BARK (NYSE:BARK) reported fiscal first-quarter 2027 revenue at the high end of its guidance range, while management pointed to improving subscriber retention, higher average order values and expected growth in its commerce business heading into the holiday season.
Revenue totaled $78.8 million, compared with $102.9 million in the prior-year period. The company had guided for first-quarter revenue of $77 million to $79 million. Adjusted EBITDA was approximately $600,000, within its outlook of $0 million to $1 million and up from $100,000 a year earlier.
Direct-to-Consumer Metrics Show Improvement
Total direct-to-consumer revenue was $66.7 million in the quarter. That figure included $3.2 million from BARK Air, up 37% year over year. Excluding BARK Air, direct-to-consumer revenue was $63.5 million, down from $86.8 million in the prior-year quarter.
Interim Chief Financial Officer Brian Dostie said the decline reflected the smaller subscriber base BARK entered the year with after the company reduced marketing and promotional spending during fiscal 2026. Direct-to-consumer orders declined about 28% year over year, while average order value increased by $0.45.
Meeker said subscriber retention improved by more than 170 basis points from the prior-year quarter, and that the lifetime value of a BarkBox subscriber was near its highest level since the company became public. He said the company remains at the same level of confidence in its plan to return its direct-to-consumer business to growth in the second half of the year.
“The revenue decline is a volume story tied to the smaller base, and the per order economics continue to improve,” Dostie said.
Commerce Outlook and Product Pipeline
Commerce revenue was $12.1 million, down 11% from the prior-year period. Management characterized the segment as seasonal and “lumpy,” noting that some activity that may have occurred in the first quarter shifted into the previous fourth quarter.
Meeker said BARK expects commerce revenue to increase meaningfully as it approaches the holiday season. The company plans to launch products through the Girl Scout Cookie program this winter and cited expansion with both current and new retail, wholesale and marketplace partners.
The company also highlighted several upcoming product launches:
- Licksters: A new enrichment toy and treat-refill platform that is being introduced to subscribers and is expected to roll out at Target, PetSmart, Walmart, Amazon and Chewy in the fall.
- Crocs for Dogs: BARK plans to expand its Crocs partnership in October 2026 with toys, beds, accessories and additional colorways for dog shoes.
- Liquid Death collaboration: BARK plans to introduce a co-designed line of pet toys and accessories with Liquid Death in the fall.
Meeker said the Licksters platform could provide recurring revenue from treat refills as consumers purchase the toys. He also said BARK’s Crocs dog shoes had been its most successful TikTok product launch to date.
Margins, Spending and Cash Position
Reported consolidated gross margin was 72.7%, including approximately $7.4 million of IEEPA tariff recoveries related to fiscal 2026 cost of revenue. Excluding that nonrecurring recovery, normalized gross margin was 63.4%, compared with 63.8% in the prior-year period on a normalized tariff-adjusted basis.
The tariff recovery was recorded as a receivable during the quarter, had no cash impact during the period and was excluded from adjusted EBITDA. As of the balance-sheet date, BARK had received $3.2 million of the refunds and expects to collect most of the remaining receivable over the coming quarters, according to Dostie.
Marketing expense fell 37% year over year to $9.5 million. Shipping and fulfillment expense declined to $23.8 million from $31.8 million, improving modestly as a percentage of revenue to 30.2% from 30.9%. Other general and administrative expense was $23.9 million, down approximately 6% from a year earlier.
BARK ended the quarter with $16.1 million in cash and no debt, compared with $19.3 million in cash at fiscal year-end. Dostie said the decline reflected seasonal working-capital needs and continued share repurchases under the company’s $40 million buyback program. Inventory was $72.4 million, down from $75.5 million at fiscal year-end and more than $25 million below the $98.1 million reported a year earlier.
Second-Quarter and Full-Year Guidance
For the fiscal second quarter, BARK projected revenue of $83 million to $85 million and adjusted EBITDA of $1 million to $3 million. The company reiterated its full-year revenue and adjusted EBITDA guidance, though management did not provide the full-year figures during the call.
Meeker said more than 90% of BARK Air seats had already been sold for the second quarter, despite challenges related to Europe-to-U.S. routes and fuel surcharges. He said the company remains focused on sequential top-line growth and improved adjusted EBITDA profitability through the remainder of fiscal 2027.
About BARK (NYSE:BARK)
BARK is a consumer products and services company focused on the canine market, offering a suite of subscription-based and direct‐to‐consumer offerings designed to meet the everyday needs of dogs and their owners. The company’s core business revolves around carefully curated boxes of toys, treats and chews, which are delivered monthly to subscribers through its flagship BarkBox service. Over time, BARK has expanded its reach beyond subscription, tapping into e-commerce and wholesale channels to broaden its customer base.
In addition to BarkBox, the company operates BarkShop, an online storefront that allows customers to purchase toys, grooming supplies and nutrition products on an a la carte basis.
