PresentationI would now like to turn the conference over to Mike Mougias, Vice President of Investor Relations and FP&A. You may begin.Ladies and gentlemen, thank you for standing by. My name is Abby, and I'll be your conference operator today. At this time, I would like to welcome everyone to the BARK Third Quarter Fiscal Year 2026 Earnings Conference Call. [Operator Instructions]Michael MougiasVice President of Investor Relations Good afternoon, everyone, and welcome to BARK's Third Quarter Fiscal Year 20 ...

BARK (NYSE:BARK) Q3 2026 Earnings call February 05, 2026 04:30 PM ET Company ParticipantsMatt Meeker - CEOMike Mougias - VP of Investor RelationsZahir Ibrahim - CFOOperatorLadies, and gentlemen, thank you for standing by. My name is Abby, and I'll be your conference Operator today. At this time, I would like to welcome everyone to the BARK Third Quarter Fiscal Year 2026 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. Please note that there will be no question-an ...

BARK (NYSE:BARK) Q3 2026 Earnings call February 05, 2026 04:30 PM ET Company ParticipantsMatt Meeker - CEOMike Mougias - VP of Investor RelationsZahir Ibrahim - CFOOperatorLadies and gentlemen, thank you for standing by. My name is Abby, and I'll be your conference operator today. At this time, I would like to welcome everyone to the BARK third quarter fiscal year 2026 earnings conference call. All lines have been placed on mute to prevent any background noise. Please note that there will be no question-and ...

BARK (NYSE:BARK) Q3 2026 Earnings call February 05, 2026 04:30 PM ET Speaker2Ladies and gentlemen, thank you for standing by. My name is Abby, and I'll be your conference operator today. At this time, I would like to welcome everyone to the BARK third quarter fiscal year 2026 earnings conference call. All lines have been placed on mute to prevent any background noise. Please note that there will be no question-and-answer session on today's call. The call will conclude following the company's prepared remark ...

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

Revenue Performance - Total revenue for Q3 FY 2026 was $98.4 million, a decrease of 22.1% year-over-year, primarily due to fewer total orders and a 41.3% reduction in marketing spend[5] - Direct-to-Consumer (DTC) revenue was $79.6 million, reflecting a 25.0% decrease year-over-year, attributed to carrying fewer subscriptions into the quarter[6] - Commerce revenue was $18.9 million, down 7.2% year-over-year, partly due to the timing of retail shipments[6] - Consolidated revenue for the nine months ended December 31, 2025, was $308,277 thousand, down from $368,772 thousand in the same period of 2024, representing a decrease of 16.4%[26] Profitability and Loss - Adjusted EBITDA was $(1.6) million, within the company's guidance range of $(5.0) million to $(1.0) million[10] - The company reported a net loss of $(8.6) million, an improvement from a net loss of $(11.5) million in the previous year[5] - The net loss for the nine months ended December 31, 2025, was $26,347 thousand, slightly improved from a net loss of $26,811 thousand in the same period of 2024[30] - For the three months ended December 31, 2025, the company reported a net loss of $8,646,000 compared to a net loss of $11,509,000 for the same period in 2024[40] - Adjusted net loss for the three months ended December 31, 2025, was $4,420,000, while for the nine months ended December 31, 2025, it was $11,720,000, compared to $3,931,000 and $6,649,000 for the respective periods in 2024[40] Expenses and Cost Management - Advertising and marketing expenses were reduced to $16.1 million, down from $27.4 million in the previous year[10] - General and administrative expenses decreased to $54.5 million from $64.1 million, reflecting strong cost management[10] - The company incurred stock compensation expenses of $3,571,000 for the three months ended December 31, 2025, compared to $3,873,000 for the same period in 2024[41] - The company recognized restructuring costs of $93,000 for the three months ended December 31, 2025, compared to $924,000 for the same period in 2024[41] Cash Flow and Assets - Cash and cash equivalents dropped to $21,683 thousand at the end of Q3 2025, down from $94,022 thousand at the beginning of the period, a decrease of 77.0%[28] - The company reported a net cash used in operating activities of $21,807 thousand for the nine months ended December 31, 2025, compared to a net cash provided of $3,179 thousand in the same period of 2024[30] - Total current assets decreased to $137,878 thousand as of December 31, 2025, from $201,637 thousand as of March 31, 2025, a reduction of 31.6%[28] Debt and Liabilities - The company fully repaid its outstanding 2025 Convertible Notes, making BARK debt-free[5] - Total liabilities decreased to $107,425 thousand as of December 31, 2025, from $161,109 thousand as of March 31, 2025, a reduction of 33.3%[28] Margins and Financial Metrics - The company achieved a gross margin of 62.5%, slightly down from 62.7% in the same period last year, with improvements in both DTC and Commerce gross margins[6] - Free cash flow for the three months ended December 31, 2025, was $1,562,000, compared to $(1,964,000) for the same period in 2024[45] - The net loss margin for the three months ended December 31, 2025, was (8.78)%, compared to (9.10)% for the same period in 2024[41] - Adjusted EBITDA for the three months ended December 31, 2025, was $(1,608,000), while for the nine months ended December 31, 2025, it was $(2,956,000), compared to $(1,555,000) and $143,000 for the respective periods in 2024[41] Guidance and Future Outlook - The company will not provide fourth quarter guidance due to ongoing evaluations of preliminary proposals received[9]

NEW YORK--(BUSINESS WIRE)--BARK, Inc. (NYSE: BARK) ("BARK†or the "Company†), a leading global omnichannel dog brand with a mission to make all dogs happy, today announced that the special committee (the "Special Committee†) of the Company's Board of Directors has retained Moelis & Company LLC as financial advisor and Sidley Austin LLP as legal advisor to assist the Special Committee in the review and evaluation of the previously disclosed preliminary non-binding indicative proposal letters the Company h ...

NEW YORK--(BUSINESS WIRE)--BARK (NYSE: BARK), a leading global omnichannel dog brand on a mission to make all dogs happy, today announced the launch of Who's A Good Guest?, a new video series hosted by entertainment journalist Josh Horowitz, produced by BARK and Horowitz. Season one features a star-studded lineup of dog parents, including Zoey Deutch, Dylan O'Brien, Bob Odenkirk, Johnny Knoxville, Ginnifer Goodwin, and Patrick Wilson. The first episode, featuring O'Brien and his dog Tony, debut. ...

Valuation and Financial Performance - BARK trades at approximately 0.31× price/sales compared to a 1.15× specialty-retail median, with a price/book ratio near multi-year lows at 1.6×, indicating potential upside if subscriber growth stabilizes and margins improve [1] - In Q2, BARK reported revenue of $107 million, a 15% year-over-year decline, driven by fewer subscription orders, while direct-to-consumer sales fell 20% [11] - The net loss widened to $10.7 million from a $5.3 million loss in the prior year, and free cash flow was negative $19.9 million, with cash on hand at $63.4 million [11][12] Market Activity and Investor Sentiment - BARK shares fell about 50% over the past year due to slowing growth, softening demand, and rising costs, but a recent 30% rally was sparked by takeover speculation [2] - A non-binding take-private proposal at $0.90 per share from an insider group led by CEO Matt Meeker sent shares surging over 30%, putting BARK back on traders' radar [6][8] - Analyst sentiment is mixed, with Canaccord Genuity adopting a cautious stance and lowering its price target to $2, while Lake Street Capital Markets maintains a "Buy" rating with a target of $3, reflecting a potential upside of 150% to 400% [13][14] Strategic Initiatives and Challenges - BARK introduced a Subscriber Perks package valued at approximately $1,500 annually for BarkBox members to enhance subscriber value and monetization [3] - The company is focused on cost discipline and diversification, having repaid a $45 million convertible note, making it debt-free, and extending its $35 million line of credit [12] - The consumer-discretionary sector faces pressure from economic uncertainty, inflation, and tariffs, impacting margins and leading to choppy trading for pet and subscription-based retailers [7]

Core Viewpoint - GNK Holdings LLC, along with Marcus Lemonis, has submitted a preliminary, non-binding indication of interest to acquire BARK, Inc. for $1.10 per share in an all-cash transaction valued at approximately $188.7 million, representing a 22% premium over a previous proposal by Great Dane Ventures, LLC [1][2]. Company Overview - BARK, Inc. is being targeted for acquisition due to its strong brand and customer loyalty, with the Group believing it presents a compelling opportunity for value creation through improved operational execution and customer engagement [3][5]. - GNK Holdings LLC is a private investment firm focused on consumer and retail investments, emphasizing operational value creation and disciplined capital deployment [6]. Proposed Transaction Details - The proposed acquisition values BARK at an implied enterprise value of around $188.7 million, with the offer of $1.10 per share representing a 22% premium [2]. - The transaction is subject to customary conditions, confirmatory due diligence, and the negotiation of definitive agreements, with an accelerated timeline for completion expected within approximately 30 days [8]. - Financing for the transaction will be sourced through equity capital and debt [8].