BARK (BARK) investor relations material

Executive summary

• Fiscal 2026 revenue declined 18.5% year-over-year to $394.8 million, driven by a $24.5 million reduction in marketing spend to prioritize profitability amid tariff and macroeconomic pressures.

• Achieved second consecutive year of positive Adjusted EBITDA at $0.2 million, meeting profitability goals despite macro and tariff headwinds.

• Commerce and BARK Air segments grew to 21% of total revenue, up from 15% last year, advancing revenue diversification.

• Exited underperforming kibble and toppers lines to focus on core toys, treats, and experiences.

• Board authorized a $40 million share repurchase program, funded by free cash flow.

Financial highlights

• Q4 2026 revenue was $86.6 million, down 25% year-over-year; full-year revenue was $394.8 million, down from $484.2 million.

• Consolidated gross margin was 61.3% for the year and 62.7% for Q4; D2C gross margin improved by over 200 basis points year-over-year to 68%.

• Adjusted EBITDA for the year was $200,000, with $3.2 million generated in Q4.

• Advertising and marketing expenses decreased to $59.2 million from $83.8 million; G&A expenses fell to $222.9 million from $253.4 million.

• Free cash flow for the year was $(26.6) million; cash and equivalents at year-end were $19.3 million.

Outlook and guidance

• FY 2027 revenue guidance: $325 million–$340 million; Adjusted EBITDA: $7 million–$10 million.

• Q1 FY 2027 guidance: revenue of $77 million–$79 million, Adjusted EBITDA of $0–$1 million.

• D2C revenue expected to decline in the first half of FY 2027 before stabilizing and returning to growth in the second half.

• Commerce and BARK Air are expected to collectively exceed $100 million in revenue in fiscal 2027.

• Commerce segment projected to represent nearly 25% of total revenue in FY 2027.