BARK (BARK) Q3 2025 earnings summary

Executive summary

• Q3 FY2025 revenue was $126.4M, up 1.1% year-over-year, surpassing guidance, with Commerce up 43.5% and Direct to Consumer down 4.3%.

• Net loss for the quarter was $11.5M, compared to $10.1M in the prior year; Adjusted EBITDA improved by $4.9M year-over-year to $(1.6)M.

• Achieved strongest new subscription quarter in three years and $2M in BARK Air revenue within seven months of launch.

• Positive adjusted EBITDA through the first three quarters, on track for the first full year of adjusted EBITDA profitability.

• Leadership changes, platform migration to Shopify, and technology modernization are driving operational improvements.

Financial highlights

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

• Direct to Consumer revenue was $106.1M, down 4.3%; Commerce revenue was $20.3M, up 43.5%.

• 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; cash and equivalents at quarter-end were $115.3M.

• Marketing expenses rose to $27.4M, reflecting an 11% increase in new subscriptions.

Outlook and guidance

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

• Adjusted EBITDA guidance for FY2025 reaffirmed at $1M–$5M, marking the first positive year.

• Q4 FY2025 revenue expected at $121.2M–$131.2M, with Adjusted EBITDA of $0.9M–$4.9M.

• FY2026 expected to deliver mid to high single-digit top-line growth, with formal guidance to come.

• Management expects cash and equivalents, operating cash flow, and borrowing capacity to fund operations for at least 12 months.