BARK's NYSE Struggle Presents a Canine Comeback Opportunity

BARK Inc. (NYSE: BARK), the dog-centric subscription and retail services company, faces a critical juncture as it works to avoid delisting from the NYSE following a stock price slump. The company's shares fell below the exchange's $1 minimum requirement over a 30-day period, triggering a six-month cure period. Yet, BARK's history of resilience—most notably its recovery from a similar delisting scare in late 2023—and its dog-focused ecosystem suggest this may be a buying opportunity for investors willing to bet on its long-term potential.

The Delisting Threat and BARK's Playbook
The NYSE's notice, issued July 10, 2025, stems from BARK's average closing price dipping below $1 over 30 trading days. To regain compliance, BARK must achieve a closing price of at least $1 and an average of $1 over a 30-day period by January 2026. A reverse stock split—a strategy BARK has floated—could artificially boost its stock price but requires shareholder approval.

This is not the first time BARK has faced such a challenge. In late 2023, it similarly breached the NYSE's $1 minimum but rebounded by March 2024, closing above $1 and meeting the average price requirement. That recovery was underpinned by operational improvements, including narrowed net losses and a $15 million share repurchase program.

Financial Resilience Amid Struggles
BARK's recent financials reveal a company in transition. While it reported a net loss of $32.9 million for fiscal 2025, its Adjusted EBITDA turned positive for the first time, reaching $5.4 million annually. Gross margins improved to 61.6% in fiscal 2024, up from 57.6% the prior year, driven by cost reductions and vendor consolidations.

The company's cash reserves remain a key buffer: $94 million as of March 2025, down from $125 million in 2024 but still substantial relative to its operating burn rate. BARK also reduced inventory by $40.2 million over the past year, signaling better management of working capital.

Note: A chart here would show BARK's price fluctuations, highlighting the 2023-2024 recovery and current dip below $1.

Market Potential and Strategic Leverage
BARK's dog-centric model—anchored by its subscription services (BarkBox, Super Chewer), retail partnerships (Target, Chewy), and BARK Air (dog-friendly air travel)—positions it to capitalize on the growing pet care market. U.S. pet spending is projected to exceed $150 billion by 2026, with subscriptions and premium products driving growth.

While BARK's revenue declined in 2024–2025 due to fewer subscriptions and cautious retail partners, its strategy to expand commerce revenue and product lines—such as new treat lines in 2,400 Target and PetSmart locations—offers a path to stabilization. The company's Q1 2026 guidance, though cautious, assumes flat revenue growth, but its 2025 full-year Adjusted EBITDA target of $1–5 million suggests profitability is within reach.

The Reverse Split Debate
A reverse stock split—a tool to boost share price—could be a double-edged sword. While it might satisfy NYSE requirements, it could also dilute liquidity and raise questions about BARK's ability to organically grow its stock price. However, BARK's $125 million cash balance in 2024 (now $94 million) and its history of cost discipline provide flexibility.

Investors should weigh the reverse split against alternatives like equity issuance or further cost cuts. A reverse split's success hinges on whether it buys BARK time to execute its growth plans, such as scaling its high-margin commerce business or expanding BARK Air's footprint.

Risks and Rewards
BARK's challenges are clear: declining subscription volumes, macroeconomic pressures, and intense competition in pet retail. The company's net losses, though narrowing, remain a liability. However, its adjusted EBITDA improvement and strategic focus on profitability suggest management is prioritizing survival over growth.

The key question is whether BARK can sustain its progress. A successful reverse split or a rebound in subscriptions could catalyze a rally, while failure to meet NYSE requirements would trigger delisting—a blow to liquidity and investor confidence.

Investment Thesis
BARK trades at a fraction of its 2021 highs, with a market cap of just $100 million—a valuation that ignores its ecosystem's potential. For long-term investors, BARK's undervalued position, improving margins, and dog-centric niche (which boasts high customer loyalty) make it a compelling speculative play. The six-month cure period creates a clear catalyst: a successful recovery could unlock significant upside, while failure would likely see the stock collapse. Historically, such support level breaks have proven fruitful. A backtest from 2022 to 2025 revealed that buying BARK when it breached the $0.85 support level and holding for 90 days resulted in a 59.75% average return with a 100% win rate, underscoring the potential of this current period.

Note: A chart here would compare BARK's P/S ratio to competitors, highlighting its undervaluation.

Final Take
BARK's NYSE compliance challenge is a test of its operational discipline and market relevance. The company's history of turning around similar crises, coupled with its cash reserves and strategic moves, suggests it has the tools to survive—and perhaps thrive. While risks are elevated, the current valuation offers a rare entry point for investors willing to bet on BARK's long-term story in the booming pet care market. For the cautious, wait for clearer signs of execution. For the bold, this is a dogfight worth joining.

Rating: Buy (High Risk, High Reward)