BARK (BARK) Q3 2025 earnings summary

Executive summary

• Q3 FY2025 revenue was $126.4M, up 1.1% year-over-year, surpassing guidance, with commerce revenue up 43.5% and D2C down 4.3%.

• Adjusted EBITDA improved by $4.9M year-over-year to $(1.6)M, marking the 10th consecutive quarter of year-over-year improvement.

• Net loss for the quarter was $11.5M, $1.4M higher than last year due to a prior-year debt extinguishment gain.

• Achieved the highest new D2C subscriptions in three years and $2M in BARK Air revenue within seven months of launch.

• On track for first full year of positive adjusted EBITDA.

Financial highlights

• Gross margin increased to 62.7%, up 90 basis points year-over-year; gross profit was $79.3M, up 2.6%.

• Adjusted EBITDA for the quarter was $(1.6)M, a $4.9M improvement year-over-year.

• Free cash flow for the quarter was $(2.0)M; year-to-date $(1.2)M.

• Cash and cash equivalents at quarter-end were $115.3M, with no outstanding borrowings under the credit facility.

• Inventory increased by $6.2M since March 2024, anticipating stronger FY2026 sales.

Outlook and guidance

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

• FY2025 adjusted EBITDA guidance of $1M–$5M, marking the first positive adjusted EBITDA year.

• Q4 FY2025 revenue expected at $121.2M–$131.2M, with variability due to timing of retail shelf resets.

• Fiscal 2026 expected to deliver mid to high single-digit top-line growth and further EBITDA margin improvement.

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