BARK beats revenue guidance at $87.6M as adjusted EBITDA turns positive

BARK reported fiscal second-quarter net revenue of $87.6M, above its own guidance of $83.0M to $85.0M and 18.1% below the $107.0M it booked a year earlier. The quarter ended September 30th, 2026, and produced adjusted EBITDA of $2.0M against a loss of $1.4M in the prior-year quarter.

BARK, Inc. (NYSE: BARK) is a Brooklyn-based dog brand founded in 2011. It sells BarkBox and Super Chewer subscriptions direct to consumers and has a retail partner network that includes Target, Chewy and Amazon. It had about 501 full-time and part-time employees at the end of fiscal 2026, 301 of them in the Philippines, according to its annual report.

Commerce grew in the quarter while direct-to-consumer toys shrank

Commerce revenue rose 3.6% to $25.7M from $24.8M. Direct-to-consumer revenue fell to $61.8M from $82.1M, a 24.7% drop by our math, according to BARK's results release, filed with the SEC. Toys and accessories fell to $30.4M from $48.1M, and consumables to $27.9M from $30.5M.

Total orders were 1.86M against 2.54M a year earlier, a 27.0% decline by our math. Subscriber retention rose to 94% from 92%, and average order value to $31.40 from $30.87. Matt Meeker, BARK's co-founder and chief executive, said that "Commerce returned to growth, Subscriber Retention improved to 94%".

Advertising and marketing dropped to $10.4M from $15.4M, and general and administrative expense to $46.4M from $57.2M. Gross margin rose to 58.9% from 57.9%, the net loss narrowed to $3.8M, or $0.43 a share, from $10.7M, or $1.25 a share, and the six-month net loss was $3.1M against $17.7M.

BARK ended the quarter with $19.0M in cash, up $2.9M from June 30th, after $4.7M of operating cash flow and $2.0M of share repurchases, and it reported no debt. Inventory was $72.4M, flat from the prior quarter, and BARK said it expects to reduce it in the second half of the fiscal year.

BARK named James Gagne, founder and CEO of KYNTRX Logistics, to its board on May 4th, 2026, as we reported then.

Guidance implies a smaller decline in the third quarter

BARK reaffirmed fiscal 2027 net revenue of $325.0M to $340.0M and adjusted EBITDA of $7.0M to $10.0M. For the third quarter it guided to net revenue of $88.0M to $92.0M and adjusted EBITDA of $1.0M to $3.0M.

By our math, third-quarter revenue a year ago was $98.4M. That is fiscal 2026 revenue of $394.8M less the $209.8M reported for the first six months and the $86.6M fourth quarter in our coverage of its fiscal 2026 results. The new range is 6.5% to 10.6% below that figure. The first quarter fell 23.4% and the second fell 18.1%, so the guided decline is the smallest of the three.

Chewy, one of BARK's retail partners, reported $2,817.2M of Autoship customer sales in its quarter ended August 2nd, 2026, equal to 84.6% of net sales, according to its earnings release.

Commerce growth came from retail and marketplace partners, according to the release. Meeker said BARK expects to ship two of the largest retail orders in its history during the third quarter, and the company launched Licksters, a line of enrichment toys. BARK's own site lists the Licksters Starter Kit, a toy plus two treat samples, at $19.99 in the small size and $23.99 in medium and large.

The proposed BARK Air arrangement and two retail orders come next

BARK Air, the company's dog air-travel service, brought in $3.5M of the quarter's revenue, about 4% by our math, and $6.7M over six months. BARK described the service in its annual report as its flagship entry into the services category, with charter partners handling the aircraft, pilots, maintenance and insurance.

BARK said it reached a preliminary understanding to sell BARK Air's assets and license the brand beginning January 1st, 2027. The arrangement is subject to definitive documentation, and BARK said "there is no assurance it will be completed." Meeker said: "If completed, this arrangement would allow us to redirect capital to Commerce". Because BARK's fiscal year ends March 31st, a January start would fall in the final quarter of fiscal 2027.

In its fiscal first-quarter release, BARK said Commerce and BARK Air together were expected to exceed $100M of revenue for the year. Commerce alone brought in $37.8M over the first six months, down from $38.5M a year earlier.

The next checkpoints are the third-quarter results against the $88.0M to $92.0M range, the shipment of the two large retail orders, and the definitive documentation for BARK Air.

Source: BARK via Business Wire