Shay Capital Letter to the Board of Bark, Inc.

Rhea-AI Summary

Shay Capital to BARK (NYSE: BARK) — Oct 21, 2025

Major shareholder Shay Capital urges the board to take immediate actions to unlock shareholder value, citing $85M cash, $98M paid-for inventory (totaling $183M in liquid/tangible holdings) and an estimated $150M equity value above the current market capitalization of $137M. Shay praises adjusted-EBITDA positivity and recent promotion of Michael Black while demanding three steps: a minimum $25M share buyback, inventory financing against the $98M stock, and accelerated product expansion (vitamins, DNA tests, wellness) leveraging a proprietary dataset on 6 million dogs. The letter asks the board to report concrete progress within weeks.

Positive

• Adjusted EBITDA-positive through turbulent markets
• $85M cash reserves on balance sheet
• $98M fully paid-for inventory
• Proprietary dataset covering 6 million dogs

Negative

• Market capitalization $137M below estimated equity value ~$150M
• Large $98M inventory ties up non-earning capital
• Share price described as languishing in negative equity territory

NEW YORK, Oct. 21, 2025 /PRNewswire/ --

Board of Directors
BARK, Inc.
120 Broadway, Floor 12
New York, New York 10271

Dear Members of the Board of Directors,

As one of the largest shareholders in BARK, Inc.(NYSE: BARK), I write to you today with an unwavering commitment to the long-term success of our company and a profound sense of urgency regarding the strategic path forward. As strong believers in the transformative power of your brand to revolutionize the dog care industry, we believe the company is at a crucial point in time to make bold decisions and take strong actions to maximize shareholder value.

Your management teams disciplined execution has been exemplary: maintaining adjusted EBITDA positivity through turbulent markets, meticulously building a beloved brand and scalable platform that resonates with millions of dog parents, and steadfastly prioritizing prudence and profitability over reckless expansion. These achievements are nothing short of remarkable, and I commend you for steering BARK into a position of undeniable strength. I also commend the board's recent decision to elevate Michael Black to President, Core Business, handing him the responsibility of leading the direct-to-consumer & commerce segments on their path to renewed growth. 

That said, now is the moment for bold, decisive action to reward the loyalty of shareholders and unlock the full potential of this extraordinary company. The company's strong balance sheet acts as a financial fortress in these uncertain times, boasting $85 million in cash reserves and $98 million in fully paid-for inventory, equating to a staggering $183 million in liquid assets and tangible holdings. After accounting for debt and other prepaid expenses, this nets out to approximately $150 million in equity value, well in excess of the current market capitalization of $137 million. BARK is trading at negative equity, handing the market a thriving, growth-oriented, adjusted EBITDA-positive business for free. The sheer absurdity of this valuation is a call to arms—I demand that the Board act with the immediacy this crisis warrants.

To that end, I urge the swift implementation of the following three key initiatives, with emphasis on advancing the first two without delay. Time is of the essence; hesitation here would be unforgivable.

First and foremost, the board should immediately authorize and execute a minimum $25 million share buyback program. With the stock languishing in negative equity territory, repurchasing shares at these depressed prices would be an act of profound stewardship, accretive to every remaining shareholder and a direct rebuke to the market's irrational disregard for BARK's intrinsic value. The deep value embedded in this equity is irrefutable: by repurchasing shares, you are acquiring a high-quality, data-rich business at a discount that defies logic. Do not let another trading day pass without deploying capital to use this massive dislocation to the advantage of long-term shareholders. Act now to affirm your commitment to shareholder value and ignite the re-rating this company deserves. This can be done through a traditional share buyback program or through a tender offering to buy back shares. We will not tender to sell a single share.

Second, secure and deploy inventory financing against the $98 million in paid-for inventory to liberate this trapped capital. It is needless to tie up such a large sum in non-earning assets when it could fuel aggressive growth initiatives, marketing firepower and further innovation. BARK's balance sheet is a war chest begging for optimization: borrow against this inventory immediately, at favorable terms, and redirect the freed-up liquidity to high-ROI opportunities that will accelerate revenue and margins. This is low-hanging fruit that demands immediate execution, and the opportunity cost of inaction is eroding value every day. Move on this with the speed and resolve it requires—your shareholders are counting on it.

Third, to capitalize on BARK's unparalleled moat, strategic plans must be drawn up at the Board level to aggressively expand the company's product categories to include vitamins & supplements, DNA testing kits for dogs and other wellness products while ramping up product experimentation across the portfolio. With proprietary data on over 6 million dogs across the United States—one of the most valuable pet datasets in existence—BARK must monetize this data goldmine more aggressively. Leverage this database for personalized health recommendations, targeted R&D, and new revenue streams that deepen customer lifetime value. Experiment boldly: test new offerings, iterate rapidly, and grow the top line without compromising your hard-won profitability. This is the natural evolution of your platform into a comprehensive pet health ecosystem, and it must begin in earnest. The time for moving slowly is over.

I am not writing as a distant observer but as a major stakeholder whose fortunes are inextricably tied to BARK's trajectory. Your track record inspires confidence, but confidence without action breeds complacency. I demand that the Board convene urgently, deliberate these initiatives with the gravity they merit, and announce concrete progress on the buyback and inventory financing within the coming weeks. Your measured steps have yielded a stable foundation; now, seize this moment for prudent actions that will benefit all shareholders and cement BARK's legacy. I stand ready to engage further and await your prompt response.

Sincerely,

Eric Ebert
Shay Capital

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SOURCE Shay Capital LLC

FAQ

What did Shay Capital demand of BARK on October 21, 2025?

Shay Capital urged a $25M minimum share buyback, inventory financing against $98M paid inventory, and rapid product expansion.

How much cash and inventory did Shay Capital cite for BARK (BARK)?

The letter cites $85M in cash and $98M in fully paid-for inventory.

What valuation discrepancy did Shay Capital highlight for BARK (NYSE: BARK)?

Shay said tangible holdings total $183M and net equity ~$150M, versus a market cap of $137M.

What product categories did Shay Capital propose BARK expand into?

Shay recommended vitamins & supplements, dog DNA testing kits, and other wellness products.

What operational leverage did Shay Capital recommend using to free capital?

They recommended securing inventory financing against the $98M paid-for inventory to free trapped liquidity.