BARK, Inc.

What they do

BARK designs, develops and brands its own dog products and sells them primarily by subscription direct to consumers, plus through wholesale and online marketplaces. It operates in two reportable segments, Direct To Consumer (DTC) and Commerce, and reports a newer BARK Air line within DTC. The company was founded in 2011 and is headquartered in Brooklyn, New York.

Revenue drivers

• Direct To Consumer (DTC) — Subscription-led sales of BarkBox and Super Chewer, the largest segment; fiscal Q1 2027 DTC revenue was $66.7 million, down 25.2% year-over-year, and included $3.2 million from BARK Air.
• Commerce — Sales through retail partners spanning over 50,000 doors and online marketplaces including Amazon, Chewy and TikTok; fiscal Q1 2027 Commerce revenue was $12.1 million, down 11.4% year-over-year.
• BARK Air — A travel-related offering reported inside DTC; $3.2 million of fiscal Q1 2027 revenue, up 37% year-over-year.

Recent performance

Fiscal Q1 2027 revenue was $78.8 million, down 23.4% year-over-year but at the high end of guidance of $77.0 million to $79.0 million. Gross margin was 72.7%, including a one-time tariff refund benefit; normalized gross margin was 63.4% versus 63.8% a year earlier. Net income was $0.75 million versus a $7.0 million net loss a year earlier, and Adjusted EBITDA was $0.6 million versus $0.1 million. Net cash used in operating activities was $3.5 million, and cash was $16.1 million at June 30, 2026, down from $19.3 million at March 31, 2026.

Strategy

Management says it is prioritizing bottom-line durability over near-term growth, having deliberately pulled back marketing spend in fiscal 2026. Advertising and marketing fell to $9.5 million in fiscal Q1 2027 from $15.2 million a year earlier, and G&A fell to $47.8 million from $57.3 million. The company continues share repurchases under a $40 million program and remains debt-free. It is investing in new products and partnerships planned for the fall and points to a more diversified mix across DTC, Commerce and BARK Air.

Risks

• Subscriber base decline — DTC revenue fell 25.2% year-over-year in fiscal Q1 2027, and the company attributes the decline to a smaller DTC subscriber base entering fiscal 2027 after cutting marketing spend.
• Revenue concentration in DTC — DTC was $66.7 million of $78.8 million in fiscal Q1 2027 revenue, so weakness in subscriptions drives overall results.
• Macro and trade uncertainty — The 10-Q cites tariffs, geopolitical friction including rising tensions with China, and pressure on discretionary consumer spending as factors creating business uncertainty.
• Operating cash use — Net cash used in operating activities was $3.5 million in fiscal Q1 2027, following negative operating cash flow of $23.2 million in fiscal 2026.

Outlook

For fiscal Q2 2027, management guides revenue of $83.0 million to $85.0 million, versus $107.0 million a year earlier, and Adjusted EBITDA of $1.0 million to $3.0 million, versus $(1.4) million. For full fiscal 2027, it reiterates revenue of $325.0 million to $340.0 million versus $394.8 million in fiscal 2026, and Adjusted EBITDA of $7.0 million to $10.0 million versus $0.2 million. Management expects Commerce and BARK Air together to exceed $100 million of revenue, with Commerce growing as a percentage of total revenue.