BARK, Inc.

First-quarter revenue was $78.8 million versus $102.9 million a year ago. Adjusted EBITDA was about $600 thousand versus $100 thousand in the prior-year period. Reported gross margin was 72.7%, inflated by a $7.4 million IEEPA tariff recovery; excluding that recovery, normalized gross margin was 63.4% versus 63.8% last year. D2C revenue was $66.7 million, including $3.2 million from Bark Air, which was up 37% year over year; excluding Bark Air, D2C revenue was $63.5 million versus $86.8 million last year. Commerce revenue was $12.1 million, down 11% year over year. BARK ended the quarter with $16.1 million in cash and no debt. For the second quarter, management guided to revenue of $83 million to $85 million and adjusted EBITDA of $1 million to $3 million. Full-year guidance was reiterated on both top and bottom lines.

Matt Meeker said the quarter showed the company is “off to a good start” and that the plan laid out in June is working. He emphasized improving D2C fundamentals, noting retention up more than 170 basis points and average order value higher, while also saying commerce should strengthen into the back half of the year. His tone was confident and upbeat, but still framed around execution discipline and building from a stronger foundation.

Brian Dostie walked through the quarter as a deliberate tradeoff: fewer orders from a smaller subscriber base, but better unit economics, with orders down about 28% year over year and average order value up $0.45. He highlighted marketing spend of $9.5 million, down more than $5.6 million or 37%, shipping and fulfillment of $23.8 million versus $31.8 million last year, and G&A of $23.9 million, down $1.6 million. He also noted $16.1 million in cash, no debt, $20.4 million in accounts receivable tied largely to tariff recoveries, $3.2 million already collected, and inventory down to $72.4 million from $75.5 million at year end and $98.1 million a year ago.

Analysts asked whether BARK had become more confident in the timing of a D2C return to growth and what metrics matter most; management said confidence was essentially unchanged, and that retention, new subscriber additions, and average order value are the key variables. On commerce, management said the quarter is typically the slowest and lumpy, with some timing shifted out of Q1, but said it is winning share in toys, has good visibility into larger orders, and expects the business to improve through Q2 to Q4. Meeker also said stronger commerce gives BARK more flexibility to stay disciplined in D2C while following its plan.