Bark, Inc. Reports 15.2% Revenue Decline and Increased Net Loss in Q2 Fiscal 2026

Bark, Inc. reported a decline in financial performance for the second quarter of fiscal year 2026, with total revenue of $106.97 million, down 15.2% from $126.11 million in the same period last year. The company's net loss for the quarter was $10.67 million, compared to a loss of $5.26 million in the prior year, reflecting a 102.8% increase in losses. For the first half of the fiscal year, Bark's revenue decreased by 13.4% to $209.83 million from $242.32 million, while the net loss rose to $17.70 million from $15.30 million.

The decline in revenue was primarily attributed to a significant drop in the Direct to Consumer segment, which saw a 19.9% decrease in revenue to $82.15 million, largely due to a 22.2% reduction in total orders. However, the Commerce segment experienced a 5.6% increase in revenue, reaching $24.82 million, driven by sales volume from existing and new customers. The overall gross profit for the quarter was $61.96 million, down 18.6% from $76.11 million a year earlier, with gross margins also declining.

In terms of operational metrics, Bark reported a total of 2.54 million orders for the quarter, a decrease from 3.27 million in the previous year. The average order value remained relatively stable at $30.87. The company has also been focusing on expanding its product offerings, particularly in the consumables category, which includes kibble and treats, as well as its new BARK Air service, which generated $3.6 million in revenue during the quarter.

Bark's balance sheet showed a decrease in cash and cash equivalents to $63.43 million from $94.02 million at the end of the previous fiscal period. The company has been actively managing its debt, recently repurchasing $42.9 million of its 2025 Convertible Notes, which included $2.2 million in accrued interest. Looking ahead, Bark anticipates that its cash reserves will be sufficient to fund operations for at least the next twelve months, despite the ongoing challenges posed by market conditions and competition.

The company remains committed to its growth strategy, focusing on enhancing customer engagement and expanding its product lines. However, it acknowledges the potential impact of macroeconomic factors, including inflation and changes in consumer spending, on its future performance. Bark's management continues to evaluate its operational strategies to navigate these challenges effectively.