Name: Bark, Inc. Q2 2026 Earnings Call
Start: 2025-11-10T13:30:00.000Z

Executive Summary

Q2 FY26 revenue of $107.0M beat guidance ($102.0–$105.0M) and S&P consensus ($103.6M)*, driven by stronger DTC performance, efficient subscriber acquisition, and timing benefits in Commerce .
EPS missed consensus: Primary EPS -$0.03 vs -$0.015*, while Adjusted EBITDA of -$1.4M landed within guidance (-$2.0M to $2.0M) as management leaned into ~$1M incremental efficient marketing investment .
Mix shift and tariffs pressured gross margin (57.9%, down ~250 bps YoY), offset by cost actions and last-mile migration to Amazon; management expects margin improvement in H2 via sourcing diversification and selective price increases .
Balance sheet strengthened: $45M convertible note repaid in cash post-quarter (debt-free) and $35M revolver extended, enhancing flexibility; Q3 FY26 guidance: revenue $101–$104M, Adjusted EBITDA -$5M to -$1M .

What Went Well and What Went Wrong

Revenue beat and disciplined profitability: “Total revenue was $107.0 million, exceeding the Company’s guidance range… Adjusted EBITDA was $(1.4) million, within guidance,” with an intentional ~$1M incremental efficient growth investment .
Record diversification and segment momentum: Commerce revenue $24.8M (+5.6% YoY) at 24% of mix; BARK Air revenue $3.6M (+138% YoY) with 93% seat fill and 99% five‑star reviews, its strongest quarter yet .
Balance sheet actions: Fully repaid $45M convertible note in cash (debt-free) and extended $35M line of credit, “strengthen[ing] our foundation” and flexibility .

Gross margin compression and tariffs: Gross margin fell to 57.9% (from 60.4% YoY) due to higher Commerce/Air mix and elevated tariffs/freight; CFO cited $12–$13M tariff-related costs expected for FY26 .
DTC volume pressure: DTC revenue declined 19.9% YoY to $82.1M, reflecting fewer subscriptions carried into the quarter and lower orders; total revenue fell 15.2% YoY .
Higher net loss: GAAP net loss widened to -$10.7M vs -$5.3M YoY, reflecting margin pressure and mix shifts despite OpEx reductions (marketing -18%, G&A down) .

Metric	Q4 2025	Q1 2026	Q2 2026
Revenue ($USD Millions)	$115.4	$102.9	$107.0
Primary EPS (GAAP) ($)	$0.01*	-$0.02*	-$0.03*
Gross Margin %	63.6%	62.3%	57.9%
Adjusted EBITDA ($USD Millions)	$5.2	$0.09	-$1.44
Net Loss ($USD Millions)	n/a	-$7.03	-$10.67

Note: Asterisked values retrieved from S&P Global.

Segment and product mix

Segment / Category	Q2 2025 ($M)	Q1 2026 ($M)	Q2 2026 ($M)
DTC Revenue	$102.6	$89.2	$82.1
- Toys & Accessories	$66.9	$51.8	$48.1
- Consumables	$34.2	$35.0	$30.5
- Other (BARK Air)	$1.5	$2.35	$3.62
Commerce Revenue	$23.5	$13.7	$24.8
DTC Gross Profit	$65.5	$59.7	$52.0
Commerce Gross Profit	$10.6	$4.33	$9.99

KPIs

KPI	Q2 2025	Q1 2026	Q2 2026
Total Orders (000s)	3,270	2,819	2,544
Average Order Value ($)	30.91	30.80	30.87
DTC Gross Margin (%)	64.8%	69.3%	65.6%

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	Q3 FY26	n/a	$101.0–$104.0M	New
Adjusted EBITDA	Q3 FY26	n/a	-$5.0M to -$1.0M	New
Full-year Guidance	FY26	Not provided	Not provided (maintained)	Maintained
Net Loss Guidance	FY26	Not provided	Not provided (non-GAAP reconciliation impracticable)	Maintained

Topic	Previous Mentions (Q4 FY25, Q1 FY26)	Current Period (Q2 FY26)	Trend
Tariffs & sourcing	Tariffs volatile; plan to diversify toy production outside China; margin resilience via productivity and modest pricing	~$12–$13M FY tariff impact; sourcing diversification and Commerce price increase to improve margins in H2	Improving mitigation; H2 tailwinds
Revenue diversification	Plan to accelerate beyond subscription boxes; Commerce +27% in FY25; BARK Air ~$6M FY25	Commerce $24.8M (+5.6% YoY), BARK Air $3.6M (+138% YoY), record mix 26.5% (Commerce+Air)	Positive execution
Subscriber acquisition/retention	Q1: efficient CAC, shift to Super Chewer, DTC GM record; Shopify migration benefits	Lowest CAC since FY23; two-thirds of new subs premium; six months of retention improvement; Amazon last-mile	Better quality subs
Logistics & delivery	USPS changes noted; mitigation ongoing	Last-mile migrated to Amazon blue trucks; faster delivery, lower cost	Cost and CX improvement
Balance sheet & capital allocation	Buybacks in FY25; cautious stance amid volatility	Debt-free after repaying $45M note; extended $35M LOC ; activist letter urging buybacks/inventory financing	Flexibility up; debate on buybacks
Consumables expansion	Bark in the Belly launch planned (Q1) with Chewy/Amazon; retail shelf resets next spring	Launched on Chewy/Amazon; supports cross-sell and retail scale-up	Scaling

CEO: “We repaid our $45 million convertible note with cash on hand—making BARK debt-free—and extended our $35 million line of credit… building a healthier, more diversified company…” .
CEO on diversification: “Commerce… $24.8 million… representing 24% of total revenue… BARK Air delivered its strongest quarter yet…” .
CEO on operations: “Moving our last-mile delivery to Amazon… reduces last-mile delivery costs and gets packages… a day faster” .
CFO on margins and tariffs: “Commerce and Air represented… 26.5%… higher tariff-related costs… ~$12–$13M for the full year… we expect gross margins… to improve [in H2] by sourcing products from other geographies and implementing a price increase in commerce” .
CFO on guidance: “Q3 revenue $101–$104M; Adjusted EBITDA -$5M to -$1M; cautious stance given external variables” .

Flexibility post debt repayment: Management emphasized continuing disciplined execution rather than aggressive spending given tariff volatility; buybacks and capital deployment to be weighed with board and long-range plan .
Commerce dynamics: Growth driven by footprint expansion (e.g., Walmart), Amazon/Chewy momentum, and timing shifts of orders into Q2; sustained growth expected .
CAC & retention: Shift toward organic/brand channels and subscriber perks; retention improving across cohorts; two-thirds of new subs on premium offerings .
EBITDA trajectory: Goal remains EBITDA positive for the year, but macro/tariffs warrant caution; “somewhere in that zip code” .

Q2 FY26 results vs S&P Global consensus: Revenue $106.97M vs $103.57M* (beat); Primary EPS -$0.03 vs -$0.015* (miss). Target Price consensus ~$2.33*; limited coverage (2–3 estimates) [GetEstimates].
Forward quarters: Q3 FY26 consensus revenue ~$102.63M*, EPS -$0.04*; Q4 FY26 consensus revenue ~$98.0M*, EPS -$0.02*. Management’s Q3 guidance brackets revenue and EBITDA accordingly .

Note: Asterisked values retrieved from S&P Global.

Mix-driven margin pressure should abate as H2 benefits from sourcing shifts and selective price increases; watch gross margin trajectory vs CFO’s H2 improvement commentary .
Diversification is working: Commerce at record mix and BARK Air scaling; supports revenue resilience amid DTC headwinds .
Operating discipline intact: Marketing -18% YoY with improved CAC and retention; incremental spend targeting higher-value cohorts .
Balance sheet optionality: Debt-free, extended LOC; board discussions on capital allocation (including potential buybacks) likely a catalyst amid activist pressure .
Near-term trading setup: Q3 guide reflects caution; revenue bracketed near consensus; EPS risk remains given tariffs/mix—focus on margin progress, subscriber quality, and Commerce intake timing .
Medium-term thesis: If margin improvements materialize and diversification sustains, path back to EBITDA positivity and re-rating potential improves; monitor execution on consumables, Amazon last-mile, and Shopify-enabled cross-sell .