BARK Reports Mixed Q1 2027: Revenue Drops but Profitability Improves — BARK, Inc.

Event summary

BARK's Q1 2027 revenue fell 23.4% YoY to $78.8M, landing at the high end of guidance.
Gross margin improved to 72.7% (63.4% normalized) due to tariff refunds and cost cuts.
Adjusted EBITDA turned positive at $0.6M, up from $0.1M YoY.
Subscriber retention improved by 170 basis points, while AOV increased by $0.45.
BARK Air revenue grew 37% YoY to $3.2M.

The big picture

BARK's Q1 results reflect a strategic pivot toward profitability over growth, aligning with broader trends in the pet industry where discretionary spending is under pressure. The company's focus on subscriber retention and average order value suggests an effort to maximize lifetime value amid a challenging macroeconomic environment. With Commerce revenue expected to grow as a percentage of total revenue, BARK is diversifying its channels beyond DTC subscriptions.

What we're watching

Revenue Recovery: Whether BARK can stabilize and grow revenue amid reduced marketing spend.
Profitability Sustainability: The pace at which cost-cutting measures can offset declining top-line growth.
BARK Air Expansion: How the 37% YoY growth in BARK Air will impact overall commerce revenue.