BARK, Inc.
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ITEM 1. BUSINESS
Unless otherwise expressly stated or the context otherwise requires, when we refer to “we,” “our,” “us,” “BARK,” or “the Company” in this annual report on Form 10-K, we mean BARK, Inc. and its consolidated subsidiaries.
Overview
Our mission is to make all dogs happy.
We believe that dogs and humans are better together and we aspire to be the world’s favorite dog brand. We are a team of dog-obsessed people committed to delivering personalization at scale by satisfying each dog’s distinct personality, preferences, and needs with the best products and services. Since our founding in 2011, we have happily served millions of dogs and their people.
We are an omnichannel brand that designs and develops proprietary products for dogs across two key brands: BarkBox and Super Chewer. All of our products are designed and developed in-house, and are BARK branded. We
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leverage an ever-growing collection of first-party data, customer insights, and AI to deliver personalized products and experiences tailored to the needs of each and every dog we serve. We sell our products in two segments: Direct-to-Consumer (“DTC”) and Commerce, through our network of retail partners, which currently spans over 50,000 doors nationwide and online marketplaces including Amazon, Chewy and TikTok.
We began our journey with a monthly-themed subscription of toys, treats, and chews, tailored to the needs of each customer based on their dog’s size, play style, allergies, and more. By viewing each dog as an individual, and by creating magical experiences for our customers, we have been able to build lasting relationships with millions of dogs and their parents. Our customer service (“Happy Team”) proactively engages around 175,000 customers each month. We use the valuable data from these customer interactions to inform the design and development of future products, and we leverage it along with AI technology to recommend additional products to our customers through cross-selling and Add-to-Box (“ATB”).
As a leading U.S. dog toy brand by revenue, we continue to leverage our brand strength to compete in complementary consumable categories, such as treats and chews. These offerings support our core toy business and expand our total addressable market. To optimize profitability, BARK recently narrowed its consumables portfolio by discontinuing certain products, including kibble and dental. We believe this streamlined focus allows us to prioritize our core toy identity while improving operational efficiency and our profitability profile.
Our Industry
Large, growing, and resilient market for pet products:
According to the American Pet Products Association (“APPA”), annual spend on pets in the U.S. was approximately $158 billion in 2025, an increase of 3.7%, compared to 2024.
Dogs are the most popular pet in the U.S.:
According to the APPA, dogs are the most popular pet in the U.S., with approximately 71 million households--representing 53% of all U.S. households--having a dog as a member of their family. We believe we have an opportunity to significantly expand our customer base, both in the U.S. and globally.
Our Segments and Brands
We operate two business segments: DTC and commerce. Our DTC and commerce segments drive the majority of our revenues, representing 82.3% and 17.7% of total revenue in fiscal 2026, respectively. BARK remains focused on diversifying its revenue across segments and brands, including BarkBox, Super Chewer, and BARK Air.
DTC
The majority of our revenue in the toys category is derived from our subscription products that feature monthly themes of premium-quality BarkBox and/or Super Chewer toys and BARK-branded treats and chews that are delivered directly to a dog’s home. Customers have the option to subscribe to these products on a one-month, three-month, six-month, or twelve-month basis. During the life of their subscription, we offer our customers incremental products via ATB, which allows us to cross-sell customers across our full portfolio of products.
Commerce
We also sell our BarkBox and Super Chewer toys and BARK-branded treats and chews in retail stores and other e-tailers, significantly broadening our customer reach and raising awareness of the BARK brand. BARK products are currently sold in over 50,000 retail doors, including Target, TJ Maxx, Costco, Walmart, and PetSmart. Additionally, we sell our products on other online platforms including Amazon, Chewy and TikTok.
BARK Air
Announced in April 2024, BARK Air is a first-of-its kind air travel experience tailored to dogs. BARK Air is partnered with several charter companies offering premium flights for customers and their dogs. Interested parties
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can book flights at dogsflyfirst.com. Our charter partners are responsible for all aircraft, pilots, maintenance, and insurance, allowing BARK to focus on creating a great travel experience for dogs and their people worldwide. We believe this initiative exemplifies BARK’s dog-first approach to curating the best products and services.
As our flagship entry into the services category, BARK Air is part of a broader strategy to expand into premium, differentiated dog services. With new routes, expanded partnerships, and high early engagement, we believe BARK Air and future services represent a meaningful long-term growth opportunity. This category is currently included in our DTC segment.
Our Competitive Strengths
Ever-Growing Data Drives Personalization at Scale:
We know the names, age, breeds, birthdays, play style, allergies, and more for millions of dogs. We believe that this is a key competitive advantage as it enables us to deliver highly personalized products and experiences for each and every dog that we serve. We are able to tailor our products to each customer by collecting proprietary product and customer data with each interaction. We also leverage our machine learning technology, and first-party data set to compare dogs’ attributes against our available inventory when recommending products for purchase via cross-selling or ATB. In addition, we believe that personalization requires more than curation. We apply our data-driven customization approach to our product design and development as well, so that our products themselves, and not just our recommendations, are tailored to meet particular dog attributes that have been expressed to us.
Deep Customer Relations Drive Retention and Lifetime Value:
Our strong customer relationships are at the heart of what we do. Our Happy Team proactively engages hundreds of thousands of customers each month. We get to know their dog’s preferences based on breed, size, age, play style, allergies, and more. This allows us to personalize our products and experiences for each customer, which we believe drives stronger retention and lifetime value.
In-House Product Design and Development:
All of our products are designed and developed in-house, and branded BARK, which helps drive our strong gross margins versus companies primarily selling third-party products. We believe that our data and insights have enabled us to design and make superior products for dogs as well as to create new products that dogs and their dog parents love. By employing an in-house team of world-class designers to design our products and having them made exclusively for us, rather than selling third-party products, we have created a collection of high-quality, unique, and cleverly-themed products, with strong brand association and higher potential for profitability. By designing our own products, we have the opportunity to achieve higher price points, therefore expanding our gross margins.
Omnichannel:
BARK currently sells products in over 50,000 retail doors nationwide, including Target, TJ Maxx, Costco, Walmart, and PetSmart. We also sell our products on other online platforms including Amazon Chewy, and TikTok. We believe that these partnerships significantly broaden our customer reach and raise awareness for the BARK brand. We also generate a similar contribution margin across its DTC and Commerce segments.
Growth Opportunities
We strive to be a dog parent’s partner from those first days with a puppy throughout their dog’s entire adult life. BARK seeks to be there every step of the way serving dogs with the best products and services. Our ambition is to grow BARK to be the world’s favorite dog brand. We are focused on several key areas that we believe will be significant drivers to our business, long-term.
Recalibrating our DTC Segment
BARK was founded on our monthly subscription box – which was a form of personalization that genuinely differentiated us from other offerings for dogs. We believe our customers have evolved and that we need to build
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toward a fundamentally deeper level of the relationship between BARK and each dog we serve, mediated by the human who loves that dog. This "Relationship Commerce" has three dimensions:
Depth — how well do we truly understand each customer;
Density — how many meaningful touchpoints exist between us and the customer; and
Durability — does the customer give us permission to offer new products and services.
We believe this approach, compounded over millions of customer relationships, together with the competitive advantage provided by AI, will allow us to rapidly adapt to, and scale for, our customers' evolving needs.
Expansion in our Commerce segment
In fiscal 2026, revenue from the sale of BARK products through our retail and e-commerce partners totaled $70 million, or 17.7% of our total revenue. This reflects a 2.3% increase compared to fiscal 2025, as many retail partners remained cautious in light of ongoing uncertainty regarding tariffs. We continue to expect this channel to contribute an increasingly significant portion of our revenue moving forward, driven by continued expansion of our product assortment and retail presence with existing partners, as well as the addition of new partners both domestically and internationally.
Business Strategy
We are focused on enhancing profitability, diversifying our revenue, and positioning BARK for long-term growth. In fiscal 2026, we delivered our second consecutive year of positive Adjusted EBITDA, driven by improvements in operational efficiency and cost structure, while navigating a volatile tariff environment.
As part of our ongoing strategic evolution, we are reducing our reliance on promotion-driven growth and reallocating resources toward higher-return product categories with greater long-term opportunity. This includes narrowing our product and geographical focus to concentrate on areas where we believe BARK has a genuine competitive advantage.
We are also investing in new service offerings, such as BARK Air, and maintaining a lean operating model to support disciplined capital allocation. These strategic initiatives are intended to preserve profitability and position the business to deliver sustained long-term value.
We exited fiscal 2026 debt-free, with a leaner cost structure, and a business that is more diversified.
Our People and Culture
The Team
As dog people, BARK employees join us because they are aligned with our mission to make all dogs happy. The work we are doing is inherently joyful, optimistic, and humorous because our primary customers, dogs, possess those same characteristics. To that end, BARK’s culture is centered around service, creativity, and a high level of ambition to serve all dogs and their humans.
At the end of fiscal 2026, BARK employed approximately 501 full-time and part-time employees, with 196 employees based in the U.S. and 301 employees based in the Philippines. Our employee population includes approximately 314 BARK Happy Ambassadors and their leadership, 20 engineers, data scientists, information security, and technology staff, 51 operations employees, and 93 marketing, creative, general, and administrative employees. As of March 31, 2026, 71% of our employees, 33% of our management team, and 43% of our Board of Directors identified as female or nonbinary.
Employee Engagement
Team communication is frequent and direct, allowing for a high level of transparency and feedback. We engage with employees through periodic surveys to measure employee engagement, receive feedback, and respond to
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employee concerns effectively. We leverage these data points to continuously evolve our policies and practices to meet employee needs and align with BARK team values. Though most of the team has worked remotely since March 2020, we currently use our office in Brooklyn, New York for regular team collaboration, all hands meetings, workshops and more.
Fairness and Inclusivity
At BARK, we recognize that people, like dogs, should be celebrated for their differences and the diverse life experiences they bring to work each day. We advocate for and celebrate a culture of inclusiveness for all people regardless of race, gender, sexual orientation, family status, religion, ethnicity, national origin, physical ability, veteran status, age, or love of cats as we work toward one common goal: to make every single dog as happy as they make us.
BARK is committed to paying employees fairly for their work. Our Total Rewards team determines and regularly reviews all compensation based on a leveling and benchmarking system guided by market insights from third-party experts and tools. On a regular basis, we review all grants of equity for parity across gender and race to ensure that we are taking a consistent approach to compensation for all team members based on market data, role, and level.
Manufacturing
BARK purchases substantially all of its merchandise directly from third-party manufacturers. Some of these suppliers operate their own manufacturing facilities and others subcontract the manufacturing to other parties. BARK’s manufacturers generally agree to terms that are substantially similar to its standard manufacturer terms, which govern its business relationships. BARK has long-standing relationships with a base of vendors that BARK believes to be mutually satisfactory.
All of our exclusive products are required to be produced according to BARK’s specifications, and our manufacturers warrant that such products will perform in accordance with BARK’s specifications. Our manufacturing and supplier contracts are generally on multi-year terms and provide BARK with the additional right to terminate the agreement for uncured material breaches. We require that all of our manufacturers comply with applicable laws and BARK generally has the right to audit the suppliers’ facilities.
Distribution and Inventory Management
BARK currently utilizes global third-party logistics providers to warehouse and distribute finished products from their distribution facilities to support BARK’s domestic operations. These logistics providers manage various distribution activities including product receipt, warehousing, assembly, certain limited product inspection activities, and coordinating outbound shipping.
BARK manages its inventory levels by analyzing product sell-through, forecasting demand, analyzing product ratings, and placing orders with our manufacturers before BARK receives firm orders from customers to ensure sufficient availability.
Trademarks and Other Intellectual Property
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Financial statements
data from SEC XBRL filings. Values are as-reported; restatements supersede originals. Values reported in .
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ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis provides information which management believes is relevant to an assessment and understanding of our consolidated results of operations and financial condition. The discussion should be read in conjunction with the audited consolidated financial statements and notes thereto contained in this Annual Report on Form 10-K. This discussion contains forward-looking statements and involves numerous risks and uncertainties, including, but not limited to, those described in the “Risk Factors” sections of this Annual Report on Form 10-K. Actual results may differ materially from those contained in any forward-looking statements. Unless the context otherwise requires, references to “we”, “us”, “our”, “the Company” and “BARK” are intended to mean the business and operations of BARK, Inc. and its consolidated subsidiaries. The audited consolidated financial statements as of March 31, 2026 and 2025 and for the fiscal years ended March 31, 2026, 2025 and 2024, respectively, present the financial position and results of operations and cash flows of BARK, Inc. and its wholly-owned subsidiaries.
Overview
We believe that dogs and humans are better together and we aspire to be the world’s favorite dog brand. We are a team of dog-obsessed people committed to delivering personalization at scale by satisfying each dog’s distinct personality, preferences, and needs with the best products and services. Since our founding in 2011, we have happily served millions of dogs and their people.
We are an omnichannel brand serving dogs across two key brands: BarkBox and Super Chewer. All of our products are designed, developed, and branded by BARK. We leverage an ever-growing collection of first-party data, customer insights, and artificial intelligence (“AI”) to deliver personalized products and experiences tailored to the needs of each and every dog we serve. We sell our products in two segments: Direct To Consumer (“DTC”) and Commerce through our network of retail partners, which currently spans over 50,000 doors nationwide and online marketplaces including Amazon, Chewy and TikTok.
Factors Affecting Our Performance
We believe that our performance and future success depend on several factors that present significant opportunities for us but also pose risks and challenges, including those discussed below and in the section of this Annual Report on Form 10-K titled “Risk Factors.”
Investments in growth
Our ability to increase the number of customers. total orders, and cross-category purchasing is a key factor in our future DTC growth and will be driven by our marketing efforts and ability to continue to expand our product offerings. As a result, we expect to continue to focus on long-term growth through investments in product offerings and the dog and dog parent experience. We are working to enhance our offerings and expand the breadth of the products. We will remain flexible, adjusting our marketing spend up or down, based on the returns.
Expansion of new offerings
Another key factor in our future performance is our ability to increase our average order value (“AOV”), which involves introducing new products into our portfolio. We expect to continue to invest in the expansion of our product offerings, as we seek to attract new customers as well as growing sales with our existing customers. This expansion may require additional financial investments in headcount, marketing, customer acquisition expenses, operational capabilities and inventory. If we are unable to generate sufficient demand for these new offerings, we may not recover the financial investments and revenue may not increase as desired.
Expansion within new and existing retail channels
Our commerce segment continues to be an important growth driver for the business and our ability to expand our product assortment within both new and existing retail partners remains a focus area. This expansion may also require increased investments in trade marketing, merchandising support, and logistics capabilities. If we are unable
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to successfully grow our retail presence or maintain strong partnerships, our ability to reach new customers and drive incremental revenue may be limited.
Certain macroeconomic and global events and conditions create a challenging environment
Market factors and international events, such as continued changes to trade policy, including the imposition of tariffs or changes in tariff rates, inflation, in particular as driven by the conflict with Iran, market effects of other global conflicts, and rising tensions with China, create business uncertainty and could further exacerbate rising interest rates, higher fuel and energy costs and commodity prices, reductions in net worth based on market declines, increases in housing costs, decreases in credit availability and rising consumer debt levels, which could impact our costs of doing business and the levels of discretionary consumer spending on our products and services and our financial results.
IEEPA tariffs
On February 20, 2026, the U.S. Supreme Court held that tariffs imposed under the International Emergency Economic Powers Act ("IEEPA") were unconstitutional. On April 20, 2026, CBP launched its Consolidated Administration and Processing of Entries ("CAPE") portal to process refund claims.
The Company paid a total of $15.4 million in IEEPA tariffs on imported goods between February 4, 2025 and February 24, 2026. Our recovery of IEEPA tariffs represents a loss recovery. To date, the Company submitted claims that were accepted by the CAPE portal in the amount of $3.3 million and a corresponding refund receivable was recorded within accounts receivable, net in the Company's consolidated balance sheet as of March 31, 2026. Of the $3.3 million, $2.7 million, and $0.6 million were recorded as reductions of cost of revenue, and inventory, respectively. An additional $7.1 million and $5.0 million of the IEEPA tariffs paid by the Company allocable to cost of revenue and inventory, respectively, for the fiscal year ended March 31, 2026 were not recorded. These amounts are not currently eligible for submission under the CAPE portal and therefore the Company was unable to recognize any receivable or loss recovery with respect to these amounts.
None of the IEEPA tariffs paid by the Company were passed through to our customers or are owed to our vendors or suppliers. The Company will pursue all actions necessary to recover the remaining amounts of IEEPA tariffs paid by the Company.
We cannot predict the duration or magnitude of the risks and challenges discussed above. Please refer to the “Cautionary Note Regarding Forward-Looking Statements” and those factors described under “Risk Factors” in this Annual Report on Form 10-K.
Reverse Stock Split
On April 1, 2026, we effected a 1-for-20 reverse stock split of our common stock (the “Reverse Stock Split”), and our common stock began trading on a split-adjusted basis on April 1, 2026. Accordingly, all share and per share amounts presented in these consolidated financial statements and the accompanying notes have been retroactively adjusted, where applicable, to reflect the Reverse Stock Split.
As a result of the Reverse Stock Split, the number of shares of common stock outstanding and the number of shares underlying outstanding equity awards were proportionately reduced, and the corresponding exercise prices and per share amounts, as applicable, were proportionately increased. No fractional shares were issued in connection with the Reverse Stock Split.
Key Performance Indicators
We use the following key financial and operating metrics to evaluate our business and operations, measure our performance, identify trends affecting our business, project our future performance, and make strategic decisions. These key financial and operating metrics should be read in conjunction with the following discussion of our results of operations and financial condition together with our consolidated financial statements and the related notes and
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other financial information included elsewhere in this Annual Report on Form 10-K may not be comparable to similarly titled performance indicators used by other companies.
| Fiscal Year Ended | ||||||||||||||||||||||
| March 31, | ||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||
| Total Orders (in thousands) | 10,060 | 13,210 | ||||||||||||||||||||
| Average Order Value | $31.06 | $31.04 | ||||||||||||||||||||
Direct to Consumer Gross Profit (in thousands)(1) | $213,620 | $271,012 | ||||||||||||||||||||
Direct to Consumer Gross Margin (1) | 68.4% | 66.1% | ||||||||||||||||||||
(1) Direct to Consumer Gross Profit and Direct to Consumer Gross Margin does not include the revenue or cost of goods sold from BARK Air.
Total Orders
We define Total Orders as the total number of Direct to Consumer orders shipped in a given period. These include all orders across all of our product categories, regardless of whether they are purchased on a subscription, auto-ship, or one-off basis. Total Orders excludes orders from BARK Air. We use Total Orders as an indicator of customer interest and demand.
Average Order Value
Average Order Value (“AOV”) is Direct to Consumer revenue for the period divided by Total Orders for the same period. AOV excludes Direct to Consumer revenue from BARK Air. We use AOV to provide insight into customer spending patterns.
Components of Our Results of Operations
We operate with two reportable segments: Direct to Consumer and Commerce, to reflect the way our Chief Executive Officer, who is our Chief Operating Decision Maker (“CODM”), reviews and assesses the performance of the business.
Revenue
The Company generates revenue through its DTC and Commerce segments, through the sale of BarkBox and Super Chewer branded toys and BARK branded treats and chews.
While BarkBox and Super Chewer toys remain the primary driver of our DTC and commerce segments and fundamental to our brand identity, we are also focused on maximizing the profitability of our complementary treats and chews categories. This includes a strategic rationalization—specifically the discontinuation of kibble and topper offerings—to concentrate resources and narrow our focus. We believe this streamlined approach allows us to better support our core toy and treat business while improving our overall profitability profile.
DTC
The majority of our revenue is derived from our subscription products that feature monthly themes of premium quality BarkBox and/or Super Chewer toys and BARK-branded treats and chews that are delivered directly to a dog’s home. Customers have the option to subscribe to these products on a one-month, three-month, six-month, or twelve-month basis. During the life of their subscription, we offer our customers incremental products via Add-To-Box (“ATB”), which allows us to cross-sell customers across our full portfolio of products.
Commerce
We also sell our BarkBox and Super Chewer toys and BARK-branded treats and chews in retail stores and other e-tailers, significantly broadening our customer reach and raising awareness of the BARK brand. BARK products are currently sold in over 50,000 retail doors, including Target, Walmart, TJ Maxx, Costco and PetSmart. Additionally, we sell our products on other online platforms including Amazon, Chewy and TikTok.
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BARK Air
Announced in April 2024, BARK Air is a first-of-its kind air travel experience tailored to dogs. The Company is partnered with several charter companies offering premium flights for customers and their dogs. Interested parties can book flights at dogsflyfirst.com. Our charter partners are responsible for all aircraft, pilots, maintenance, and insurance, allowing BARK to focus on creating a great travel experience for dogs and their people worldwide. We believe this initiative exemplifies the Company’s dog-first approach to curating the best products and services.
As our flagship entry into the services category, BARK Air is part of a broader strategy to expand into premium, differentiated dog services. With new routes, expanded partnerships, and high early engagement, we believe BARK Air and future services represent a meaningful long-term growth opportunity. Revenue generated by BARK Air is currently reflected in our DTC segment.
Cost of Revenue
Cost of revenue primarily consists of the purchase price of inventory sold, duties, inbound freight costs associated with inventory, shipping supply costs, and inventory shrinkage costs.
Operating Expenses
Operating expenses consist of general and administrative and advertising and marketing expenses.
General and Administrative
General and administrative expenses consist primarily of compensation and benefit expenses, including stock-based compensation, fulfillment and shipping costs, which represent costs incurred in operating and staffing fulfillment and customer service centers, including costs attributable to receiving, inspecting, picking, packaging and preparing customer orders for shipment, outbound freight costs associated with shipping orders to customers, and responding to inquiries from customers. General and administrative expenses also include fees charged by third parties that provide payment processing services, office expense, including rent, insurance and professional service fees.
Advertising and Marketing
Advertising and marketing expense consists primarily of internet advertising, promotional items, agency fees, other marketing costs and compensation and benefits expenses, including stock-based compensation expense, for employees engaged in advertising and marketing.
Interest Income
Interest income primarily consists of income earned on our interest-bearing deposit accounts.
Interest Expense
Interest expense primarily consists of interest incurred under our 2025 Convertible Notes, and amortization of debt issuance costs.
Other Income, Net
Other income, net, primarily consists of changes in the fair value of our warrant liabilities and loss on extinguishment of debt.
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Results of Operations
We operate in two reportable segments to reflect the way our CODM reviews and assesses the performance of the business. See Note 2, “Summary of Significant Accounting Policies,” in our audited consolidated financial statements for the fiscal years ended March 31, 2026, 2025, and 2024 included elsewhere in this Annual Report on Form 10-K.
| Fiscal Year Ended March 31, | |||||||||||||||||||||||||||
| 2026 | 2025 | 2024 | 2026 vs 2025 | 2025 vs 2024 | |||||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||||||
| Consolidated Statement of Operation Data: | |||||||||||||||||||||||||||
| Revenue | |||||||||||||||||||||||||||
| Direct to Consumer | $ | 324,927 | $ | 415,837 | $ | 436,446 | (21.9) | % | (4.7) | % | |||||||||||||||||
| Commerce | 69,916 | 68,345 | 53,738 | 2.3 | % | 27.2 | % | ||||||||||||||||||||
| Total revenue | 394,843 | 484,182 | 490,184 | (18.5) | % | (1.2) | % | ||||||||||||||||||||
| Cost of revenue | |||||||||||||||||||||||||||
| Direct to Consumer | 111,186 | 145,011 | 157,578 | (23.3) | % | (8.0) | % | ||||||||||||||||||||
| Commerce | 41,772 | 37,183 | 30,454 | 12.3 | % | 22.1 | % | ||||||||||||||||||||
| Total cost of revenue | 152,958 | 182,194 | 188,032 | (16.0) | % | (3.1) | % | ||||||||||||||||||||
| Gross profit | 241,885 | 301,988 | 302,152 | (19.9) | % | (0.1) | % | ||||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||||||
| Advertising and marketing | 59,213 | 83,756 | 79,282 | (29.3) | % | 5.6 | % | ||||||||||||||||||||
| General and administrative | 222,850 | 253,380 | 268,390 | (12.0) | % | (5.6) | % | ||||||||||||||||||||
| Total operating expenses | 282,063 | 337,136 | 347,672 | (16.3) | % | (3.0) | % | ||||||||||||||||||||
| Loss from operations | (40,178) | (35,148) | (45,520) | 14.3 | % | (22.8) | % | ||||||||||||||||||||
| Interest income | 1,880 | 4,926 | 7,533 | (61.8) | % | N/M | |||||||||||||||||||||
| Interest expense | (1,856) | (2,788) | (4,351) | (33.4) | % | (35.9) | % | ||||||||||||||||||||
Other income, net | 1,146 | 132 | 5,328 | 768.2 | % | (97.5) | % | ||||||||||||||||||||
| Net loss before income taxes | (39,008) | (32,878) | (37,010) | 18.6 | % | (11.2) | % | ||||||||||||||||||||
| Provision for income taxes | — | — | — | 0.0 | % | 0.0 | % | ||||||||||||||||||||
| Net loss | $ | (39,008) | $ | (32,878) | $ | (37,010) | 18.6 | % | (11.2) | % | |||||||||||||||||
N/M means not meaningful. | |||||||||||||||||||||||||||
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Comparison of the Fiscal Years Ended March 31, 2026 and March 31, 2025
Revenue
| Fiscal Year Ended March 31, | ||||||||||||||||||||||
| 2026 | 2025 | $ Change | % Change | |||||||||||||||||||
| ( in thousands) | ||||||||||||||||||||||
| Revenue | ||||||||||||||||||||||
| Direct to Consumer | 324,927 | 415,837 | (90,910) | (21.9) | % | |||||||||||||||||
| Commerce | 69,916 | 68,345 | 1,571 | 2.3 | % | |||||||||||||||||
| Total revenue | $ | 394,843 | $ | 484,182 | $ | (89,339) | (18.5) | % | ||||||||||||||
| Percentage of Revenue | ||||||||||||||||||||||
| Direct to Consumer | 82.3 | % | 85.9 | % | ||||||||||||||||||
| Commerce | 17.7 | % | 14.1 | % | ||||||||||||||||||
Direct to Consumer revenue decreased by $90.9 million, or 21.9%, for the fiscal year ended March 31, 2026 compared to the fiscal year ended March 31, 2025. This decrease was primarily driven by a 23.8%, or 3.2 million decrease in Total Orders. The decrease was partially offset by an increase in revenue from BARK Air of $6.5 million. Total BARK Air revenue was $12.4 million or 3.8% of Direct to Consumer revenue.
Commerce revenue increased by $1.6 million, or 2.3%, for the fiscal year ended March 31, 2026 compared to the fiscal year ended March 31, 2025. This increase was primarily driven by sales volume from existing and new customers.
Gross Profit
| Fiscal Year Ended March 31, | ||||||||||||||||||||||
| 2026 | 2025 | $ Change | % Change | |||||||||||||||||||
| ( in thousands) | ||||||||||||||||||||||
| Gross Profit | ||||||||||||||||||||||
| Direct to Consumer | $ | 213,741 | $ | 270,826 | $ | (57,085) | (21.1) | % | ||||||||||||||
| Commerce | 28,144 | 31,162 | (3,018) | (9.7) | % | |||||||||||||||||
| Total gross profit | $ | 241,885 | $ | 301,988 | $ | (60,103) | (19.9) | % | ||||||||||||||
| Percentage of revenue | 61.3 | % | 62.4 | % | ||||||||||||||||||
Direct to Consumer gross profit decreased by $57.1 million, and Commerce gross profit decreased by $3.0 million, for the fiscal year ended March 31, 2026 compared to the fiscal year ended March 31, 2025. The decrease in Direct to Consumer gross profit is primarily attributable to a decrease in revenue and the decrease in Commerce gross profit was primarily due to a decrease in revenue due to the opportunistic sell-through of surplus inventory and customer mix.
Gross profit as a percentage of revenue decreased 110 basis points for the fiscal year ended March 31, 2026 compared to the fiscal year ended March 31, 2025.
Direct to Consumer gross margin was 65.8%, 66 basis points higher than the same period last year. Excluding the impact of BARK Air, Direct to Consumer gross margin increased 230 basis points compared to the same period last year. The increase in Direct to Consumer gross margin is primarily attributable to product cost improvements and plan mix changes.
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Commerce gross margin was 40.3%, 540 basis points lower than the same period last year. The decrease in Commerce gross margin is primarily attributable to opportunistic sell-through of surplus inventory, and changes in customer mix.
Operating Expenses
General and Administrative Expense
| Fiscal Year Ended March 31, | ||||||||||||||||||||||
| 2026 | 2025 | $ Change | % Change | |||||||||||||||||||
| ( in thousands) | ||||||||||||||||||||||
Other general and administrative | 103,408 | 114,257 | (10,849) | (9.5) | % | |||||||||||||||||
Shipping and fulfillment | 119,442 | 139,123 | (19,681) | (14.1) | % | |||||||||||||||||
Total General and administrative | $ | 222,850 | $ | 253,380 | $ | (30,530) | (12.0) | % | ||||||||||||||
| Percentage of revenue | 56.4 | % | 52.3 | % | ||||||||||||||||||
General and administrative expense decreased by $30.5 million, or 12.0%, for the fiscal year ended March 31, 2026 compared to the fiscal year ended March 31, 2025. This decrease during the period was primarily due to: decreased shipping and fulfillment costs of $19.7 million attributable to lower DTC volumes, decreased compensation expense of $6.5 million due to a decrease in headcount and decreased consulting expense of $1.0 million, as the business continued to manage its cost base. The remaining decrease in general and administrative costs is due to a reduction in rent, office expenses.
Advertising and Marketing
| Fiscal Year Ended March 31, | ||||||||||||||||||||||
| 2026 | 2025 | $ Change | % Change | |||||||||||||||||||
| ( in thousands) | ||||||||||||||||||||||
| Advertising and marketing | $ | 59,213 | $ | 83,756 | $ | (24,543) | (29.3) | % | ||||||||||||||
| Percentage of revenue | 15.0 | % | 17.3 | % | ||||||||||||||||||
Advertising and marketing expense decreased by $24.5 million, or 29.3%, for the fiscal year ended March 31, 2026 compared to the fiscal year ended March 31, 2025. The decrease is attributable to a strategic decrease in DTC marketing spend.
Interest Income
| Fiscal Year Ended March 31, | ||||||||||||||||||||||
| 2026 | 2025 | $ Change | % Change | |||||||||||||||||||
| ( in thousands) | ||||||||||||||||||||||
Interest income | $ | 1,880 | $ | 4,926 | $ | (3,046) | (61.8) | % | ||||||||||||||
| Percentage of revenue | 0.5 | % | 1.0 | % | ||||||||||||||||||
Interest income decreased by $3.0 million for the fiscal year ended March 31, 2026 compared to the fiscal year ended March 31, 2025. The decrease in interest income is due to an overall decrease in cash in interest-bearing deposit accounts.
34
Interest Expense
| Fiscal Year Ended March 31, | ||||||||||||||||||||||
| 2026 | 2025 | $ Change | % Change | |||||||||||||||||||
| ( in thousands) | ||||||||||||||||||||||
Interest expense | $ | (1,856) | $ | (2,788) | $ | 932 | (33.4) | % | ||||||||||||||
| Percentage of revenue | (0.5) | % | (0.6) | % | ||||||||||||||||||
Interest expense decreased by $0.9 million, or 33.4%, for the fiscal year ended March 31, 2026 compared to the fiscal year ended March 31, 2025. The decrease is attributable to the timing of the 2025 Convertible Note repurchase which occurred on November 6, 2025.
Other Income, net
| Fiscal Year Ended March 31, | ||||||||||||||||||||||
| 2026 | 2025 | $ Change | % Change | |||||||||||||||||||
| ( in thousands) | ||||||||||||||||||||||
Other income, net | 1,146 | 132 | $ | 1,014 | 768.2 | % | ||||||||||||||||
| Percentage of revenue | 0.3 | % | — | % | ||||||||||||||||||
Other income, net increased by $1.0 million for the fiscal year ended March 31, 2026 compared to the fiscal year ended March 31, 2025. The increase in other income, net, was primarily due to the decrease in the fair value of our warrant liabilities of $0.9 million, and increased sublease income of $0.6 million.
35
Comparison of the Fiscal Years Ended March 31, 2025 and March 31, 2024
Revenue
| Fiscal Year Ended March 31, | ||||||||||||||||||||||
| 2025 | 2024 | $ Change | % Change | |||||||||||||||||||
| ( in thousands) | ||||||||||||||||||||||
| Revenue | ||||||||||||||||||||||
| Direct to Consumer | 415,837 | 436,446 | (20,609) | (4.7) | % | |||||||||||||||||
| Commerce | 68,345 | 53,738 | 14,607 | 27.2 | % | |||||||||||||||||
| Total revenue | $ | 484,182 | $ | 490,184 | $ | (6,002) | (1.2) | % | ||||||||||||||
| Percentage of Revenue | ||||||||||||||||||||||
| Direct to Consumer | 85.9 | % | 89.0 | % | ||||||||||||||||||
| Commerce | 14.1 | % | 11.0 | % | ||||||||||||||||||
Direct to Consumer revenue decreased by $20.6 million, or 4.7%, for the fiscal year ended March 31, 2025 compared to the fiscal year ended March 31, 2024. This decrease was primarily driven by a 5.1%, or 0.7 million decrease in Total Orders, in addition to a $0.30 or 1.0% decrease in AOV. Fiscal year 2025 Direct to Consumer revenue included $5.8 million of BARK Air revenue.
Commerce revenue increased by $14.6 million, or 27.2%, for the fiscal year ended March 31, 2025 compared to the fiscal year ended March 31, 2024. This increase was primarily driven by sales volume from existing and new customers.
Gross Profit
| Fiscal Year Ended March 31, | ||||||||||||||||||||||
| 2025 | 2024 | $ Change | % Change | |||||||||||||||||||
| ( in thousands) | ||||||||||||||||||||||
| Gross Profit | ||||||||||||||||||||||
| Direct to Consumer | $ | 270,826 | $ | 278,868 | $ | (8,042) | (2.9) | % | ||||||||||||||
| Commerce | 31,162 | 23,284 | 7,878 | 33.8 | % | |||||||||||||||||
| Total gross profit | $ | 301,988 | $ | 302,152 | ||||||||||||||||||
Next expected filings
- ~2026-08-07 10-Q expected by 2026-08-09 (in 57 days)
- ~2026-11-10 10-Q expected by 2026-11-12 (in 152 days)
- ~2027-02-05 10-Q expected by 2027-02-07 (in 239 days)
- ~2027-06-11 10-K expected by 2027-06-22 (in 365 days)
Predicted from historical filing cadence; not an SEC commitment.
Recent SEC filings
- 2026-06-10 10-K Annual Report
- 2026-06-09 8-K Other Events; Financial Statements and Exhibits
- 2026-05-04 8-K Officer/Director Change; Financial Statements and Exhibits
- 2026-04-02 8-K Material Modification to Rights; Bylaws/Articles Amended; Financial Statements and Exhibits
- 2026-03-27 8-K Officer/Director Change
- 2026-03-26 8-K Shareholder Vote Results; Regulation FD Disclosure; Other Events
- 2026-03-20 8-K Other Events
- 2026-03-03 8-K Other Events; Financial Statements and Exhibits
- 2026-02-24 8-K Officer/Director Change
- 2026-02-13 8-K Other Events; Financial Statements and Exhibits
- 2026-02-05 10-Q Quarterly Report
- 2026-02-05 8-K Earnings Release; Financial Statements and Exhibits
- 2026-02-02 8-K Other Events
- 2026-01-09 8-K Other Events; Financial Statements and Exhibits
- 2025-12-19 8-K Delisting Notice; Other Events