BARK

As the Q2 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the consumer discretionary - toys and electronics industry, including Bark (NYSE:BARK) and its peers. The Consumer Discretionary sector, by definition, is made up of companies selling non-essential goods and services. When economic conditions deteriorate or tastes shift, consumers can easily cut back or eliminate these purchases. For long-term investors with five-year holding periods, this creates a structural challenge: the sector is inherently hit-driven, with low switching costs and fickle customers. As a result, only a handful of companies can reliably grow demand and compound earnings over long periods, which is why our bar is high and High Quality ratings are rare. Toys and electronic entertainment companies design and sell physical toys, board games, video game hardware, and related digital content, relying on intellectual property, licensed characters, and innovation to drive sales. Tailwinds include evergreen demand from children's demographics, growing adult-collector segments, and digital extensions that create new revenue streams from established franchises. Headwinds are considerable: demand is intensely seasonal (concentrated around holidays) making inventory planning risky. Children's attention is increasingly captured by screen-based entertainment and social media, reducing traditional toy engagement. Hit dependency on blockbuster franchises creates revenue volatility, while tariff exposure on imported goods and rising input costs compress margins. The 4 consumer discretionary - toys and electronics stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 3.3% while next quarter’s revenue guidance was 7.5% below. Luckily, consumer discretionary - toys and electronics stocks have performed well with share prices up 10.1% on average since the latest earnings results. Making a name for itself with the BarkBox, Bark (NYSE:BARK) specializes in subscription-based, personalized pet products. Bark reported revenues of $78.82 million, down 23.4% year on year. This print exceeded analysts’ expectations by 0.7%. Overall, it was a strong quarter for the company with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates. Bark delivered the weakest performance against analyst estimates and slowest revenue growth in the group. Interestingly, the stock is up 14% since reporting and currently trades at $10.44. Is now the time to buy Bark? Access our full analysis of the earnings results here, it’s free. Boasting partnerships with media franchises like Marvel and One Piece, Funko (NASDAQ:FNKO) is a company specializing in creating and distributing licensed pop culture collectibles. Funko reported revenues of $207.7 million, up 7.4% year on year, outperforming analysts’ expectations by 3.7%. The business had an exceptional quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates. The market seems happy with the results as the stock is up 13% since reporting. It currently trades at $5.97. Is now the time to buy Funko? Access our full analysis of the earnings results here, it’s free. Known for the creation of iconic toys such as Barbie and Hotwheels, Mattel (NASDAQ:MAT) is a global children's entertainment company specializing in the design and production of consumer products. Mattel reported revenues of $1.13 billion, up 10.5% year on year, exceeding analysts’ expectations by 2.4%. Still, it was a slower quarter as it posted a significant miss of analysts’ EPS estimates and a miss of analysts’ EBITDA estimates. The stock is flat since the results and currently trades at $14.74. Read our full analysis of Mattel’s results here. Credited with the creation of toys such as Mr. Potato Head and the Rubik’s Cube, Hasbro (NASDAQ:HAS) is a global entertainment company offering a diverse range of toys, games, and multimedia experiences for children and families. Hasbro reported revenues of $1.14 billion, up 16.2% year on year. This print topped analysts’ expectations by 6.6%. Overall, it was a strong quarter as it also recorded a beat of analysts’ EPS estimates and a decent beat of analysts’ EBITDA estimates. Hasbro pulled off the biggest analyst estimate beat and fastest revenue growth of the whole group. The stock is up 14.4% since reporting and currently trades at $93.33. Read our full, actionable report on Hasbro here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Bark’s second quarter saw revenue decline sharply from the prior year, but sales still edged above Wall Street’s expectations. Management attributed the quarter’s results to improved subscriber retention, disciplined marketing spend, and better-than-expected performance in its retail commerce channels. CEO Matt Meeker noted strength in Bark’s direct-to-consumer metrics, including a notable improvement in average order value and lifetime value per subscriber. The company’s gross margin also benefited from a one-time tariff refund, which resulted in higher reported profitability for the period. Is now the time to buy BARK? Find out in our full research report (it’s free). Revenue: $78.82 million vs analyst estimates of $78.25 million (23.4% year-on-year decline, 0.7% beat) Adjusted EPS: -$0.20 vs analyst estimates of -$0.73 (72.6% beat) Adjusted EBITDA: $612,000 vs analyst estimates of $26,000 (0.8% margin, relatively in line) The company reconfirmed its revenue guidance for the full year of $332.5 million at the midpoint EBITDA guidance for the full year is $8.5 million at the midpoint, above analyst estimates of $4.90 million Operating Margin: 0.1%, up from -8.1% in the same quarter last year Market Capitalization: $93.73 million While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Ryan Robert Meyers (Lake Street Capital Markets): Asked about Bark’s confidence in achieving a return to direct-to-consumer growth later in the year. CEO Matt Meeker said the plan remains on track, with improved retention and average order value supporting expectations, but described the confidence level as unchanged from the prior quarter. Ryan Robert Meyers (Lake Street Capital Markets): Inquired about the drivers behind the commerce revenue decline and prospects for second-half improvement. Meeker pointed to the seasonality and timing of retail orders, as well as anticipated momentum from new product launches and expanded partnerships with major retailers, as reasons for a more optimistic outlook. Key upcoming catalysts include (1) Bark’s ability to accelerate revenue growth in commerce as new products and partnerships launch, (2) sustained improvement in subscriber retention and average order value in direct-to-consumer, and (3) Bark Air’s continued momentum and operational resilience amid external pressures. Progress on inventory efficiency and the successful rollout of innovative products will also be key indicators for execution. Bark currently trades at $10.71, up from $9.16 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members). WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses. But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.

Interested in BARK, Inc.? Here are five stocks we like better. Q1 revenue reached $78.8 million, at the high end of guidance, while adjusted EBITDA rose to approximately $600,000 from $100,000 a year earlier. BARK ended the quarter with $16.1 million in cash and no debt. Direct-to-consumer revenue declined because of a smaller subscriber base, but retention improved by more than 170 basis points, average order value increased, and management remains confident the segment will return to growth in the second half of fiscal 2027. BARK expects stronger commerce performance during the holiday season, supported by new products and partnerships including Licksters, expanded Crocs offerings and a Liquid Death collaboration. The company forecast Q2 revenue of $83 million to $85 million and adjusted EBITDA of $1 million to $3 million. Penny stock watch: Is it time to take a bit out of BARK, Inc.? BARK (NYSE:BARK) reported fiscal first-quarter 2027 revenue at the high end of its guidance range, while management pointed to improving subscriber retention, higher average order values and expected growth in its commerce business heading into the holiday season. Revenue totaled $78.8 million, compared with $102.9 million in the prior-year period. The company had guided for first-quarter revenue of $77 million to $79 million. Adjusted EBITDA was approximately $600,000, within its outlook of $0 million to $1 million and up from $100,000 a year earlier. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth 3 Upgrades In e-Commerce Moving The Market “Our first quarter results reflect continued profitability alongside underlying momentum in the parts of the business we are most focused on growing,” Co-founder and Chief Executive Officer Matt Meeker said during the earnings call. Total direct-to-consumer revenue was $66.7 million in the quarter. That figure included $3.2 million from BARK Air, up 37% year over year. Excluding BARK Air, direct-to-consumer revenue was $63.5 million, down from $86.8 million in the prior-year quarter. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Interim Chief Financial Officer Brian Dostie said the decline reflected the smaller subscriber base BARK entered the year with after the company reduced marketing and promotional spending during fiscal 2026. Direct-to-consumer orders declined about 28% year over year, while average order value increased by $0.45. Meeker said subscriber retention improved by more than 170 basis points from the prior-year quarter, and that the lifetime value of a BarkBox subscriber was near its highest level since the company became public. He said the company remains at the same level of confidence in its plan to return its direct-to-consumer business to growth in the second half of the year. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling “The revenue decline is a volume story tied to the smaller base, and the per order economics continue to improve,” Dostie said. Commerce revenue was $12.1 million, down 11% from the prior-year period. Management characterized the segment as seasonal and “lumpy,” noting that some activity that may have occurred in the first quarter shifted into the previous fourth quarter. Meeker said BARK expects commerce revenue to increase meaningfully as it approaches the holiday season. The company plans to launch products through the Girl Scout Cookie program this winter and cited expansion with both current and new retail, wholesale and marketplace partners. The company also highlighted several upcoming product launches: Licksters: A new enrichment toy and treat-refill platform that is being introduced to subscribers and is expected to roll out at Target, PetSmart, Walmart, Amazon and Chewy in the fall. Crocs for Dogs: BARK plans to expand its Crocs partnership in October 2026 with toys, beds, accessories and additional colorways for dog shoes. Liquid Death collaboration: BARK plans to introduce a co-designed line of pet toys and accessories with Liquid Death in the fall. Meeker said the Licksters platform could provide recurring revenue from treat refills as consumers purchase the toys. He also said BARK’s Crocs dog shoes had been its most successful TikTok product launch to date. Reported consolidated gross margin was 72.7%, including approximately $7.4 million of IEEPA tariff recoveries related to fiscal 2026 cost of revenue. Excluding that nonrecurring recovery, normalized gross margin was 63.4%, compared with 63.8% in the prior-year period on a normalized tariff-adjusted basis. The tariff recovery was recorded as a receivable during the quarter, had no cash impact during the period and was excluded from adjusted EBITDA. As of the balance-sheet date, BARK had received $3.2 million of the refunds and expects to collect most of the remaining receivable over the coming quarters, according to Dostie. Marketing expense fell 37% year over year to $9.5 million. Shipping and fulfillment expense declined to $23.8 million from $31.8 million, improving modestly as a percentage of revenue to 30.2% from 30.9%. Other general and administrative expense was $23.9 million, down approximately 6% from a year earlier. BARK ended the quarter with $16.1 million in cash and no debt, compared with $19.3 million in cash at fiscal year-end. Dostie said the decline reflected seasonal working-capital needs and continued share repurchases under the company’s $40 million buyback program. Inventory was $72.4 million, down from $75.5 million at fiscal year-end and more than $25 million below the $98.1 million reported a year earlier. For the fiscal second quarter, BARK projected revenue of $83 million to $85 million and adjusted EBITDA of $1 million to $3 million. The company reiterated its full-year revenue and adjusted EBITDA guidance, though management did not provide the full-year figures during the call. Meeker said more than 90% of BARK Air seats had already been sold for the second quarter, despite challenges related to Europe-to-U.S. routes and fuel surcharges. He said the company remains focused on sequential top-line growth and improved adjusted EBITDA profitability through the remainder of fiscal 2027. BARK is a consumer products and services company focused on the canine market, offering a suite of subscription-based and direct‐to‐consumer offerings designed to meet the everyday needs of dogs and their owners. The company's core business revolves around carefully curated boxes of toys, treats and chews, which are delivered monthly to subscribers through its flagship BarkBox service. Over time, BARK has expanded its reach beyond subscription, tapping into e-commerce and wholesale channels to broaden its customer base. In addition to BarkBox, the company operates BarkShop, an online storefront that allows customers to purchase toys, grooming supplies and nutrition products on an a la carte basis. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "BARK Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. BARK Inc (NYSE:BARK) delivered Q1 FY2027 revenue of $78.8 million, at the high end of its guidance range, and achieved positive adjusted EBITDA of $600,000, up from $100,000 in the prior year. Subscriber retention improved by over 170 basis points year-over-year, and average order value increased by $0.45 per unit, indicating stronger customer loyalty and spending. Bark Air posted a 37% year-over-year revenue increase to $3.2 million, with over 90% of Q2 seats already sold, demonstrating robust demand. The company is expanding its retail presence with new product launches, including the Lixsters enrichment toy platform, an expanded Crocs partnership, and a new collaboration with Liquid Death, set to roll out across major retailers like Target, Walmart, and Amazon. BARK Inc (NYSE:BARK) ended the quarter debt-free with $16.1 million in cash, and continues to execute a $40 million share repurchase program, reflecting confidence in its financial position. Normalized gross margin remained strong at 63.4%, and the company expects to drive further inventory efficiency, with inventory down over $25 million year-over-year. Total revenue declined significantly year-over-year to $78.8 million from $102.9 million, driven by a smaller subscriber base due to disciplined marketing and promotional spending. D2C revenue, excluding Bark Air, fell to $53.5 million from $86.8 million last year, with orders down about 28% year-over-year, reflecting a continued volume decline. Commerce revenue decreased 11% year-over-year to $12.1 million, impacted by timing issues and a slower-than-expected start to the fiscal year. The company's reported gross margin of 72.7% was inflated by a one-time $7.4 million tariff refund, which is non-recurring and excluded from adjusted EBITDA, masking the underlying normalized margin of 63.4%. Cash balance declined from $19.3 million at fiscal year-end to $16.1 million, due to seasonal working capital build and share repurchases, though the company expects to collect the remaining tariff receivable over coming quarters. Bark Air faces headwinds from geopolitical conditions, including Europe-to-U.S. route challenges and fuel surcharges, which could pressure future profitability. Warning! GuruFocus has detected 3 Warning Signs with BARK. Is BARK fairly valued? Test your thesis with our free DCF calculator. Q: Regarding direct-to-consumer (D2C) and the return to growth in the second half of the year, given what you saw in the first quarter, are you more confident now on that timeline? What key metrics are you watching to determine if that inflection is happening?A: Matt Neeker, Co-Founder and CEO: We are at the same level of confidence as when we entered the year, having planned for the math on new subscribers, retention rates, and average order value. The first quarter showed strong year-over-year performance, with retention up over 170 basis points and good AOV performance. We feel great about hitting the inflection point as planned, and we are even more confident about the commerce side of the business, which allows us to stick to the D2C plan without taking unnatural actions. Q: Can you unpack the main drivers behind the commerce revenue decline in the quarter, and what has you excited about the commerce business for the second half, given the upcoming Girl Scout launch?A: Matt Neeker, Co-Founder and CEO: This is always the slowest quarter, and it was slightly slower than last year due to timing elements slipping from Q4 into Q1. The business is lumpy, but we have great visibility into upcoming big orders. We have been winning market share in the toy category per Nielsen, and we are building strong relationships with major partners like Walmart, Target, Chewy, and Amazon, who are taking our new Lixster product this fall. This eases pressure on the D2C rebuild, allowing us to stick to the plan. Q: What were the key drivers of the strong gross margin performance in the first quarter, and how should we think about the sustainability of this margin level?A: Brian Dosty, Interim CFO: Reported consolidated gross margin was 72.7%, which includes a one-time $7.4 million IEPA tariff recovery related to fiscal 2026 costs. Excluding that, normalized gross margin was 63.4%, compared to 63.8% in the prior year. The strength is driven by our D2C gross margin, which has expanded steadily over the past several years, adding hundreds of basis points. The tariff recovery is not recurring and is excluded from adjusted EBITDA. Q: Can you provide more detail on the new Lixster product launch and its potential impact on the business model?A: Matt Neeker, Co-Founder and CEO: Lixster is a major push into the enrichment category, the fastest-growing segment of dog toys. It solves two problems: it's a durable, easily refillable, and cleanable toy for humans while keeping dogs engaged for over 40 minutes, more than double the current market leader. We have a three-year innovation pipeline for the platform. It operates on a razor-and-blades model, where we seed the toys and expect strong attachment rates and recurring revenue from treat refills. It's being introduced to subscribers now and will roll out to Target, PetSmart, Walmart, Amazon, and Chewy this fall. Q: What is the outlook for Bark Air, and how are you managing the challenges mentioned, such as Europe-to-U.S. routes and fuel surcharges?A: Matt Neeker, Co-Founder and CEO: Bark Air posted $3.2 million in revenue, a 37% increase year-over-year, despite challenges from geopolitical conditions. Demand is strong, with well over 90% of seats already sold for the second quarter. The business continues to perform well and is a key growth driver. Q: Can you elaborate on the cash position and the drivers of the decline from year-end, and what are your expectations for cash generation for the rest of the year?A: Brian Dosty, Interim CFO: We ended the quarter with $16.1 million in cash, down from $19.3 million at fiscal year-end. The decline reflects a normal seasonal build in working capital and continued share repurchases under our $40 million buyback program. Accounts receivable increased by $12.3 million due to the IEPA tariff recovery, which had no cash impact in the period. We have received $3.2 million of the refunds so far and expect to collect the majority of the remaining balance over the coming quarters. Our priority is driving consistent cash generation over the balance of the year. Q: How is the marketing spend discipline playing out, and are you seeing any opportunities to reinvest in customer acquisition?A: Brian Dosty, Interim CFO: First-quarter marketing spend was $9.5 million, down 37% year-over-year. We continue to hold this discipline while remaining prepared to reinvest when efficient customer acquisition opportunities present themselves. The focus is on improving order economics, which are getting better, and we are seeing green shoots in underlying D2C metrics. Q: Can you provide more color on the inventory position and the efficiency improvements you are targeting?A: Brian Dosty, Interim CFO: Inventory was $72.4 million, down from $75.5 million at fiscal year-end and down more than $25 million from $98.1 million a year ago. We expect to drive further inventory efficiency through the balance of fiscal 2027, which should contribute to improved cash generation and working capital management. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

NEW YORK, August 06, 2026--(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 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. 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. 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," "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. 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 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. 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. 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: Adjusted EBITDA 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 View source version on businesswire.com: https://www.businesswire.com/news/home/20260806908296/en/ Contacts Investors:[email protected] Media:[email protected] Scott Bisang / Ed Hammond / Quinn ConwayCollected [email protected]

This article first appeared on GuruFocus. Release Date: June 09, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. BARK Inc (NYSE:BARK) achieved a positive adjusted EBITDA of $0.2 million for the year, marking its second consecutive year of profitability. The company successfully diversified its revenue streams, with commerce and air representing 21% of total revenue, up from 15% the previous year. BARK Inc (NYSE:BARK) maintained a healthy consolidated gross margin of 61% for the year. The company reduced its total marketing investment by over $24 million year-over-year, focusing on bottom-line durability. BARK Inc (NYSE:BARK) ended the year with a debt-free balance sheet and $19 million in cash, positioning it well for future growth. Total revenue for the year was $395 million, reflecting a decline due to a deliberate pullback on marketing and promotions. The company is entering fiscal 2027 with a smaller D2C subscriber base, impacting near-term top-line growth. Fourth quarter revenue was $86.6 million, down from $115.4 million in the prior year period. BARK Inc (NYSE:BARK) does not expect significant revenue growth in its Bark Air segment over the next year, focusing instead on improving unit economics. The company is sunsetting certain products, such as its kibble and toppers lines, due to inadequate returns. Warning! GuruFocus has detected 3 Warning Signs with BARK. Is BARK fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide the building blocks to your $7 million to $10 million adjusted EBITDA guidance? You're operating from a lower revenue base compared to years past, given the focus on a smaller base of DTC customers. Just curious what the levers are. A: Sure. The levers are improved unit economics across the board, higher average order value, reduced costs, and less burden from tariffs. We've also implemented cost reduction efforts, including downsizing the team and leveraging AI and automation. This leaner operation with better unit economics sets us up for future growth investments. - Matt Meeker, Co-Founder and CEO. Q: Are you still relying on one specific country for production, or has there been a change in your strategy? A: Previously, we relied heavily on China for toy production. However, we've diversified our supply chain to include options from Southeast Asia and South America. This diversification provides flexibility and allows us to quickly adapt to changes such as tariffs. - Matt Meeker, Co-Founder and CEO. Q: What are your expectations for Bark Air and Commerce segments in fiscal 2027? A: We expect Bark Air and Commerce to collectively represent over $100 million in revenue. While we prioritize profitability over growth for Bark Air, we anticipate strong momentum in Commerce, with the segment representing nearly a quarter of total revenue in FY '27. - Matt Meeker, Co-Founder and CEO. Q: Can you elaborate on the strategic focus for fiscal 2027 and beyond? A: Our focus is on relationship commerce, which involves understanding each customer deeply, increasing meaningful touchpoints, and offering new products and services over time. We are also consolidating brands and products to improve profitability and simplify the business. - Matt Meeker, Co-Founder and CEO. Q: How are you managing costs and what impact does this have on your financial outlook? A: We've reduced costs by $55 million across G&A, shipping, fulfillment, and marketing. This disciplined cost management, along with a leaner cost structure, positions us to improve adjusted EBITDA and generate positive free cash flow in fiscal 2027. - Brian Dossey, Interim CFO. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management intentionally reduced marketing investment by over $24 million to protect margins against tariff volatility and a challenging macro environment, prioritizing profitability over inefficient growth. The company is shifting from a mass-personalization subscription model to 'Relationship Commerce,' focusing on deep, dog-specific data to drive long-term customer value. Revenue diversification improved as Commerce and Air segments grew to 21% of total revenue, reducing reliance on the core D2C subscription channel. Management is sunsetting underperforming product lines, including kibble and toppers, to reallocate capital toward higher-return categories where the brand has a proven 'right to win.' The D2C subscriber base is smaller entering fiscal 2027, but management asserts the underlying quality is higher, evidenced by improved retention rates and growing average order values. Operational efficiency was a primary driver of performance, with $55 million in year-over-year cost reductions across G&A, shipping, and marketing. Fiscal 2027 guidance assumes D2C revenue will decline in the first half of the year before stabilizing and returning to growth in the second half. The Commerce segment is expected to reach nearly 25% of total revenue in fiscal 2027, driven by wholesale expansion and a new partnership with the Girl Scouts. Bark Air strategy will shift from top-line expansion to improving unit economics, with management expecting minimal revenue growth for the segment in the coming year. The company expects to achieve $7 million to $10 million in adjusted EBITDA for fiscal 2027, representing a significant step up from fiscal 2026 levels. A new $40 million share repurchase program has been authorized, reflecting management's confidence in the company's free cash flow profile and long-term valuation. The company is navigating a complex tariff refund process, with $12.1 million in additional AIPA tariff refunds expected to be recognized upon future eligibility. Inventory was reduced by approximately $13 million year-over-year to $76 million as part of a broader effort to improve working capital efficiency. Management identified AI and automation as critical tools for future scaling, specifically for replacing expensive SaaS contracts and streamlining team operations. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Growth will be driven by improved unit economics, higher average order values, and the removal of tariff burdens that impacted prior-year product costs. Management highlighted structural cost savings from downsizing the team and utilizing AI to replace high-cost software contracts. Bark has moved away from near-total reliance on China for toy production, diversifying into Southeast Asia and South America. The new supply chain structure allows the company to 'fail over' to alternative countries quickly if new tariffs are implemented in specific regions.

Announces Authorization of $40 Million Share Repurchase Program to be Funded by Ongoing Free Cash Flow NEW YORK, June 09, 2026--(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 its financial results for the fiscal fourth quarter and full year ended March 31, 2026. Fiscal Fourth Quarter 2026 Highlights Revenue was $86.6 million, down 25.0% year-over-year, reflecting a deliberate $4.7 million reduction in marketing investment as the Company prioritized bottom-line durability over near-term subscriber growth. Direct to Consumer ("DTC") revenue was $74.0 million, a 26.0% decrease year-over-year. The decrease is related to the dynamic described above. Included in this revenue is $3.1 million of revenue from BARK Air. Commerce revenue was $12.5 million, an 18.3% decrease year-over-year, largely due to timing differences of retail shipments. Commerce revenue grew as a share of total revenue, advancing the Company's diversification strategy. Gross profit was $54.3 million, a 26.0% decrease year-over-year. Gross margin was 62.7%, as compared to 63.6% in the same period last year. The year-over-year decline is largely related to increased tariffs, and Commerce representing a greater share of total revenue. Advertising and marketing expenses were $12.6 million as compared to $17.3 million in the same period last year. General and administrative ("G&A") expenses were $53.9 million, as compared to $62.7 million last year. This decrease was largely driven by a reduction in headcount. Net loss was $(12.7) million, as compared to $(6.1) million in the same period in the previous year. Adjusted EBITDA was $3.2 million, as compared to $5.2 million in the same period last year. Net cash used in operating activities was $(1.4) million. Free cash flow, defined as net cash used in operating activities less capital expenditures, was $(2.1) million. Full Year 2026 Highlights Revenue was $394.8 million, an 18.5% decrease year-over-year, reflecting a deliberate $24.5 million reduction in marketing investment as the Company prioritized bottom-line durability over subscriber growth volume in light of historic tariff levels and macroeconomic uncertainty. Direct to Consumer ("DTC") revenue was $324.9 million, a 21.9% decrease compared to the prior year, largely related to the item described above. Included in this revenue is $12.4 million of revenue from BARK Air. Commerce revenue was $69.9 million, a 2.3% increase compared to the prior year. Gross profit was $241.9 million, a 19.9% decrease year-over-year. Gross margin was 61.3%, as compared to 62.4% in the prior year. The year-over-year decline is largely related to increased tariffs, and Commerce representing a greater share of total revenue. DTC gross margin expanded 230 basis points year-over-year to 68.4% (excluding BARK Air), reflecting the improved quality of the subscriber base following the deliberate reduction of lower ROI acquisition spending described above. Advertising and marketing expenses were $59.2 million as compared to $83.8 million in the prior year. General and administrative ("G&A") expenses were $222.9 million, as compared to $253.4 million in the prior year. The reduction is largely the result of reduced headcount. Net loss was $(39.0) million, as compared to $(32.9) million in the prior year. Adjusted EBITDA was $0.2 million, compared to $5.4 million in the prior year. Net cash used in operating activities was $(23.2) million. Free cash flow, defined as net cash used in operating activities less capital expenditures, was $(26.6) million. Executive Commentary – Matt Meeker, Co-Founder and Chief Executive Officer "We set out to do a few important things in fiscal 2026: manage our net loss despite declining revenue, sustain positive adjusted EBITDA amidst historic tariff and macroeconomic volatility, and accelerate the diversification of our revenue to build a more resilient business. As our results demonstrate, we believe we have delivered on each. This is our second consecutive year of positive adjusted EBITDA and Commerce and BARK Air collectively represented 21% of total revenue, up from 15% last year, reducing our reliance on any single channel." "We made a conscious decision to stop spending on subscribers we couldn't retain profitably. The subscriber base we enter fiscal 2027 with is smaller but meaningfully stronger, and as we reinvest in marketing this year, we expect to see DTC revenue return to growth in the second half of the fiscal year.  We also made the decision to exit our kibble and toppers lines, a category where scale economics favors players far larger than us, so we can concentrate fully on the toys, treats, and experiences that we believe represent BARK's genuine competitive advantage." "We began fiscal 2027 debt-free, with a leaner cost structure and a clearer strategy. Over the past decade we've built an exceptional supply chain and direct customer relationships that few consumer companies of our scale can claim — and we're more excited about this business than we have been in years. That conviction is reflected in the share repurchase program authorized by our Board of Directors." Balance Sheet Highlights The Company’s cash and cash equivalents balance as of March 31, 2026 was $19.3 million. The Company's inventory balance as of March 31, 2026 was $75.5 million, a $12.6 million decrease compared to the prior year. Share Repurchase Program The Company today announced that its Board of Directors has authorized a share repurchase program of up to $40 million of the Company's common stock to be funded by ongoing free cash flow. Repurchases may be made from time to time through open market transactions, privately negotiated transactions, or other means, in accordance with applicable securities laws and regulations. The timing, price, and volume of repurchases will be determined by management and depend on a number of factors, including but not limited to, stock price, trading volume, and general market conditions, along with the Company's financial position, available cash on hand and any available surplus, working capital requirements, general business conditions and other factors. The repurchase program does not obligate the Company to repurchase any specific dollar amount or number of shares and may be modified, suspended, or discontinued at any time. Throughout the execution of this program, the Company is committed to retaining the financial flexibility it needs to invest in its core operations. "Our debt-free balance sheet and improving free cash flow profile give us the flexibility to invest in the business and return capital to shareholders simultaneously," added Meeker. "This authorization reflects the Board's conviction in the long-term value of BARK and our confidence in the path ahead." Fiscal First Quarter and Full Year 2027 Financial Outlook Based on current market conditions as of June 9, 2026, BARK is providing guidance for revenue and Adjusted EBITDA, which is a Non-GAAP financial measure, as follows. For the first quarter of fiscal 2027, the Company expects: Total revenue of $77.0 million to $79.0 million, as compared to $102.9 million last year. The year-over-year decline is largely due to the Company carrying fewer DTC subscribers into the year, as it reduced marketing spend in fiscal 2026 in light of tariffs and macroeconomic uncertainty. Adjusted EBITDA of $0.0 million to $1.0 million, versus $0.1 million last year. For the full year of fiscal 2027, the Company expects: Total revenue of $325.0 million to $340.0 million, as compared to $394.8 million last year. The year-over-year decline primarily reflects the smaller DTC subscriber base entering fiscal 2027 following the deliberate marketing pullback in fiscal 2026. 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. Adjusted EBITDA of $7.0 million to $10.0 million, as compared to $0.2 million in fiscal 2026. We do not provide guidance for Net 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 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 Loss. However, such items could have a significant impact on Net 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 fourth quarter and full year 2026 results will be held today, June 9, 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," "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, expectations, commitments, objectives and goals, or the use of the stock repurchase program. 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 and subsequent quarterly reports on Form 10-Q, 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. 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. Key Performance Indicators Non-GAAP Financial Measures We report our financial results in accordance with U.S. GAAP. However, management believes that Adjusted Net Loss, Adjusted Net Income (Loss) Margin, Adjusted Net Income (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 Income (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) gain on extinguishment of debt, (6) litigation expenses (consisting of legal and related fees for a specific proceeding that is outside of our ordinary course of business), (7) warehouse restructuring costs, (8) non-cash impairment of previously capitalized software and cloud computing implementation costs, (9) technology modernization costs, (10) product line exit costs, (11) transaction costs, (12) headquarters transition costs and (13) other items (as defined below). We calculate Adjusted Net Income (Loss) Margin by dividing Adjusted Net Income (Loss) for the period by Revenue for the period. We calculate Adjusted Net Income (Loss) Per Common Share by dividing Adjusted Net Income (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 expense, (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) gain on extinguishment of debt, (10) litigation expenses (consisting of legal and related fees for a specific proceeding that is outside of our ordinary course of business), (11) warehouse restructuring costs, (12) non-cash impairment of previously capitalized software and cloud computing implementation costs, (13) technology modernization costs, (14) product line exit costs, (15) transaction costs, (16) headquarters transition costs and (17) 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 provided by (used in) operating activities less capital expenditures. 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 is 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. 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: 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: View source version on businesswire.com: https://www.businesswire.com/news/home/20260609274754/en/ Contacts Investors:Michael [email protected] Media:Garland [email protected]

Interested in BARK, Inc.? Here are five stocks we like better. Revenue fell sharply in fiscal Q4 and for the full year as BARK cut marketing and promotions to defend margins amid tariff and macro uncertainty. Full-year revenue dropped to $394.8 million from $484.2 million, while marketing spend was reduced by more than $24 million year over year. The company still delivered positive adjusted EBITDA for the second straight year, including $3.2 million in Q4, helped by stronger gross margins and lower shipping, fulfillment and G&A costs. Management said these structural cost improvements outweighed the top-line decline. BARK outlined a strategy shift and FY2027 outlook, with greater focus on “Relationship Commerce,” higher-return categories, and diversification through Commerce and BARK Air. It guided for FY2027 revenue of $325 million to $340 million, adjusted EBITDA of $7 million to $10 million, and announced a share repurchase authorization of up to $40 million. Penny stock watch: Is it time to take a bit out of BARK, Inc.? BARK (NYSE:BARK) reported a sharp decline in fiscal fourth-quarter and full-year revenue, but management said the company met its profitability objective after pulling back on marketing and promotions to protect margins amid tariff and macroeconomic uncertainty. Co-founder and Chief Executive Officer Matt Meeker said BARK set out in fiscal 2026 to sustain adjusted EBITDA profitability and diversify its revenue base. The company delivered adjusted EBITDA of $0.2 million for the year, marking its second consecutive year of positive adjusted EBITDA, compared with what Meeker described as a $58 million adjusted EBITDA loss three years earlier. → Meta Unveils Subscriptions: A New Offering With Real Growth Potential 3 Upgrades In e-Commerce Moving The Market “We reduced our total marketing investment by over $24 million year-over-year, choosing to protect our margins rather than chase inefficient growth,” Meeker said on the call. Interim Chief Financial Officer Brian Dostie said fiscal fourth-quarter revenue was $86.6 million, down from $115.4 million in the prior-year period. Full-year revenue totaled $394.8 million, compared with $484.2 million in fiscal 2025. → Planet Labs: Coming Back Down to Earth Dostie said the decline reflected BARK’s intentional reduction in marketing spend and promotional activity. Full-year marketing investment fell to $59.2 million, down more than $24 million from the prior year. Fourth-quarter marketing spend was $12.6 million, down about $4.7 million year-over-year. Full-year direct-to-consumer revenue was $324.9 million, including $12.4 million from BARK Air. Fourth-quarter D2C revenue was $74 million. Management said BARK is entering fiscal 2027 with a smaller subscriber base, but described that base as higher quality, citing stronger retention trends and higher average order value. → The Energy Trade Is Bigger Than Oil Prices: 3 Stocks to Buy and 2 to Sell Commerce revenue increased 2% for the full year to $69.9 million. Fourth-quarter Commerce revenue was $12.5 million, down 18.3% from the prior-year period, which Dostie attributed largely to the timing of retail shipments. BARK reported consolidated gross margin of 61.3% for the full year and 62.7% for the fourth quarter. Meeker said D2C gross margin was 68%, up more than 200 basis points year-over-year. Dostie said fourth-quarter cost of revenue included $2.7 million of IEEPA tariff refunds recorded as a loss recovery. He added that BARK paid another $7.1 million in IEEPA tariffs allocable to fiscal 2026 cost of revenue, but the company was not yet able to record that amount as a reduction to cost of revenue because it was not eligible for submission through the U.S. Customs and Border Protection refund portal. Operating expenses also declined. Shipping and fulfillment expenses were $119.4 million for the full year, down from $139.1 million, primarily due to lower D2C volume. General and administrative expenses were $103.4 million, down $10.8 million from fiscal 2025. Fourth-quarter G&A was $26.8 million, down $1.9 million year-over-year. Dostie said these structural cost improvements helped BARK generate $3.2 million of adjusted EBITDA in the fourth quarter and remain positive for the full year. Meeker said Commerce and BARK Air together represented 21% of total revenue in fiscal 2026, up from 15% in the prior year, reducing BARK’s reliance on any single channel. BARK Air revenue more than doubled to more than $12 million for the year. Meeker said the business averaged 90% utilization and received consistent five-star reviews, but added that fiscal 2027 will focus on improving unit economics rather than expanding the top line. “Our priority for BARK Air in fiscal 2027 is the bottom line,” Meeker said. “We are focused on improving unit economics over top-line expansion.” In Commerce, Meeker said the first half of fiscal 2026 was affected by caution among retail partners amid tariff uncertainty. He said BARK expects stronger momentum in fiscal 2027 through wholesale and marketplace expansion. Meeker used the call to outline a broader strategic reset, saying BARK must move beyond what he described as “mass personalization” in subscription boxes and build deeper customer relationships around individual dogs. He described the new strategy as “Relationship Commerce,” built around three concepts: depth, density and durability. Meeker said BARK wants to better understand each customer, create more meaningful customer touchpoints and earn permission to offer more products and services over time. Meeker also said BARK plans to consolidate around brands and products where it sees stronger returns. As part of that effort, the company will sunset its kibble and toppers lines. “That decision will allow us to reallocate capital and resources toward higher-return categories where we have proven our right to win,” Meeker said. During the question-and-answer portion, Meeker said BARK has improved unit economics through higher average order value, lower costs, better retention and cost-reduction efforts, including team reductions, increased use of AI and automation, and replacing more expensive software contracts. Asked about supply chain exposure for toys, Meeker said BARK had been heavily reliant on China entering fiscal 2026, but has since diversified. He said the company now has options to source products from several Southeast Asian countries and South America, excluding U.S.-based consumables and other U.S.-made products. For the first quarter of fiscal 2027, BARK expects revenue of $77 million to $79 million and adjusted EBITDA of $0 to $1 million. For the full year, the company guided for revenue of $325 million to $340 million and adjusted EBITDA of $7 million to $10 million. Meeker said D2C revenue is expected to be down year-over-year in the first half of fiscal 2027 before stabilizing in the second half and returning to growth thereafter. Commerce is expected to represent nearly one quarter of total revenue in fiscal 2027, compared with 18% in fiscal 2026. He also said a cookie program with the Girl Scouts is expected to launch late in the fiscal year. BARK ended the year with no debt, $19 million in cash and $75.5 million in inventory, down nearly $13 million year-over-year. Dostie said the company expects further working capital efficiencies and positive free cash flow in fiscal 2027. The company’s board also authorized a share repurchase program of up to $40 million, to be funded by ongoing free cash flow. Meeker said the authorization reflects the board’s confidence in BARK’s long-term value and its view that the stock represents “compelling value at current levels.” BARK is a consumer products and services company focused on the canine market, offering a suite of subscription-based and direct‐to‐consumer offerings designed to meet the everyday needs of dogs and their owners. The company's core business revolves around carefully curated boxes of toys, treats and chews, which are delivered monthly to subscribers through its flagship BarkBox service. Over time, BARK has expanded its reach beyond subscription, tapping into e-commerce and wholesale channels to broaden its customer base. In addition to BarkBox, the company operates BarkShop, an online storefront that allows customers to purchase toys, grooming supplies and nutrition products on an a la carte basis. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "BARK Q4 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for June 2026.