Bark, Inc.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 10 November 2025: press release. Guidance figures: 2 new. The quarter’s numbers.

Read the filing

Key takeaways

• Revenue came in above guidance: Revenue exceeded the guidance range. Management tied this to more new subscribers acquired at efficient cost, improved retention and timing of some Commerce shipments. Source
• Revenue down on fewer orders: Revenue fell 15.2% from a year earlier, mainly from fewer total orders, as fewer subscriptions were carried into the quarter than in the prior year. Source
• Net loss widened year over year: Net loss was $(10.7) million against $(5.3) million a year earlier. Loss from operations was $(10.7) million compared with $(5.7) million. Source
• Adjusted EBITDA within guidance range: Adjusted EBITDA was within the guidance range, compared with $3.5 million a year earlier. Source
• Gross margin fell to 57.9%: Consolidated gross margin fell from a year earlier. Management cited higher Commerce and Air contribution, input costs including tariffs and freight, and Commerce customer mix. Source
• Tariff uncertainty drove guidance choice: Management tied the absence of full-year guidance to tariff uncertainty affecting demand and operating costs. Source
• Operating cash outflow deepened: Net cash used in operating activities was $(18.1) million. Free cash flow after capital expenditures was $(19.9) million. Source
• Convertible notes repaid in cash: The company repurchased the remaining principal and accrued interest on its 5.50% convertible notes due 2025 from Magnetar-affiliated holders. Source

“These actions strengthen our foundation and allow us to focus on what matters most - serving dog parents.”

Matt Meeker, Co-Founder and Chief Executive Officer of BARK

Guidance

What changed from last quarter

• New guidance: Third-quarter revenue and Adjusted EBITDA guidance was issued. The prior release had given second-quarter ranges. Source
• Ended: The 5.50% convertible notes due 2025 were repaid in full in cash on November 6, 2025, making the company debt free. Source
• New: The company extended its long-standing $35 million line of credit with Western Alliance Bank on November 3, 2025. Source

Results and growth drivers

• Revenue came in above guidance: Revenue exceeded the guidance range. Management tied this to more new subscribers acquired at efficient cost, improved retention and timing of some Commerce shipments. Source
• Revenue down on fewer orders: Revenue fell 15.2% from a year earlier, mainly from fewer total orders, as fewer subscriptions were carried into the quarter than in the prior year. Source
• Net loss widened year over year: Net loss was $(10.7) million against $(5.3) million a year earlier. Loss from operations was $(10.7) million compared with $(5.7) million. Source
• Adjusted EBITDA within guidance range: Adjusted EBITDA was within the guidance range, compared with $3.5 million a year earlier. Source

Segments and channels

• Direct to consumer revenue declined: Direct to consumer revenue was $82.1 million, down 19.9%, mainly from fewer subscriptions carried into the quarter. Marketing spend was cut 18% year over year. Source
• Commerce revenue grew: Commerce revenue rose 5.6% to $24.8 million. Commerce gross profit was $10.0 million, down from $10.6 million, with higher cost of revenue. Source
• BARK Air and Commerce share record: BARK Air revenue rose 138.0% to $3.6 million. Commerce and Air together made up a record share of total revenue. Source

“Even in a noisy macro environment, we’re operating from a position of strength and building a healthier, more diversified company that continues to show up for dogs and their people in more ways than ever”

Matt Meeker, Co-Founder and Chief Executive Officer of BARK

Products, customers and orders

• Fewer orders, flat order value: Total orders were 2.5 million, down from 3.3 million. Average order value was $30.87 against $30.91 a year earlier. Source
• Retention and acquisition improved: The company acquired more new subscribers at an efficient cost and improved customer retention during the quarter. Source
• Toys and consumables both declined: Toys and accessories revenue was $48.1 million, against $66.9 million a year earlier. Consumables were $30.5 million, against $34.2 million. Source

Costs, margins and pricing

• Gross margin fell to 57.9%: Consolidated gross margin fell from a year earlier. Management cited higher Commerce and Air contribution, input costs including tariffs and freight, and Commerce customer mix. Source
• Direct to consumer margin rose: Direct to consumer gross margin was 65.6% in the quarter, up from 64.8%. Six-month direct to consumer margin was 67.6%. Source
• Marketing expense reduced: Advertising and marketing expense was $15.4 million, down from $18.7 million, a reduction of about 18%. Source
• G&A expense continued lower: General and administrative expense was $57.2 million, down from $63.1 million. Management described this as a trend of cost management. Source
• Gross profit fell 18.6%: Gross profit was $62.0 million, down 18.6% from $76.1 million a year earlier. Source

“BARK Air delivered its strongest quarter yet, showing the power of our strategy to meet dog parents wherever they are.”

Matt Meeker, Co-Founder and Chief Executive Officer of BARK

Demand, tariffs and guidance

• Tariff uncertainty drove guidance choice: Management tied the absence of full-year guidance to tariff uncertainty affecting demand and operating costs. Source
• Efficient subscriber growth cited: Management cited stronger retention and efficient new subscriber acquisition as reasons for marketing investment in the quarter. Source
• Commerce growth raised receivables: Higher Commerce revenue raised accounts receivable, which management cited as a use of cash in the quarter. Source

Cash, debt and capital

• Operating cash outflow deepened: Net cash used in operating activities was $(18.1) million. Free cash flow after capital expenditures was $(19.9) million. Source
• Inventory purchases used cash: Inventory-related purposes used $3.5 million of cash in the quarter. Inventory stood at $101.0 million at September 30, 2025. Source
• Convertible notes repaid in cash: The company repurchased the remaining principal and accrued interest on its 5.50% convertible notes due 2025 from Magnetar-affiliated holders. Source
• Repayment paid from cash on hand: The repayment used cash on hand and is reflected in the financials after the period ends. Source
• Six-month buybacks were lower: Six-month payments to repurchase common stock were $1.8 million, compared with $5.2 million in the prior year period. Source

Strategy and investment

• Diversification with disciplined profitability: Management said it is focused on revenue diversification and profitability, with marketing investment reduced year over year. Source
• Work to unify commerce platform: Management described ongoing work to move product offerings onto a new commerce platform. Source
• Technology spend excluded from Adjusted EBITDA: Technology modernization costs were $0.4 million in the quarter. The company treats them as discrete and non-recurring, so they are excluded from Adjusted EBITDA. Source

Adjusted results and leadership

• Adjusted net loss was $(4.5) million: Adjusted net loss was $(4.5) million, compared with adjusted net income of $1.3 million a year earlier. Source
• Executive transition costs in quarter: Other items in the quarter were executive transition costs, including $0.1 million of recruiting costs. Source
• Warehouse restructuring costs rose: Warehouse restructuring costs were $0.9 million, up from $0.4 million a year earlier, and are excluded from Adjusted EBITDA. Source

Coming up, as management said on 10 November 2025

• Repayment to appear in financials: The debt repayment will be reflected in the company's financials after the December 31, 2025 close. Source
• Full-year guidance to be revisited: The company will keep evaluating market conditions and will provide updates as the macroeconomic picture becomes clearer. Source

Figures management reported

Risks management discussed

• External: Tariff uncertainty affecting demand and operating costs led the company to withhold full-year guidance. Source
• Operational: Input costs including tariffs and freight, along with Commerce customer mix, weighed on gross margin. Source
• Regulatory: Litigation expense tied to a shareholder class action was $0.1 million in the quarter. Source

Earlier plans management reported on

• Ahead: Second-quarter revenue exceeded the earlier guidance range. Source
• Met: Second-quarter Adjusted EBITDA came in within the earlier guidance range. Source
• Not stated: Marketing investment was cut 18% year over year as the company focuses on diversification and profitability. Source
• Not stated: Management said the company is delivering on its plan to diversify revenue and remain disciplined on profitability. Source

Other quarters

• Q2 FY2027 earnings call
• Q1 FY2027 earnings call
• Q4 FY2026 results
• Q3 FY2026 earnings call

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.