NEW YORK--(BUSINESS WIRE)--BARK, Inc. (NYSE: 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, 2025.
Fiscal Fourth Quarter 2025 Highlights Versus Prior Year
- Total revenue was $115.4 million, down 5.0%.
- Commerce revenue was $15.4 million, up 26.5%.
- Gross Margin improved 80 basis points to 63.6%.
- Net loss of $(6.1) million increased by $1.2 million, primarily related to a $1.5 million non-cash impairment of capitalized software costs associated with technology platform modernization.
- Adjusted EBITDA was $5.2 million, a $3.0 million improvement.
Fiscal Year 2025 Highlights Versus Prior Year
- Total revenue was $484.2 million, down 1.2%.
- Commerce revenue was $68.3 million, up 27.2%.
- Gross Margin improved by 70 basis points to 62.4%.
- Net loss was $(32.9) million, a $4.1 million improvement.
- Adjusted EBITDA was $5.4 million, a $16.0 million improvement and the Company's first full year of positive Adjusted EBITDA.
“Fiscal 2025 was a meaningful year for BARK—we delivered $5.2 million of Adjusted EBITDA in the fourth quarter, our best quarterly performance ever, and $5.4 million for the full year, marking our first full year of positive Adjusted EBITDA,” said Matt Meeker, Co-Founder and Chief Executive Officer of BARK. “Just three years ago, our Adjusted EBITDA was close to negative $60 million. Today, we’re not only Adjusted EBITDA positive—we’re determined to stay that way. Despite ongoing macroeconomic uncertainty and tariffs impacting growth, our team is executing against a clear plan to diversify our revenue and maintain our strong margins. We’re investing in new product lines, new channels, and new services like BARK Air, all while maintaining a leaner, more resilient operating model that we believe will deliver long-term value for our customers and shareholders."
Fiscal Fourth Quarter 2025 Highlights
- Revenue was $115.4 million a 5.0% decrease year-over-year. The decline partially reflects a deliberate reduction in marketing spend amid rising tariffs and macroeconomic uncertainty, as well as timing delays in retail shipments.
- Direct to Consumer (“DTC”) revenue was $100.1 million, an 8.5% decrease year-over-year. The decrease is related to the dynamic described above. Included in this revenue is $1.8 million of revenue from BARK Air.
- Commerce revenue was $15.4 million, a 26.5% increase year-over-year, driven by the addition of new partners, and expanding shelf space and SKU counts with existing partners. The Company experienced some macro headwinds along with timing related shifts of revenue into fiscal 2026.
- Gross profit was $73.4 million, a 3.8% decrease year-over-year.
- Gross margin was 63.6%, as compared to 62.7% in the same period last year. Strong margin expansion in both the DTC and Commerce segments offset the higher mix impact of commerce.
- Advertising and marketing expenses were $17.3 million as compared to $18.8 million in the same period last year.
- General and administrative ("G&A") expenses were $62.7 million, as compared to $63.9 million last year. This decrease was largely driven by a reduction in headcount.
- Net loss was $(6.1) million, as compared to $(4.9) million in the same period in the previous year. The greater net loss is largely related to a $1.5 million non-cash impairment of capitalized software costs associated with the technology platform modernization.
- Adjusted EBITDA was $5.2 million, ahead of the Company's guidance range of $0.9 million to $4.9 million.
- Net cash used in operating activities was $(10.3) million. Free cash flow, defined as net cash used in operating activities less capital expenditures, was $(12.0) million primarily driven by working capital timing.
Full Year 2025 Highlights
- Revenue was $484.2 million, a 1.2% decrease year-over-year, primarily related to the items described in the revenue sections above.
- Direct to Consumer (“DTC”) revenue was $415.8 million, a 4.7% decrease compared to prior year. Included in this revenue is $5.8 million of revenue from BARK Air.
- Commerce revenue was $68.3 million, a 27.2% increase compared to prior year.
- Gross profit was $302.0 million, a 0.1% decrease year-over-year.
- Gross margin was 62.4%, as compared to 61.6% in the prior year.
- Advertising and marketing expenses were $83.8 million as compared to $79.3 million in the prior year.
- General and administrative ("G&A") expenses were $253.4 million, as compared to $268.4 million in the prior year.
- Net loss was $(32.9) million, as compared to $(37.0) million in the prior year.
- Adjusted EBITDA was $5.4 million, an improvement of $16 million compared to $(10.6) million in the prior year.
- Net cash used in operating activities was $(7.1) million. Free cash flow, defined as net cash used in operating activities less capital expenditures, was $(13.2) million, driven by year end inventory build and other working capital changes.
Balance Sheet Highlights
- The Company’s cash and cash equivalents balance as of March 31, 2025 was $94.0 million, and reflects $10.5 million of share repurchases in the fourth quarter at an average price of $1.71.
- The Company's inventory balance as of March 31, 2025 was $88.1 million, a $3.9 million increase compared to last year.
First Quarter Fiscal 2026 Financial Outlook
Based on current market conditions as of June 4, 2025, BARK is providing guidance for revenue and Adjusted EBITDA, which is a Non-GAAP financial measure, as follows.
For the first quarter of fiscal 2026, the Company expects:
- Total revenue of $99.0 million to $101.0 million, as compared to $116.2 million last year. The year-over-year decline is largely due to a deliberate reduction in DTC marketing given the uncertain macro environment. Additionally, the Company anticipates lower growth in Commerce revenue in the first quarter as certain retail partners opted to delay placing orders for imported product under the previously announced 145% tariffs on goods from China.
- Adjusted EBITDA of $(1.0) million to $1.0 million reflecting a year-over-year improvement of approximately $1.8 million at the midpoint of the range.
Due to ongoing uncertainty surrounding potential tariffs and their impact on overall demand and operating costs, BARK will not be providing full-year guidance at this time. The Company will continue to evaluate market conditions and provide updates as the macroeconomic landscape becomes clearer. BARK remains focused on executing its strategic initiatives and delivering long-term value to its customers and shareholders.
