BARK (BARK) Q2 2025 earnings summary

Executive summary

• Achieved $126.1 million in Q2 revenue, a 2.5% year-over-year increase, driven by a 25.6% rise in commerce segment revenue and offsetting a slight Direct to Consumer decline.

• Net loss improved to $(5.3) million, a 49% year-over-year improvement, reflecting better operating leverage and cost controls.

• Adjusted EBITDA reached $3.5 million, the strongest in company history, with positive free cash flow of $1.0 million for the quarter.

• Company is on track for its first full year of profitability, supported by ongoing cost reduction, efficiency programs, and investment in new initiatives like BARK Air.

• Ended the quarter with $115.2 million in cash and continued share repurchases, with $11.1 million remaining authorized.

Financial highlights

• Direct to Consumer revenue was $102.6 million (including $1.5 million from BARK Air), down 1.6% year-over-year; Commerce revenue grew 25.6% to $23.5 million.

• Gross profit was $76.1 million, up 0.6% year-over-year, with consolidated gross margin at 60.4% and D2C gross margin (ex-BARK Air) at 64.8%.

• G&A expenses fell to $63.1 million, mainly from headcount reduction and cost initiatives; marketing expenses rose to $18.7 million.

• Shipping and fulfillment expenses were $34.1 million (27% of revenue), a 100 bps improvement year-over-year.

• Cash and cash equivalents at quarter-end were $115.2 million after $0.9 million in share repurchases.

Outlook and guidance

• Fiscal year 2025 revenue guidance reaffirmed at $490–$500 million, representing flat to 2% year-over-year growth.

• Full-year adjusted EBITDA expected between $1–$5 million, marking the first EBITDA-positive year.

• Q3 revenue guidance of $123–$126 million; adjusted EBITDA expected between break-even and -$3 million.

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

• Commerce segment expected to grow at least 30% for the full year and reach one-third of total revenue in 3–4 years.