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DATE

Thursday, Aug. 6, 2026 at 4:30 p.m. ET

CALL PARTICIPANTS

• General Counsel - Christina Donnelly
• Co-Founder and Chief Executive Officer - Matt Meeker
• Interim Chief Financial Officer - Brian Dostie

TAKEAWAYS

• Revenue -- $78.8 million, representing a 23.4% year-over-year decline driven by a smaller subscriber base following a deliberate pullback in marketing spend during fiscal 2026.
• DTC Revenue -- $66.7 million, reflecting the company's prioritization of bottom-line durability over volume.
• Subscriber Retention -- 92.8%, an improvement of over 170 basis points compared to the same quarter last year.
• Average Order Value -- $31.25, up $0.45 compared to the prior year period due to improved per-order economics.
• Net Income -- $745,000, which includes a one-time $7.4 million benefit from the recognition of fiscal 2026 tariff refunds.
• Adjusted EBITDA -- $0.6 million, increasing from $0.1 million last year as the company manages operating expenses.
• Inventory -- $72.4 million, a decrease of $25.7 million year over year reflecting increased supply chain efficiency.
• Marketing Spend -- $9.5 million, a 37% decrease versus last year due to a focus on efficient customer acquisition opportunities.
• Total Orders -- 2.03 million, down from 2.82 million in the prior year period.
• Normalized Gross Margin -- 63.4%, remaining stable versus 63.8% last year when excluding the impact of nonrecurring tariff refunds.
• BARK Air Revenue -- $3.2 million, an increase of 37% year over year driven by high consumer demand for pet travel.
• Cash and Cash Equivalents -- $16.1 million, down from $19.3 million at fiscal year-end due to seasonal working capital builds and share buybacks.
• Fiscal Q2 Revenue Guidance -- $83 million to $85 million, representing a sequential increase as the company approaches the holiday season.
• Fiscal Q2 Adjusted EBITDA Guidance -- $1 million to $3 million, reflecting expected improvements in operational discipline.
• Full Year 2027 Revenue Guidance -- $325 million to $340 million, with management anticipating a return to top-line growth in the second half of the fiscal year.
• Full Year 2027 Adjusted EBITDA Guidance -- $7 million to $10 million, compared to $0.2 million in fiscal 2026.
• Shipping and Fulfillment Expenses -- $23.8 million, down from $31.8 million and improving to 30.2% of net revenue.
• General and Administrative Expenses -- $47.8 million, down from $57.3 million in the prior year period.
• Commerce Revenue -- $12.1 million, an 11.4% decrease year over year attributed to the timing of wholesale orders.
• Debt -- Zero, as the company ended the quarter with a debt-free balance sheet.
• Capital Expenditures -- $111,000, down from $708,000 in the prior year period.
• BARK Air Seat Utilization -- Over 90% for the fiscal second quarter, indicating persistent travel demand.
• Commerce and BARK Air Annual Target -- Over $100 million in combined revenue for the full fiscal year.
• Tariff Refund Total -- $7.4 million, recorded as a receivable in the quarter and excluded from adjusted EBITDA.
• Share Repurchase Payments -- $233,000, as the company continued execution under its $40 million share repurchase program.

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RISKS

• Meeker mentioned that BARK Air faced challenges including "Europe to US routes, and fuel surcharges stemming from broader geopolitical conditions."
• Dostie noted that the 23.4% revenue decline "reflects a smaller subscriber base we entered the year with" following reduced marketing investment in previous quarters.

SUMMARY

Management reported that the fiscal first quarter results reflected a focus on subscriber retention and average order value over total order volume. The company transitioned into the fiscal year with a smaller subscriber base, leading to a 23.4% year-over-year revenue decline, while management emphasized profitability through higher gross margins and reduced operating expenses. Strategic initiatives for the remainder of the year include the launch of the Lixters enrichment platform and expanded partnerships with retail and lifestyle brands to drive commerce and direct-to-consumer growth.

• CEO Meeker noted that the lifetime value of a BarkBox subscriber is "near its highest level for us as a public company."
• Management announced the upcoming launch of Lixters, an enrichment toy designed to keep dogs "challenged and engaged for more than 40 minutes," which is double the engagement time of current competitors.
• The company is expanding its partnership with Crocs in October 2026 to include new product categories such as toys, beds, and accessories.
• Meeker stated that BARK has consistently been "winning market share in the toy category" over the past year according to Nielsen data.
• Management plans to introduce a line of toys and accessories through a "robust, audacious partnership" with Liquid Death in the fall of 2026.
• The company developed a three-year innovation pipeline for the Lixters platform to sustain recurring revenue through treat refills.

INDUSTRY GLOSSARY

• Adjusted EBITDA: A non-GAAP financial measure that excludes interest, taxes, depreciation, amortization, and one-time items like tariff refunds.
• AOV (Average Order Value): The total direct-to-consumer revenue divided by the number of orders in a period.
• BARK Air: A travel service offering flights specifically designed for dogs and their owners.
• BarkBox: The company's monthly subscription service providing themed toys and treats.
• DTC (Direct to Consumer): Sales made directly to customers via the company's website or apps.
• IEEPA (International Emergency Economic Powers Act): Federal legislation relevant to the tariff refund claims recorded by the company.
• Lixters: A new refillable enrichment toy and treat platform being introduced across multiple retail channels.
• Nielsen: A global data and market measurement firm that provides data on consumer behavior and market share.

Full Conference Call Transcript

Operator: Thank you for standing by. And welcome to the BARK First Quarter Fiscal Year 27 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a Q&A session. If you would like to ask a question during that time, simply press star, then the number 1 on your telephone keypad. I would now like to turn the call over to Christina Donnelly, General Counsel. Please go ahead.

Matt Meeker: Good afternoon, everyone, and welcome to BARK's fiscal first quarter 27 earnings call. Joining me today are Matt Meeker, Co-Founder and Chief Executive Officer; and Brian Dostie, Interim Chief Financial Officer. Today's conference call is being webcast in its entirety on our website, and a replay of the webcast 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, are subject to risks and uncertainties that could cause actual future results and outcomes to differ. Please refer to our SEC filing for more information on some of the factors that could affect our future results and outcome. We will also discuss certain non GAAP financial measures on today's call. A reconciliation of our non GAAP financial measures is contained in this afternoon's press release. And with that, let me pass it over to Matt. Thanks, Christina, and good afternoon, everyone. We are off to a good start in fiscal 27. Building on the progress we outlined last quarter.

Our first quarter results reflect continued profitability alongside underlying momentum in the parts of the business we are most focused on growing, and they give us early confidence that the plan we described in June is working. After 1 quarter, we remain confident in our ability to build our top line sequentially and deliver a meaningful gain in adjusted EBITDA profitability. This quarter, we delivered $78.8 million of revenue, at the high end of our $77 million to $79 million guidance range. This was powered by strong subscriber retention better than expected sales in the retail channel, and Bark Air flights filling up. Specifically, in D2C, net revenue landed at $66.7 million for the quarter.

While this is down from last year, due to a much lower entry point into the year, the forward looking indicators of the business are strong. Our subscriber retention rate improved by over 170 basis points compared to the same quarter last year. In addition, our average order value grew by $0.45 per unit versus last year. The lifetime value of a BarkBox subscriber is near its highest level for us as a public company. Turning to commerce. We delivered $12.1 million in revenue this quarter, and we continue to expand with both new and existing retail partners across wholesale and marketplaces.

We are winning market share and growing this business with discipline, building a larger and more durable growth engine for BARK. We expect commerce revenue to increase meaningfully from here as we head towards the holiday season and prepare to launch with the Girl Scout cookie program, this winter. We could not be more excited about what is ahead. Finally, looking at Bark Air, we posted $3.2 million in revenue this quarter, a 37% increase from the same quarter of last year. This is despite challenges such as Europe to US routes, and fuel surcharges stemming from broader geopolitical conditions. We are happy to report that 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 strong normalized consolidated gross margin of 63.4%, On a reported basis, gross margin was 72.7%. The difference reflects a 1-time FY 2026 tariff refund recognized entirely in this quarter that is excluded from our normalized gross margin. This refund does not recur and while included in our net income, its benefit is excluded from adjusted EBITDA. This strength is driven by our D2C gross margin which has expanded steadily over the past several years. Adding hundreds of basis points during that time. I am proud of our team for delivering this result.

Carrying all that through adjusted EBITDA for the quarter landed at $600 thousand. Again, within our $0 to $1 million guidance range. And up from $100 thousand in positive adjusted EBITDA on the same quarter last year. Finally, we ended the quarter with $16.1 million in cash, and a debt free balance sheet. The decline from $19 million at year end reflects both a normal seasonal build in working capital and continued share repurchases under our $40 million buyback program. We remain committed to balancing continued investment in the business with returning capital to shareholders. Looking ahead, I am excited about our product pipeline and what is coming out in the next few months.

There are 3 products I would like to discuss today. First is a new enrichment toy and treat combination product called Lixters. This is a major push into the enrichment category which is the fastest growing segment of dog toys. Lixters solves 2 huge problems within the enrichment category for dogs and their people. it is designed a durable toy that is easily refillable and cleanable for the human while still being effective at keeping dogs challenged and engaged for more than 40 minutes which we believe is more than double the time claimed by the current market leader.

Our design team has been working on this for over 1 year and has developed a 3-year innovation pipeline for the Lixters platform that we believe will be very on brand and disruptive to the category. There is somewhat of a razor/razor blade model with the Lixters platform. As we seed Lixters toys into the market, we expect good attachment rates and recurring revenue from the treat refills. This is currently being introduced to our subscribers and their monthly boxes, and will roll out in Target, PetSmart, Walmart, Amazon, and Chewy this fall. Second, say hello to Crocs again this fall.

After the successful debut of October 2026, With new product categories, including toys, beds, and accessories along with additional color ways of our CrocDog shoes. Our Croc Dog shoes have been our most successful TikTok product launch to date, and we are excited to build on that momentum this fall. Finally, we have a new partnership with Liquid Death that will also launch in the fall. This is a robust, audacious partnership we have been working on for a while. As part of Liquid Death's first ever collaboration in the pet space, BARK will be introducing a new line of toys and accessories co-designed together with the Liquid Death team.

We are excited for our consumers to get a hold of these products. there is so much ahead of us. to be excited about and to drive our growth. And our excitement and enthusiasm leads us to guidance. So now turning to that guidance, For the second quarter of fiscal 27, we expect total revenue of $83 million to $85 million and adjusted EBITDA of $1 million to $3 million. For the full year, we are reiterating our guidance on both the top and bottom lines reflecting our confidence in the trajectory of the business. We are pleased with the start to the year.

Entering fiscal 27 debt free the quarter reflects continued discipline on the bottom line, strengthening growth throughout the business and steady execution against the strategy we laid out last quarter. There is still more work ahead, but we believe we are building from a stronger foundation and remain optimistic in our ability to deliver meaningful progress and improve profitability for our shareholders. With that, I will turn the call over to Brian.

Brian Dostie: Thanks, Matt, and good afternoon, everyone. I will review our financial results for the fiscal first quarter of 27 and then update you on how we are tracking against the full year framework we laid out in June. First quarter revenue was 78.8 million compared to $102.9 million in the prior year period. As Matt noted, this reflects a smaller subscriber base we entered the year with as we instill greater discipline on marketing and promotional spending during our fiscal year 26 and we are seeing green shoots our underlying D2C metrics now. Turning to segments. Total D2C revenue was 66.7 million Within that, Bark Air contributed 3.2 million up 37% year over year. and continues to perform well.

Excluding Air, D2C revenue was 63.5 million versus $86.8 million last year. The composition of that decline is the part I would point you to. D2C orders were down about 28% year over year, while average order value increased 45¢. Revenue decline is a volume story tied to the smaller base, and the per order economics continue to improve. That is the exact trade we said we were making. Commerce revenue was 12.1 million down 11% versus the prior year period. We continue to see commerce as a long term growth driver, and expect to exceed our results from last year as we go forward.

BARK's consolidated gross margin was 72.7%, That figure includes approximately $7.4 million of IEEPA tariff recoveries related to fiscal 26 cost of revenue. Which became eligible for submission and were recorded in the quarter. Excluding that recovery, first quarter gross margin was 63.4%, compared to 63.8% in the prior year period. Also on a normalized tariff adjusted basis. The $7.4 million recovery relates to costs we incurred last fiscal year, It is excluded from adjusted EBITDA. And it is not a recurring benefit to our margin structure. First quarter marketing spend was $9.5 million down more than $5.6 million or 37% year over year.

We continue to hold this discipline while remaining prepared to reinvest when efficient customer acquisition opportunities present themselves. Shipping and fulfillment expenses were $23.8 million, down from $31.8 million. And improved modestly as a percentage of net revenue to 30.2% from 30.9%. Reflecting both the lower D2C volume and continued network efficiency work. Other general and administrative expenses were $23.9 million down $1.6 million or approximately 6% year over year. Adjusted EBITDA for the quarter was approximately 600 thousand compared to $100 thousand in the prior year period. Adjusted EBITDA excludes the IEEPA recovery I described, along with stock based compensation, depreciation and amortization, legal matters, warehouse restructuring costs, and executive transition costs.

We ended the quarter with $16.1 million in cash, compared to $19.3 million at fiscal year end. And we continue to carry no debt. Accounts receivable was $20.4 million up $12.3 million at March 31. That increase is substantially the IEEPA tariff recovery I described, which was recorded as a receivable in the quarter and had no cash impact in the period. As of the balance sheet date, we have received $3.2 million of our IEEPA tariff refunds. We expect to collect the majority of the remaining IEPA receivable balance over the coming quarters. Inventory was $72.4 million down from $75.5 million at fiscal year end and down more than $25 million from $98.1 million a year ago.

We expect to drive further inventory efficiency through the balance of fiscal 27. We are happy with the solid start to the year, We come into fiscal 27 debt free, and our priority is driving consistent cash generation over the balance of the year. there is more work to do, and we are focused on delivering on profitability improvement and against the guidance we reiterated today. And with that, I will turn the call over to the operator for Q&A.

Operator: Press star, then the number 1 on your telephone keypad. Withdraw your question, simply press star, 1 again. Your first question comes from the line of Ryan Robert Meyers with Lake Street Capital Markets. Please go ahead.

Ryan: Yes. Guys. Thanks for taking my questions. Nice work on the progress during the quarter. So just thinking about direct to consumer and the return to growth in the second half of the year, given what you guys saw in the first quarter, are you more confident now on that time line? And then maybe what are some of the key metrics that you are watching really to determine whether or not that inflection, in fact, is happening?

Matt Meeker: Hey. Thanks, Ryan. Yeah. I would say we are probably the same level of confidence that we were when we came into the year. We put forward the plan, and we did the math and the math being how many new subscribers are we planning to add and at what percent will we retain all of our subscribers and then, of course, the average order value for each 1. We see what we saw in the first quarter here was really great performance year over year on the retention side. As I mentioned, over a 170 basis points higher on the retention rate. And really good performance on the AOV. And so we feel great about those.

We feel great about the plan that we came into the year with. Hitting the inflection point when we said we did. We would. And the really nice thing is as we go further into the year, we are we are feeling extra confident about the commerce side of the business which is nice to have because it allows us to follow the plan and take all the right actions in D2C. So it is going well. it is right on track. And we still get about the pacing.

Ryan: Got it. And then just that sort of leads me to my next question on the commerce business. Revenue down during the quarter. Can you just kind of unpack what the main drivers were there and then just you know, as the same thing as I asked with the direct to consumer business, you know, what has you excited about commerce I know Girl Scouts is gonna come in, but what are some other proof points as far as the kind of confidence level there? In the second half?

Matt Meeker: Yeah. Yeah. And this is always the slowest quarter of the year for us. And it is a little bit slower than what we saw last year. it is always a lumpy business, and we expect it to be lumpy once again this year. So you have got some timing elements of some things that maybe were slipped into Q4. And, therefore, fell out of Q1 here. And the other dynamic, but really a lot of things building for Q2 through Q4 of this year. It also is a long lead time as we know. There are, of course, ongoing orders every week. But we have really great visibility to where those big lumps are in the road.

And we have been winning, as I mentioned in my script, according to Nielsen, we have been winning market share in the toy category. On a consistent basis over the last year, the last quarter, the last month, building good relationships with our major partners, some of whom I mentioned are taking our new Lixters product here in the fall. That being Walmart, Target, Chewy, Amazon, So very excited about that. We like the outlook there.

And, again, that just eases up that pressure on the direct to consumer side of when you are rebuilding, we do not have to do anything unnatural that we can just stick to the plan and it is a nice byproduct that the plan is going well. Got it. Makes sense. Thanks for taking my questions.

Operator: Thank you, Ryan Robert Meyers. That concludes the Q&A session. Ladies and gentlemen, this concludes the BARK first quarter fiscal year 27 earnings call. Thank you all for joining. You may now disconnect.