BARK (BARK) investor relations material

Executive summary

• Fiscal Q1 2027 revenue was $78.8 million, down 23.4% year-over-year but at the high end of guidance, reflecting strong subscriber retention, improved retail sales, and robust BARK Air demand.

• Net income reached $0.75 million, a turnaround from a $7.0 million net loss in the prior year, aided by $7.4–$8.8 million in IEEPA tariff refunds.

• Adjusted EBITDA was $600,000, up from $100,000 year-over-year, with continued profitability and a debt-free balance sheet.

• Subscriber retention improved by over 170 basis points year-over-year, and average order value increased by $0.45 per unit.

• The company executed a 1-for-20 reverse stock split effective April 1, 2026.

Financial highlights

• Total revenue was $78.8 million, down from $102.9 million year-over-year due to a smaller subscriber base.

• DTC revenue was $66.7 million, down 25.2% year-over-year; BARK Air contributed $3.2 million, up 37%.

• Commerce revenue was $12.1 million, down 11.4% year-over-year, but expected to grow in upcoming quarters.

• Gross profit was $57.3 million, with gross margin at 72.7% (including a one-time $7.4–$8.8 million tariff refund); normalized gross margin was 63.4%.

• Operating expenses fell 20.9% to $57.3 million, driven by lower shipping, fulfillment, and marketing costs.

Outlook and guidance

• Q2 2027 revenue guidance is $83 million–$85 million, with adjusted EBITDA of $1 million–$3 million.

• Full-year FY27 revenue guidance reiterated at $325 million–$340 million; adjusted EBITDA expected at $7 million–$10 million.

• Management expects cash and cash equivalents to be sufficient to fund operations for at least the next 12 months.

• Commerce revenue expected to increase meaningfully heading into the holiday season and with new product launches.

• Focus remains on core toy and treat business, with continued investment in premium dog services like BARK Air.