BARK, Inc. (NYSE: BARK) swings to Q1 profit as revenue drops 23%
Rhea-AI Filing Summary
BARK, Inc. reported fiscal first quarter 2027 revenue of $78.8 million, down 23.4% year-over-year, as it deliberately prioritized profitability over growth. Direct to Consumer revenue fell to $66.7 million and Commerce revenue to $12.1 million, while BARK Air contributed $3.2 million, up 37% year-over-year. Despite lower sales, gross profit was $57.3 million and reported gross margin expanded to 72.7%, or 63.4% excluding a one-time fiscal 2026 tariff refund benefit.
Operating expenses declined sharply, with advertising and marketing at $9.5 million and G&A at $47.8 million, supporting a swing to net income of $0.75 million from a $(7.0) million loss. Adjusted EBITDA improved to $0.6 million and subscriber metrics strengthened, including 92.8% retention and higher average order value. Cash and equivalents were $16.1 million as of June 30, 2026, and the company remained debt-free while continuing share repurchases. For fiscal 2027, BARK reiterated revenue guidance of $325.0–$340.0 million, below $394.8 million in 2026, but expects Adjusted EBITDA to increase to $7.0–$10.0 million, with Commerce and BARK Air together generating over $100 million of revenue.
Positive
- Returned to profitability with net income of $0.75 million versus a net loss of $(7.0) million in the prior-year quarter.
- Significant margin and cost improvements: gross margin rose to 72.7% (63.4% normalized), while advertising and marketing and G&A expenses declined materially year-over-year.
- Stronger customer economics as Subscriber Retention reached 92.8%, Average Order Value increased to $31.25, and subscriber lifetime value hit its highest level since going public.
- Meaningful Adjusted EBITDA inflection, improving to $0.6 million in Q1 and guided to $7.0–$10.0 million for fiscal 2027 versus $0.2 million in fiscal 2026.
Negative
- Revenue contracted sharply, with Q1 2027 revenue of $78.8 million down 23.4% year-over-year and Direct to Consumer revenue down 25.2%.
- Guided to lower top-line, with fiscal 2027 revenue expected at $325.0–$340.0 million compared to $394.8 million in 2026 and Q2 revenue projected at $83.0–$85.0 million versus $107.0 million last year.
- Cash generation remains negative, as net cash used in operating activities was $(3.5) million and Free Cash Flow remained negative for the quarter.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q1 2027 Revenue: $78.8 million
Q1 2027 Net Income: $0.75 million
Q1 2027 Gross Margin: 72.7%
+5 more
8 metrics
Q1 2027 Revenue
$78.8 million
Fiscal first quarter 2027 revenue, a decrease of 23.4% year-over-year
Q1 2027 Net Income
$0.75 million
Net income compared to a net loss of $(7.0) million in the prior year
Q1 2027 Gross Margin
72.7%
Reported gross margin including one-time fiscal 2026 tariff refund benefit
Normalized Gross Margin
63.4%
Gross margin excluding tariff refund, versus 63.8% in the same period last year
Q1 2027 Adjusted EBITDA
$0.6 million
Adjusted EBITDA within guidance of $0.0 million to $1.0 million
Cash and Cash Equivalents
$16.1 million
Cash and equivalents balance as of June 30, 2026; company remained debt-free
FY 2027 Revenue Guidance
$325.0–$340.0 million
Full-year fiscal 2027 revenue outlook versus $394.8 million in fiscal 2026
FY 2027 Adjusted EBITDA Guidance
$7.0–$10.0 million
Full-year fiscal 2027 Adjusted EBITDA outlook versus $0.2 million in fiscal 2026
Key Terms
Adjusted EBITDA, Free Cash Flow, Subscriber Retention, IEEPA Tariffs Phase II, +1 more
5 terms
Adjusted EBITDA financial
"We calculate Adjusted EBITDA as net loss, adjusted to exclude"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Free Cash Flow financial
"We calculate Free Cash Flow as net cash (used in) provided by operating activities"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
Subscriber Retention financial
"We use Subscriber Retention to assess the durability of our subscription base"
IEEPA Tariffs Phase II regulatory
"IEEPA Tariffs Phase II | (7,363) | | | —"
Non-GAAP financial measures financial
"Non-GAAP financial measures (together the “Non-GAAP Measures”), provide investors with additional useful information"
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
Earnings Snapshot
Revenue: $78.8 million · Guidance included
Fiscal first quarter 2027 (three months ended June 30, 2026)
Revenue
$78.8 million
decrease of 23.4% year-over-year
Net income (loss)
$0.75 million net income
compared to net loss of $(7.0) million in the prior year period
Adjusted EBITDA
$0.6 million
up from $0.1 million in the prior year period
Net cash used in operating activities
$(3.5) million
improved from $(5.4) million in the prior year period
Guidance
Company expects Q2 fiscal 2027 revenue of $83.0–$85.0 million and Adjusted EBITDA of $1.0–$3.0 million; reiterates full-year revenue of $325.0–$340.0 million and Adjusted EBITDA of $7.0–$10.0 million, with Commerce and BARK Air together expected to represent over $100 million of revenue.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
How did BARK (BARK) perform in its fiscal first quarter 2027?
BARK reported Q1 2027 revenue of $78.8 million, down 23.4% year-over-year. It generated net income of $0.75 million, a swing from a $(7.0) million loss, and delivered Adjusted EBITDA of $0.6 million, within its $0.0–$1.0 million guidance range.
What were BARK (BARK)'s key segment results and BARK Air contribution in Q1 2027?
Direct to Consumer revenue was $66.7 million, down 25.2% year-over-year, and Commerce revenue was $12.1 million, down 11.4%. BARK Air contributed $3.2 million of Direct to Consumer revenue, a 37% increase compared to the prior-year period.
What guidance did BARK (BARK) provide for fiscal second quarter 2027?
For Q2 2027, BARK expects revenue of $83.0–$85.0 million, compared to $107.0 million last year. It forecasts Adjusted EBITDA of $1.0–$3.0 million, versus $(1.4) million previously, reflecting a smaller DTC subscriber base after reduced marketing in fiscal 2026.
What is BARK (BARK)'s full-year fiscal 2027 outlook?
For fiscal 2027, BARK reiterates revenue guidance of $325.0–$340.0 million, below $394.8 million in 2026. It expects Adjusted EBITDA of $7.0–$10.0 million, up from $0.2 million, with Commerce and BARK Air together representing over $100 million of revenue.
How strong is BARK (BARK)'s balance sheet and cash flow profile?
As of June 30, 2026, BARK held $16.1 million in cash and cash equivalents and remained debt-free. Inventory was $72.4 million, down $25.7 million year-over-year. Net cash used in operating activities was $(3.5) million, and the company continued repurchasing shares.
How did BARK (BARK)'s customer metrics trend in fiscal Q1 2027?
Subscriber Retention improved to 92.8% from 91.1%, and Average Order Value rose to $31.25 from $30.80. Total Orders declined to 2,031 thousand from 2,819 thousand, while subscriber lifetime value reached its highest level since BARK became a public company.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date Earliest Event Reported):
(Exact name of registrant as specified in its charter)
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
(Zip Code) | ||||||||||||||
| (Address of Principal Executive Offices) | ||||||||||||||
(855 ) 501-2275
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e- 4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On August 6, 2026, BARK, Inc. (the “Company”) issued a press release announcing its financial results for its fiscal first quarter ended June 30, 2026. A copy of the press release is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.
The information contained in this Item 2.02 and in the accompanying Exhibit 99.1 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing, unless expressly incorporated by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
| Exhibit No. | Description | |||||||
| 99.1 | Press release dated as of August 6, 2026 | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| BARK, Inc. | |||||
| By: | /s/ Brian Dostie | ||||
| Name: Brian Dostie | |||||
| Title: Interim Chief Financial Officer | |||||
Date: August 6, 2026
BARK Reports Fiscal First Quarter 2027 Results
NEW YORK, August 6, 2026 — BARK, Inc. (NYSE: BARK) (“BARK” or the “Company”), a leading global omnichannel dog brand with a mission to make all dogs happy, today announced its financial results for the fiscal first quarter ended June 30, 2026.
Fiscal First Quarter 2027 Highlights
•Revenue was $78.8 million, a decrease of 23.4% year-over-year; landing at the high end of the Company’s guidance range of $77.0 million to $79.0 million.
•Direct to Consumer (“DTC”) revenue was $66.7 million, a decrease of 25.2% year-over-year; continuing the Company’s focus on prioritizing bottom-line durability over near-term growth, Subscriber Retention improved more than 170 basis points and Average Order Value increased by $0.45 compared to the year prior; Included in DTC revenue was $3.2 million of revenue from BARK Air, a 37% increase year-over-year.
•Commerce revenue was $12.1 million, an 11.4% decrease year-over-year. Momentum remained strong across wholesale and marketplaces as BARK continued to expand with both new and existing retail partners.
•Gross profit was $57.3 million, compared to $64.1 million in the prior year.
•Gross margin was 72.7%, compared to 62.3% in the same period last year. The reported result includes a one-time benefit from the recognition of fiscal 2026 tariff refunds. Excluding this benefit, normalized consolidated gross margin was 63.4%, in line with a record 63.8% for the same period last year. The tariff refund benefit is excluded from Adjusted EBITDA.
•Advertising and marketing expenses were $9.5 million, compared to $15.2 million in the prior year.
•General and administrative ("G&A") expenses were $47.8 million, compared to $57.3 million in the prior year.
•Net Income was $0.75 million, compared to a net loss of $(7.0) million in the prior year. Net Income includes $7.4 million of tariff refunds allocable to fiscal year 2026.
•Adjusted EBITDA was $0.6 million, within the Company’s guidance range of $0.0 million to $1.0 million, and up from $0.1 million in the prior year.
•Net cash used in operating activities was $(3.5) million.
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Executive Commentary – Matt Meeker, Co-Founder and Chief Executive Officer
“Our team delivered a strong start to fiscal 2027 as we continued to execute against the priorities outlined in June,” said Matt Meeker, Co-Founder and Chief Executive Officer of BARK. “The quarter reflected improving health across the business.”
“Subscriber retention improved, average order value increased and subscriber lifetime value reached its highest level since we became a public company. With some of our most exciting products and partnerships yet to come to market this fall, we are building a stronger, more diversified BARK across DTC, Commerce and BARK Air. We still have work to do, but these results reinforce confidence in our ability to accelerate growth and deliver a meaningful step-up in Adjusted EBITDA and cash flow this year.”
Balance Sheet Highlights
•The Company’s cash and cash equivalents balance as of June 30, 2026 was $16.1 million, compared to $19.3 million as of March 31, 2026. The decrease reflects a normal seasonal build in working capital and continued share repurchases. BARK also remains debt-free.
•The Company's inventory balance as of June 30, 2026 was $72.4 million, a $25.7 million decrease compared to the prior year.
Share Repurchase Program
As previously announced, BARK continued to repurchase shares during the quarter under its $40 million share repurchase program. The Company remains focused on balancing investment in the business with returning capital to shareholders, while maintaining the financial flexibility to support its growth plans.
Fiscal Second Quarter and Full Year 2027 Financial Outlook
Based on current market conditions as of August 6, 2026, BARK is providing guidance for revenue and Adjusted EBITDA, which is a Non-GAAP financial measure, as follows.
For the second quarter of fiscal 2027, the Company expects:
•Total revenue of $83.0 million to $85.0 million, as compared to $107.0 million for the comparable period last year. The year-over-year decline primarily reflects the smaller DTC subscriber base entering fiscal 2027 following the deliberate pullback of marketing spend in fiscal 2026.
•Adjusted EBITDA of $1.0 million to $3.0 million, compared to $(1.4) million for the comparable period last year.
For the full year of fiscal 2027, the Company is reiterating:
•Total revenue of $325.0 million to $340.0 million, compared to $394.8 million in fiscal 2026.
•Adjusted EBITDA of $7.0 million to $10.0 million, compared to $0.2 million in fiscal 2026.
2
•Commerce and BARK Air are expected to collectively represent over $100 million of revenue, with Commerce growing as a percentage of total revenue as the Company expands across wholesale and marketplace channels.
The Company does not provide guidance for Net Income (Loss) due to the uncertainty and potential variability of certain items, including stock-based compensation expenses and related tax effects, which are the reconciling items between Net Income (Loss) and Adjusted EBITDA. Because such items cannot be calculated or predicted without unreasonable efforts, we are unable to provide a reconciliation of Adjusted EBITDA to Net Income (Loss). However, such items could have a significant impact on Net Income (Loss).
The guidance provided above constitutes forward looking statements and actual results may differ materially. Please refer to the “Forward Looking Statements” section below for information on the factors that could cause our actual results to differ materially from these forward looking statements and “Non-GAAP Financial Measures” for additional important information regarding Adjusted EBITDA.
Conference Call Information
A conference call to discuss the Company's fiscal first quarter 2027 results will be held today, August 6, 2026, at 4:30 p.m. ET. During the conference call, the Company may make comments concerning business and financial developments, trends and other business or financial matters. The Company's comments, as well as other matters discussed during the conference call, may contain or constitute information that has not been previously disclosed.
The conference call can be accessed by dialing 1-888-596-4144 for U.S. participants and 1-646-968-2525 for international participants. The conference call passcode is 5515653. A live audio webcast of the call will be available at https://investors.bark.co/events-and-presentations/ and will be archived for one year.
About BARK
BARK is the world’s most dog-centric company, devoted to making all dogs happy with the best products, services, and content. BARK’s dog-obsessed team leverages its unique, data-driven understanding of what makes each dog special to design playstyle-specific toys, wildly satisfying treats, and dog-first experiences that foster the health and happiness of dogs everywhere. Founded in 2011, BARK loyally serves millions of dogs nationwide with BarkBox and Super Chewer, its themed toys and treats subscriptions; custom product collections through its retail partner network, including Target, Chewy, and Amazon; and BARK Air, the first air travel experience designed specifically for dogs first. At BARK, we want to make dogs as happy as they make us because dogs and humans are better together. Sniff around at bark.co for more information.
Forward Looking Statements
This press release contains forward-looking statements relating to, among other things, the future performance of BARK that are based on the Company’s current expectations, forecasts and assumptions and involve risks and uncertainties. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “expect,” “plan,” "anticipate,” “believe,”
3
“estimate,” “predict,” “intend,” “potential,” “continue,” “ongoing” or the negative of these terms or other comparable terminology. These statements include, but are not limited to, statements about future operating results, including our strategies, plans, commitments, objectives and goals. Actual results could differ materially from those predicted or implied and reported results should not be considered an indication of future performance. Other factors that could cause or contribute to such differences include, but are not limited to, risks relating to the uncertainty of the projected financial information with respect to BARK; spending on pets not increasing at projected rates; customers not increasing their spending with BARK; BARK’s ability to continue to convert social media followers and contacts into customers; BARK’s ability to successfully expand its product lines and services and channel distribution; competition and the uncertain effects of global or macroeconomic events or challenges, in particular the imposition of tariffs.
More information about factors that could affect BARK's operating results is included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company's annual report on Form 10-K, copies of which may be obtained by visiting the Company’s Investor Relations website at https://investors.bark.co/ or the SEC’s website at www.sec.gov. Undue reliance should not be placed on the forward-looking statements in this press release, which are based on information available to the Company on the date hereof. The Company assumes no obligation to update such statements.
4
Definitions of Key Performance Indicators
Total Orders
We define Total Orders as the total number of Direct to Consumer orders shipped in a given period. These include all orders across all of our product categories, regardless of whether they are purchased on a subscription, auto-ship, or one-off basis. Total Orders excludes orders from BARK Air. We use Total Orders as an indicator of customer interest and demand.
Average Order Value
Average Order Value (“AOV”) is Direct to Consumer revenue for the period divided by Total Orders for the same period. AOV excludes Direct to Consumer revenue from BARK Air. We use AOV to provide insight into customer spending patterns.
Subscriber Retention
We define Subscriber Retention as the number of active subscriptions during a particular month divided by the number of active subscriptions for the prior month. An active subscription excludes new subscriptions, i.e. subscriptions with an initial shipment in a particular month. To calculate the Subscriber Retention for any quarterly period, we average the monthly rates, weighted by each month's beginning subscription base. Subscriber Retention excludes BARK Air. We use Subscriber Retention to assess the durability of our subscription base.
Key Performance Indicators
| Three Months Ended June 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| Total Orders (in thousands) | 2,031 | 2,819 | |||||||||
| Average Order Value | $ | 31.25 | $ | 30.80 | |||||||
Direct to Consumer Gross Profit (in thousands)(1) | $ | 50,400 | $ | 60,183 | |||||||
Direct to Consumer Gross Margin (1) | 79.4 | % | 69.3 | % | |||||||
| Subscriber Retention | 92.8 | % | 91.1 | % | |||||||
(1) Direct to Consumer Gross Profit and Direct to Consumer Gross Margin does not include the revenue or cost of goods sold from BARK Air. Direct to Consumer gross margin includes a $5.2 million tariff refund related to fiscal year 2026.
5
BARK, Inc.
CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(In thousands)
| Three Months Ended | |||||||||||
| June 30, | June 30, | ||||||||||
| 2026 | 2025 | ||||||||||
| REVENUE | $ | 78,815 | $ | 102,861 | |||||||
| COST OF REVENUE | 21,482 | 38,784 | |||||||||
| Gross profit | 57,333 | 64,077 | |||||||||
| OPERATING EXPENSES: | |||||||||||
| General and administrative | 47,770 | 57,252 | |||||||||
| Advertising and marketing | 9,497 | 15,178 | |||||||||
| Total operating expenses | 57,267 | 72,430 | |||||||||
| INCOME (LOSS) FROM OPERATIONS | 66 | (8,353) | |||||||||
INTEREST INCOME | 263 | 809 | |||||||||
INTEREST EXPENSE | (2) | (709) | |||||||||
OTHER INCOME (EXPENSE)—NET | 418 | 1,223 | |||||||||
| NET INCOME (LOSS) BEFORE INCOME TAXES | 745 | (7,030) | |||||||||
| PROVISION FOR INCOME TAXES | — | — | |||||||||
| NET INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) | $ | 745 | $ | (7,030) | |||||||
Net income (loss) per common share attributable to common stockholders—basic and diluted | $ | 0.08 | $ | (0.83) | |||||||
Weighted average common shares used to compute net income (loss) per share attributable to common stockholders—basic and diluted | 8,784,395 | 8,460,447 | |||||||||
6
DISAGGREGATED REVENUE
(In thousands)
| Three Months Ended | |||||||||||
| June 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| Revenue | |||||||||||
| Direct to Consumer: | |||||||||||
Toys & Accessories(1) | $ | 39,121 | $ | 51,800 | |||||||
Consumables(1) | 24,365 | 35,030 | |||||||||
Other(2) | 3,206 | 2,346 | |||||||||
| Total Direct to Consumer | $ | 66,692 | $ | 89,176 | |||||||
| Commerce | 12,123 | 13,685 | |||||||||
| Revenue | $ | 78,815 | $ | 102,861 | |||||||
(1) The allocation between Toys & Accessories and Consumables includes estimates and was determined utilizing data on stand-alone selling prices that the Company charges for similar offerings, and also reflects historical pricing practices.
(2) Other Direct to Consumer revenue is derived from BARK Air.
GROSS PROFIT BY SEGMENT
(In thousands)
| Three Months Ended June 30, | |||||||||||
| 2026 | 2025 | ||||||||||
Direct to Consumer(1): | |||||||||||
| Revenue | $ | 66,692 | $ | 89,176 | |||||||
| Cost of revenue | 16,532 | 29,431 | |||||||||
| Gross profit | 50,160 | 59,745 | |||||||||
| Commerce: | |||||||||||
| Revenue | 12,123 | 13,685 | |||||||||
| Cost of revenue | 4,950 | 9,353 | |||||||||
| Gross profit | 7,173 | 4,332 | |||||||||
| Consolidated: | |||||||||||
| Revenue | 78,815 | 102,861 | |||||||||
| Cost of revenue | 21,482 | 38,784 | |||||||||
| Gross profit | $ | 57,333 | $ | 64,077 | |||||||
(1) Direct to Consumer includes revenue from BARK Air | |||||||||||
7
BARK, INC.
CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share data)
| June 30, | March 31, | ||||||||||
| ASSETS | 2026 | 2026 | |||||||||
| CURRENT ASSETS: | |||||||||||
| Cash and cash equivalents | $ | 16,090 | $ | 19,282 | |||||||
| Accounts receivable—net | 20,376 | 12,318 | |||||||||
| Prepaid expenses and other current assets | 14,423 | 14,599 | |||||||||
| Inventory | 72,445 | 75,545 | |||||||||
| Total current assets | 123,334 | 121,744 | |||||||||
| PROPERTY AND EQUIPMENT—NET | 15,602 | 17,183 | |||||||||
| INTANGIBLE ASSETS—NET | 1,444 | 1,569 | |||||||||
| OPERATING LEASE RIGHT-OF-USE ASSETS | 23,631 | 24,799 | |||||||||
| OTHER NONCURRENT ASSETS | 4,576 | 4,695 | |||||||||
| TOTAL ASSETS | $ | 168,587 | $ | 169,990 | |||||||
| LIABILITIES, AND STOCKHOLDERS’ EQUITY | |||||||||||
| CURRENT LIABILITIES: | |||||||||||
| Accounts payable | $ | 17,454 | $ | 17,130 | |||||||
| Operating lease liabilities, current | 4,878 | 5,211 | |||||||||
| Accrued and other current liabilities | 17,924 | 20,834 | |||||||||
| Deferred revenue | 20,657 | 22,223 | |||||||||
| Current portion of long-term debt | — | — | |||||||||
| Total current liabilities | 60,913 | 65,398 | |||||||||
| OPERATING LEASE LIABILITIES | 31,355 | 32,466 | |||||||||
| OTHER LONG-TERM LIABILITIES | 87 | 108 | |||||||||
| Total liabilities | 92,355 | 97,972 | |||||||||
| COMMITMENTS AND CONTINGENCIES (Note 8) | |||||||||||
| STOCKHOLDERS’ EQUITY: | |||||||||||
Common stock, par value $0.0001 per share—500,000,000 shares authorized; 9,925,385 and 9,356,667 shares issued and outstanding | 1 | 1 | |||||||||
Treasury stock, at cost, 888,074 and 865,161 shares, respectively | (26,733) | (26,500) | |||||||||
| Additional paid-in capital | 521,157 | 517,372 | |||||||||
| Accumulated deficit | (418,193) | (418,855) | |||||||||
| Total stockholders’ equity | 76,232 | 72,018 | |||||||||
| TOTAL LIABILITIES, AND STOCKHOLDERS’ EQUITY | $ | 168,587 | $ | 169,990 | |||||||
8
BARK, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
| Three Months Ended | |||||||||||
| June 30, | June 30, | ||||||||||
| 2026 | 2025 | ||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
| Net income (loss) | $ | 745 | $ | (7,030) | |||||||
| Adjustments to reconcile net income (loss) to cash (used in) provided by operating activities: | |||||||||||
| Depreciation & amortization | 1,814 | 2,520 | |||||||||
| Non-cash lease expense | 1,168 | 1,027 | |||||||||
| Amortization of deferred financing fees and debt discount | — | 114 | |||||||||
| Bad debt expense | 35 | — | |||||||||
| Stock-based compensation expense | 2,796 | 3,594 | |||||||||
| Provision for inventory obsolescence | (833) | 285 | |||||||||
| Change in fair value of warrant liabilities and derivatives | — | (782) | |||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Accounts receivable | (8,092) | 2,033 | |||||||||
| Inventory | 3,934 | (10,283) | |||||||||
| Prepaid expenses and other current assets | 389 | (417) | |||||||||
| Other noncurrent assets | 124 | (356) | |||||||||
| Accounts payable and accrued expenses | (3,478) | 5,837 | |||||||||
| Deferred revenue | (1,570) | (356) | |||||||||
| Operating lease liabilities | (1,444) | (1,403) | |||||||||
| Other liabilities | 870 | (223) | |||||||||
| Net cash used in operating activities | (3,542) | (5,440) | |||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
| Capital expenditures | (111) | (708) | |||||||||
| Net cash used in investing activities | (111) | (708) | |||||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
| Payment of finance lease obligations | — | (59) | |||||||||
| Proceeds from the exercise of stock options | — | 20 | |||||||||
| Proceeds from issuance of common stock under ESPP | 80 | 197 | |||||||||
| Tax payments related to the issuance of common stock | (1,091) | (497) | |||||||||
| Proceeds from issuance of common stock | 2,000 | — | |||||||||
| Excise tax from stock repurchases | — | (21) | |||||||||
| Payments to repurchase common stock | (233) | (1,770) | |||||||||
| Net cash provided by (used in) financing activities | 756 | (2,130) | |||||||||
| Effect of exchange rate changes on cash | (83) | (50) | |||||||||
| NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (2,980) | (8,328) | |||||||||
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH—BEGINNING OF PERIOD | 25,166 | 97,531 | |||||||||
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH—END OF PERIOD | $ | 22,186 | $ | 89,203 | |||||||
| RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH: | |||||||||||
| Cash and cash equivalents | 16,090 | 84,665 | |||||||||
| Restricted cash - prepaid expenses and other current assets, other noncurrent assets | 6,096 | 4,538 | |||||||||
| Total cash, cash equivalents and restricted cash | $ | 22,186 | $ | 89,203 | |||||||
| SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | |||||||||||
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| Purchases of property and equipment included in accounts payable and accrued liabilities | $ | — | $ | 1,749 | |||||||
| Cash paid for interest | $ | 2 | $ | 5 | |||||||
Non-GAAP Financial Measures
We report our financial results in accordance with U.S. GAAP. However, management believes that Adjusted Net Loss, Adjusted Net Loss Margin, Adjusted Net Loss Per Common Share, Adjusted EBITDA, Adjusted EBITDA Margin, and Free Cash Flow, all non-GAAP financial measures (together the “Non-GAAP Measures”), provide investors with additional useful information in evaluating our performance.
We calculate Adjusted Net Loss as net loss, adjusted to exclude: (1) stock-based compensation expense, (2) change in fair value of warrants and derivatives, (3) sales and use tax income, (4) restructuring charges related to reduction in force payments, (5) litigation expenses (consisting of legal and related fees for a specific proceeding that is outside of our ordinary course of business), (6) warehouse restructuring costs, (7) non-cash impairment of previously capitalized software and cloud computing implementation costs, (8) technology modernization costs, (9) IEEPA Phase II Tariff refunds related to prior year cost of revenue and (10) other items (as defined below).
We calculate Adjusted Net Loss Margin by dividing Adjusted Net Loss for the period by Revenue for the period.
We calculate Adjusted Net Loss Per Common Share by dividing Adjusted Net Loss for the period by weighted average common shares used to compute net loss per share attributable to common stockholders for the period.
We calculate Adjusted EBITDA as net loss, adjusted to exclude: (1) interest income, (2) interest expense, (3) depreciation and amortization, (4) stock-based compensation expense, (5) change in fair value of warrants and derivatives, (6) capitalized cloud computing amortization, (7) sales and use tax income, (8) restructuring charges related to reduction in force payments, (9) litigation expenses (consisting of legal and related fees for a specific proceeding that is outside of our ordinary course of business), (10) warehouse restructuring costs, (11) non-cash impairment of previously capitalized software and cloud computing implementation costs, (12) technology modernization costs, (13) IEEPA tariff refunds related to prior year cost of revenues and (14) other items (as defined below).
We calculate Adjusted EBITDA Margin by dividing Adjusted EBITDA for the period by revenue for the period.
We calculate Free Cash Flow as net cash (used in) provided by operating activities less capital expenditures.
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The Non-GAAP Measures are financial measures that are not required by, or presented in accordance with U.S. GAAP. We believe that the Non-GAAP Measures, when taken together with our financial results presented in accordance with U.S. GAAP, provide meaningful supplemental information regarding our operating performance and facilitates internal comparisons of our historical operating performance on a more consistent basis by excluding certain items that may not be indicative of our business, results of operations or outlook. In particular, we believe that the use of the Non-GAAP Measures are helpful to our investors as they are measures used by management in assessing the health of our business, determining incentive compensation and evaluating our operating performance, as well as for internal planning and forecasting purposes.
The Non-GAAP Measures are presented for supplemental informational purposes only, have limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with U.S. GAAP. Some of the limitations of the Non-GAAP Measures include that (1) the measures do not properly reflect capital commitments to be paid in the future, (2) although depreciation and amortization are non-cash charges, the underlying assets may need to be replaced and Adjusted EBITDA and Adjusted EBITDA Margin do not reflect these capital expenditures, (3) Adjusted EBITDA and Adjusted EBITDA Margin do not consider the impact of stock-based compensation expense, which is an ongoing expense for our company, (4) Adjusted EBITDA and Adjusted EBITDA Margin do not reflect other non-operating expenses, including interest expense and (5) Free cash flow does not represent the total residual cash flow available for discretionary purposes and does not reflect our future contractual commitments. In addition, our use of the Non-GAAP Measures may not be comparable to similarly titled measures of other companies because they may not calculate the Non-GAAP Measures in the same manner, limiting their usefulness as a comparative measure. Because of these limitations, when evaluating our performance, you should consider the Non-GAAP Measures alongside other financial measures, including our net loss and other results stated in accordance with U.S. GAAP.
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Adjusted Net Loss
The following table presents a reconciliation of Adjusted EBITDA to net loss, the most directly comparable financial measure stated in accordance with U.S. GAAP, and the calculation of net loss margin and Adjusted EBITDA margin for the periods presented:
| Three Months Ended June 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| (in thousands, except per share data) | |||||||||||
| Net income (loss) | $ | 745 | $ | (7,030) | |||||||
| Stock compensation expense | 2,796 | 3,594 | |||||||||
| Change in fair value of warrants and derivatives | — | (782) | |||||||||
| Sales and use tax income (1) | — | (240) | |||||||||
| Restructuring | — | 423 | |||||||||
| Litigation expenses (2) | 1,322 | 176 | |||||||||
| Warehouse restructuring costs | 533 | 726 | |||||||||
| Technology modernization (3) | — | 323 | |||||||||
| IEEPA Tariffs Phase II | (7,363) | — | |||||||||
| Other items (4) | 224 | 57 | |||||||||
| Adjusted net loss | $ | (1,743) | $ | (2,753) | |||||||
| Net income (loss) margin | 0.95 | % | (6.83) | % | |||||||
| Adjusted net loss margin | (2.21) | % | (2.68) | % | |||||||
| Adjusted net loss per common share - basic and diluted | $ | (0.20) | $ | (0.33) | |||||||
| Weighted average common shares used to compute adjusted net loss per share attributable to common stockholders - basic and diluted | 8,784,395 | 8,460,447 | |||||||||
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Adjusted EBITDA
| Three Months Ended June 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| (in thousands) | |||||||||||
| Net income (loss) | $ | 745 | $ | (7,030) | |||||||
| Interest income | (263) | (809) | |||||||||
| Interest expense | 2 | 709 | |||||||||
| Depreciation and amortization expense | 1,814 | 2,520 | |||||||||
| Stock compensation expense | 2,796 | 3,594 | |||||||||
| Change in fair value of warrants and derivatives | — | (782) | |||||||||
| Cloud computing amortization | 802 | 421 | |||||||||
| Sales and use tax income (1) | — | (240) | |||||||||
| Restructuring | — | 423 | |||||||||
| Litigation expenses (2) | 1,322 | 176 | |||||||||
| Warehouse restructuring costs | 533 | 726 | |||||||||
| Technology modernization (3) | — | 323 | |||||||||
| IEEPA Tariffs Phase II | (7,363) | — | |||||||||
| Other items (4) | 224 | 57 | |||||||||
| Adjusted EBITDA | $ | 612 | $ | 88 | |||||||
| Net income (loss) margin | 0.95 | % | (6.83) | % | |||||||
| Adjusted EBITDA margin | 0.78 | % | 0.09 | % | |||||||
(1)Sales and use tax (income) expense relates to recording a liability for sales and use tax we did not collect from our customers. Historically, we had collected state or local sales, use, or other similar taxes in certain jurisdictions in which we only had physical presence. On June 21, 2018, the U.S. Supreme Court decided, in South Dakota v. Wayfair, Inc., that state and local jurisdictions may, at least in certain circumstances, enforce a sales and use tax collection obligation on remote vendors that have no physical presence in such jurisdiction. A number of states have positioned themselves to require sales and use tax collection by remote vendors and/or by online marketplaces. The details and effective dates of these collection requirements vary from state to state and accordingly, we recorded a liability in those periods in which we created economic nexus based on each state’s requirements. Accordingly, we now collect, remit, and report sales tax in all states that impose a sales tax. Subsequently, as certain of these liabilities are waived by tax authorities or the applicable statute of limitations expires, the related accrued liability is reversed.
(2)Litigation expenses related to a shareholder class action complaint, see Item 1. Legal Proceedings.
(3)Includes consulting fees related to technology transformation activities, and payroll costs for employees that dedicate significant time to this project. We believe that these costs are discrete and non-recurring in nature, as they mainly relate to a one-time unification of our product offerings on our new commerce platform. As such, they are not normal, recurring operating expenses and are not reflective of ongoing trends in the cost of doing business.
(4) For the three months ended June 30, 2026, other items is comprised of executive transition costs including recruiting costs of $0.2 million. For the three months ended June 30, 2025, other items is comprised of costs associated with the share repurchase program of less than $0.1 million.
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The following table presents a reconciliation of Free Cash Flow to Net cash used in operating activities, the most directly comparable financial measure prepared in accordance with U.S. GAAP, for each of the periods indicated:
Free Cash Flow
| Three Months Ended June 30, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| Free cash flow reconciliation: | ||||||||||||||
| Net cash used in operating activities | $ | (3,542) | $ | (5,440) | ||||||||||
| Capital expenditures | (111) | (708) | ||||||||||||
| Free cash flow | $ | (3,653) | $ | (6,148) | ||||||||||
Contacts
Investors:
investors@barkbox.com
Media:
press@barkbox.com
Scott Bisang / Ed Hammond / Quinn Conway
Collected Strategies
BARK-CS@collectedstrategies.com
Collected Strategies
BARK-CS@collectedstrategies.com
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