Executive Summary

Q4 FY2025 revenue was $115.4M, down 5.0% YoY and below company guidance ($121.2–$131.2M) amid deliberate DTC marketing pullback and tariff-related retail timing shifts; Adjusted EBITDA was $5.2M, above guidance ($0.9–$4.9M) and the company’s best quarterly performance .
Gross margin hit a record 63.6% (+80 bps YoY), with margin expansion across DTC and Commerce; full-year gross margin was 62.4% (+70 bps YoY) and Adjusted EBITDA positive for the first time ($5.4M) .
Management withdrew full-year FY2026 guidance due to tariff uncertainty and provided Q1 FY2026 guidance of $99–$101M revenue and $(1)–$1M Adjusted EBITDA, noting inventory build and retailer order delays from China-driven tariffs .
Key stock catalysts: revenue miss vs guidance and consensus, withdrawal of full-year outlook, yet strong margin and Adjusted EBITDA beat; accelerated diversification into Commerce, BARK Air, and new consumables launch targeted for August .

What Went Well and What Went Wrong

What Went Well

Record margins and profitability: “Speaking of gross margins, we delivered 63.6% in Q4, our highest level ever… For the full year, we achieved 62.4%” and delivered first-ever adjusted EBITDA positive year .
Commerce acceleration: Q4 Commerce revenue +26.5% YoY to $15.4M; FY2025 Commerce +27.2% YoY to $68.3M driven by new partners and expanded shelf space/SKUs .
Strategic diversification: CEO emphasized shifting investment “to new product lines, distribution channels, and services… new consumables line coming in August, new services from BARK Air, further acceleration into wholesale, Amazon and Chewy, and even AI-driven apps” .

What Went Wrong

Top-line shortfall: Q4 revenue $115.4M missed prior guidance ($121.2–$131.2M) due to deliberate DTC marketing reduction and tariff-driven retail delays .
DTC softness: Q4 DTC revenue fell 8.5% YoY to $100.1M as consumer sentiment weakened and tariffs raised product costs; included $1.8M BARK Air revenue .
Tariff-driven uncertainty: Management paused inbound shipping after 145% tariffs; retailer intake slowed 6–8 weeks; company will not give FY2026 guidance until conditions clarify .

Financial Results

Consolidated Performance (Quarterly)

Metric	Q2 FY2025	Q3 FY2025	Q4 FY2025
Revenue ($USD Millions)	$126.1	$126.4	$115.4
Gross Margin %	60.4%	62.7%	63.6%
Net Loss ($USD Millions)	$(5.3)	$(11.5)	$(6.1)
Adjusted EBITDA ($USD Millions)	$3.5	$(1.6)	$5.2
Advertising & Marketing ($USD Millions)	$18.7	$27.4	$17.3
G&A ($USD Millions)	$63.1	$64.1	$62.7
Adjusted EPS ($USD)	$0.01	$(0.02)	$0.01

Notes: Q4 Adjusted EBITDA beat company guidance ($0.9–$4.9M) . Q4 revenue missed company guidance ($121.2–$131.2M) .

Segment Breakdown (Quarterly)

Segment Metric	Q2 FY2025	Q3 FY2025	Q4 FY2025
DTC Revenue ($USD Millions)	$102.6	$106.1	$100.1
DTC Gross Margin % (ex BARK Air per KPI)	64.8%	67.4%	67.2%
Commerce Revenue ($USD Millions)	$23.5	$20.3	$15.4
Commerce Gross Profit ($USD Millions)	$10.6	$8.9	$7.4

KPIs (Quarterly; DTC)

KPI	Q2 FY2025	Q3 FY2025	Q4 FY2025
Total Orders (thousands)	3,270	3,332	3,166
Average Order Value ($USD)	$30.91	$31.25	$31.05
DTC Gross Profit ($USD Thousands)	$65,504	$70,154	$66,085

Full-Year FY2025 (for context)

Metric	FY2025
Revenue ($USD Millions)	$484.2
Gross Margin %	62.4%
Net Loss ($USD Millions)	$(32.9)
Adjusted EBITDA ($USD Millions)	$5.4
Cash & Equivalents ($USD Millions, 3/31/25)	$94.0
Inventory ($USD Millions, 3/31/25)	$88.1

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Revenue	Q4 FY2025	$121.2–$131.2M	Actual $115.4M	Miss vs guidance
Adjusted EBITDA	Q4 FY2025	$0.9–$4.9M	Actual $5.2M	Beat vs guidance
Total Revenue	Q1 FY2026	N/A	$99.0–$101.0M	New
Adjusted EBITDA	Q1 FY2026	N/A	$(1.0)–$1.0M	New
Full-Year Guidance	FY2026	N/A	Not provided due to tariff uncertainty	Withheld

Management noted retailer delays on imported product and a temporary inventory build in Q1 FY2026 given resumed importing after a rollback to 30% tariffs .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 FY2025, Q3 FY2025)	Current Period (Q4 FY2025)	Trend
Tariffs & Supply Chain	Monitoring potential tariff impacts; mitigations planned; consumables mostly domestic; margin resilient . Q3: highlighted tariff risk, shelf reset timing variability .	Paused inbound at 145% tariffs; retailer intake delayed 6–8 weeks; resumed at 30% tariffs; ~$4M tariff costs in H1; diversifying sourcing away from China, expect margin recovery by mid-year .	Risk escalated, mitigation underway; expect improvement in H2.
Platform Migration (Shopify)	Moved paid media to bark.co for holidays; conversion gains; Shop Pay/Apple Pay adoption; plan full cohort migration by FY-end .	“For the most part” complete; bark.co live; legacy site sunsetting; faster experimentation; functionality back to par or ahead .	Execution progress; stability improving.
Commerce Channel	Q2/Q3: +26–43% YoY growth; new partners (Chewy, Fressnapf), expansion on Amazon/TJX, international push; goal ~1/3 of revenue in 2–3 years .	Q4: +26.5% YoY; demand intact but timing delays; expect similar growth in FY2026; ~90% toys today, consumables ramp coming (“Bark in the Belly”) .	Growth intact; mix to broaden with consumables.
BARK Air	Q2: ~$1.5M revenue; high utilization; asset-light model; positive gross profit . Q3: $2M revenue; asset-light; too early to size; price experiments .	Q4: $1.8M revenue; ~$5.8M FY; expanded routes, private charters; strategic growth vector .	Scaling offerings; revenue growing from small base.
Marketing Strategy (Full-Funnel)	Shift from promotions to brand-building; reallocate to mid/upper funnel; accept near-term DTC trade-off .	Deliberate Q4 pullback given macro/tariffs; focus on higher-quality customers and LTV; will flex spend by returns .	Discipline maintained; optimizing CAC/LTV mix.
Capital Allocation	Buybacks: >11M shares repurchased at ~$1.53 avg; added $4M authorization .	$10.5M repurchases in Q4; keep dry powder for M&A/consumables launch; opportunistic buybacks to continue .	Ongoing opportunistic buybacks; balance with growth investments.
AI/Technology Initiatives	Notable Shopify migration and CX modernization .	“AI-driven experience” with box-in-a-bag and personalization; “AI-driven apps for dogs and their people” planned .	Early-stage; used to enhance CX and engagement.

Management Commentary

“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… Despite ongoing macroeconomic uncertainty and tariffs… we’re investing in new product lines, new channels, and new services like BARK Air” — Matt Meeker, CEO .
“We intend to stay adjusted EBITDA positive this year and for the foreseeable future… Some toy products… will carry tariffs up to 80% in the near term… By mid-year, we expect to return to a margin profile similar to how we closed last year” — Matt Meeker .
“Commerce represented 14% of total revenue in fiscal 2025… we continue to expect it to grow to approximately one-third of the business over the next two to three years” — Zahir Ibrahim, CFO .
“Shortly after the 145% tariffs took effect… we paused inbound shipping… Several retail partners also asked us to do the same… we expect Q1 total revenue $99–$101M… Adjusted EBITDA between $(1)M and $1M” — Zahir Ibrahim .

Q&A Highlights

Supply chain diversification: Management can manufacture “all of our toys outside of China by the end of this fiscal year” if needed; already diversifying geographies .
DTC strategy shift: Pullback in marketing reflects unprofitable new users amid tariff pass-through; pivot to less discretionary categories over time; protect bottom line while diversifying .
Commerce demand: Retailer order timing impacted by tariffs, but demand intact; expect commerce growth similar to FY2025 and acceleration beyond FY2026; consumables mix to increase .
Capital allocation: Aggressive buybacks likely to continue when stock undervalued, but conserving cash for M&A and new category investments .

Estimates Context

Q4 FY2025 vs consensus: Revenue $115.4M vs $126.7M consensus (miss); EPS $0.01 vs $0.005 consensus (beat). EBITDA consensus $3.1M vs actual Adjusted EBITDA $5.2M (beat on company-reported Adjusted EBITDA); note EBITDA definitions differ across sources .
Q1 FY2026 guidance midpoint ($100.0M) was broadly aligned with consensus ($99.6M*) going into the quarter; subsequent actuals to be assessed separately.
Values retrieved from S&P Global: Revenue consensus $126.744M*, EPS consensus $0.00456*, EBITDA consensus $3.082M*; Q1 FY2026 revenue consensus $99.633M* [GetEstimates].

Consensus vs Actual (Q4 FY2025)

Metric	Consensus	Actual
Revenue ($USD Millions)	126.744*	115.410
EPS (Primary, $USD)	0.00456*	0.01
EBITDA ($USD Millions)	3.082*	5.225 (Adjusted EBITDA)

Note: EBITDA consensus may reference differing definitions; company reports Adjusted EBITDA.

Key Takeaways for Investors

Revenue miss but margin resilience: Q4 revenue declined and missed guidance amid tariff/macro headwinds; however, gross margin reached a record 63.6% and Adjusted EBITDA beat guidance, underscoring structural profitability improvements .
Near-term pressure, H2 recovery setup: Q1 FY2026 guidance reflects tariff costs and retailer delays; management expects margin profile to normalize by mid-year as sourcing diversifies and productivity offsets kick in .
Diversification is the core thesis: Accelerated mix shift toward Commerce, new consumables in August, and BARK Air expansion should reduce reliance on discretionary toy subscriptions and stabilize LTV/CAC dynamics .
Capital returns balanced with growth: Continued opportunistic buybacks while preserving cash for product launches and potential M&A; buybacks are a lever when management views shares as undervalued .
Watch tariff policy and retailer ordering cadence: Narrative and stock setup hinge on tariff trajectory, supply-chain transition cadence, and the speed of consumables distribution ramp; monitor quarterly commentary for guidance reinstatement .
Execution on Shopify and brand investment: DTC stabilization depends on completing platform migration and sustaining full-funnel brand investments without deteriorating CAC; early signs are constructive .
Estimate revisions likely: Expect sell-side to lower top-line near term (tariff delays) while raising profitability forecasts given margin strength and disciplined spend; consensus likely shifts from revenue growth to margin durability.

Appendix: Additional Data Points and Context

Free Cash Flow: Q4 FCF $(12.0)M, driven by working capital timing; FY2025 FCF $(13.2)M .
Balance Sheet: Cash $94.0M; Inventory $88.1M at 3/31/25; Q4 buybacks $10.5M at $1.71 average .
FY2025 Disaggregated Revenue: DTC $415.8M (Toys & Accessories $262.3M; Consumables $147.7M; Other/BARK Air $5.8M); Commerce $68.3M .

Bark, Inc. (BARK)·Q4 2025 Earnings Summary