New York Stock Exchange issues second non-compliance warning to Bark within the past 24 months
In the world of pet-centric businesses, Bark Inc., renowned for its subscription services BarkBox and Super Chewer, has recently reported a mixed financial performance for Q4 2025 and the full year. Despite achieving its first-ever positive adjusted EBITDA for both the quarter and the year, and meeting earnings per share forecasts at $0.01, the company's revenue fell short of analyst expectations, totalling $115.4 million compared to the projected $126.78 million. However, the company posted a record gross margin of 63.6% in Q4.
Financially, Bark is currently grappling with challenges such as a negative net margin of 6.79% and a negative return on equity of 14.70%. Analysts have adjusted their outlooks, with Jefferies lowering its price target to $3.00 (from $4.00) but maintaining a Buy rating, and Canaccord Genuity reducing its target to $2.00 (from $2.50) with a Hold rating. Bark has not provided full-year 2026 guidance due to ongoing challenges but anticipates breakeven adjusted EBITDA at the midpoint for fiscal Q1.
The company is focusing on diversifying revenue streams and mitigating tariff impacts, which have affected marketing expenses and retail inventory orders. One of the ways Bark is doing this is by expanding its offerings, including the introduction of Bark Air, the first airline designed for dogs and their owners. Initially, Bark Air flights were operated using charter aircraft through regional airports in New York, London, and Los Angeles.
However, Bark is also facing stock price challenges. Its stock has fallen below the New York Stock Exchange (NYSE) minimum price requirement of $1.00 per share, prompting the NYSE to issue a non-compliance notice. Bark has six months to regain compliance by maintaining an average closing stock price of at least $1.00 over 30 trading days. Potential remedies under consideration include a reverse stock split, subject to shareholder approval.
Future plans for Bark appear to be centred on achieving adjusted EBITDA breakeven in early fiscal 2026, diversifying revenue streams beyond subscription products, managing and mitigating tariff-related costs impacting marketing and retail, and possibly executing a reverse stock split or other financial restructuring to address stock price non-compliance with NYSE listing standards.
Bark is not a newcomer to these challenges, having received its last NYSE compliance notice approximately 16 months ago. The company is navigating these issues with operational focus and financial restructuring plans, aiming to recover from earlier losses and improve its financial performance.
Meanwhile, the company has expanded its C-suite by adding a new chief revenue officer and chief marketing officer in 2024. Meghan Knoll, a former company executive, returned to Bark in May of last year to head up the brand's DTC business. Knoll's role in the company is focused on the DTC (Direct-to-Consumer) business.
Overall, Bark is recovering from earlier losses with improved profitability metrics but faces revenue pressure and stock price challenges that it aims to address through operational focus and financial restructuring plans. The specific details of Bark Air's operations and future growth plans, as well as the specifics of the reverse stock split plan, if implemented, are not yet specified.
- Despite the company's first-ever positive adjusted EBITDA, a negative net margin and return on equity present challenges for Bark Inc., prompting analysts to adjust their price targets and outlooks.
- In an effort to diversify revenue streams and mitigate tariff impacts, Bark Inc. has introduced Bark Air, the first airline designed for dogs and their owners, with flights operated using charter aircraft.
- As Bark Inc.'s stock has fallen below the NYSE minimum price requirement, the company is considering a reverse stock split to regain compliance, subject to shareholder approval.
