BARK (BARK) Q1 2025 earnings summary

Executive summary

• Q1 FY2025 revenue was $116.2 million, exceeding guidance but down 3.6% year-over-year, driven by new leadership and marketing strategies, with growth in commerce and new subscriber acquisition.

• Gross margin reached a record 63.0%, up 248–250 basis points year-over-year, marking the seventh consecutive quarter of improvement.

• Net loss improved to $(10.0) million from $(11.7) million year-over-year; Adjusted EBITDA loss was $(1.8) million, a $5.6 million improvement.

• Free cash flow improved to $(0.3) million from $(13.7) million year-over-year; net cash from operating activities was $1.8 million.

• BARK Air launched, generating $2.5 million in ticket sales and significant brand awareness.

Financial highlights

• Direct to Consumer segment revenue was $107.1 million (down 4.3% year-over-year); Commerce segment revenue was $9.2 million (up 5.2% year-over-year).

• Direct to Consumer gross margin improved to 64.5% (up 230 bps); Commerce gross margin rose to 46.5% (up 680 bps).

• Adjusted EBITDA loss improved to $(1.8) million from $(7.4) million year-over-year.

• Cash and cash equivalents stood at $117.8 million at quarter end.

• 3 million shares repurchased for $4.3 million during the quarter; $12 million remains authorized for future buybacks.

Outlook and guidance

• FY2025 revenue guidance reaffirmed at $490–$500 million, representing flat to 2% year-over-year growth.

• Adjusted EBITDA expected between $1–$5 million, a $13.6 million improvement at midpoint.

• Q2 FY2025 revenue guidance of $123–$126 million, with 1.2–2.4% year-over-year growth at midpoint.

• Q2 Adjusted EBITDA expected at $1–$3 million; Q2 gross margin projected around 60% due to higher commerce mix.

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