Bark, Inc. Reports Revenue Increase to $126.4 Million Despite Net Loss in Q3 Fiscal 2025

Bark, Inc. reported a slight increase in revenue for the third quarter of fiscal 2025, with total revenue reaching $126.4 million, up from $125.1 million in the same period last year. The company's Direct to Consumer segment generated $106.1 million, a decrease of 4.3% year-over-year, while the Commerce segment saw a significant increase of 43.5%, contributing $20.3 million. Despite the overall revenue growth, Bark, Inc. experienced a net loss of $11.5 million, compared to a loss of $10.1 million in the prior year, reflecting ongoing challenges in the Direct to Consumer segment.

In terms of operational metrics, Bark, Inc. reported a total of 3.3 million orders during the quarter, down from 3.5 million in the previous year. The average order value also decreased slightly to $31.25 from $31.65. The company’s gross profit for the quarter was $79.3 million, representing a gross margin of 62.7%, which is an improvement from 61.8% in the same quarter last year. The increase in gross margin was attributed to inbound freight and product cost improvements, particularly in the Commerce segment.

Bark, Inc. has made strategic moves to enhance its market position, including the launch of BARK Air, a premium air travel service for dogs, which generated $2 million in revenue during the quarter. The company continues to expand its product offerings in the consumables category, which includes kibble, treats, and supplements, aiming to capture a larger share of the pet food market. As of December 31, 2024, Bark, Inc. had cash and cash equivalents of approximately $115.3 million, which management believes will be sufficient to fund operations for at least the next twelve months.

The company’s total liabilities increased to $179.2 million from $159.2 million in the previous quarter, primarily due to a rise in accounts payable and accrued expenses. Bark, Inc. has also been active in its stock repurchase program, having repurchased 5.2 million shares for $8 million during the nine months ended December 31, 2024. The company’s employee headcount has decreased, contributing to a reduction in general and administrative expenses, which fell by 3% year-over-year.

Looking ahead, Bark, Inc. anticipates continued challenges in the Direct to Consumer segment but remains optimistic about growth opportunities in the Commerce segment and the consumables market. The company is focused on leveraging its first-party data and customer insights to enhance product offerings and improve customer engagement. Management has indicated that they will continue to monitor macroeconomic conditions and adjust strategies as necessary to navigate potential impacts on consumer spending.