Bark, Inc.
For the period ended Jun 30, 2026. Filed Aug 6, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 6, 2026
BARK$9.33+11.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-12-31; filed 2026-02-05.
0001628280-26-005799
ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-06.
0001628280-26-054441
ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 135 previous paragraphs and 120 current paragraphs.
61 unchanged; 28 reworded; 29 added; 43 removed; 3 previous and 2 current paragraphs rearranged.
Tables are not compared: 20 previous and 14 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (29)
Current report
Reverse Stock Split
Current report
On April 1, 2026, we effected a 1-for-20 reverse stock split of our common stock (the “Reverse Stock Split”), and our common stock began trading on a split-adjusted basis on April 1, 2026. Accordingly, all share and per share amounts presented in these consolidated financial statements and the accompanying notes have been retroactively adjusted, where applicable, to reflect the Reverse Stock Split.
Current report
As a result of the Reverse Stock Split, the number of shares of common stock outstanding and the number of shares underlying outstanding equity awards were proportionately reduced, and the corresponding exercise prices and per share amounts, as applicable, were proportionately increased. No fractional shares were issued in connection with the Reverse Stock Split.
Current report
Certain market factors and international events create significant business uncertainty. Evolving trade policies, including the imposition of tariffs or changes in tariff rates as well as geopolitical friction, including rising tensions with China and conflicts in Iran and other global regions are key catalysts. These dynamics create business uncertainty and could exacerbate interest rates, increase fuel and energy costs and commodity prices. Reductions in net worth based on market declines, increases in housing costs, decreases in credit availability and rising consumer debt levels, impact levels of discretionary consumer spending on our products and services and our financial results.
Current report
IEEPA tariffs
Current report
On February 20, 2026, the U.S. Supreme Court held that tariffs imposed under the International Emergency Economic Powers Act ("IEEPA") were unconstitutional. On April 20, 2026, CBP launched its Consolidated Administration and Processing of Entries ("CAPE") portal to process refund claims.
Current report
During the first quarter, the Company recognized $8.8 million as a reduction to cost of revenue, consisting of $7.4 million related to revenue recorded in fiscal year 2026 and $1.4 million related to revenue recorded in fiscal year 2027. The Company has recognized the full refund receivable associated with these amounts. As of the balance sheet date, the Company’s tariff receivable was $12.1 million which is inclusive of refunds due to the Company from the prior period. During the fiscal first quarter the Company had received $3.2 million of refunds, and an additional $0.2 million of interest.
Current report
None of the IEEPA tariffs paid by the Company were passed through to our customers or are owed to our vendors or suppliers. The Company will pursue all actions necessary to recover the remaining amounts of IEEPA tariffs paid by the Company.
Current report
Subscriber Retention
Current report
We define Subscriber Retention as the number of active subscriptions during a particular month divided by the number of active subscriptions for the prior month. An active subscription excludes new subscriptions, i.e. subscriptions with an initial shipment in a particular month. To calculate the Subscriber for any quarterly period, we average the monthly rates, weighted by each month's beginning subscription base. Subscriber Retention excludes BARK Air. We use Subscriber Retention to assess the durability of our subscription base.
Current report
The Company generates revenue through its DTC and Commerce segments, through the sale of BarkBox and Super Chewer branded toys and BARK branded treats and chews.
Current report
While BarkBox and Super Chewer toys remain the primary driver of our DTC and Commerce segments and fundamental to our brand identity, we are also focused on maximizing the profitability of our complementary treats and chews categories. This includes a strategic rationalization—specifically the discontinuation of kibble and topper offerings—to concentrate resources and narrow our focus. We believe this streamlined approach allows us to better support our core toy and treat business while improving our overall profitability profile.
Current report
DTC
Current report
Commerce
Current report
We also sell our BarkBox and Super Chewer toys and BARK-branded treats and chews in retail stores and other e-tailers, significantly broadening our customer reach and raising awareness of the BARK brand. BARK products are currently sold in over 50,000 retail doors, including Target, Walmart, TJ Maxx, Costco and PetSmart. Additionally, we sell our products on other online platforms including Amazon, Chewy and TikTok.
Current report
BARK Air
Current report
As our flagship entry into the services category, BARK Air is part of a broader strategy to expand into premium, differentiated dog services. With expanded routes, partnerships, and high engagement, we believe BARK Air and future services represent a meaningful long-term growth opportunity. Revenue generated by BARK Air is currently reflected in our DTC segment.
Current report
Advertising and Marketing
Current report
Interest Income
Current report
Interest Expense
Current report
Other Income, Net
Current report
Other income net, primarily consists of sublease income, and the change in fair value of the Company’s warrants.
Current report
The table below details gross margin normalized for tariff refunds in the current period that corresponded to prior year sales (in thousands):
Current report
After the application of tariff refunds to cost of sales to the period in which the sale originated Direct to Consumer adjusted gross margin increased 600 basis points compared to the prior period. The increase was primarily attributable to product cost improvements and changes in product mix. Commerce adjusted gross margin increased 6.0% compared to the prior period. This increase was primarily attributable to changes in customer mix.
Current report
Advertising and Marketing
Current report
Interest Income
Current report
Interest Expense
Current report
Other Income, Net
Current report
For the three months ended June 30, 2026, net cash provided by financing activities was $0.8 million, primarily due to the sale of common stock of $2.0 million, offset by tax payments related to the issuance of common stock of $1.0 million and repurchases of common stock of $0.2 million.
Removed paragraphs (43)
Previous report
We began our journey with BarkBox – a monthly-themed subscription of toys and treats, tailored to the needs of each customer based on their dog’s size, play style, allergies, and more. By viewing each dog as an individual, and by creating magical experiences for our customers, we have been able to build lasting relationships with millions of dogs and their parents. Our customer service (“Happy Team”) proactively engages around 200,000 customers each month. We use the valuable data from these customer interactions to inform the design and development of future products, and we leverage it along with machine learning technology to recommend additional products to our customers through cross-selling and Add-to-Box (“ATB”).
Previous report
In addition to being one of the largest dog toy brands in the U.S. by revenue, we also have entered exciting, and much larger categories in the consumables space, which include kibble, treats, toppers, supplements, and dental products. These categories have significantly increased our total addressable market and the number of customers we can serve. We believe that our growing first-party dataset, strong brand, and loyal customer base afford us a meaningful advantage and opportunity to win market share in these newer categories.
Previous report
Market factors or international events, such as increased inflation, war, rising tensions between the U.S. and China, and continued changes to trade policy, including the imposition of tariffs or changes in tariff rates, create uncertainty and could impact our results of operations.
Previous report
Tariffs. In early 2025, new tariffs were announced on imports to the United States, including additional tariffs on goods from China, Canada, and other countries from which we source products. The scope, duration, and ultimate impact of these tariffs and related actions remain uncertain and could result in higher product costs.
Previous report
The Company has implemented, and continues to execute, various mitigation strategies to manage the impact of tariffs, including negotiating lower product costs with suppliers, diversifying supply sources to alternate countries, optimizing product assortment, providing Direct to Consumer subscribers with a lower-cost packaging option and implementing select pricing adjustments. Collectively, these actions have meaningfully mitigated the potential impact of tariffs on our Gross Profit. We believe our mitigation strategies will help maintain our competitiveness over the long term and, most importantly, make all dogs happy.
Previous report
The ultimate impact of tariffs and related measures will depend on factors such as whether additional or incremental tariffs are imposed, the extent of retaliatory actions by other countries, and the overall effectiveness of, and consumer response to, our mitigation strategies.
Previous report
Macroeconomic Conditions. Macroeconomic conditions and the related effects on levels of consumer spending impact our business as purchases of discretionary items tend to decline when disposable income is lower or when there are recessions, inflationary pressures or other economic uncertainty. Inflation, rising interest rates, higher fuel and energy costs and commodity prices, reductions in net worth based on market declines and uncertainty, home prices, credit availability and consumer debt levels, political instability due to war or or global conflicts or other geopolitical factors and other macroeconomic pressures and general uncertainty regarding the overall future economic environment have led to recession fears and created a challenging environment.
Previous report
The Company generates revenue through its Direct to Consumer and Commerce segments, each of which participate in the sale of the Company’s Toys & Accessories and Consumables product lines. See below for additional information.
Previous report
We also sell toys through our Commerce segment which is a network of retail partners and online major market places. This distribution channel allows us to reach new customers and introduce them to the BARK brand. Commerce revenue derived from our retail partners is recognized net of estimates for sales returns, discounts, markdowns and allowances, after the goods are shipped, or when the retail customer picks up the goods directly from one of our distribution points and control of the goods is transferred to the customer. Online marketplaces revenue is recognized upon delivery of goods to the end customer.
Previous report
Our toys category also includes revenue derived from the sale of other products such as beds, leashes, apparel, and other accessories.
Previous report
Consumables—The majority of our consumables revenue today is derived from the treats and chews that are included in our BarkBox and Super Chewer boxes. Over the past several years, the Company has expanded into new and larger consumables markets such as kibble, toppers, supplements and dental products. The Company sells its consumables products both Direct to Consumer (through Bark.co) and through its retail footprint. Products sold via the Company’s website can be purchased on a recurring, auto-ship, or one-off basis. Revenue related to bark.co is recognized at a point in time, as control is transferred to the customer upon each delivery.
Previous report
Treats— Includes treats and chews included in our BarkBox and Super Chewer boxes, as well as the sale of treats on Bark.co. Many of our treats feature monthly themes, similar to our toys. Today, BARK is one of the largest treat brands in the U.S. by revenue. The Company anticipates expansion of its treat offerings amongst commerce customers.
Previous report
Toppers—Includes meal-enhancing sprinkles, broths and bites that are added to a dog’s meal to enhance the flavor of their food. These toppers are often single ingredient proteins that can be easily added to a dog’s existing meal plan. Toppers are particularly beneficial for picky eaters.
Previous report
Supplements—Includes a variety of dog supplements such as hip and joint support, and skin and coat support. These products are often targeted at specific breeds that are prone to certain ailments.
Previous report
Kibble—We sell a variety of kibble, priced to compete with the premium category. While our kibble can be purchased on an individual basis or auto-ship basis, we entered this market with a breed-based approach that recommends meal plans consisting of a mix of kibble, toppers, and supplements based on the characteristics and personalities of various dog breeds. For example, because German Shepherds are prone to hip issues, we recommend hip and joint support supplements with the purchase of their kibble. If that dog is also a picky eater, we will recommend adding one of our toppers. This enhances our average order value and margin profile.
Previous report
Dental—Also known as BARK Bright, this category includes a variety of chews and toothpastes aimed at improving your dog’s dental health. BARK Bright eliminates the arduous task of brushing a dog’s teeth while still effectively fighting germs and bad breath. Our BARK Bright dental kit provides an innovative regimen for dog dental care.
Previous report
Overall, we see significant runway in our consumables category long-term, and anticipate the majority of our future growth may be driven by these product categories.
Previous report
Other Income (Expense) Net
Previous report
Other income (expense) net, primarily consists of changes in the fair value of our warrant liabilities.
Previous report
46.3%, 230 basis points higher than the same period last year. The increase in Commerce gross margin is primarily attributable to changes in customer mix and the timing of the implementation of our tariff mitigation strategies.
Previous report
Other Income (Expense) Net
Previous report
Comparison of the Nine Months Ended December 31, 2025 and December 31, 2024
Previous report
Revenue
Previous report
Direct to Consumer revenue decreasedby $64.9 million, or 20.5%, for the nine months ended December 31, 2025 compared to the nine months ended December 31, 2024. This decrease was primarily driven by the 22.4% or 2.3 million decrease in Total Orders. The decrease was partially offset increased revenue from BARK Air of $5.3 million. Total BARK Air revenue was $9.3 million or 3.7% of Direct to Consumer revenue.
Previous report
Commerce revenue increased by$4.4 million for the nine months ended December 31, 2025 compared to the nine months ended December 31, 2024. This increase was primarily driven by sales volume from existing and new customers.
Previous report
Gross Profit
Previous report
Direct to Consumer and Commerce gross profit decreased by$40.3 million and $0.7 million, respectivelyfor the nine months ended December 31, 2025 compared to the nine months ended December 31, 2024. The decrease in Direct to Consumer gross profit is primarily attributable to a decrease in revenue. The decrease in Commerce gross profit is partly attributable to the opportunistic sell-through of surplus inventory, higher tariffs and inbound shipping costs.
Previous report
Gross profit as a percentage of revenue decreased 110 basis points for the nine months ended December 31, 2025 compared to the nine months ended December 31, 2024. Direct to Consumer gross margin was 65.6%, 70 basis points higher than the same period last year. Excluding the impact of BARK Air, Direct to Consumer gross margin increased 230 basis points compared to the same period last year. The increase in Direct to Consumer gross margin is primarily attributable to product cost improvements and plan mix changes.
Previous report
Commerce gross margin was 40.2%, 470 basis points lower than the same period last year. The decrease in Commerce gross margin is primarily attributable to opportunistic sell-through of surplus inventory, and changes in customer mix. The decrease was partially offset by our tariff mitigation strategies in the current period.
Previous report
Operating Expenses
Previous report
General and Administrative Expense
Previous report
General and administrative expense decreased by $21.8 million, or 11.4%, for the nine months ended December 31, 2025 compared to the nine months ended December 31, 2024. This decrease from the prior period was primarily due to: decreased shipping and fulfillment costs of $12.8 million attributable to lower direct to consumer volumes, decreased compensation expense of $7.0 million primarily due to a decrease in headcount, decreased impairment expense of $1.1 million, and decreased professional and legal fees of $0.9 million.
Previous report
Advertising and marketing expense decreased by $19.8 million, or 29.8%, for the nine months ended December 31, 2025 compared to the nine months ended December 31, 2024. The decrease during the period is attributable to decreased Direct to Consumer marketing spend.
Previous report
Other Income (Expense), Net
Previous report
Other income (expense), net increased by $1.9 million for the nine months ended December 31, 2025 compared to the nine months ended December 31, 2024. The increase in other income (expense), net, was primarily due to the decrease in the fair value of our warrant liabilities of $1.6 million.
Previous report
2025 Convertible Notes
Previous report
On November 27, 2020, the Company issued $75.0 million aggregate principal amount of 2025 Convertible Notes (the “2025 Convertible Notes”) to Magnetar Capital, LLC (“Magnetar”) under an indenture, dated as of November 27, 2020, between Legacy BARK and U.S. Bank National Association, as trustee and collateral agent (the “Indenture”). The Company received net proceeds of approximately $74.7 million from the sale of the 2025 Convertible Notes, after deducting fees and expenses of approximately $0.3 million. The Company recorded the expenses associated with the issuance of the 2025 Convertible Notes as a discount to the note and amortized the expenses over the term of the note.
Previous report
On November 2, 2023, the Company repurchased $45.0 million of the $83.5 million of outstanding aggregate principal amount of 5.50% Convertible Secured Notes due 2025 from entities affiliated with Magnetar Financial, LLC (collectively, the “Holders”), pursuant to the terms and conditions of a negotiated notes purchase agreement (the “2023 Agreement”) among the Company and the Holders.
Previous report
Pursuant to the 2023 Agreement, the Company repurchased $45.0 million in aggregate principal amount of the 2025 Convertible Notes plus $2.2 million of accrued and unpaid interest thereon to, but excluding the repurchase date, from the Holders for a total cash purchase price of $44.4 million. In addition, $1.0 million of unamortized deferred financing fees were derecognized from the Company’s balance sheet on the date of extinguishment. The accelerated deferred financing fees were recognized as a component of gain on extinguishment of debt. The Company recognized a gain on debt extinguishment of $1.8 million in connection with the repurchase.
Previous report
On November 6, 2025, the Company repurchased the remaining $42.9 million of outstanding aggregate principal amount of 5.50% Convertible Secured Notes due 2025 (the “2025 Convertible Notes”) from entities affiliated with Magnetar Financial, LLC (collectively, the “Holders”), pursuant to the terms and conditions of a negotiated notes purchase agreement (the “2025 Agreement”) among the Company and the Holders (the “Final Repurchase”).
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Reworded paragraphs (28)
Previous wording
The following discussion and analysis provides information which management believes is relevant to an assessment and understanding of our condensed consolidated results of operations and financial condition. The discussion should be read in conjunction with the unaudited condensed consolidated financial statements and notes thereto contained in this Quarterly Report on Form 10-Q and the audited consolidated financial statements and notes thereto for the year ended March 31, 2025 contained in the Annual Report on Form 10-K filed with the SEC on June 4, 2025. This discussion contains forward-looking statements and involves numerous risks and uncertainties, including, but not limited to, those described in the “Risk Factors” section of this Quarterly Report on Form 10-Q. Actual results may differ materially from those contained in any forward-looking statements. Unless the context otherwise requires, references to “we”, “us”, “our”, “the Company” and “BARK” are intended to mean the business and operations of BARK, Inc. and its subsidiaries. The unaudited condensed consolidated financial statements for the three and nine months ended December 31, 2025 and 2024, respectively, present the financial position and results of operations of BARK, Inc. and its wholly-owned subsidiaries.
Current wording
The following discussion and analysis provides information which management believes is relevant to an assessment and understanding of our condensed consolidated results of operations and financial condition. The discussion should be read in conjunction with the unaudited condensed consolidated financial statements and notes thereto contained in this Quarterly Report on Form 10-Q and the audited consolidated financial statements and notes thereto for the year ended March 31, 2026 contained in the Annual Report on Form 10-K filed with the SEC on June 10, 2026. This discussion contains forward-looking statements and involves numerous risks and uncertainties, including, but not limited to, those described in the “Risk Factors” section of this Quarterly Report on Form 10-Q. Actual results may differ materially from those contained in any forward-looking statements. Unless the context otherwise requires, references to “we”, “us”, “our”, “the Company” and “BARK” are intended to mean the business and operations of BARK, Inc. and its subsidiaries. The unaudited condensed consolidated financial statements for the three months ended June 30, 2026 and 2025, respectively, present the financial position and results of operations of BARK, Inc. and its wholly-owned subsidiaries.
Previous wording
We are an omnichannel brand serving dogs across two key categories: toys & accessories and consumables. All of our products are designed, developed, and branded by BARK. We leverage an ever-growing collection of first-party data, customer insights, and machine learning to deliver personalized products and experiences tailored to the needs of each and every dog we serve. Our products are sold Direct-to-Consumer and through our network of retail partners, which currently spans over 50,000 doors nationwide and online marketplaces including Amazon and Chewy.
Current wording
We are an omnichannel brand serving dogs across two key brands: BarkBox and Super Chewer. All of our products are designed, developed, and branded by BARK. We leverage an ever-growing collection of first-party data, customer insights, and artificial intelligence (“AI”) to deliver personalized products and experiences tailored to the needs of each and every dog we serve. We sell our products in two segments: Direct To Consumer (“DTC”) and Commerce through our network of retail partners, which currently spans over 50,000 doors nationwide and online marketplaces including Amazon, Chewy and TikTok.
Previous wording
(1) Direct to Consumer Gross Profit and Direct to Consumer Gross Margin does not include the revenue or cost of goods sold from BARK Air.
Current wording
(1) Direct to Consumer Gross Profit and Direct to Consumer Gross Margin do not include the revenue or cost of goods sold from BARK Air. Direct to Consumer gross margin includes a $5.2 million tariff refund related to fiscal year 2026.
Previous wording
Toys & Accessories (“toys”)—The majority of our revenue in the toys category is derived from BarkBox and Super Chewer, which are subscription products that feature monthly themed boxes of premium-quality BARK toys and treats that are delivered directly to a dog’s home. Customers have the option to subscribe to these products on a one month, three month, six month, or twelve month basis. Subscription revenue is recognized at a point in time as control is transferred to the subscriber upon delivery of each monthly box. During the life of their subscription, we offer our customers incremental products via “ATB”, which allows us to cross-sell customers across our full portfolio of products, including kibble, treats, toppers, dental and more. ATB revenue is recognized at a point in time as control is transferred to the customer upon delivery of goods to the subscriber.
Current wording
The majority of our revenue is derived from our subscription products that feature monthly themes of premium quality BarkBox and/or Super Chewer toys and BARK-branded treats and chews that are delivered directly to a dog’s home. Customers have the option to subscribe to these products on a one-month, three-month, six-month, or twelve-month basis. During the life of their subscription, we offer our customers incremental products via Add-To-Box (“ATB”), which allows us to cross-sell customers across our full portfolio of products.
Previous wording
BARK Air—Announced in April 2024, BARK Air is a first-of-its kind air travel experience tailored to dogs. The Company partnered with a jet charter company, offering premium flights for customers and their dogs. Interested parties can book flights at dogsflyfirst.com. Our charter partner is responsible for all aircraft, crew, maintenance, and insurance, allowing BARK to focus on creating a great travel experience for dogs and their people worldwide. We believe this initiative exemplifies the Company’s dog-first approach to curating the best products and services.
Current wording
Announced in April 2024, BARK Air is a first-of-its kind air travel experience tailored to dogs. The Company is partnered with several charter companies offering premium flights for customers and their dogs. Interested parties can book flights at dogsflyfirst.com. Our charter partners are responsible for all aircraft, pilots, maintenance, and insurance, allowing BARK to focus on creating a great travel experience for dogs and their people worldwide. We believe this initiative exemplifies the Company’s dog-first approach to curating the best products and services.
Previous wording
Cost of revenue primarily consists of the purchase price of inventory sold, inbound freight costs associated with inventory, shipping supply costs, inventory shrinkage costs and charter costs for BARK Air.
Current wording
Cost of revenue primarily consists of the purchase price of inventory sold, inbound freight and duties (including tariffs) associated with inventory, shipping supply costs, inventory shrinkage costs and charter costs for BARK Air.
Previous wording
Interest income primarily consists of income earned on our money market funds and interest-bearing deposit accounts.
Current wording
Interest income primarily consists of income earned on our interest-bearing deposit accounts as well as interest paid in relation to IEEPA tariff refunds.
Previous wording
Direct to Consumer revenue decreasedby $26.5 million, or 25.0%, for the three months ended December 31, 2025 compared to the three months ended December 31, 2024. This decrease was primarily driven by a 27.2%, or 0.9 million decrease in Total Orders. The decrease was partially offset by an increase in revenue from BARK Air of $1.4 million. Total BARK Air revenue was $3.4 million or 4.2% of Direct to Consumer revenue.
Current wording
Direct to Consumer revenue decreasedby $22.5 million, or 25.2%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. This decrease was primarily driven by a 28.0%, or 0.8 million decrease in Total Orders. The decrease was partially offset by an increase in revenue from BARK Air of $0.9 million. Total BARK Air revenue was $3.2 million or 4.8% of Direct to Consumer revenue.
Previous wording
Commerce revenue decreased by$1.5 million, or 7.2% for the three months ended December 31, 2025 compared to the three months ended December 31, 2024. This decrease was primarily driven by lower sales volume.
Current wording
Commerce revenue decreased by$1.6 million, or 11.4% for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. This decrease was primarily driven by lower sales volume.
Previous wording
Direct to Consumer and Commerce gross profit decreased by$17.5 million and $0.2 million, respectivelyfor the three months ended December 31, 2025 compared to the three months ended December 31, 2024. The decrease in Direct to Consumer gross profit is primarily attributable to a decrease in revenue. The decrease in Commerce gross profit attributable to lower revenue in the quarter.
Current wording
Direct to Consumer and Commerce gross profit decreased by$9.6 million and $2.8 million, respectivelyfor the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The decrease in Direct to Consumer gross profit is primarily attributable to a decrease in revenue. The decrease in Commerce gross profit attributable to lower revenue in the quarter.
Previous wording
Gross profit as a percentage of revenue decreased 20 basis points for the three months ended December 31, 2025 compared to the three months ended December 31, 2024. Direct to Consumer gross margin was 66.4%, 10 basis points higher than the same period last year. Excluding the impact of BARK Air, Direct to Consumer gross margin was 69.2%, 180 basis points higher than the same period last year. The increase in Direct to Consumer gross margin is primarily attributable to product cost improvements and plan mix changes. Commerce gross margin was
Current wording
Gross profit as a percentage of revenue increased 10.5% for the three months ended June 30, 2026 compared to the three months ended June 30, 2025.
Previous wording
(1) Direct to Consumer includes revenue and cost of goods sold from BARK Air.
Current wording
(1) Direct to Consumer excludes revenue and cost of goods sold from BARK Air.
Previous wording
Total general and administrative expense decreased by $9.7 million, or 15.1%, for the three months ended December 31, 2025 compared to the three months ended December 31, 2024. The decrease from the prior period was primarily due to: decreased shipping and fulfillment costs of $7.6 million attributable to lower Direct to Consumer volumes, decreased compensation expense of $1.4 million, decreased insurance expense of $0.2 million, and decreased professional fees of $0.2 million.
Current wording
Total general and administrative expense decreased by $9.5 million, or 16.6%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The decrease from the prior period was primarily due to: decreased shipping and fulfillment costs of $7.9 million attributable to lower Direct to Consumer volumes, decreased compensation expense of $3.5 million, offset by increased legal fees of $2.2 million.
Previous wording
Advertising and marketing expense decreased by $11.3 million, or 41.3%, for the three months ended December 31, 2025 compared to the three months ended December 31, 2024. The decrease is primarily attributable to decreased Direct to Consumer marketing spend.
Current wording
Advertising and marketing expense decreased by $5.7 million, or 37.4%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The decrease is primarily attributable to decreased Direct to Consumer marketing spend.
Previous wording
Interest income decreased by $0.9 million, or 75.2%, for the three months ended December 31, 2025 compared to the three months ended December 31, 2024. The decrease in interest income is due to an overall decrease in cash in interest-bearing deposit accounts.
Current wording
Interest income decreased by $0.5 million, or 67.5%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The decrease in interest income is due to an overall decrease in cash in interest-bearing deposit accounts.
Previous wording
Interest expense decreased $0.3 million for three months ended December 31, 2025 compared to the three months ended December 31, 2024. The decrease is attributable to the timing of the 2025 Convertible Note repurchase which occurred on November 6, 2025.
Current wording
Interest expense decreased $0.7 million for three months ended June 30, 2026 compared to the three months ended June 30, 2025. The decrease is attributable to the timing of the 2025 Convertible Note repurchase which occurred on in the prior year.
Previous wording
Other income, net increased by $0.2 millionfor the three months ended December 31, 2025 compared to the three months ended December 31, 2024. The increase was primarily due to the change of the fair value of our warrant liabilities.
Current wording
Other income, net decreased by $0.8 millionfor the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The decrease was primarily due to the change of the fair value of our warrant liabilities in the prior period.
Previous wording
(2)Litigation expenses related to a shareholder class action complaint, see Item 1. Legal Proceedings.
Current wording
(2)Litigation expenses related to a shareholder class action complaint, see Part II, Item 1. Legal Proceedings.
Previous wording
(4) For the three months ended December 31, 2025, other items is comprised of executive transition costs including recruiting costs of $0.1 million. For the three months ended December 31, 2024, other items is comprised of executive transition costs including recruiting costs of less than $0.1 million, costs associated with the stock repurchase program of less than $0.1 million, and duplicate headquarters rent of less than $0.1 million. For the nine months ended December 31, 2025, other items is comprised of executive transition costs including recruiting costs of $0.3 million and costs associated with the stock repurchase program of less than $0.1 million. For the nine months ended December 31, 2024, other items is comprised of executive transition costs including recruiting costs of $0.5 million, costs associated with the stock repurchase program of $0.3 million, and duplicate headquarters rent of less than $0.1 million.
Current wording
(4) For the three months ended June 30, 2026, other items is comprised of executive transition costs including recruiting costs of $0.2 million. For the three months ended June 30, 2025, other items is comprised of costs associated with the share repurchase program of less than $0.1 million.
Previous wording
Since inception, we have funded our operations with proceeds from sales of our capital stock and proceeds from borrowings in addition to cash generated by our operations. As of December 31, 2025, we had cash and cash equivalents of approximately $21.7 million. We expect that our cash and cash equivalents, together with cash provided by our operating activities and proceeds from borrowings, will be sufficient to fund our operations for at least the next 12 months. We are required to comply with certain financial and non-financial covenants related to our borrowing agreements, which we expect to be in compliance with during the next 12 months. Our future capital requirements will depend on many factors, including our pace of new and existing customer growth and our investments in partnerships and unexplored channels. We may be required to seek additional equity or debt financing.
Current wording
Since inception, we have funded our operations with proceeds from sales of our capital stock and proceeds from borrowings in addition to cash generated by our operations. As of June 30, 2026, we had cash and cash equivalents of approximately $16.1 million. We expect that our cash and cash equivalents, together with cash provided by our operating activities and proceeds from borrowings, will be sufficient to fund our operations for at least the next 12 months. We are required to comply with certain financial and non-financial covenants related to our borrowing agreements, which we expect to be in compliance with during the next 12 months. Our future capital requirements will depend on many factors, including our pace of new and existing customer growth and our investments in partnerships and unexplored channels. We may be required to seek additional equity or debt financing.
Previous wording
In October 2017, the Company entered into a loan and security agreement with and issued a warrant to purchase preferred stock (“Initial Western Alliance Warrant”) to Western Alliance Bank (“Western Alliance”), which provide for a revolving line of credit (as amended, the “Credit Facility”) in an aggregate principal amount of up to $35.0 million, subject to borrowing base limitations derived from advance rates derived from the Company’s eligible subscription revenues and eligible accounts receivable. The Credit Facility has been amended several times, most recently in November 2025. After giving effect to this most recent amendment, the maturity date of the Credit Facility is March 2, 2026. Certain of the Company’s obligations to Western Alliance and under the Credit Facility are guaranteed by certain of its subsidiaries and secured by substantially all of their assets. The Company intends to enter in to a longer term renewal of the Credit Facility.
Current wording
In October 2017, the Company entered into a loan and security agreement with and issued a warrant to purchase preferred stock (“Initial Western Alliance Warrant”) to Western Alliance Bank (“Western Alliance”), which provide for a revolving line of credit (as amended, the “Credit Facility”) in an aggregate principal amount of up to $35.0 million, subject to borrowing base limitations derived from advance rates derived from the Company’s eligible subscription revenues and eligible accounts receivable. The Credit Facility has been amended several times, most recently in November 2025. After giving effect to this most recent amendment, the maturity date of the Credit Facility is August 29, 2026. Certain of the Company’s obligations to Western Alliance and under the Credit Facility are guaranteed by certain of its subsidiaries and secured by substantially all of their assets. The Company intends to enter into a longer term renewal of the Credit Facility.
Previous wording
The following table summarizes our cash flows for the nine months ended December 31, 2025 and 2024:
Current wording
The following table summarizes our cash flows for the three months ended June 30, 2026 and 2025:
Previous wording
Cash flows used in Financing Activities
Current wording
Cash flows used in Operating Activities
Previous wording
For the nine months ended December 31, 2025, net cash used in operating activities was $21.8 million. The $21.8 million of net cash used in operating activities consisted of net loss of $26.3 million adjusted for non-cash charges totaling$22.5 million and a net decrease of $17.9 million in our net operating assets and liabilities. The non-cash charges primarily consisted of$10.9 million for stock based compensation, and depreciation and amortization of $7.2 million. The decrease in our net operating assets and liabilities was primarily driven by an increase in inventory of $3.9 million, an increase in accounts receivable of $2.7 million and a net decrease in accounts payable and accrued expenses of $4.3 million.
Current wording
For the three months ended June 30, 2026, net cash used in operating activities was $3.5 million. The $3.5 million of net cash used in operating activities consisted of net gain of $0.7 million adjusted for non-cash charges totaling$5.0 million and a net decrease of $9.3 million in our net operating assets and liabilities. The non-cash charges primarily consisted of$2.8 million for stock based compensation, and depreciation and amortization of $1.8 million. The decrease in our net operating assets and liabilities was primarily driven by an decrease in inventory of $3.9 million, an increase in accounts receivable of $8.0 million and a net decrease in accounts payable and accrued expenses of $3.5 million.
Previous wording
For the nine months ended December 31, 2024, net cash provided by operating activities was $3.2 million. The $3.2 million of net cash provided by operating activities consisted of net loss of $26.8 million adjusted for non-cash charges totaling $28.1 million and a net increase of $1.9 million in our net operating assets and liabilities. The non-cash charges primarily consisted of $0.7 million for changes in fair value of warrants, $9.8 million for stock based compensation, impairment of $2.1 million, depreciation and amortization of $8.4 million, paid in kind interest on convertibles notes of $2.2 million, and an increase in the provision for inventory obsolescence of $1.1 million. The increase in our net operating assets and liabilities was primarily driven by higher accounts payable and accrued expenses of $26.7 million, offset by and an increase in inventory of $7.3 million and an increase in accounts receivable of $3.7 million.
Current wording
For the three months ended June 30, 2025, net cash used in operating activities was $5.4 million. The $5.4 million of net cash used in operating activities consisted of net loss of $7.0 million adjusted for non-cash charges totaling$6.8 million and a net increase of $5.2 million in our net operating assets and liabilities. The non-cash charges primarily consisted of$3.6 million for stock based compensation, and depreciation and amortization of $2.5 million. The increase in our net operating assets and liabilities was primarily driven by an increase in inventory of $10.3 million, offset by a increase in accounts payable and accrued expenses of $5.8 million.
Previous wording
For the nine months ended December 31, 2025 and 2024, net cash used in investing activities was $2.7 million and $4.4 million, respectively, primarily due to software development costs and capital expenditures.
Current wording
For the three months ended June 30, 2026, net cash used in investing activities was $0.1 million, primarily due to software development costs and capital expenditures.
Previous wording
Cash flows provided by (used in) Operating Activities
Current wording
Cash flows provided by (used in) Financing Activities
Previous wording
For the nine months ended December 31, 2024, net cash used in financing activities was $9.4 million, primarily due to payments to repurchase common stock.
Current wording
For the three months ended June 30, 2025 net cash used in financing activities was $2.1 million, primarily due to payments to repurchase common stock.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Comparison of the Three Months Ended June 30, 2026 and 2025.
Current report — wording carried from elsewhere
For the three months ended June 30, 2025, net cash used in investing activities was$0.7 million, primarily due to software development costs and capital expenditures.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
(1) Direct to Consumer includes revenue from BARK Air.
Previous report — wording carried elsewhere
Interest income decreased by $2.2 million for the nine months ended December 31, 2025 compared to the nine months ended December 31, 2024. The decrease in interest income is due to an overall decrease in cash in interest-bearing deposit accounts.
Previous report — wording carried elsewhere
Interest expense decreased by $0.2 million for the nine months ended December 31, 2025, compared to the nine months ended December 31, 2024. The decrease is attributable to the timing of the 2025 Convertible Note repurchase which occurred on November 6, 2025.