of March 31, 2025, a decrease of 77.0%[13] - Stockholders' equity decreased to $81,245,000 as of December 31, 2025, down from $99,526,000 as of March 31, 2025, a decline of 18.4%[13] - Total cash, cash equivalents, and restricted cash decreased to $27.152 million at the end of the period from $119.985 million at the end of the previous year[24] Cash Flow - Cash flows from operating activities showed a net cash used of $21.807 million, compared to a net cash provided of $3.179 million in the prior year[23] - The company had a net cash used in financing activities of $45.763 million, significantly higher than $9.433 million in the previous year[23] - For the nine months ended December 31, 2025, the net cash used in operating activities was $21.8 million, compared to a net cash provided of $3.2 million in 2024[190][191] - Net cash used in investing activities was $2.7 million in 2025, down from $4.4 million in 2024, primarily due to software development costs and capital expenditures[192] - Net cash used in financing activities was $45.8 million in 2025, significantly higher than $9.4 million in 2024, mainly due to the repurchase of convertible notes[193] Revenue Breakdown - Direct to Consumer revenue for the three months ended December 31, 2025, was $79.6 million, down 25% from $106.1 million in 2024[53] - The company had one customer that accounted for 27% of gross accounts receivable as of December 31, 2025[46] - The company’s accounts receivable related to sales to customers within the Commerce segment represented 18.6% of total revenue for the nine months ended December 31, 2025[46] - Direct to Consumer segment revenue decreased to $79,580,000 in Q3 2025 from $106,119,000 in Q3 2024, representing a decline of 25.0%[99] - Commerce segment revenue decreased to $18,867,000 in Q3 2025 from $20,330,000 in Q3 2024, a decline of 7.2%[99] Expenses - Advertising and marketing expenses for Q3 2025 were $16,067,000, down from $27,364,000 in Q3 2024[100] - General and administrative expenses decreased to $54,479,000 in Q3 2025 from $64,141,000 in Q3 2024[100] - General and administrative expenses decreased by $21.8 million, or 11.4%, primarily due to lower shipping and fulfillment costs and decreased compensation expenses[156] - Advertising and marketing expenses decreased by $19.8 million, or 29.8%, attributed to reduced Direct to Consumer marketing spend[158] Stock and Equity - The company issued 119,761 shares for stock options exercised during the three months ended December 31, 2025[19] - The Company repurchased a total of 1,310,627 shares of common stock for $1.8 million at an average price of $1.35 during the nine months ended December 31, 2025[70] - The Board approved an increase of 8,480,573 shares under the 2021 Stock Plan in April 2025, with 11,553,222 shares available for grant as of December 31, 2025[74] - The Company granted equity awards for 25,000 shares and 1,087,500 shares during the nine months ended December 31, 2025 and 2024, respectively, with weighted average exercise prices of $1.26 and $1.37[81] Debt and Financing - As of December 31, 2025, the Company had no outstanding debt, down from $42.6 million as of March 31, 2025[57] - The Company repurchased $45.0 million of the 2025 Convertible Notes for a total cash purchase price of $44.4 million, recognizing a gain on debt extinguishment of $1.8 million[61] - The Credit Facility with Western Alliance Bank has a borrowing limit of $35.0 million, with no outstanding borrowings as of December 31, 2025[64][68] - The Company intends to enter into a longer-term renewal of the Credit Facility, which is set to mature on March 2, 2026[64] Litigation and Risks - The Company is involved in ongoing litigation, with a trial scheduled for September 8, 2027, but is unable to quantify potential liabilities at this time[89] - The company is involved in ongoing litigation, including a class action complaint related to a previous acquisition, with trial scheduled for September 2027[204] - The company faces risks related to customer acquisition costs and the effectiveness of its marketing strategies, which could adversely affect revenue growth[209] - The company relies on digital channels for customer engagement, and changes in these platforms could impact marketing effectiveness and brand awareness[210] Non-GAAP Measures - The company reports Non-GAAP financial measures, including Adjusted Net Loss and Adjusted EBITDA, to provide additional insights into performance[163] - Adjusted Net Loss for Q3 2025 was $(4,420) thousand, compared to $(3,931) thousand in Q3 2024, reflecting an increase in losses[172] - Adjusted EBITDA for Q3 2025 was $(1,608) thousand, slightly improved from $(1,555) thousand in Q3 2024[173] - Free Cash Flow for Q3 2025 was $1,562 thousand, a recovery from $(1,964) thousand in Q3 2024[175]