BARK prioritizes profitability as quarterly DTC sales decline

US-based subscription pet company BARK reported revenue of $78.8 million (€69.3M) for the first quarter of fiscal year (FY) 2027, which ended on 30 June 2026, down 23.4% year-over-year (YoY). 

Despite the decline, revenue came in at the high end of the company’s guidance range of $77 million (€67.8M) to $79 million (€69.5M).

“This was powered by strong subscriber retention, better than expected sales in the retail channel, and BARK Air flights filling up,” Co-Founder and CEO Matt Meeker told investors.

Profitability

Gross profit was $57.3 million (€50.4M), 10.6% lower than a year earlier, while gross margin reached 72.7%, versus 62.3% in the same period last year.

BARK returned to profitability, posting net income of $0.75 million (€0.7M), compared with a net loss of $7 million (€6.2M) a year earlier. 

The result included $7.4 million (€6.5M) in tariff refunds allocated to FY2026. The refund was excluded from adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) because it was considered non-recurring.

Adjusted EBITDA was $0.6 million (€0.5M), within the guidance range of $0 to $1 million (€0.9M) and 500% higher YoY.

DTC business

BARK’s direct-to-consumer (DTC) revenue totaled $66.7 million (€58.7M), 25.2% below the prior year, as the company continued to prioritize bottom-line durability over near-term growth.

Within the DTC business, the toys and accessories category generated $39.1 million (€34.4M) in revenue, while the consumables segment posted $24.3 million (€21.4M).

Subscriber retention improved by more than 170 basis points, while average order value increased by $0.45 (€0.40) from the prior year. 

BARK Air

BARK Air generated $3.2 million (€2.8M) in DTC revenue, representing 37% YoY growth despite challenges such as Europe-to-US routes and fuel surcharges stemming from broader geopolitical conditions.

“Well over 90% of seats have already been sold for the second quarter. The demand for BARK Air business is as strong as ever, and that strong revenue performance came with a strong normalized consolidated gross margin of 63.4%,” the CEO says.

Commerce revenue came in at $12.1 million (€10.6M), 11.4% lower than a year earlier. During the quarter, the company expanded to new and existing retail partners.

Outlook

For the second quarter of FY2027, BARK expects total revenue of $83 million (€73M) to $85 million (€74.8M), versus $107 million (€94.2M) in the comparable period last year.

The projected decrease primarily reflects the smaller DTC subscriber base entering FY2027 following the deliberate reduction in marketing spending during FY2026.

Adjusted EBITDA is forecast at $1 million (€0.9M) to $3 million (€2.6M), compared with a loss of $1.4 million (€1.2M) a year earlier.

For the full year, BARK reaffirmed its outlook for total revenue of $325 million (€286M) to $340 million (€299.2M), versus $394.8 million (€347.4M) in FY2026.

It also maintained adjusted EBITDA guidance of $7 million (€6.2M) to $10 million (€8.8M), compared with $0.2 million (€0.2M) in FY2026.

In addition, Commerce and BARK Air are expected to collectively generate more than $100 million (€88M), with Commerce accounting for a growing share of the total as BARK expands across wholesale and marketplace channels.