BARK, Inc. reported fiscal second‑quarter 2026 revenue of $106.97 million, a 15.2% decline from $127.0 million in the same period last year, yet the figure still exceeded the company’s guidance range of $102.0 million to $105.0 million. The revenue beat was driven by a 5.6% year‑over‑year increase in the Commerce segment and a 138% surge in BARK Air, which generated $3.6 million in the quarter. In contrast, the Direct‑to‑Consumer (DTC) subscription segment fell 19.9% YoY, reflecting a drop in total orders and a reduction in marketing spend.
Profitability remained a challenge. Adjusted EBITDA was a negative $1.4 million, compared with a positive $3.5 million in the prior year, while the net loss widened to $10.7 million from $5.3 million. Gross margin contracted to 57.9% from 60.4% year‑over‑year, largely due to the higher mix of lower‑margin Commerce and BARK Air revenue and increased input costs, including tariffs and freight. The company’s earnings per share fell to an adjusted loss of $0.03, missing analyst expectations of a $0.02 loss.
On November 6, 2025, BARK fully repaid the remaining $42.9 million of its 5.50% convertible secured notes, eliminating that debt from its balance sheet. Three days earlier, the company extended its line of credit with Western Alliance Bank by $35 million, preserving liquidity and providing flexibility for future growth initiatives.
CEO Matt Meeker emphasized the strategic importance of these moves: “Last week, we repaid our $45 million convertible note with cash on hand—making BARK debt‑free—and extended our $35 million line of credit to preserve flexibility. We’re delivering on our plan—to diversify our top line and remain disciplined on profitability.” He added that the company’s focus on expanding Commerce and BARK Air is intended to offset the declining DTC subscription base while maintaining disciplined cost management.
Market reaction was mixed. Investors welcomed the revenue beat and the debt‑free status, but the EPS miss and the cautious Q3 revenue guidance—$101.0 million to $104.0 million—dampened enthusiasm. The mixed sentiment reflects a balance between confidence in the company’s diversification strategy and concern over ongoing profitability challenges and macro‑economic headwinds.
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