Dog products maker Bark beats Q2 revenue estimates, becomes debt free

Reuters11-10
Dog products maker Bark beats <a href="https://laohu8.com/S/QTWO">Q2</a> revenue estimates, becomes debt free

Overview

  • Bark fiscal Q2 revenue exceeds guidance, despite a 15.2% yr/yr decline

  • Adjusted EBITDA for fiscal Q2 misses analyst expectations

  • Company repaid convertible notes, becoming debt-free, and extended $35 mln credit line

Outlook

  • Company expects Q3 revenue between $101 mln and $104 mln

  • BARK forecasts Q3 adjusted EBITDA between $(5) mln and $(1) mln

  • Company not providing full-year guidance due to tariff uncertainties

Result Drivers

  • DEBT REPAYMENT - Bark repaid $45 mln convertible note, becoming debt-free, enhancing financial stability

  • SUBSCRIBER GROWTH - Efficient subscriber acquisition and improved retention contributed to revenue exceeding guidance

  • COMMERCE AND AIR GROWTH - Commerce revenue grew 5.6% and BARK Air revenue increased 138%, supporting diversification strategy

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Revenue

Beat

$107 mln

$103.52 mln (3 Analysts)

Q2 Adjusted EPS

-$0.03

Q2 Net Income

-$10.70 mln

Q2 Adjusted EBITDA

Miss

-$1.40 mln

$367,670 (3 Analysts)

Q2 Gross Margin

57.90%

Q2 Gross Profit

$62 mln

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the miscellaneous specialty retailers peer group is "buy"

  • Wall Street's median 12-month price target for Bark Inc is $2.00, about 60.5% above its November 7 closing price of $0.79

Press Release: ID:nBw7h44sZa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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