BARK 2026 Q2 Earnings Revenue Falls 15.2% as Net Loss Widens 102.8%

BARK (BARK) reported fiscal Q2 2026 earnings on Nov 10, 2025, with revenue declining 15.2% to $106.97 million, beating expectations by $3.4 million. However, the company’s net loss expanded to $10.67 million (102.8% wider than 2025 Q2), and guidance for Q3 revenue ($101–104 million) fell below analyst estimates of $106.5 million.

Revenue

BARK’s total revenue for Q2 2026 declined to $106.97 million, driven by a 19.9% drop in the Direct to Consumer segment to $82.15 million. The Commerce segment, however, grew 6% YoY to $24.82 million, contributing 23% of total revenue. BARK Air, a newer venture, surged 138% YoY to $3.62 million. Other revenue streams, including Toys & Accessories ($48.07 million) and Consumables ($30.46 million), also faced declines, reflecting broader demand challenges.

Earnings/Net Income

The company’s losses deepened to $0.06 per share in Q2 2026, widening from $0.03 per share in the prior year. Net losses increased to $10.67 million, a 102.8% year-over-year expansion, as declining revenue and higher tariff costs pressured profitability. The EPS shortfall highlights ongoing struggles to balance growth investments with cost control.

Price Action

Following the earnings release, BARK’s stock price rose 5.17% in the latest trading day but fell 7.06% for the week and 7.06% month-to-date. ; INSERT

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Post-Earnings Price Action Review

Despite beating revenue expectations, BARK’s stock faced mixed reactions. A 5.17% intraday gain was offset by a 7.06% weekly decline, reflecting investor skepticism over the company’s profitability outlook. The month-to-date drop of 7.06% underscores broader market concerns about macroeconomic headwinds and the company’s ability to achieve EBITDA breakeven by year-end.

CEO Commentary

CEO Matt Meeker emphasized progress in diversification and cost efficiency, highlighting a debt-free balance sheet after repaying a $45 million convertible note. He noted BARK Air’s 138% revenue surge and a 99% 5-star review rate, while acknowledging challenges from tariffs and USPS changes. Meeker reiterated a focus on “reinvesting in efficient growth” and partnerships like Amazon for last-mile delivery.

Guidance

CFO Zahir Ibrahim provided Q3 2026 revenue guidance of $101–104 million and adjusted EBITDA of negative $5–$1 million. The company aims for EBITDA breakeven by year-end but warned of uncertainties in tariffs and consumer sentiment.

Additional News

Within three weeks of the earnings release, BARK announced key strategic moves:

1. Debt-Free Milestone: The company repaid its $45 million convertible note, eliminating debt for the first time as a public entity.

2. Credit Line Extension: BARK extended its $35 million line of credit with Western Alliance Bank, enhancing financial flexibility.

3. Commerce Growth: The Commerce segment’s 6% YoY growth and BARK Air’s 138% surge underscored diversification success, despite overall revenue declines.

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