Financial Performance - Total revenue for Q2 FY 2026 was $107.0 million, exceeding the guidance range of $102.0 million to $105.0 million, but a 15.2% decline year-over-year [3][4] - Net loss for the quarter was $(10.7) million, compared to $(5.3) million in the same period last year [3][4] - Adjusted EBITDA was $(1.4) million, within the guidance range of $(2.0) million to $2.0 million, despite increased marketing investments [3][8] - The company expects Q3 FY 2026 revenue guidance between $101.0 million and $104.0 million, with Adjusted EBITDA between $(5.0) million and $(1.0) million [9][10] - The company will not provide full-year guidance due to uncertainties surrounding tariffs and their impact on demand and operating costs [10][11] - Consolidated revenue for the six months ended September 30, 2025, was $209.831 million, down from $242.323 million in the same period of 2024, representing a decrease of 13.4% [28] - Net loss for the six months ended September 30, 2025, was $17.702 million, compared to a net loss of $15.302 million in the same period of 2024, an increase of 15.7% [31] - For the three months ended September 30, 2025, the net loss was $10,672,000, compared to a net loss of $5,263,000 for the same period in 2024, reflecting an increase in net loss margin from (4.17)% to (9.98)% [43] - The net loss for the six months ended September 30, 2025, totaled $(17,702,000), compared to $(15,302,000) for the same period in 2024 [43] Revenue Breakdown - Commerce revenue increased by 5.6% year-over-year to $24.8 million, while BARK Air revenue surged by 138.0% to $3.6 million [3][4] - Direct to Consumer revenue decreased by 19.9% year-over-year to $82.1 million, attributed to carrying fewer subscriptions into the quarter [4][21] - Direct to Consumer revenue decreased to $82.148 million in Q3 2025 from $102.599 million in Q3 2024, a decline of 19.9% [28] Profitability Metrics - Gross profit for the quarter was $62.0 million, an 18.6% decrease compared to the previous year [4][23] - Gross profit for the Direct to Consumer segment was $51.973 million in Q3 2025, compared to $65.516 million in Q3 2024, a decrease of 20.6% [28] - Adjusted net loss for the six months ended September 30, 2025, was $(7,301,000), compared to $(2,726,000) for the same period in 2024, with an adjusted net loss margin of (3.48)% [43] - Adjusted EBITDA for the three months ended September 30, 2025, was $(1,438,000), a decrease from $3,486,000 in the same period of 2024, resulting in an adjusted EBITDA margin of (1.34)% [44] Cash Flow and Assets - The company reported a net cash used in operating activities of $23.514 million for the six months ended September 30, 2025, compared to a net cash provided of $4.566 million in the same period of 2024 [31] - Cash and cash equivalents decreased to $63.427 million as of September 30, 2025, down from $94.022 million as of March 31, 2025, a decrease of 32.5% [29] - Total current assets decreased to $193.940 million as of September 30, 2025, from $201.637 million as of March 31, 2025, a decline of 3.4% [29] Debt and Financing - The company repaid $45 million in convertible notes, making it debt-free as of November 6, 2025 [1][5] - A $35 million line of credit was extended to enhance operational flexibility [1][6] - Total liabilities as of September 30, 2025, were $161.508 million, slightly up from $161.109 million as of March 31, 2025 [29] Other Financial Metrics - The company incurred stock compensation expenses of $3,716,000 for the three months ended September 30, 2025, up from $2,957,000 in the same period of 2024 [44] - The company reported interest income of $(678,000) for the three months ended September 30, 2025, compared to $(1,353,000) in the same period of 2024 [44] - Free cash flow for the three months ended September 30, 2025, was $(19,926,000), compared to $966,000 for the same period in 2024 [45] - The weighted average common shares used to compute adjusted net loss per share for the three months ended September 30, 2025, was 170,762,090 shares [43]

Core Insights - BARK, Inc. has reported its financial results for the second quarter of fiscal year 2026, highlighting a focus on debt repayment and operational flexibility [1][2][4] Financial Performance - Total revenue for the quarter was $107.0 million, exceeding the company's guidance range of $102.0 million to $105.0 million [4][5] - Commerce revenue, which includes retail business, was $24.8 million, reflecting a 5.6% increase year-over-year [4][5] - BARK Air revenue reached $3.6 million, marking a significant increase of 138.0% compared to the previous year [4][5] - The company reported a net loss of $(10.7) million, compared to a net loss of $(5.3) million in the same quarter last year [4][5] - Adjusted EBITDA was $(1.4) million, which was within the company's guidance range [4][5] Debt Management - BARK repaid its $45 million convertible note in cash, making the company debt-free as of November 6, 2025 [2][6] - The company extended its $35 million line of credit to enhance financial flexibility [2][7] Strategic Focus - The company aims to diversify its revenue streams while maintaining profitability, with a focus on efficient subscriber growth and retention [2][5] - Marketing investments were reduced by 18% compared to the previous year, aligning with the strategy to focus on revenue diversification [5][6] Operational Metrics - Direct to Consumer (DTC) revenue was $82.1 million, a decrease of 19.9% year-over-year, attributed to fewer subscriptions carried into the quarter [5][6] - Total orders decreased to 2,544 thousand from 3,270 thousand year-over-year [19] - Average Order Value (AOV) remained relatively stable at approximately $30.87 [19] Balance Sheet Highlights - As of September 30, 2025, cash and cash equivalents stood at $63.4 million, with inventory at $101.0 million [13][21] - Total assets were reported at $247.98 million, while total liabilities were $161.51 million [21]

Core Insights - Bark is set to announce earnings results on Monday before market open, with analysts expecting a revenue decline of 17.3% year on year to $104.3 million, contrasting with a 2.5% increase in the same quarter last year [2] - Last quarter, Bark reported revenues of $102.9 million, which was an 11.5% year-on-year decline, and missed analysts' adjusted operating income estimates [1][3] - The company has missed Wall Street's revenue estimates twice in the past two years, indicating potential challenges in meeting expectations [3] Revenue Expectations - Analysts anticipate Bark's revenue to decline significantly this quarter, with expectations set at $104.3 million, down from the previous year's performance [2] - The adjusted loss per share is projected to be -$0.02, reflecting ongoing financial challenges [2] Peer Performance - In the toys and electronics segment, Funko reported a 14.3% year-on-year revenue decrease, while Hasbro saw an 8.3% revenue increase, indicating mixed performance among peers [4] - Funko's results led to a 10.3% increase in its stock price, while Hasbro's stock rose by 2.1% following its earnings report [4] Market Sentiment - Investors in the toys and electronics segment have maintained stable positions, with share prices remaining flat over the past month [5] - Bark's stock has increased by 10.2% during the same period, with an average analyst price target of $2.33 compared to its current share price of $0.85 [5]

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]

Core Insights - Bark Inc. is shifting its investor relations strategy from traditional institutional investors to individual retail investors, recognizing the growing influence of this demographic in the market [1][5][6] - The company has achieved its first full year of positive EBITDA, prompting a focus on more effective navigation of public markets [3][4] - CEO Matt Meeker envisions expanding Bark beyond its BarkBox subscriptions, aiming to create a comprehensive ecosystem for pet products and experiences [7][8] Investor Relations Strategy - Meeker believes that traditional roadshows are a misallocation of resources for a company of Bark's size, as large institutional funds struggle to take meaningful positions [4] - The company is adapting to a new landscape where retail investors are more active and influential, emphasizing direct and authentic engagement on platforms like X and Discord [5][6] Financial Performance - Bark's stock closed at $0.83 per share, reflecting a year-to-date decline of 56.04% and a 47.75% drop over the last year, with a market capitalization of $137.64 million [9]

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

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)