BARK Q4 2025 Earnings Results & Report

BARK EPS Results

• Actual EPS: $0.20
• Consensus EPS: $0.20
• Beat/Miss: Met Expectations
• One Year Ago EPS: N/A
• EPS Beat Rate: 3 of last 8 quarters

BARK Revenue Results

• Actual Revenue: $115.41 million
• Expected Revenue: $126.74 million
• Beat/Miss: Missed by -$11.33 million
• YoY Revenue Growth: N/A

BARK (NYSE:BARK) is a pet products company focused on dogs and their owners. The company develops and sells toys, treats, food and other products designed around dogs’ health, wellness and enjoyment.

BARK offers its products through multiple brands and channels, including BARKBox, a subscription service that delivers curated toys and treats; Super Chewer, which features more durable toys and treats; and BARK Bright, an oral-care product line. The company also sells products through its website, retail partners and other distribution channels.

Founded in 2011, BARK initially built its business around subscription-based dog products before expanding into a broader omnichannel pet-products platform. The company is headquartered in New York City and primarily serves the U.S. market. BARK co-founder Matt Meeker has been a prominent leader of the company.

BARK Q4 2025 Earnings Call Transcript

Key Takeaways

• First full-year positive adjusted EBITDA of $5.4 M, the first time in 14 years, reversing a $58 M loss three years ago.
• Q4 revenue totaled $115.4 M, below expectations, as the company deliberately pulled back DTC growth in response to tariff uncertainty.
• Commerce segment revenue jumped 27% YoY to $68.3 M and gross margin reached a record 63.6% in Q4, bolstering overall margin strength.
• Q1 guidance expects $99–101 M in revenue (down ~14% YoY) and adjusted EBITDA of –$1 M to +$1 M, reflecting higher tariff costs and reduced marketing spend.
• Management will accelerate revenue diversification by expanding consumables, wholesale channels, and AI-driven offerings while shifting toy production outside China to mitigate tariffs.

Presentation

[Operator]

Hello, and thank you for standing by. At this time, I would like to welcome everyone to the BARK Fiscal Fourth Quarter and Full Year 2025 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during that time, simply press star one on your telephone keypad. Thank you. I will now turn the call over to Mike Mougias, VP of Investor Relations and VPA. Mike, please go ahead.

[Michael Mougias, VP of Investor Relations at BARK]

Good afternoon, everyone, and welcome to BARK's Fiscal Fourth Quarter and Full Year 2025 Earnings Call. Joining me today are Matt Meeker, Co-founder and Chief Executive Officer, and Zahir Ibrahim, Chief Financial Officer. Today's conference call will be webcast in its entirety on our website, and a replay will be made available shortly after the call. Additionally, a press release covering the company's financial results was issued this afternoon and can be found on our investor relations website. Before I pass it over to Matt, I want to remind you of the following information regarding forward-looking statements. The statements made on today's call are based on management's current expectations and are subject to risks and uncertainties that could cause actual future results and outcomes to differ. Please refer to our SEC filings for more information on some of the factors that could affect our future results and outcomes.

[Michael Mougias, VP of Investor Relations at BARK]

We will also discuss certain non-GAAP financial measures on today's call. Reconciliation of our non-GAAP financial measures is contained in this afternoon's press release. With that, let me now pass it over to Matt.

[Michael Mougias, VP of Investor Relations at BARK]

Thanks, Mike, and good afternoon, everyone. There are three big takeaways I want to share with you today. First, we delivered our first-ever adjusted EBITDA positive year. Second, we intend to remain adjusted EBITDA positive this year and beyond. Third, we plan to accelerate the diversification of our revenue faster than previously planned. My remarks today will expand on each of these three takeaways. First, after 14 years of working at it, we are adjusted EBITDA positive for the first year ever. This is huge. In Q4, we delivered $5.2 million in positive adjusted EBITDA, our best quarterly result ever. For the full year, we achieved $5.4 million, our first full year in the black. Just three years ago, we lost $58 million and burned nearly $200 million in cash. At the time, many questioned our long-term viability.

[Michael Mougias, VP of Investor Relations at BARK]

Now, three years later, we're not only standing, we're in positive adjusted EBITDA territory. Here we'll discuss our fourth quarter and full year results in more detail. However, at a high level, revenue for the quarter was $115.4 million, lighter than expected as we pulled back on growth in response to tariff-related uncertainty and potential downstream costs. Tariffs, along with softening consumer sentiment, gave us a strong push to accelerate diversification efforts. One area where we've made real progress is our commerce business. This segment grew 27% year over year to $68.3 million. We expanded our relationships with retail partners like Chewy, Amazon, T.J. Maxx, Target, Costco, the Girl Scouts, and others. Gross margins in commerce expanded by 227 basis points over FY 2024 and 960 basis points over FY 2023. All of this may spark stronger and more resilience.

[Michael Mougias, VP of Investor Relations at BARK]

Speaking of gross margins, we delivered 63.6% in Q4, our highest level ever. For the full year, we achieved 62.4%, a 73 basis point improvement over FY 2024, and a 480 basis point improvement over FY2023. In a world shaped by tariffs and economic uncertainty, margin strength is a critical buffer and a competitive advantage. All of this and more contributed to our first-ever adjusted EBITDA positive year. My second big takeaway is that we intend to stay adjusted EBITDA positive this year and for the foreseeable future. Tariffs and policy shifts under the current administration create a lot of uncertainty, but we have a plan and are committed to achieving this. Here are three ways we're making that happen. First, we're making some updates to the customer experience that save us money and, we believe, enhance that experience.

[Michael Mougias, VP of Investor Relations at BARK]

One example is delivering the monthly BARK Box in a bag with a connected digital-themed AI-driven experience that's personalized for your dog. Another example is going into the archives and using popular themed products of the past and upcoming shipments as a way of using inventory that doesn't carry tariff costs and using products we know are loved by dogs and their parents. Second, we are fortunate to have a great supply chain team, and they've responded to each tariff escalation with smart mitigation plans. Some toy products in the near term, mainly the first half of the year, will carry the burden of tariffs of up to 80%. That will decrease significantly in the back half of the year as we strive to deliver productivity improvements and diversify our sourcing footprint. By mid-year, we expect to return to a margin profile similar to how we closed last year.

[Michael Mougias, VP of Investor Relations at BARK]

Third, we're shifting our investment dollars more rapidly and aggressively to new product lines, distribution channels, and services than previously planned. That brings me to my third big takeaway. We will be accelerating our efforts to diversify our product lines, our channels, and our revenue growth away from largely BARK Box subscriptions. Those subscriptions still accounted for around 85% of all revenue last year. While that number is coming down from previous years, it's not moving fast enough. Now more than ever, we need for this to happen much faster. We've concentrated our marketing dollars almost exclusively on D2C subscription boxes, leaving little to nothing for new opportunities.

[Michael Mougias, VP of Investor Relations at BARK]

Going forward, we'll pull back on such heavy investment in the subscription box business to invest elsewhere, such as our new consumables line coming in August, new services coming from the BARK Air team, further acceleration into the wholesale channel and Amazon and Chewy, and even AI-driven apps for dogs and their people. Last year, we showed what we can do with a bit of focus and investment when we started BARK Air. We launched BARK Air one year ago, and it delivered nearly $6 million in revenue in the first year. We flew roughly 1,000 passengers on over 100 flights. We're clearly meeting real demand from dog parents around the world. Many said this couldn't be done, but we're growing fast, opening new routes regularly, and solving a real problem for dogs and their people.

[Michael Mougias, VP of Investor Relations at BARK]

Much has changed in the first half of this year, but so much has remained the same for us. The start of this year with tariffs and economic uncertainty have made consumers nervous, and they've pulled back. Tariffs add to the cost of most goods. That doesn't change the opportunity we still have to build the global brand for dogs. Now we've proven we can do that with a positive bottom line. We know how to do it, and we have a plan to remain EBITDA positive in the years ahead. In conclusion, the three big takeaways from this call are we delivered our first year of positive adjusted EBITDA, we intend to be EBITDA positive again this year and going forward, and we intend to accelerate the diversification of our revenue faster than previously planned. Thank you, and now over to Zahir.

[Zahir Ibrahim, CFO at BARK]

Thanks, Matt, and good afternoon, everyone. I'll start by reviewing our fiscal fourth quarter and full year 2025 results, then share how we're approaching fiscal 2026, particularly in light of the evolving tariff environment. Fiscal 2025 was a significant year for BARK. We delivered our first full year of positive adjusted EBITDA, driven by ongoing margin expansion and improvements in operating efficiency. These results reflect several years of focused execution and provide a strong financial foundation as we head into what we expect to be a more volatile macroeconomic environment. Starting at the top of the P&L, fourth quarter revenue was $115.4 million, bringing full year revenue to $484.2 million, down 1.2% year-over-year. The launch of BARK Air, coupled with strong growth in our commerce segment, were positive top-line drivers.

[Zahir Ibrahim, CFO at BARK]

However, the D2C business faced headwinds, particularly in Q4, primarily due to a deliberate pullback in marketing and promotion spend in response to growing tariff uncertainty and signs of weakening consumer sentiment. In that environment, we did not believe incremental spend would generate a sound return. This decision also reflects a broader shift in our customer acquisition strategy. Rather than relying on discount-heavy tactics that often attract lower-retaining customers, we're focusing on driving higher-quality, longer-term relationships that support stronger lifetime value and profitability characteristics. Turning to commerce, revenue was $15.4 million in Q4 and $68.3 million for the full year, both up 27% versus fiscal 2024. Despite outbound shipping timing delays and tariff-related retailer pullback in the quarter, this segment performed well and will be a focus area for significant future growth as we continue to expand our retail footprint and broaden the SKU assortment across our partner network.

[Zahir Ibrahim, CFO at BARK]

Commerce represented 14% of total revenue in fiscal 2025, up from 11% last year, and we continue to expect it to grow to approximately one-third of the business over the next two to three years. BARK Air was another bright spot. The segment delivered $1.8 million in revenue in Q4 and nearly $6 million for the full year, a strong performance for a business launched less than a year ago. We're encouraged by early demand, and we see continued opportunity as we scale routes and grow our service offering. We also made meaningful progress on our margin profile. Consolidated gross margin improved 80 basis points year-over-year in Q4 to 63.6%.

[Zahir Ibrahim, CFO at BARK]

For the full year, gross margin was 62.4%, up 70 basis points, reflecting margin expansion in both our D2C and commerce segments, up 120 and 230 basis points respectively, driven by continued focus on unit costs and supply chain optimization. Total marketing expense in Q4 was $17.3 million, down roughly $1.5 million from the prior year. For the full year, marketing spend was $83.8 million, up $4.5 million. As mentioned, we adopted a more cautious posture late in the year in response to macro uncertainty, and we expect to maintain this approach in the near term. Shipping and fulfillment expenses were $139 million for the year, roughly flat year-over-year. G&A expenses were $114 million, down $14 million from the prior year. In Q4, G&A totaled $28.7 million, a $1.6 million decline. These reductions reflect lower headcount and ongoing tighter cost management.

[Zahir Ibrahim, CFO at BARK]

Altogether, these efforts support meaningful gains in profitability. Adjusted EBITDA was $5.2 million in Q4, a $3 million improvement year-over-year. For the full year, we delivered $5.4 million in adjusted EBITDA, a $16 million improvement over fiscal 2024. To reiterate Matt's comments, we've improved the business adjusted EBITDA by over $60 million in the last three years, underscoring the leverage and underlying structural improvements we've built into the business. Turning to the balance sheet, we ended the year with $94 million in cash, down $21 million in the quarter. This reflects the repurchase of $6 million shares for $10.5 million, as well as working capital timing, including a $7 million reduction in accounts payable. Inventory at year-end was $88 million, down $2 million from Q3. On share buybacks, it's worth noting that for the full year, we repurchased 11.4 million shares for an outlay of $18.5 million.

[Zahir Ibrahim, CFO at BARK]

Looking ahead to fiscal 2026, the recent tariff increases, particularly those targeting Chinese imports, are prompting a broader reassessment of global supply chains. At BARK, we've accelerated several initiatives that were already under evaluation, including productivity programs and changes to sourcing and logistics. Productivity initiatives have played an important role over the past few years in delivering improved margins for BARK. By collaborating with our supply partners, new productivity initiatives for fiscal 2026 will help offset some of the tariff headwind. As Matt noted, our toys, representing roughly two-thirds of our revenue, are currently sourced from China and subject to the new tariffs. In response, we will shift a portion of production to other geographies. Manufacturing in these regions will commence in the coming weeks, and we expect to start shipping products from these facilities in time for the holiday quarter.

[Zahir Ibrahim, CFO at BARK]

By the end of fiscal 2026, we anticipate a more diversified and balanced sourcing footprint for our toy production. Additionally, we're evaluating modest price increases to help offset some of the tariff headwinds and maintain our gross margins. Our goal is to absorb as much of the cost pressure as possible while minimizing the impact on our customers. The domestic market is experiencing meaningful headwinds relating to USD rate changes. However, we are confident we can mitigate these as we progress through the year and come through the other side in an even stronger position. Overall, given the macro volatility and changing tariff landscape, we feel very good about our plan for fiscal 2026. At the same time, though, we also appreciate the uncertainty that lies ahead.

[Zahir Ibrahim, CFO at BARK]

Supplier transitions of magnitude carry risk, and many key variables such as future tariff actions, trade policy, inflation, and consumer response remain outside of our control. Given this backdrop, we are unable to provide full-year guidance at this time. We will continue to monitor the environment closely and provide updates as conditions evolve and we gain more clarity. Let me now walk you through our outlook for the fiscal first quarter. Shortly after the 145% tariffs took effect in early April, we paused inbound shipping and asked suppliers to delay shipping any finished goods from China. Several of our retail partners also asked us to do the same, opting to defer imports as they assess the situation. While we avoided the steepest portion of tariff exposure, we have purchased inventory with approximately $4 million in additional tariff-related costs, and these will flow through our P&L in H1.

[Zahir Ibrahim, CFO at BARK]

Delaying inbound products has also weighed on commerce revenue, as some retailers paused product intake for six to eight weeks. These commerce dynamics, along with our pullback in D2C marketing and promotion spend, will impact revenue in the quarter. As a result, we expect Q1 total revenue of between $99-$101 million, down 14% at the midpoint versus last year. We anticipate a stronger performance in adjusted EBITDA, with the first quarter coming in between minus $1 million and positive $1 million, the midpoint reflecting a $1.8 million improvement versus last year, despite including higher tariff-related costs. Following the government's temporary rollback of tariffs to 30%, we've resumed importing at an accelerated pace, and we expect a notable inventory build this quarter, which we anticipate will unwind through H2. Note this Q1 inventory build will impact our ending cash balance and free cash flow for the quarter.

[Zahir Ibrahim, CFO at BARK]

In closing, we remain focused on what we can control, driving efficiency, staying agile, and investing with discipline. Thanks to the structural improvements we've made over the past several years, BARK is in a much stronger position to navigate this period of uncertainty. While external pressures will persist, we're entering fiscal 2026 with stronger fundamentals, a more flexible operating model, and a focused strategy to manage through near-term disruption. With that, I'll turn the call over to the operator for Q&A.

[Operator]

Your first question comes from Maria Ripps with Canaccord. Please go ahead.

[Maria Ripps, Managing Director and Senior Research Analyst at Canaccord]

Great. Good afternoon, and thanks so much for taking my questions. First, can you maybe give us a little bit more color on diversifying your supply base outside of China? I guess, what are some countries that you're considering, and are there any incremental expenses to keep in mind as a result of this transition?

[Zahir Ibrahim, CFO at BARK]

Hi, Matt. I'll take.

[Matt Meeker, Co-founder, Executive Chairman, and CEO at BARK]

Oh, go ahead, Zahir.

[Zahir Ibrahim, CFO at BARK]

Sorry. Hi, Maria. How are you doing? Yeah, we've, you know, for some time, we've been working on looking at alternative geographies in terms of diversifying our manufacturing. And so we're looking at a number of continents where we'll be moving manufacturing to. Obviously, the extent of that shift will depend on how the tariff rates move going forward, but we have the flexibility, if we wanted to, to manufacture all of our toys outside of China by the end of this fiscal year.

[Maria Ripps, Managing Director and Senior Research Analyst at Canaccord]

Got it. That's helpful. Can you maybe update us on your progress migrating to the Shopify platform? Has it been completed at this point? Can you talk about sort of any recent changes in conversion rates and any other core KPIs sort of as a result? Thanks so much.

[Matt Meeker, Co-founder, Executive Chairman, and CEO at BARK]

Sure. For the most part, it has been complete. The only reason I say for the most part is we have—if you were to go to barkbox.com, you would see that site is still live, but we do not send any traffic there. We do not pick up new subscribers or anything there. That will sunset as the year goes on. All of our active subscribers and new subscribers are coming through bark.co. All of our products are listed there. The performance in terms of new customer acquisition and conversion and managing the cost of acquisition has been pretty decent through the early part of this year or ever since we started to migrate last October and November in a meaningful way. Now, there is a lot of experimentation going on, which is some of the benefit of the platform.

[Matt Meeker, Co-founder, Executive Chairman, and CEO at BARK]

We've stepped into a platform that is much more nimble and allows us to test and try things much quicker than we were before. We're taking advantage of that, and that'll never be done, but we're learning a lot really quickly. There is—as we knew and as we signaled in past calls, when you move over a million people plus onto a new platform, things won't work the same way they did in the past. We've identified a lot of those holes or gaps, filled them in, and we've got our functionality back to par as to where it was before or maybe just a little bit ahead of par. From a platform perspective, feeling really good about where we are with Shopify and how we're operating on it. Still a learning curve, but we're accelerating every day.

[Maria Ripps, Managing Director and Senior Research Analyst at Canaccord]

Great. Thanks so much for the call, Matt.

[Operator]

Your next question comes from Ryan Myers with Lake Street Capital Market. Please go ahead.

[Ryan Myers, Senior Research Analyst at Lake Street Capital Markets]

Yeah. Hey, guys. Thanks for taking my questions. First one for me, I just want to make sure I fully understand kind of the dynamic in the direct-to-consumer business because if I think back to last quarter, I believe we were seeing some positive signs out of kind of subscriber growth there, and it looked like things were kind of pointing in the right direction. One, curious what you guys kind of saw throughout the quarter and then what really the big dynamic is as far as why not spend the marketing dollars there anymore and why try to really diversify out of that business further?

[Matt Meeker, Co-founder, Executive Chairman, and CEO at BARK]

Yeah. Thanks, Ryan. I think you captured it well. We had a very strong holiday quarter when it came to acquiring new customers, a lot of that on the strength of the move to the Shopify platform. We came into calendar 2025 pretty excited about that. January was off to a really great start. Just about, I guess, if you took a consumer sentiment chart and overlaid that with the rollout of tariffs and our business performance, they would all look pretty similar. There is a real tracking there. As the consumer got more nervous and the tariff noise got louder and the consumer got more nervous and round and round, our new customer acquisition and our retention was feeling more and more pressure.

[Matt Meeker, Co-founder, Executive Chairman, and CEO at BARK]

We were also looking at the cost side of the business, saying a 10%, 20%, 80%, 145% tariff is a meaningful and unsustainable headwind. As Zahir talked about, our supply chain team, who's phenomenal, has done a great job in mitigation on that and within the last-mile delivery effort. They've done a fantastic job. At the same time, we've known for several years, and you all asked the questions about what about the growth into new categories, into new channels. I don't want to say we haven't taken it seriously, and that's a big reason for the move to the Shopify platform. Now that we're there, we have that flexibility.

[Matt Meeker, Co-founder, Executive Chairman, and CEO at BARK]

There is something about looking yourself in the mirror with 145% tariffs affecting a huge amount of your inbound products and saying it is long overdue for us to really, really take this seriously and stop pouring every marketing dollar and 99% of our brain power into a toy business that has those dynamics and really we know is not the growth engine of the future. All of that said to us, let us start making that transition now. Let us make our plan for the future. Understand that that means in the short term, we are not pulling a lever of growth as hard as we once were or we could because we are going to take those dollars and those people and refocus them on those growth engines of the future. That is where we are. The team and I feel really good about where this goes.

[Ryan Myers, Senior Research Analyst at Lake Street Capital Markets]

Got it. No, that's super helpful. Lastly, thinking about the commerce segment, I know there was some stuff you talked about in the prepared remarks as far as the impact that that's going to have on the first quarter. I understand that. I just want to make sure I understand from a demand perspective, have you guys seen any significant changes there, or are the impacts you're expecting to see more just on the timing of orders? I really just want to understand if the demand still remains strong for the commerce offering for you guys?

[Zahir Ibrahim, CFO at BARK]

Yeah. Hey, Ryan. This is Zahir. Yeah, commerce demand has been pretty strong. We grew 27% in fiscal 2025. The one thing we did note as we got into Q4 and you had the tariff noise, a lot of customers slowed down the pace at which they placed their orders, and they adopted more of a wait-and-see approach in terms of placing orders. We experienced some pullback in Q4, continuing into Q1. The highest rate of tariffs kicked in in April.

[Zahir Ibrahim, CFO at BARK]

At that point, some of the key customers said, "Look, we'd like to just wait before we place our orders, especially for some of the upcoming seasonal type of items." As we have gone through and seen the tariff change, a lot of those conversations have reverted back to getting product into the country and fulfilling some of the initial conversations that we had with them. As we think about the year as a whole, we expect commerce to grow at a similar sort of level as what we saw in fiscal 2025. Beyond fiscal 2026, we would expect that pace of growth to actually accelerate and for commerce to be about a third of our business over the next two to three years.

[Ryan Myers, Senior Research Analyst at Lake Street Capital Markets]

Got it. Thanks for taking my questions, guys.

[Zahir Ibrahim, CFO at BARK]

Sure. Thanks.

[Operator]

Your next question comes from Kaumil Gajrawala with Jefferies. Please go ahead.

[Kaumil Gajrawala, Managing Director at Jefferies]

Hey, everyone. I guess digging into the prior question a little more is, I guess, to understand the consumer sentiment obviously fell off. We saw a slowdown across a whole host of different categories. It makes sense to sort of pull back marketing. Was any part of that decision or any part of the logic in that there's a certain amount of pricing that you would need to take or it's just each incremental new user was going to be unprofitable anyways and you did not want them? Was that also part of it or was it just, "Hey, we were in this really tricky time where halfway through February till the end of March, the consumer just really fell off"?

[Matt Meeker, Co-founder, Executive Chairman, and CEO at BARK]

I mean, certainly the consumer fell off. Then you weigh the cost of the product and building a sustainable business. Obviously, at 145%, if we're passing that through to a consumer who's already feeling a great deal of pressure, we're not fooling ourselves saying, "They were buying a $30 BarkBox, but now they'll pay $60 for it or $55." That's just not tenable. A bit of our vulnerability that we've been talking about for quite a few years is we have a very discretionary product. If there's a headwind in terms of how the consumer is feeling or how much disposable income they have, the discretionary products are the ones that are going to take it first. We're right there. We've got way too much in that segment.

[Matt Meeker, Co-founder, Executive Chairman, and CEO at BARK]

There is also a recognition of we're not going to actively acquire or overpay or pay at all for customers that could potentially have a long-term unprofitable profile and put pressure on our bottom line. Also, we've just got to get away from being so discretionary in our product line, and we need to do that more urgently. Obviously, the tariff conversation has been dominating probably every company for the past three or four months. We've been having it day-to-day, and we liked the plan that we put together before, I'll say, before February. We felt really good about it as a team, as a board. Then the world changed, and we've got to change with it.

[Matt Meeker, Co-founder, Executive Chairman, and CEO at BARK]

As I said on the call, we started from a place of being very happy and very proud that the bottom line was positive and a whole lot of resolution that we're not going back. We are going to protect that bottom line, and we're going to make the business more robust, which led us to diversification and making some of these shorter-term decisions within the quarter. That's how we got there.

[Kaumil Gajrawala, Managing Director at Jefferies]

Right. Okay. That makes sense. As it relates to what to do now, from a cash perspective, we might be at the or may have even passed the point of high drama on tariffs. Does it make sense to be more aggressive on share buybacks? Or given the sort of shakiness of the environment and maybe your cost structure, is it better to conserve at the moment and just wait this out and keep as much cash on your balance sheet as possible?

[Matt Meeker, Co-founder, Executive Chairman, and CEO at BARK]

Yeah. We've been pretty aggressive about it through the quarter. Like you said, now we're here. I wish I felt like everything was settled and predictable. I don't feel that way. We're also talking about making some meaningful shifts into new categories. Certainly, there's some investment that's gone on internally where we've invested in a lot of new brand development and packaging development and new product lines with consumables that we're looking forward to rolling out in August. There's investment there. There's also the potential of M&A being a tool. Of course, we want to manage the cash carefully. I think we want that dry powder available to us as the year goes on. If those opportunities are there, I think we've shown we're not shy about jumping in when we think the stock is severely undervalued and buying back more.

[Matt Meeker, Co-founder, Executive Chairman, and CEO at BARK]

We have got to weigh all those opportunities, but it is something we have been really aggressive about over the past year or two.

[Kaumil Gajrawala, Managing Director at Jefferies]

Okay. All right. Great. Thank you.

[Operator]

Your final question comes from Yigal Aramanan with Citigroup. Please go ahead.

[Wayne Trinh, Equity Research Senior Associate at Citigroup]

Hey, guys. This is Wayne Trinh for Yigal. I was hoping to dig into the commerce segment a little bit more. I was just wondering maybe how your conversations with retailers have trended since that tariff rate came down a bit. If you could give us maybe any sense of the backlog there of the pullback in deals. Maybe if you could give us a sense of whether these pullbacks are more from your existing customers expanding versus new retail partnerships?

[Zahir Ibrahim, CFO at BARK]

Hey, Yigal. How are you doing? Just as I was saying to Ryan earlier on the call, yeah, we had some pullback that we experienced in Q4, and that rolled into Q1. Just retailers being cautious and trying to manage through just a heavy tariff environment. As we've started to see the tariffs come down to a more reasonable level, I mean, 30% is reasonable. At a more reasonable level, you're seeing that demand and the order placement coming back in. A lot of the seasonal demand that we have that drives Q2 and Q3 in the commerce segment, a lot of those orders have been placed, and product is either here or will be here in Q1 of fiscal 2026. Positive traction. I'd say there was just a temporary slowdown of placement of orders, but things are back on schedule.

[Zahir Ibrahim, CFO at BARK]

We expect to see that strong growth continuing across existing customers, as well as starting to have conversations with retailers as we launch our consumables offering, Bark in the Belly, which we plan to launch later this year. Having a lot of positive conversations on that front as well. We expect our pace of growth to accelerate as we exit fiscal 2026 and go into fiscal 2027.

[Wayne Trinh, Equity Research Senior Associate at Citigroup]

Okay. Thank you. I do not know if you guys have broken down before, but have you given the breakdown in commerce between toys and consumables? Should we assume similar to D2C?

[Zahir Ibrahim, CFO at BARK]

It's more heavily skewed today towards toys. I would say at least 90% is toys. There's a small amount of consumables. We started with some of the treats launch last year. With the launch of Bark in the Belly, I think that's where you're going to see a lot more traction. We're seeing some good traction pre-launch on Amazon and Chewy just about consumables, some strong performance there. We expect Amazon and Chewy to continue to build performance and then get shelf placement and distribution at the back end of this year on the consumables overall launch.

[Wayne Trinh, Equity Research Senior Associate at Citigroup]

All right. Thank you.

[Operator]

Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.

Participants

Executives

• Michael Mougias, VP of Investor Relations
• Matt Meeker, Co-founder, Executive Chairman, and CEO
• Zahir Ibrahim, CFO

Analysts

• Maria Ripps, Managing Director and Senior Research Analyst at Canaccord
• Ryan Myers, Senior Research Analyst at Lake Street Capital Markets
• Wayne Trinh, Equity Research Senior Associate at Citigroup
• Kaumil Gajrawala, Managing Director at Jefferies