Bark’s third quarter saw a significant negative reaction from the market, driven by ongoing revenue declines and weaker-than-expected profitability. Management cited continued progress in diversifying revenue streams, particularly through growth in the Commerce segment and the BARK Air business. CEO Matt Meeker highlighted that the company’s strategy of shifting marketing spend to more efficient channels and focusing on higher-value subscribers contributed to improved customer acquisition costs and retention. Despite these operational improvements, external pressures such as tariffs and changes at the U.S. Postal Service weighed on gross margins, prompting Bark to maintain a cautious stance on near-term growth.
Is now the time to buy BARK? Find out in our full research report (it’s free for active Edge members).
Bark (BARK) Q3 CY2025 Highlights:
- Revenue: $107 million vs analyst estimates of $104.3 million (15.2% year-on-year decline, 2.6% beat)
- Adjusted EPS: -$0.03 vs analyst estimates of -$0.02 ($0.02 miss)
- Adjusted EBITDA: -$1.44 million vs analyst estimates of $267,670 (-1.3% margin, significant miss)
- Revenue Guidance for Q4 CY2025 is $102.5 million at the midpoint, below analyst estimates of $106.7 million
- EBITDA guidance for Q4 CY2025 is -$3 million at the midpoint, below analyst estimates of -$1.43 million
- Operating Margin: -10%, down from -4.5% in the same quarter last year
- Market Capitalization: $127 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Bark’s Q3 Earnings Call
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Ryan Robert Meyers (Lake Street Capital Markets) asked how paying off the convertible debt affects Bark’s flexibility for future investment. CEO Matt Meeker said the move allows Bark to continue executing its plan without diluting shareholders or increasing interest payments, but stressed the need for caution due to external uncertainties like tariffs.
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Ryan Robert Meyers (Lake Street Capital Markets) followed up on management's confidence in achieving adjusted EBITDA profitability by year-end. CFO Zahir Ibrahim reiterated the goal to be EBITDA positive, but noted ongoing volatility in tariffs and consumer behavior as reasons for caution.
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Ryan Robert Meyers (Lake Street Capital Markets) requested details on Commerce segment growth. Ibrahim attributed it to expanded retail distribution, increased product assortment, and stronger e-commerce momentum, though he noted some growth was due to timing of retailer orders.
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Maria Ripps (Canaccord) asked what is driving improved subscriber acquisition cost and retention. Meeker credited a shift toward organic channels and a higher-value subscriber base, as well as platform improvements that enhance customer experience and loyalty.
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Kaumil Gajrawala (Jefferies) questioned whether Bark would consider share buybacks or new investments post-deleveraging. Meeker responded that the focus remains on profitable execution and evaluating longer-term investment needs, with capital allocation discussions ongoing with the board.
Catalysts in Upcoming Quarters
Looking ahead, StockStory analysts will be watching (1) whether gross margin improvements from product sourcing changes and price increases begin to materialize, (2) sustained growth in the Commerce and BARK Air segments as new products and retail partnerships ramp up, and (3) continued reductions in customer acquisition costs and subscriber churn as platform enhancements and organic channels take hold. Execution on these initiatives will be critical for Bark’s path to profitability.
Bark currently trades at $0.75, down from $0.80 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free for active Edge members).
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