BARK Reports Third Quarter Fiscal Year 2026 Results

NEW YORK--( BUSINESS WIRE)--BARK, Inc. (NYSE:BARK):

Third Quarter Fiscal Year 2026 Highlights Versus Prior Year

“As we approach the end of fiscal 2026, our priorities remain—running the business with discipline, protecting profitability, and continuing to diversify the ways we serve dog parents,” said Matt Meeker, Co-Founder and Chief Executive Officer of BARK. “This quarter reflected that focus. We delivered adjusted EBITDA toward the high-end of our guidance range, generated positive free cash flow as inventory began to normalize, and continued to make progress across both Commerce and BARK Air, which now represent a meaningful and growing portion of our revenue mix. While revenue was impacted by a deliberate pullback in marketing spend, we’re seeing encouraging signs in customer quality, margin performance, and operational efficiency. Taken together, we believe these actions position BARK to exit the fiscal year as a leaner, more resilient, and more diversified company.”

Fiscal Third Quarter 2026 Highlights

Balance Sheet Highlights

Debt Repayment

On November 6, 2025, the Company repurchased the remaining $42.9 million of outstanding aggregate principal amount, and $2.2 million of accrued interest, of the 5.50% Convertible Secured Notes due 2025 (the “2025 Convertible Notes”) from entities affiliated with Magnetar Financial, LLC (collectively, the “Holders”), pursuant to the terms and conditions of a negotiated notes purchase agreement (the “Agreement”) among the Company and the Holders. See Note 4 in the Company's 10Q for the period ended December 31, 2025, "Debt", for additional details.

Line of Credit

On January 30, 2026, the Company extended its long-standing line of credit with Western Alliance Bank for $35 million (the "Credit Facility"). This line of credit provides the Company with added operational flexibility. The maturity date of the Credit Facility is March 2, 2026. The Company intends to enter in to a longer term renewal of the Credit Facility.

Financial Outlook

In light of the review and evaluation by the Special Committee of the Board of Directors of the previously disclosed preliminary non-binding indicative proposal letters the Company has received, the Company will not be providing fourth quarter guidance.

Conference Call Information

A conference call to discuss the Company's third quarter fiscal year 2026 results will be held today, February 5, 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/ and will be archived for 1 year.

About BARK

BARK is the world’s most dog-centric company, devoted to making all dogs happy with the best products, food, 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, dog-first experiences that foster the health and happiness of dogs everywhere, and more. 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; BARK in the Belly, a premium dog food and consumables line that donates 100% of food profits to fight canine hunger; 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 as 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; the risk that spending on pets may not increase at projected rates; that BARK subscriptions may not increase 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 channel distribution; competition; the uncertain effects of global or macroeconomic events or challenges, and the effect of the previously disclosed preliminary non-binding indicative proposal letters the Company has received.

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 quarterly report on Form 10-Q for the quarter ended December 31, 2025, 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

Key Performance Indicators

Three Months Ended

December 31,

Nine Months Ended

December 31,

2025

2024

2025

2024

Total Orders (in thousands)

2,427

3,332

7,790

10,044

Average Order Value

31.41

31.25

31.01

31.03

Direct to Consumer Gross Profit (in thousands) (1)

52,711

70,154

164,433

204,927

Direct to Consumer Gross Margin (1)

69.2

67.4

68.1

65.7

(1) Direct to Consumer Gross Profit and Direct to Consumer Gross Margin does not include revenue or cost of goods sold from BARK Air.

BARK, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(In thousands)

Three Months Ended

Nine Months Ended

December 31,

2025

2024

2025

2024

REVENUE

98,447

126,449

308,277

368,772

COST OF REVENUE

36,885

47,189

120,679

140,134

Gross profit

61,562

79,260

187,598

228,638

OPERATING EXPENSES:

General and administrative

54,479

64,141

168,949

190,709

Advertising and marketing

16,067

27,364

46,643

66,460

Total operating expenses

70,546

91,505

215,592

257,169

LOSS FROM OPERATIONS

(8,984

)

(12,245

)

(27,994

)

(28,531

)

INTEREST INCOME

292

1,179

1,779

4,011

INTEREST EXPENSE

(415

)

(677

)

(1,836

)

(2,074

)

OTHER INCOME (EXPENSE)—NET

461

234

1,704

(217

)

NET LOSS BEFORE INCOME TAXES

(8,646

)

(11,509

)

(26,347

)

(26,811

)

PROVISION FOR INCOME TAXES

—

NET LOSS AND COMPREHENSIVE LOSS

(8,646

)

(11,509

)

(26,347

)

(26,811

)

DISAGGREGATED REVENUE

(In thousands)

Three Months Ended

Nine Months Ended

December 31,

2025

2024

2025

2024

Revenue

Direct to Consumer:

Toys & Accessories (1)

46,049

64,348

145,930

201,799

Consumables (1)

30,168

39,808

95,648

109,909

Other (2)

3,363

1,963

9,326

4,069

Total Direct to Consumer

79,580

106,119

250,904

315,777

Commerce

18,867

20,330

57,373

52,995

Revenue

98,447

126,449

308,277

368,772

(1) The allocation between Toys & Accessories and Consumables includes estimates and was determined utilizing data on stand-alone selling prices that the Company charges for similar offerings, and also reflects historical pricing practices.

(2) Other Direct to Consumer revenue is derived from BARK Air.

GROSS PROFIT BY SEGMENT

(In thousands)

Three Months Ended

December 31,

Nine Months Ended

December 31,

2025

2024

2025

2024

Direct to Consumer (1):

Revenue

79,580

106,119

250,904

315,777

Cost of revenue

26,749

35,796

86,357

110,930

Gross profit

52,831

70,323

164,547

204,847

Commerce:

Revenue

18,867

20,330

57,373

52,995

Cost of revenue

10,136

11,393

34,322

29,204

Gross profit

8,731

8,937

23,051

23,791

Consolidated:

Revenue

98,447

126,449

308,277

368,772

Cost of revenue

36,885

47,189

120,679

140,134

Gross profit

61,562

79,260

187,598

228,638

(1) Direct to Consumer segment gross profit includes revenue and cost of revenue from BARK Air.

BARK, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share data)

December 31,

March 31,

2025

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

21,683

94,022

Accounts receivable—net

12,126

9,453

Prepaid expenses and other current assets

12,708

10,036

Inventory

91,361

88,126

Total current assets

137,878

201,637

PROPERTY AND EQUIPMENT—NET

18,874

21,475

INTANGIBLE ASSETS—NET

1,768

5,426

OPERATING LEASE RIGHT-OF-USE ASSETS

25,133

28,277

OTHER NONCURRENT ASSETS

5,017

3,820

TOTAL ASSETS

188,670

260,635

LIABILITIES, AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES:

Accounts payable

22,444

20,364

Operating lease liabilities, current

5,380

5,798

Accrued and other current liabilities

24,373

34,054

Deferred revenue

22,162

21,251

Current portion of long-term debt

—

42,573

Total current liabilities

74,359

124,040

OPERATING LEASE LIABILITIES

32,926

36,802

OTHER LONG-TERM LIABILITIES

140

267

Total liabilities

107,425

161,109

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS’ EQUITY

Common stock, par value $0.0001 per share—500,000,000 shares authorized; 172,807,204 and 169,732,895 shares issued and outstanding

Treasury stock, at cost, 17,303,225 and 15,992,598 shares, respectively

(26,500

)

(24,730

)

Additional paid-in capital

513,964

504,022

Accumulated deficit

(406,220

)

(379,767

)

Total stockholders’ equity

81,245

99,526

TOTAL LIABILITIES, AND STOCKHOLDERS’ EQUITY

188,670

260,635

BARK, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

Nine Months Ended

December 31,

2025

2024

CASH FLOWS FROM OPERATING ACTIVITIES:

Net loss

(26,347

)

(26,811

)

Adjustments to reconcile net loss to cash (used in) provided by operating activities:

Depreciation & amortization

7,198

8,383

Impairment of assets

1,065

2,142

Non-cash lease expense

3,144

3,510

Amortization of deferred financing fees and debt discount

310

299

Bad debt expense

—

Stock-based compensation expense

10,881

9,771

Provision for inventory obsolescence

706

1,072

Change in fair value of warrant liabilities and derivatives

(913

)

652

Paid in kind interest on convertible notes

—

2,235

Changes in operating assets and liabilities:

Accounts receivable

(2,748

)

(3,719

)

Inventory

(3,942

)

(7,255

)

Prepaid expenses and other current assets

(102

)

(2,105

)

Other noncurrent assets

(947

)

(1,733

)

Accounts payable and accrued expenses

(4,297

)

26,696

Deferred revenue

912

(2,433

)

Operating lease liabilities.

(4,293

)

(3,919

)

Other liabilities

(2,508

)

(3,606

)

Net cash (used in) provided by operating activities.

(21,807

)

3,179

CASH FLOWS FROM INVESTING ACTIVITIES:

Capital expenditures

(2,703

)

(4,428

)

Net cash used in investing activities

(2,703

)

(4,428

)

CASH FLOWS FROM FINANCING ACTIVITIES:

Payment of finance lease obligations

(174

)

(165

)

Proceeds from the exercise of stock options

554

Proceeds from issuance of common stock under ESPP

359

425

Tax payments related to the issuance of common stock

(1,384

)

(2,181

)

Excise tax from stock repurchases

(43

)

Payments to repurchase common stock

(1,770

)

(8,023

)

Payments of long-term debt

(42,880

)

—

Net cash used in financing activities

(45,763

)

(9,433

)

Effect of exchange rate changes on cash

(106

)

(37

)

NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH

(70,379

)

(10,719

)

CASH, CASH EQUIVALENTS AND RESTRICTED CASH—BEGINNING OF PERIOD

97,531

130,704

CASH, CASH EQUIVALENTS AND RESTRICTED CASH—END OF PERIOD

27,152

119,985

RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH:

Cash and cash equivalents

21,683

115,259

Restricted cash - prepaid expenses and other current assets, other noncurrent assets

5,469

4,726

Total cash, cash equivalents and restricted cash

27,152

119,985

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:

Purchases of property and equipment included in accounts payable and accrued liabilities

168

189

Cash paid for interest

2,351

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, and (9) 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, and (13) 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, provides 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, 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 and other non-operating expenses, including interest expense. 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 income (loss) and other results stated in accordance with U.S. GAAP.

The following table presents a reconciliation of Adjusted Net Loss to Net loss, the most directly comparable financial measure stated in accordance with U.S. GAAP, and the calculation of net loss margin, Adjusted Net Loss Margin and Adjusted Net Loss Per Common Share for the periods presented:

Adjusted Net Loss

Three Months Ended

December 31,

Nine Months Ended

December 31,

2025

2024

2025

2024

(in thousands, except per share data)

Net Loss

(8,646

)

(11,509

)

(26,347

)

(26,811

)

Stock compensation expense

3,571

3,873

10,881

9,771

Change in fair value of warrants and derivatives

(261

)

(261

)

(913

)

652

Sales and use tax income (1)

(623

)

(450

)

(950

)

(1,999

)

Restructuring

924

516

2,624

Litigation expenses (2)

358

468

645

1,106

Warehouse restructuring costs

336

2,391

2,004

3,289

Impairment of assets

296

—

1,065

2,142

Technology modernization (3)

336

545

1,059

1,750

Other items (4)

120

320

827

Adjusted net loss

(4,420

)

(3,931

)

(11,720

)

(6,649

)

Net loss margin

(8.78

(9.10

(8.55

(7.27

Adjusted net loss margin

(4.49

(3.11

(3.80

(1.80

Adjusted net loss per common share - basic and diluted

(0.03

)

(0.02

)

(0.07

)

(0.04

)

Weighted average common shares used to compute adjusted net loss per share attributable to common stockholders - basic and diluted

172,446,917

175,589,759

170,811,789

175,404,510

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

Three Months Ended

December 31,

Nine Months Ended

December 31,

2025

2024

2025

2024

(in thousands)

Net Loss

(8,646

)

(11,509

)

(26,347

)

(26,811

)

Interest income

(292

)

(1,179

)

(1,779

)

(4,011

)

Interest expense

415

677

1,836

2,074

Depreciation and amortization expense

2,094

2,704

7,198

8,383

Stock compensation expense

3,571

3,873

10,881

9,771

Change in fair value of warrants and derivatives

(261

)

(261

)

(913

)

652

Cloud computing amortization

595

174

1,509

346

Sales and use tax income (1)

(623

)

(450

)

(950

)

(1,999

)

Restructuring

924

516

2,624

Litigation expenses (2)

358

468

645

1,106

Warehouse restructuring costs

336

2,391

2,004

3,289

Impairment of assets

296

—

1,065

2,142

Technology modernization (3)

336

545

1,059

1,750

Other items (4)

120

320

827

Adjusted EBITDA

(1,608

)

(1,555

)

(2,956

)

143

Net loss margin

(8.78

(9.10

(8.55

(7.27

Adjusted EBITDA margin

(1.63

(1.23

(0.96

0.04

(1)

Sales and use tax expense relates to recording a liability for sales and use tax we did not collect from our customers. Historically, we had collected state or local sales, use, or other similar taxes in certain jurisdictions in which we only had physical presence. On June 21, 2018, the U.S. Supreme Court decided, in South Dakota v. Wayfair, Inc., that state and local jurisdictions may, at least in certain circumstances, enforce a sales and use tax collection obligation on remote vendors that have no physical presence in such jurisdiction. A number of states have positioned themselves to require sales and use tax collection by remote vendors and/or by online marketplaces. The details and effective dates of these collection requirements vary from state to state and accordingly, we recorded a liability in those periods in which we created economic nexus based on each state’s requirements. Accordingly, we now collect, remit, and report sales tax in all states that impose a sales tax. Subsequently, as certain of these liabilities are waived by tax authorities or the applicable statute of limitations expires, the related accrued liability is reversed.

(2)

Litigation expenses related to a shareholder class action complaint, see Item 1. Legal Proceedings.

(3)

Includes consulting fees related to technology transformation activities, and payroll costs for employees that dedicate significant time to this project. We believe that these costs are discrete and non-recurring in nature, as they mainly relate to a one-time unification of our product offerings on our new commerce platform. As such, they are not normal, recurring operating expenses and are not reflective of ongoing trends in the cost of doing business.

(4)

For the three months ended December 31, 2025, other items is comprised of executive transition costs including recruiting costs of $0.1 million. For the three months ended December 31, 2024, other items is comprised of executive transition costs including recruiting costs of less than $0.1 million, costs associated with the stock repurchase program of less than $0.1 million, and duplicate headquarters rent of less than $0.1 million. For the nine months ended December 31, 2025, other items is comprised of executive transition costs including recruiting costs of $0.3 million and costs associated with the stock repurchase program of less than $0.1 million. For the nine months ended December 31, 2024, other items is comprised of executive transition costs including recruiting costs of $0.5 million, costs associated with the stock repurchase program of $0.3 million, and duplicate headquarters rent of less than $0.1 million.

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

Three Months Ended

December 31,

Nine Months Ended

December 31,

2025

2024

2025

2024

Free cash flow reconciliation:

Net cash (used in) provided by operating activities

1,705

(1,387

)

(21,807

)

3,179

Capital expenditures

(143

)

(577

)

(2,703

)

(4,428

)

Free cash flow

1,562

(1,964

)

(24,510

)

(1,249

)