BARK, Inc. (NYSE: BARK), the dog-centric brand behind BarkBox, reported its first quarterly net profit of $745,000 in Q1 FY2027 (quarter ended June 30, 2026), marking a significant milestone in the company’s pivot from DTC subscription growth to profitability and revenue diversification.
Total revenue declined 23.4% year-over-year to $78.8 million, reflecting the company’s deliberate strategy to reduce marketing spend on subscription acquisition and carry fewer subscriptions into each quarter. However, gross margin improved to 70.4%, and diluted EPS reached $0.08, compared to a loss in the prior year period. The Commerce segment, which includes retail partnerships with Walmart, Chewy, Amazon, and Costco, grew to represent 17.7% of total revenue, up from 14.4% in the prior fiscal year.
BARK also became debt-free during the period, repaying its $45 million convertible note with cash on hand and extending its $35 million credit line with Western Alliance Bank. The company moved its last-mile delivery to Amazon, reducing delivery costs and improving delivery speed. Customer acquisition costs reached their lowest level since fiscal 2023.
CEO Matt Meeker said the company is delivering on its plan to diversify its top line while maintaining bottom-line discipline. The Girl Scouts partnership, with products shipping in summer 2027, is expected to drive significant brand awareness. BARK Air, the dog-first airline service, also delivered strong growth in preceding quarters. The results demonstrate that DTC pet brands can reach profitability by building omnichannel platforms that combine direct subscription, retail partnerships, and experiential products.
