Announces Authorization of $40 Million Share Repurchase Program to be Funded by Ongoing Free Cash Flow
NEW YORK--(BUSINESS WIRE)--June 09, 2026--
BARK, Inc. $(BARK)$ ("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
(MORE TO FOLLOW) Dow Jones Newswires
June 09, 2026 16:05 ET (20:05 GMT)
Comments