BARK (BARK) investor relations material

Executive summary

• Revenue for the quarter was $98.4 million, down 22.1% year-over-year, primarily due to reduced marketing spend and fewer subscriptions, with a net loss of $8.6 million, a 24.9% improvement from the prior year period.

• Adjusted EBITDA was -$1.6 million, within guidance and consistent with the prior year.

• Positive free cash flow of $1.6 million as inventory levels normalized and marketing spend was reduced.

• Fully repaid $45 million in 2025 Convertible Notes, resulting in a debt-free balance sheet.

• Prioritized profitability and operational discipline, exiting the quarter with improved financial flexibility.

Financial highlights

• Total revenue was $98.4 million, below guidance, with Commerce and BARK Air representing up to 22.5% of revenue.

• Gross profit was $61.6 million, down 22.3% year-over-year; gross margin remained stable at 62.5%.

• Direct-to-Consumer revenue was $79.6 million, down 25% year-over-year; Commerce revenue was $18.9 million, down 7.2%.

• Direct-to-Consumer gross margin improved to 69.2% (excluding BARK Air), up 180 basis points year-over-year.

• Ended the quarter with $21.7 million in cash and no outstanding debt.

Outlook and guidance

• Management expects cash and cash equivalents, operating cash flow, and available credit to be sufficient to fund operations for at least the next 12 months.

• Continued focus on profitability, cash conversion, disciplined investment, and ongoing inventory optimization.

• No fourth quarter guidance provided due to ongoing review of preliminary non-binding proposal letters by the Board's Special Committee.

• Positioned to exit fiscal 2026 stronger and more resilient.