Nov 5, 2026, 4:23 PM ETConsumer Cyclical

BARK — Fiscal Second Quarter 2027 Earnings Summary

BARKBARK INC

Financial Performance

Net revenue for the quarter ended September 30, 2026, was $87.6 million, exceeding the guidance range of $83.0 million to $85.0 million, compared to $107.0 million in the prior-year period.
Net loss improved to $3.8 million ($0.43 per share) from a net loss of $10.7 million ($1.25 per share) in the prior-year period.
Adjusted EBITDA was $2.0 million, a $3.4 million improvement compared to a loss of $1.4 million in the prior-year period, falling within the guidance range of $1.0 million to $3.0 million.
Gross profit was $51.6 million compared to $62.0 million in the prior-year period, with gross margin increasing approximately 100 basis points to 58.9% of net revenue.
Cash and cash equivalents totaled $19.0 million as of September 30, 2026, an increase of $2.9 million sequentially from $16.1 million as of June 30, 2026.
There was no outstanding debt as of September 30, 2026.
Inventory was $72.4 million as of September 30, 2026, unchanged from June 30, 2026.
Net cash provided by operating activities was $4.7 million for the quarter, partially offset by $2.0 million in share repurchases.

The Company reaffirmed full-year fiscal 2027 guidance: total net revenue expected between $325.0 million and $340.0 million, and Adjusted EBITDA between $7.0 million and $10.0 million.
Fiscal third quarter 2027 guidance expects net revenue between $88.0 million and $92.0 million and Adjusted EBITDA between $1.0 million and $3.0 million.
The Company does not provide guidance for Net Income (Loss) due to the uncertainty of stock-based compensation and related tax effects.
Management expects to decrease inventory in the second half of fiscal year 2027 to free up cash.

Commerce net revenue was $25.7 million, a 3.6% increase from $24.8 million in the prior-year period, representing 29.4% of total net revenue. Growth was driven by strength across retail and marketplaces.
Direct to Consumer (DTC) net revenue was $61.8 million, down from $82.1 million in the prior-year period, representing 70.6% of total net revenue.
DTC subscriber retention improved to 94% from 92% in the prior-year period, and Average Order Value increased to $31.40 from $30.87.
DTC net revenue included $3.5 million from BARK Air.
The Company launched Licksters, a new line of enrichment toys.
The Company shipped two of the largest retail orders in its history during the fiscal third quarter.
Subsequent to quarter end, the Company reached a preliminary understanding to sell BARK Air's assets and license the brand beginning January 1, 2027, subject to definitive documentation.

The year-over-year revenue decline was primarily due to a planned pullback in marketing spend and a resulting smaller DTC subscriber base, partially offset by Commerce segment growth.
The Company continues to expand with new and existing retail partners.
Forward-looking statements cite risks related to competition and the uncertain effects of global or macroeconomic events, particularly the imposition of tariffs.

The proposed transaction to sell BARK Air's assets and license the brand remains subject to definitive documentation with no assurance of completion.
Actual results may differ materially from forward-looking statements due to factors including uncertainty of projected financial information, spending on pets not increasing at projected rates, and the Company's ability to convert social media followers into customers.
Risks include the Company's ability to successfully expand product lines and channel distribution, and the impact of global or macroeconomic events, specifically tariffs.

CEO Matt Meeker described the quarter as "strong," noting revenue above the high end of guidance and progress on annual priorities.
Management highlighted that marketing dollars were deployed efficiently and that the business remains on the "right long-term trajectory."
The preliminary agreement to sell BARK Air assets is intended to redirect capital to Commerce, the partnership pipeline, supply chain, and innovative products like Licksters.

The Company executed $2.0 million in share repurchases under its share repurchase program during the quarter.
The Company does not provide a reconciliation of Adjusted EBITDA to Net Income (Loss) due to the inability to predict stock-based compensation and tax effects without unreasonable effort.
A conference call and webcast were held on November 5, 2026, to discuss the results.
The Company reported a $5.2 million tariff refund related to fiscal year 2026 included in Direct to Consumer gross margin for the six months ended September 30, 2026.