BarkBox's 2026 Q1: Strategic Shifts and Contradictions in Supply Chain, Advertising, and Revenue Growth

Revenue Growth and Diversification:
- BARK, Inc. reported $103 million in revenue for Q1 2026, exceeding guidance and marking a nearly $16 million contribution from non-D2C sources, almost double that of the previous year.
- The increase was driven by strong performance across both D2C and Commerce segments, as well as the introduction of new products and initiatives to diversify revenue streams.

Subscription Box Shifts and Margin Improvement:
- In D2C, revenue reached $89.2 million, with $2.3 million coming from BARK Air, a 300% improvement from the previous year.
- The shift towards Super Chewer subscriptions, which are higher in cost, contributed to a rise in average order value and gross margin, resulting in a record D2C margin of 67%, up 250 basis points year-over-year.

Positive Adjusted EBITDA and Cost Management:
- BARK reported a positive adjusted EBITDA of $100,000 for the quarter, a $2 million improvement from the previous year.
- This was achieved through structural improvements in the business, cost discipline, and a 38% reduction in D2C marketing spend, which also aligned with a strategic pivot towards higher-value, longer-retaining customers.

Retail Expansion and Consumables Launch:
- The company's Commerce segment delivered $13.7 million in revenue, a 50% increase year-over-year, supported by expanded distribution with Amazon, Chewy, and increased shelf presence at retailers like Costco and Walmart.
- This growth is expected to continue with the upcoming launch of the BARK in the Belly consumables line, which will be available on BARK.co, Chewy, and Amazon.