BARK 2026 Q2 Earnings Debt-Free Milestone Amid Revenue Decline

BARK Inc. (NYSE:BARK) reported fiscal 2026 Q2 earnings on November 10, 2025, posting revenue of $106.97 million—a 15.2% decline from $126.11 million in the prior year. The company exceeded its own guidance range but faced widened losses. Management highlighted progress in debt reduction and operational diversification, while tariffs and macroeconomic pressures remain key risks.

Revenue

The company’s total revenue fell 15.2% year-over-year to $106.97 million, with the Direct-to-Consumer (D2C) segment declining 19.9% to $82.1 million due to reduced subscriptions. However, the Commerce segment grew 5.6% to $24.8 million, reflecting expanded retail partnerships and e-commerce momentum. BARK Air, a newer venture, surged 138% year-over-year to $3.6 million, contributing 3.4% of total revenue.

Earnings/Net Income

BARK’s net loss widened to $10.67 million in Q2 2026, a 102.8% increase from $5.26 million in the prior year. Earnings per share (EPS) deteriorated to -$0.06, doubling the loss from -$0.03 in 2025 Q2. The expanded losses reflect reduced revenue, higher tariff-related costs, and strategic investments in growth. The EPS performance underscores ongoing profitability challenges despite improved cost discipline.

Post-Earnings Price Action Review

Following the earnings release, BARK’s stock experienced mixed short-term price action. Shares rose 5.17% in the latest trading day but declined 7.06% during the subsequent full trading week and month-to-date. The post-earnings reaction highlights investor skepticism about the company’s path to profitability amid macroeconomic headwinds. Despite a debt-free balance sheet and revenue diversification, market sentiment remains cautious, with the stock trading near its 52-week low.

CEO Commentary

CEO Matt Meeker emphasized progress in strengthening BARK’s balance sheet, including repaying a $45 million convertible note and extending a $35 million credit line. He highlighted Commerce segment growth, BARK Air’s 138% revenue increase, and strategic shifts like adopting Amazon for last-mile delivery to reduce costs. Meeker expressed optimism about subscriber retention and premium product adoption but acknowledged external risks like tariffs and USPS changes.

Guidance

CFO Zahir Ibrahim provided Q3 2026 revenue guidance of $101–$104 million and adjusted EBITDA of -$5 million to -$1 million. The company reiterated its full-year EBITDA profitability goal but noted uncertainties from tariffs and consumer sentiment. Gross margin improvements are expected through product diversification and cost mitigations, with inventory levels projected to decline by year-end.

Additional News

Recent developments include BARK becoming debt-free after repaying a $45 million convertible note, extending its $35 million credit line with Western Alliance Bank, and securing a partnership with the Girl Scouts for its annual cookie program. The company also shifted last-mile delivery to Amazon to reduce costs and improve customer experience. These moves aim to enhance financial flexibility and brand awareness, with the Girl Scouts partnership expected to drive long-term revenue and market visibility.