Core Insights - The letter emphasizes the urgent need for BARK, Inc. to take decisive actions to enhance shareholder value, given its current undervaluation in the market [1][2][8] Financial Position - BARK, Inc. has a strong balance sheet with $85 million in cash reserves and $98 million in fully paid inventory, totaling $183 million in liquid assets [2] - After accounting for debt and other prepaid expenses, the net equity value is approximately $150 million, significantly higher than the current market capitalization of $137 million, indicating the stock is trading at negative equity [2] Proposed Initiatives - A minimum $25 million share buyback program is recommended to take advantage of the stock's depressed prices, which would benefit remaining shareholders and affirm the company's intrinsic value [4] - The company should secure inventory financing against the $98 million in paid inventory to free up capital for growth initiatives and marketing, optimizing the balance sheet [5] - Strategic plans should be developed to expand product categories, including vitamins, supplements, and DNA testing kits for dogs, leveraging proprietary data on over 6 million dogs for personalized health recommendations and new revenue streams [6][7]

This story was originally published on Supply Chain Dive. To receive daily news and insights, subscribe to our free daily Supply Chain Dive newsletter. Dive Brief: Amazon Shipping will levy peak season surcharges from Oct. 26 through Jan. 17, 2026, the e-commerce giant's delivery service announced Friday. The fees, which reach their highest point from Nov. 23 to Dec. 27, include a per-package demand surcharge and levies for parcels that are large, heavy or require additional handling. The surcharges ...

Core Insights - Rising delivery service prices are prompting businesses to explore alternatives, notably Amazon's expanding shipping capabilities [3][8] - Bark has transitioned to using Amazon for U.S. deliveries to enhance shipping speed and manage rising costs [8] Delivery Service Trends - Companies are facing increased shipping costs due to changes in agreements with last-mile carriers, particularly the U.S. Postal Service [4] - Bark previously utilized a mix of FedEx, the Postal Service, and Pitney Bowes for deliveries before shifting to Amazon [3][4] Financial Impact - Bark experienced an 8% year-over-year decline in shipping and fulfillment expenses for the quarter ending June 30, primarily due to lower direct-to-consumer volume [6] - The transition to Amazon has allowed Bark to improve costs and reduce transit times significantly, achieving delivery within one to three days for 90% of its customers [8]

Group 1 - The article does not provide any specific content or key points related to a company or industry [1]

Core Insights - Bark has promoted Michael Black to the newly created position of president of its core business, reflecting the company's strategy to navigate financial challenges and focus on its core operations [3][7] - The company is facing significant financial difficulties, including a decline in total revenue and a warning from the New York Stock Exchange regarding stock compliance [4][5] Financial Performance - In August, Bark reported a first-quarter total revenue decline of 11.5% year-over-year, amounting to $102.9 million [5] - Direct-to-consumer (DTC) revenue fell by 16.7% to $89.2 million, while wholesale revenue increased nearly 50% to $13.7 million [5] Strategic Changes - Bark is pulling back on its subscription services, which constitute 85% of its revenue, as part of its strategy to grow the business [3][4] - The company has also reintroduced former executive Meghan Knoll to oversee its DTC business, indicating a focus on strengthening its direct sales approach [4]

Summary of BARK (BARK) FY Conference Call - August 12, 2025 Company Overview - BARK has significantly improved its financial health over the past three years, transitioning from an adjusted EBITDA loss of $58 million in fiscal 2022 to a positive adjusted EBITDA of $5 million in fiscal 2025 [3][4] - Direct-to-consumer (DTC) sales account for 85% of revenues, with over 700,000 pet households served and approximately 1 million boxes shipped monthly [4][5] Core Business Insights - BARK has a strong data-driven approach, utilizing first-party data to refine products and enhance customer feedback mechanisms [5] - The company has diversified its revenue streams, with a focus on consumables and commerce, which now represents 15% of the business and grew by 27% last year [5][6] Strategic Initiatives - BARK launched "Bark Air," generating over $2 million in revenue in its first quarter, with expectations to double this revenue [7] - Transitioned to Shopify for a unified shopping experience, enhancing cross-selling opportunities and reducing payment friction [8][30] - A new consumables line, "Bark in the Belly," is set to launch in August 2025, aiming for broader distribution by the end of the year [9][43] Revenue Diversification and Marketing Strategy - The company plans to dial back marketing support for subscription boxes to maintain positive EBITDA while reallocating funds to consumables and commerce growth [11][12] - The focus is on reducing promotional activities to improve subscriber quality and retention, as promotions attract discount-driven customers who tend to churn quickly [23][24] Tariff and Supply Chain Management - Approximately 70% of BARK's product mix is toys, primarily sourced from China. Tariff increases prompted a shift to diversify manufacturing outside of China, with plans to have all toys manufactured abroad by the end of the fiscal year [13][14] - BARK signed a partnership with Amazon for shipping, which is expected to reduce costs and improve delivery times [16][17] Financial Performance and Projections - The company achieved a record gross margin of 69% in Q1 and expects continued strong performance in commerce, projecting 25% to 30% growth [50][51] - BARK aims to maintain EBITDA positivity and return to top-line growth in fiscal 2027, with a focus on leveraging the consumables launch and improved channel dynamics [49][50] Market Opportunities - The addressable market for consumables is estimated at over $20 billion, compared to $3 billion to $4 billion for toys, indicating significant growth potential [36] - BARK is expanding its presence on e-commerce platforms, including Chewy and Amazon, with plans to explore additional channels like TikTok Shop [41][42] Capital Allocation and Shareholder Value - BARK has repurchased 17 million shares over the past 18 months, with plans to pay down a $44 million convertible note maturing in December [58][59] - The management believes the current share price does not reflect the long-term fundamentals of the business and is open to considering M&A opportunities if attractive offers arise [54][55] Conclusion - BARK is positioned for growth with a healthier financial profile, diversified revenue streams, and a flexible supply chain, aiming for stronger profitability and cash flow generation in the coming years [60][61]

Company Performance - BARK, Inc. reported a quarterly loss of $0.02 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.01, marking an earnings surprise of -100.00% [1] - The company posted revenues of $102.86 million for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 2.86%, but down from $116.21 million in the same quarter last year [2] - Over the last four quarters, BARK, Inc. has surpassed consensus EPS estimates only once, while it has topped consensus revenue estimates three times [2] Stock Performance - BARK, Inc. shares have declined approximately 53.6% since the beginning of the year, contrasting with the S&P 500's gain of 7.9% [3] - The current consensus EPS estimate for the upcoming quarter is breakeven on $117 million in revenues, and for the current fiscal year, it is -$0.03 on $440 million in revenues [7] Industry Outlook - The Consumer Services - Miscellaneous industry, to which BARK, Inc. belongs, is currently ranked in the top 41% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact BARK, Inc.'s stock performance [5]

Financial Data and Key Metrics Changes - Total revenue for Q1 2026 was $102.9 million, exceeding guidance of $99 million to $101 million, driven by strong performance in both B2C and Commerce segments [15][23] - Adjusted EBITDA was positive at $100,000, a modest improvement despite external headwinds [20][23] - D2C gross margin reached a record 69.3%, up over 400 basis points year over year [18] Business Line Data and Key Metrics Changes - D2C revenue was $89.2 million, with Bark Air contributing $2.3 million, a 300% increase from last year [5][18] - The Commerce segment generated $13.7 million, a 50% increase year over year, supported by expanded distribution with partners like Amazon and Chewy [17][12] - The product mix shifted, with SuperTure accounting for roughly two-thirds of new subscribers, positively impacting average order value and gross margin [6][16] Market Data and Key Metrics Changes - The retail business saw revenue increase to approximately $14 million, up almost 50% year over year, as the company expanded its retail footprint [12][17] - The company anticipates that Commerce will represent 25% to 30% of revenue in Q2 2026 [22] Company Strategy and Development Direction - The company aims to remain adjusted EBITDA positive while diversifying beyond subscription boxes [4][23] - A new brand platform, Spark, was introduced to deepen emotional connections with customers and enhance brand awareness [8] - The upcoming Bark in the Belly consumables line is expected to unify product offerings and support the company's mission to help dogs in need [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategy and execution despite ongoing macroeconomic uncertainties and tariff volatility [21][23] - The company is focused on profitable diversified growth and expects to build on Q1 revenue in the coming quarters [13][23] Other Important Information - The company ended the quarter with $85 million in cash, down $9 million from Q4, reflecting inventory build and share repurchases [20] - Marketing expenses were reduced by 25% year over year, allowing for a focus on higher quality customer acquisition [19] Q&A Session Summary Question: What factors influence the EBITDA guidance range for Q2? - Management indicated that timing related to tariffs and operating expenses could affect overall profit performance, leading to a wide guidance range [25][26] Question: What drove stronger subscriber trends in Q1 with low advertising spend? - Management attributed the growth to ongoing experimentation with ad formats and a focus on acquiring higher quality customers, resulting in a shift towards premium offerings [32][33] Question: How should revenue contribution from diversification initiatives be viewed for the back half of the year? - Management expects the Commerce business to represent over 30% of overall revenue within a couple of years, with Bark Air's contribution anticipated to increase to 2-3% of total revenue [34][36]

[PART I. Financial Information](index=4&type=section&id=PART%20I.%20Financial%20Information) [Financial Statements (Unaudited)](index=4&type=section&id=ITEM%201.%20Financial%20Statements%20(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](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) 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](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) 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](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) 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](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) 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](index=90&type=chunk)[92](index=92&type=chunk) 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](index=54&type=chunk)[59](index=59&type=chunk) - 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](index=66&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) 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](index=129&type=chunk) - Commerce revenue grew **49.5%** due to increased sales volume from both new and existing retail customers[130](index=130&type=chunk) 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](index=153&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=37&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) 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](index=175&type=chunk)[176](index=176&type=chunk) - Management does not believe that inflation has had a material effect on the business, financial condition, or results of operations[177](index=177&type=chunk) - 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](index=178&type=chunk) [Controls and Procedures](index=37&type=section&id=ITEM%204.%20Controls%20and%20Procedures) 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](index=179&type=chunk) - 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](index=179&type=chunk) [PART II. Other Information](index=38&type=section&id=PART%20II.%20Other%20Information) [Legal Proceedings](index=38&type=section&id=ITEM%201.%20Legal%20Proceedings) 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](index=181&type=chunk) - 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](index=181&type=chunk) [Risk Factors](index=38&type=section&id=ITEM%201A.%20Risk%20Factors) 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](index=195&type=chunk)[197](index=197&type=chunk) - 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](index=187&type=chunk)[188](index=188&type=chunk) - 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](index=200&type=chunk)[202](index=202&type=chunk) - 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](index=210&type=chunk)[212](index=212&type=chunk)[216](index=216&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=52&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) 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](index=249&type=chunk) [Defaults Upon Senior Securities](index=52&type=section&id=ITEM%203.%20Defaults%20Upon%20Senior%20Securities) The company reports no defaults upon senior securities during the period - None[250](index=250&type=chunk) [Mine Safety Disclosures](index=53&type=section&id=ITEM%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[251](index=251&type=chunk) [Other Information](index=53&type=section&id=ITEM%205.%20Other%20Information) 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](index=252&type=chunk) [Exhibits](index=53&type=section&id=ITEM%206.%20Exhibits) 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](index=255&type=chunk) - The filing also includes Inline XBRL Instance, Schema, Calculation, Definition, Label, and Presentation documents[255](index=255&type=chunk)

[Executive Summary & Q1 FY26 Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Q1%20FY26%20Highlights) BARK achieved positive adjusted EBITDA and advanced diversification in Q1 FY26, exceeding revenue guidance and improving DTC gross margin [CEO Commentary](index=1&type=section&id=CEO%20Commentary) 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](index=3&type=chunk) - 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](index=3&type=chunk) - The Commerce segment grew **50% year-over-year**, and BARK Air surpassed **$2 million in revenue**[3](index=3&type=chunk) [Fiscal First Quarter 2026 Key Financial Highlights](index=1&type=section&id=Fiscal%20First%20Quarter%202026%20Key%20Financial%20Highlights) 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](index=1&type=section&id=Q1%20FY26%20Detailed%20Financial%20Performance) 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](index=1&type=section&id=Revenue%20Analysis) 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](index=1&type=section&id=Gross%20Profit%20and%20Margin) 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](index=2&type=section&id=Operating%20Expenses) 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](index=1&type=section&id=Net%20Loss%20and%20Adjusted%20EBITDA) 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](index=2&type=section&id=Balance%20Sheet%20Highlights) 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](index=2&type=section&id=Key%20Balances%20as%20of%20June%2030%2C%202025) 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](index=2&type=section&id=Cash%20Flow%20Highlights) 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](index=2&type=section&id=Q1%20FY26%20Cash%20Flow%20Summary) 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](index=10&type=chunk) [Q2 FY26 Financial Outlook](index=2&type=section&id=Q2%20FY26%20Financial%20Outlook) 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](index=2&type=section&id=Guidance%20for%20Fiscal%20Second%20Quarter%202026) 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](index=8&type=chunk) [Conference Call Information](index=3&type=section&id=Conference%20Call%20Information) Details for BARK's Q1 FY26 earnings conference call, held on August 7, 2025, including dial-in numbers and webcast access [Conference Call Details](index=3&type=section&id=Conference%20Call%20Details) 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](index=12&type=chunk) - 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](index=3&type=section&id=About%20BARK) 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](index=3&type=section&id=Company%20Overview) 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](index=14&type=chunk) - 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](index=14&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) 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](index=3&type=section&id=Disclaimer%20and%20Risk%20Factors) 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](index=15&type=chunk) - 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](index=15&type=chunk) - 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](index=16&type=chunk) [Key Performance Indicators](index=4&type=section&id=Key%20Performance%20Indicators) 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](index=4&type=section&id=Definitions%20of%20Key%20Performance%20Indicators) 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](index=17&type=chunk) - **Average Order Value (AOV)** is calculated by dividing Direct to Consumer revenue for the period by Total Orders for the same period[18](index=18&type=chunk) [Key Performance Indicator Data](index=5&type=section&id=Key%20Performance%20Indicator%20Data) 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](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Operations%20and%20Comprehensive%20Loss) 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](index=5&type=section&id=Q1%20FY26%20Consolidated%20Statement%20of%20Operations) 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](index=6&type=section&id=Disaggregated%20Revenue) 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](index=6&type=section&id=Q1%20FY26%20Revenue%20by%20Segment%20and%20Category) 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](index=6&type=section&id=Gross%20Profit%20by%20Segment) 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](index=6&type=section&id=Q1%20FY26%20Gross%20Profit%20by%20Segment) 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](index=7&type=section&id=Consolidated%20Balance%20Sheets) 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](index=7&type=section&id=Balance%20Sheet%20Overview%20as%20of%20June%2030%2C%202025) 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](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) 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](index=8&type=section&id=Q1%20FY26%20Cash%20Flow%20Activities) 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](index=9&type=section&id=Non-GAAP%20Financial%20Measures) 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](index=9&type=section&id=Definitions%20of%20Non-GAAP%20Measures) 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](index=31&type=chunk) - 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](index=32&type=chunk) - 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](index=34&type=chunk) - **Free Cash Flow** is defined as net cash provided by (used in) operating activities less capital expenditures[36](index=36&type=chunk) [Adjusted Net Loss Reconciliation](index=10&type=section&id=Adjusted%20Net%20Loss%20Reconciliation) 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](index=11&type=section&id=Adjusted%20EBITDA%20Reconciliation) 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](index=12&type=section&id=Free%20Cash%20Flow%20Reconciliation) 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](index=12&type=section&id=Contacts) This section provides contact information for BARK's investor relations and media inquiries [Investor and Media Relations](index=12&type=section&id=Investor%20and%20Media%20Relations) This section provides the contact information for BARK's investor relations and media inquiries - Investor relations contact: **Michael Mougias** at **investors@barkbox.com**[46](index=46&type=chunk) - Media contact: **Garland Harwood** at **press@barkbox.com**[46](index=46&type=chunk)