BARK (BARK) investor relations material

Executive summary

• Fiscal Q1 2027 revenue was $78.8 million, down 23.4% year-over-year but at the high end of guidance, reflecting strong subscriber retention, improved retail sales, and robust BARK Air demand.

• Net income reached $0.75 million, a turnaround from a $7.0 million net loss in the prior year, aided by $7.4–$8.8 million in IEEPA tariff refunds.

• Adjusted EBITDA was $0.6 million, up from $0.1 million year-over-year, demonstrating improved profitability.

• Ended the quarter with $16.1 million in cash and no debt, after share repurchases and normal seasonal working capital build.

• Executed a 1-for-20 reverse stock split effective April 1, 2026.

Financial highlights

• D2C revenue was $66.7 million, down 25.2% year-over-year; BARK Air contributed $3.2 million, up 37% year-over-year.

• Commerce revenue was $12.1 million, down 11.4% year-over-year, but expected to grow in coming quarters.

• Gross profit was $57.3 million, down from $64.1 million; gross margin was 72.7% (including a one-time tariff refund), normalized margin was 63.4%.

• Marketing spend decreased 37% year-over-year to $9.5 million; shipping and fulfillment expenses also declined.

• Free cash flow was negative $3.7 million for the quarter, improved from negative $6.1 million last year.

Outlook and guidance

• Q2 2027 revenue expected at $83–$85 million, with adjusted EBITDA of $1–$3 million.

• Full-year FY27 revenue guidance reiterated at $325–$340 million; adjusted EBITDA expected at $7–$10 million.

• Management expects cash and cash equivalents to be sufficient to fund operations for at least the next 12 months.

• The company plans to renew its $35 million revolving credit facility before its August 2026 maturity.

• Focus remains on core toy and treat business, with continued investment in premium dog services like BARK Air.