Bark, Inc.'s Q4 2025: Unpacking Contradictions in DTC Growth, Supply Chains, and Pricing Strategies

Direct-to-Consumer (DTC) Growth Expectations, Supply Chain Diversification and Tariffs, Consumer Sentiment and Tariff Impact on Business Performance, Pricing Strategy and Consumer Sentiment, and Impact of Tariffs on Product Pricing and Sustainability are the key contradictions discussed in BARK, Inc.'s latest 2025Q4 earnings call.



First Year of Positive Adjusted EBITDA:
- BARK achieved $5.4 million in adjusted EBITDA for the full year, marking the first time ever in the positive territory.
- This was driven by margin expansion and operational improvements over the past three years, despite challenges such as tariffs and economic uncertainty.

Diversification Strategy:
- The company plans to accelerate revenue diversification away from predominantly BarkBox subscriptions, which accounted for around 85% of revenue last year.
- This shift is in response to tariff-related uncertainties and a need to reduce reliance on discretionary product lines.

Commerce Segment Growth:
- BARK's commerce segment revenue increased by 27% year-over-year to $68.3 million, representing 14% of total revenue.
- Growth was supported by expanded retail partnerships and improved gross margins, despite temporary pullbacks due to tariff uncertainty.

Supply Chain and Tariff Mitigation:
- BARK is diversifying its manufacturing footprint to mitigate tariff impacts, aiming to have half of its toys produced outside of China by the end of fiscal 2026.
- The company is also evaluating price increases and expects to absorb tariff pressures while minimizing customer impact.

Pullback in D2C Marketing:
- A deliberate reduction in marketing and promotion spending led to a $1.5 million decrease in Q4 marketing expenses, impacting customer acquisition.
- This decision was made due to tariff uncertainty, softening consumer sentiment, and a strategic shift towards higher-quality customer relationships.