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Bark, Inc.

BARK
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Business Summary

BARK, Inc. operates in the large, growing, and resilient market for pet products. According to the American Pet Products Association, annual spend on pets in the U.S. was approximately $158 billion in 2025, an increase of 3.7% compared to 2024. Dogs are the most popular pet in the U.S., with approximately 71 million households—representing 53% of all U.S. households—having a dog as a member of their family. The dog products industry is highly competitive, fragmented, and spread across four primary segments: supermarkets, warehouse clubs, and mass merchants; specialty pet store chains; traditional or neighborhood pet stores; and subscription service businesses and e-retailers. BARK sits within this landscape as an omnichannel brand that designs and develops proprietary products for dogs across two key brands: BarkBox and Super Chewer.

BARK competes with pet product retail stores, supermarkets, warehouse clubs, mass and general retail and online merchandisers, specialty dog supply stores, independent dog stores, catalog retailers, and other specialty e-retailers. The company believes its competitive strengths include an ever-growing data set that drives personalization at scale, deep customer relations that drive retention and lifetime value, in-house product design and development that drives strong gross margins versus companies selling third-party products, and an omnichannel presence spanning over 50,000 retail doors nationwide and online marketplaces including Amazon, Chewy and TikTok. BARK is a leading U.S. dog toy brand by revenue.

BARK generates revenue through two segments: Direct-to-Consumer and Commerce. The majority of DTC revenue is derived from subscription products featuring monthly themes of BarkBox and/or Super Chewer toys and BARK-branded treats and chews delivered directly to a dog's home, with customers having the option to subscribe on a one-month, three-month, six-month, or twelve-month basis. During the life of their subscription, customers are offered incremental products via Add-to-Box, which allows cross-selling across the full portfolio. Commerce revenue comes from selling BarkBox and Super Chewer toys and BARK-branded treats and chews in retail stores and other e-tailers. The DTC and Commerce segments represented 82.3% and 17.7% of total revenue in fiscal 2026, respectively.

In the DTC segment, the majority of revenue in the toys category is derived from subscription products that feature monthly themes of BarkBox and/or Super Chewer toys and BARK-branded treats and chews. Customers can subscribe on a one-month, three-month, six-month, or twelve-month basis. During the life of their subscription, customers are offered incremental products via Add-to-Box. DTC revenue for fiscal 2026 was $324.927 million , compared to $415.837 million in fiscal 2025. DTC gross profit for fiscal 2026 was $213.741 million , with a DTC gross margin of 65.8% . Excluding the impact of BARK Air, DTC gross margin increased 230 basis points compared to the same period last year. BARK Air revenue was $12.4 million or 3.8% of DTC revenue. Total Orders for fiscal 2026 were 10,060 thousand , compared to 13,210 thousand in fiscal 2025. Average Order Value was $31.06 in fiscal 2026 versus $31.04 in fiscal 2025.

In the Commerce segment, BARK sells its BarkBox and Super Chewer toys and BARK-branded treats and chews in retail stores and other e-tailers, with products currently sold in over 50,000 retail doors including Target, TJ Maxx, Costco, Walmart, and PetSmart, as well as on online platforms including Amazon, Chewy and TikTok. Commerce revenue for fiscal 2026 was $69.916 million , compared to $68.345 million in fiscal 2025, reflecting a 2.3% increase. Commerce gross profit for fiscal 2026 was $28.144 million , with a Commerce gross margin of 40.3% , which was 540 basis points lower than the same period last year due to opportunistic sell-through of surplus inventory and changes in customer mix.

Significant operational developments during the period included the announcement of BARK Air in April 2024, a first-of-its-kind air travel experience tailored to dogs, partnered with several charter companies. BARK Air generated $12.4 million in revenue in fiscal 2026. The company narrowed its consumables portfolio by discontinuing certain products, including kibble and dental. On the capital front, the company repurchased its 2025 Convertible Notes on November 6, 2025. The company paid a total of $15.4 million in IEEPA tariffs on imported goods between February 4, 2025 and February 24, 2026, and submitted claims accepted by the CAPE portal in the amount of $3.3 million , of which $2.7 million and $0.6 million were recorded as reductions of cost of revenue and inventory, respectively. On April 1, 2026, the company effected a 1-for-20 reverse stock split of its common stock.

Total revenue for fiscal 2026 was $394.843 million , a decrease of 18.5% compared to $484.182 million in fiscal 2025. Gross profit was $241.885 million , compared to $301.988 million in the prior year. Net loss was $39.008 million for fiscal 2026, compared to $32.878 million in fiscal 2025. The company delivered its second consecutive year of positive Adjusted EBITDA. The company exited fiscal 2026 debt-free.

Business Outlook

A key growth vector is the recalibration of the DTC segment through a strategy called 'Relationship Commerce,' which has three dimensions: Depth (how well the company understands each customer), Density (how many meaningful touchpoints exist), and Durability (whether the customer gives permission to offer new products and services). The company believes this approach, compounded over millions of customer relationships together with the competitive advantage provided by AI, will allow rapid adaptation to and scaling for customers' evolving needs.

Another growth vector is expansion in the Commerce segment. In fiscal 2026, revenue from the sale of BARK products through retail and e-commerce partners totaled $70 million , or 17.7% of total revenue, reflecting a 2.3% increase compared to fiscal 2025. The company continues to expect this channel to contribute an increasingly significant portion of revenue moving forward, driven by continued expansion of product assortment and retail presence with existing partners, as well as the addition of new partners both domestically and internationally. BARK Air is also highlighted as part of a broader strategy to expand into premium, differentiated dog services, representing a meaningful long-term growth opportunity.

The company is focused on enhancing profitability and maintaining a lean operating model. In fiscal 2026, the company delivered its second consecutive year of positive Adjusted EBITDA, driven by improvements in operational efficiency and cost structure while navigating a volatile tariff environment. The company is reducing its reliance on promotion-driven growth and reallocating resources toward higher-return product categories with greater long-term opportunity, including narrowing product and geographical focus to concentrate on areas where BARK believes it has a genuine competitive advantage.

The company maintains a lean operating model to support disciplined capital allocation. The company exited fiscal 2026 debt-free, with a leaner cost structure and a business that is more diversified. The company utilizes global third-party logistics providers to warehouse and distribute finished products from their distribution facilities to support domestic operations. As of March 31, 2026, BARK employed approximately 501 full-time and part-time employees, with 196 employees based in the U.S. and 301 employees based in the Philippines.

The filing does not disclose specific R&D spending levels, capital expenditure plans, share repurchase authorization amounts, or dividend policy figures for the upcoming period.

The company faces headwinds from the imposition of tariffs under the International Emergency Economic Powers Act. The company paid a total of $15.4 million in IEEPA tariffs on imported goods between February 4, 2025 and February 24, 2026. An additional $7.1 million and $5.0 million of the IEEPA tariffs paid by the Company allocable to cost of revenue and inventory, respectively, for the fiscal year ended March 31, 2026 were not recorded and are not currently eligible for submission under the CAPE portal. The company cannot predict the duration or magnitude of tariff-related risks.

The company faces constraints from macroeconomic conditions including inflation, rising interest rates, higher fuel and energy costs, commodity prices, reductions in net worth based on market declines, increases in housing costs, decreases in credit availability, and rising consumer debt levels, which could impact costs of doing business and levels of discretionary consumer spending. The company also faces risks from changes in trade policy, including the imposition of tariffs or changes in tariff rates, and global conflicts such as the current conflict between the United States and Iran.

Risk Factors

The company relies on a limited number of contract manufacturers, suppliers, and logistics providers, primarily located in Asia, and does not generally maintain long-term supply contracts, exposing it to supply chain disruptions, tariff risks, and concentration risk. The company paid a total of $15.4 million in IEEPA tariffs on imported goods, with an additional $7.1 million and $5.0 million allocable to cost of revenue and inventory not yet recoverable. The company has a history of losses, with a net loss of $39.008 million in fiscal 2026, and may be unable to achieve or sustain profitability. The company depends on consumer discretionary spending, which may be adversely affected by economic downturns, inflation, and macroeconomic conditions. As of March 31, 2026, the company had cash and cash equivalents of approximately $19.3 million , and may not be able to raise the capital needed to grow its business on acceptable terms.

Management Priorities

Management's message emphasizes that the company delivered its second consecutive year of positive Adjusted EBITDA in fiscal 2026, driven by improvements in operational efficiency and cost structure while navigating a volatile tariff environment. The strategic priorities emphasized for the period ahead include enhancing profitability, diversifying revenue, and positioning BARK for long-term growth. Management states they are reducing reliance on promotion-driven growth and reallocating resources toward higher-return product categories with greater long-term opportunity, including narrowing product and geographical focus to concentrate on areas where BARK believes it has a genuine competitive advantage. Management also highlights investing in new service offerings such as BARK Air and maintaining a lean operating model to support disciplined capital allocation, with the goal of preserving profitability and positioning the business to deliver sustained long-term value.

View Source Annual Report on SEC.gov ↗

References

  1. [1] Item 7, MD&A — Results of Operations
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  6. [6] Item 7, MD&A — Key Performance Indicators
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  15. [15] Item 7, MD&A — Factors Affecting Our Performance
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  25. [25] Item 1, Business — Growth Opportunities
  26. [26] Item 1, Business — Our People and Culture
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  29. [29] Item 7, MD&A — Factors Affecting Our Performance
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  35. [35] Item 7, MD&A — Results of Operations
  36. [36] Item 1A, Risk Factors — General Risks Related to Our Business
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  53. [53] Item 1A, Risk Factors — General Risks Related to Our Business
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Analysis on 6/10/2026