Bark, Inc. Reports 22.1% Revenue Decline in Q3 Fiscal Year 2025

Bark, Inc. reported a significant decline in financial performance for the third quarter of fiscal year 2025, with total revenue of $98.4 million, down 22.1% from $126.4 million in the same period last year. The company's net loss for the quarter was $8.6 million, compared to a loss of $11.5 million in the prior year, indicating a 24.9% improvement in loss reduction. For the nine months ending December 31, 2025, total revenue was $308.3 million, a decrease of 16.4% from $368.8 million in the previous year, while the net loss for the period was $26.3 million, slightly better than the $26.8 million loss reported in the same timeframe last year.

The decline in revenue was primarily attributed to a 25% drop in Direct to Consumer sales, which fell to $79.6 million from $106.1 million year-over-year. This decrease was driven by a reduction in total orders, which fell by 27.2%. However, the company noted a positive contribution from its new BARK Air service, which generated $3.4 million in revenue during the quarter. In contrast, the Commerce segment saw a smaller decline, with revenue decreasing by 7.2% to $18.9 million, attributed to lower sales volume.

Operationally, Bark, Inc. reported a decrease in total orders to 2.4 million for the quarter, down from 3.3 million in the previous year. The average order value remained stable at approximately $31.41. The company also reported a gross profit of $61.6 million, down 22.3% from $79.3 million, with a gross margin of 62.5%. The Direct to Consumer gross margin improved to 66.4%, reflecting better product cost management and changes in product mix.

In terms of strategic developments, Bark, Inc. has focused on cost management, reducing general and administrative expenses by 15.1% to $54.5 million, and cutting advertising and marketing expenses by 41.3% to $16.1 million. The company has also repurchased $42.9 million of its 2025 Convertible Notes, which has helped to streamline its debt obligations. As of December 31, 2025, Bark, Inc. had cash and cash equivalents of $21.7 million, down from $94 million at the beginning of the fiscal year, but management believes this will be sufficient to fund operations for at least the next twelve months.

Looking ahead, Bark, Inc. anticipates continued challenges due to macroeconomic factors such as inflation and changing consumer spending patterns. The company is implementing various strategies to mitigate these impacts, including diversifying supply sources and optimizing product offerings. Despite the current downturn, Bark, Inc. remains committed to expanding its market share in the consumables category and enhancing its Direct to Consumer offerings, which it views as critical for future growth.