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Bark, Inc. (BARK)·Q1 2026 Earnings Summary

Executive Summary

  • Q1 FY26 revenue of $102.9M beat guidance ($99–$101M) and consensus, while EPS came in slightly worse than expected; consolidated gross margin was 62.3% amid tariff headwinds and opportunistic inventory sell-through in Commerce . Revenue consensus was $99.6M* vs actual $102.9M; EPS consensus was -$0.015* vs actual -$0.02*.
  • Mix shift to higher-value Super Chewer subscriptions and disciplined marketing spend delivered positive adjusted EBITDA ($0.1M), while DTC gross margin reached 67.0% (69.3% excluding BARK Air), the strongest DTC margin quarter to date .
  • Commerce revenue grew 49.5% YoY to $13.7M with momentum across Costco, Amazon, Chewy, and TJX, though Commerce margin was pressured to ~31.7% by sell-through of surplus inventory and elevated tariffs (some seasonal items at 145%) .
  • BARK will not provide FY26 guidance given tariff uncertainty; Q2 FY26 guidance: revenue $102–$105M and adjusted EBITDA -$2M to +$2M; management expects Commerce to be 25–30% of Q2 revenue and highlights supply chain diversification and Shopify-enabled cross-sell as H2 margin drivers .

What Went Well and What Went Wrong

What Went Well

  • Strong revenue vs guidance and consensus; disciplined marketing drove positive adjusted EBITDA: “Revenue came in ahead of guidance…we closely managed our marketing spend…delivered positive adjusted EBITDA…our strongest DTC gross margin quarter to date—driven by a shift toward higher-value Super Chewer customers” .
  • DTC margin strength and mix improvement: DTC gross margin 67.0% (record); B2C margin excluding BARK Air 69.3% (record), with mix shift to Super Chewer and better costs offsetting tariffs .
  • Commerce acceleration: Revenue up 49.5% YoY with expanded distribution; management expects margins to normalize back to low–mid-40% range as tariff pressures abate .

What Went Wrong

  • Tariff headwinds and inventory actions pressured Commerce margin (31.7% this quarter) due to sell-through of legacy/surplus inventory and some seasonal products at 145% tariff rates .
  • Lower total orders and reduced marketing (to protect profitability) drove YoY revenue decline (-11.5%) and consolidated gross margin dip to 62.3% .
  • Full-year guidance withheld; NYSE minimum price non-compliance notice received July 10, 2025, increasing uncertainty and potential corporate action risk (e.g., reverse split) .

Financial Results

MetricQ3 2025Q4 2025Q1 2026
Revenue ($USD Millions)$126.449 $115.410 $102.861
Primary EPS (GAAP) ($)-$0.02*$0.01*-$0.02*
Gross Margin %62.7% 63.6% 62.3%
Net Loss ($USD Millions)$(11.509) $(6.067) $(7.030)
Adjusted EBITDA ($USD Millions)$(1.555) $5.225 $0.088
Advertising & Marketing ($USD Millions)$27.364 $17.296 $15.178
G&A ($USD Millions)$64.141 $62.671 $57.252

Values with asterisks retrieved from S&P Global.

Segment Breakdown (Q1 2026)

SegmentRevenue ($USD Millions)Gross Profit ($USD Millions)Margin Commentary
DTC – Toys & Accessories$51.800 —DTC GM 67.0% (incl. BARK Air); 69.3% (excl. BARK Air KPI)
DTC – Consumables$35.030 —Mostly domestic sourcing; supports margin resilience
DTC – Other (BARK Air)$2.346 —BARK Air revenue >$2M; early-stage with positive demand
Total DTC$89.176 $59.745 67.0% DTC GM (incl. Air)
Commerce$13.685 $4.332 Commerce GM ~31.7%; pressured by surplus inventory sell-through and tariffs; expected normalization to low–mid-40%

KPIs

KPIQ1 FY26 (Three months ended June 30, 2025)Q1 FY25 (Three months ended June 30, 2024)
Total Orders (000s)2,819 3,442
Average Order Value ($)$30.80 $30.94
DTC Gross Profit ($USD 000s)$60,183 $69,270
DTC Gross Margin % (excl. BARK Air)69.3% 65.1%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueQ2 FY26—$102.0M–$105.0M New
Adjusted EBITDAQ2 FY26—-$2.0M to +$2.0M New
RevenueFY26Not provided Not provided Maintained no full-year guidance
Adjusted EBITDAFY26Not provided Not provided Maintained no full-year guidance
RevenueQ1 FY26$99.0M–$101.0M Actual: $102.861M Beat vs guidance

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 FY25, Q4 FY25)Current Period (Q1 FY26)Trend
Tariffs & MacroPlanning for 10% tariffs; later escalation; paused inbound shipping; retailer intake delays; ~$4M tariff costs to flow in H1 Commerce margin impacted; some seasonal at 145% tariffs; supply chain diversification underway Headwind peaking then moderating; mitigation progressing
Supply Chain DiversificationAbility to produce all toys outside China by FY26; shift starting for holiday quarter “Responded to unpredictable tariff environment…better costs and more diversification…results in back half” Improving; benefits expected H2
Shopify Platform & CACMigration boosted conversions; Shop Pay adoption; strongest new subs in 3 years; CAC efficiency Facilitates cross-sell; new consumables launching; higher-quality subscribers and prepay options Structural tailwind
Revenue Diversification (Commerce/BARK Air/Consumables)Commerce +27% FY25, target ~1/3 of revenue in 2–3 years; BARK Air ~$6M FY25 Commerce +50% YoY; BARK Air $2.3M in Q1; “BARK in the Belly” consumables launch Accelerating
Marketing DisciplineQ3 investment to add subs; Q4/Q1 pullback amid macro; brand-building shift Q1 marketing down to $15.2M (from $20.4M); focus on customer quality Leaner, quality-focused
Commerce Margin TrajectoryExpansion YoY in FY25; retailer timing shifts 31.7% in Q1 due to sell-through and tariffs; expected return to low–mid-40% Recovering expected

Management Commentary

  • CEO: “Two clear priorities: maintain positive adjusted EBITDA and accelerate diversification beyond subscription boxes…achieved our strongest DTC gross margin quarter to date—driven by a shift toward higher-value Super Chewer customers…Commerce grew 50% YoY, and BARK Air surpassed $2 million in revenue” .
  • CEO on mix shift: “This quarter…Super Chewer accounting for roughly two-thirds of new subscribers…tailwind to both AOV and D2C gross margin…fully on Shopify…cross sell revenue should be an important driver” .
  • CFO: “Consolidated gross margin 62.3%…B2C gross margin excluding BARK Air a record 69.3%…Commerce margin impacted by sell-through and higher tariffs…some seasonal at the 145% tariff rate…expect Commerce margins to return to low–mid 40%” .
  • CFO on Q2: “Revenues between $102M and $105M and adjusted EBITDA between -$2M and +$2M…expect Commerce to represent 25% to 30% of revenue in Q2” .

Q&A Highlights

  • EBITDA guidance range drivers: timing of tariff flow-through and OpEx can swing profit; midpoint aligns with Q1 .
  • G&A trajectory: multi-quarter cost work on consultancy/pro services; expect slightly elevated vs Q1 for remainder of year .
  • Subscriber performance despite lower ad spend: focus on higher-quality customers, Super Chewer mix, prepay uptake; momentum continues into Q2 .
  • Diversification contributions: Commerce targeted ~1/3 of total in a couple of years; BARK Air 2–3% of revenue in FY26; consumables launch across bark.co, Amazon, Chewy, with brick & mortar resets next spring .

Estimates Context

  • Q1 FY26: Revenue $102.861M vs consensus $99.633M* (beat); EPS -$0.02* vs consensus -$0.015* (miss).
  • Q4 FY25: Revenue $115.410M vs consensus $126.744M* (miss); EPS $0.01* vs consensus $0.0046* (beat).
  • Q3 FY25: Revenue $126.449M vs consensus $126.311M* (inline to slight beat); EPS -$0.02* vs consensus -$0.0238* (beat).
MetricQ3 2025Q4 2025Q1 2026
Revenue Consensus Mean ($USD Millions)126.311*126.744*99.633*
Revenue Actual ($USD Millions)126.449 115.410 102.861
Primary EPS Consensus Mean ($)-0.02382*0.00456*-0.015*
Primary EPS Actual ($)-0.02*0.01*-0.02*

Values with asterisks retrieved from S&P Global.

Note: Street tracks EBITDA (GAAP), which printed -$5.83M* in Q1 vs consensus -$0.47M*, while management emphasizes adjusted EBITDA at $0.1M . Values with asterisks retrieved from S&P Global.

Key Takeaways for Investors

  • Revenue beat and positive adjusted EBITDA despite macro/tariff headwinds suggest resilient unit economics; DTC margin strength underpinned by Super Chewer mix and cost actions .
  • EPS miss vs consensus and Commerce margin compression highlight tariff sensitivity; watch normalization path to low–mid-40% Commerce margins and H2 margin lift from supply chain diversification .
  • Strategy pivot to diversify revenue (Commerce, BARK Air, consumables) should lower dependence on discretionary subscription toys; expect Commerce mix to rise toward 25–30% in Q2 and ~1/3 over time .
  • Shopify migration enables cross-sell; upcoming “BARK in the Belly” consumables across bark.co, Amazon, Chewy provide incremental TAM and margin opportunities .
  • Cash/inventory build (to prepare for holiday and tariff cadence) plus NYSE non-compliance notice introduce tactical considerations; potential corporate actions (reverse split) are on the table .
  • Near-term trading implications: revenue beats vs guidance/consensus and margin recovery signals could catalyze upside; withholding FY guide and EPS miss temper sentiment; tariff headlines remain a swing factor .
  • Medium-term thesis: execution on diversification, margin normalization, and cross-sell should improve durability of growth and profitability; monitor Commerce margin trajectory, consumables adoption, and BARK Air scalability .