bark-20250630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2025

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-39691

BARK, INC.

(Exact name of registrant as specified in its charter)


Delaware						85-1872418
(State or Other Jurisdiction of Incorporation or Organization)						(IRS Employer Identification No.)
120 Broadway, Floor 12						10271
New York, NY
(Address of principal executive offices)						(Zip Code)

(Address of Principal Executive Offices)(Zip Code)

(855) 501-2275

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.0001

BARK

New York Stock Exchange

Warrants, each warrant exercisable for one share of Common Stock at an exercise price of $11.50 per share

BARK WS

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐	Small reporting company	☒
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of August 4, 2025, there were 169,883,114 shares of the registrant’s common stock, par value of $0.0001 per share, outstanding.

TABLE OF CONTENTS


			Page
PART I. Financial Information			1
ITEM 1. Financial Statements (Unaudited)			1
Condensed Consolidated Balance Sheets			1
Condensed Consolidated Statements of Operations and Comprehensive Loss			2
Condensed Consolidated Statements of Changes in Stockholders’ Equity			3
Condensed Consolidated Statements of Cash Flows			4
Notes to Condensed Consolidated Financial Statements			5
ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			18
ITEM 3. Quantitative and Qualitative Disclosures about Market Risk			33
ITEM 4. Controls and Procedures			33
PART II. Other Information			34
ITEM 1. Legal Proceedings			34
ITEM 1A. Risk Factors			#
ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds			48
ITEM 3. Defaults Upon Senior Securities			48
ITEM 4. Mine Safety Disclosures			49
ITEM 5. Other Information			49
ITEM 6. Exhibits			49
Signatures			51

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This quarterly report on Form 10-Q, including, without limitation, statements under the heading “Management's Discussion and Analysis of Financial Condition and Results of Operations,” includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended, (the “Exchange Act”). These forward-looking statements can be identified by the use of forward-looking terminology, including the words “believes,” “estimates,” “anticipates,” “expects,” “intends,” “plans,” “may,” “will,” “potential,” “projects,” “predicts,” “continue,” “could,” or “should,” or, in each case, their negative or other variations or comparable terminology. There can be no assurance that actual results will not materially differ from expectations. Such statements include, but are not limited to, any statements relating to our financial and business performance, the sufficiency of our cash and cash equivalents for our continued operations, market acceptance and the anticipated success of our business model, and our ability to expand the scope of our offerings. These statements are based on management's current expectations, but actual results may differ materially due to various factors.

The forward-looking statements contained in this Quarterly Report on Form 10-Q are based on our current expectations and beliefs concerning future developments and their potential effects on us. Future developments affecting us may not be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (many of which are beyond our control) and other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, those factors described under Part II, Item 1A: “Risk Factors.” Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. These risks and others described under Part II, Item 1A: “Risk Factors” may not be exhaustive.

By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. We caution you that forward-looking statements are not guarantees of future performance and that our actual results of operations, financial condition and liquidity, and developments in the industry in which we operate may differ materially from those made in or suggested by the forward-looking statements contained in this Quarterly Report on Form 10-Q. In addition, even if our results or operations, financial condition and liquidity, and developments in the industry in which we operate are consistent with the forward-looking statements contained in this Quarterly Report on Form 10-Q, those results or developments may not be indicative of results or developments in subsequent periods.

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

BARK, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share data)

(Unaudited)


	June 30,		March 31,
	2025		2025
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	84,665	$	94,022
Accounts receivable—net	7,419		9,453
Prepaid expenses and other current assets	11,479		10,036
Inventory	98,124		88,126
Total current assets	201,687		201,637
PROPERTY AND EQUIPMENT—NET	22,017		21,475
INTANGIBLE ASSETS—NET	4,822		5,426
OPERATING LEASE RIGHT-OF-USE ASSETS	27,250		28,277
OTHER NONCURRENT ASSETS	4,175		3,820
TOTAL ASSETS	$	259,951	$	260,635
LIABILITIES, AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	21,502	$	20,364
Operating lease liabilities, current	5,930		5,798
Accrued and other current liabilities	39,475		34,054
Deferred revenue	20,896		21,251
Current portion of long-term debt	42,688		42,573
Total current liabilities	130,491		124,040

OPERATING LEASE LIABILITIES	35,267		36,802
OTHER LONG-TERM LIABILITIES	224		267
Total liabilities	165,982		161,109
COMMITMENTS AND CONTINGENCIES (Note 8)
STOCKHOLDERS’ EQUITY:
Common stock, par value $0.0001 per share—500,000,000 shares authorized; 169,830,115 and 169,732,895 shares issued and outstanding	1		1
Treasury stock, at cost, 17,303,225 and 15,992,598 shares, respectively	(26,500)		(24,730)
Additional paid-in capital	507,315		504,022
Accumulated deficit	(386,847)		(379,767)
Total stockholders’ equity	93,969		99,526
TOTAL LIABILITIES, AND STOCKHOLDERS’ EQUITY	$	259,951	$	260,635

See notes to condensed consolidated financial statements

BARK, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(In thousands, except share and per share data)

(Unaudited)


	Three Months Ended
	June 30,		June 30,
	2025		2024
REVENUE	$	102,861	$	116,212
COST OF REVENUE	38,784		42,946
Gross profit	64,077		73,266
OPERATING EXPENSES:
General and administrative	57,252		63,426
Advertising and marketing	15,178		20,432
Total operating expenses	72,430		83,858
LOSS FROM OPERATIONS	(8,353)		(10,592)
INTEREST INCOME	809		1,479
INTEREST EXPENSE	(709)		(711)
OTHER INCOME (EXPENSE)—NET	1,223		(215)
NET LOSS BEFORE INCOME TAXES	(7,030)		(10,039)
PROVISION FOR INCOME TAXES	—		—
NET LOSS AND COMPREHENSIVE LOSS	$	(7,030)	$	(10,039)

Net loss per common share attributable to common stockholders—basic and diluted	$	(0.04)	$	(0.06)
Weighted average common shares used to compute net loss per share attributable to common stockholders—basic and diluted	169,208,938		175,561,535

See notes to condensed consolidated financial statements

BARK, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

(In thousands, except share data) (Unaudited)


Three months ended June 30, 2025
	Common Stock		Treasury Stock			Additional Paid-in Capital			Accumulated Deficit		Total Stockholders’ Equity
		Shares	Amount		Shares			Amount
Balance - March 31, 2025		185,725,493	$	1	(15,992,598)	$	(24,730)		$	504,022	$	(379,767)	$	99,526
Net loss		—	—		—	—			—		(7,030)		(7,030)
Issuance for stock options exercised		15,298	—		—	—			20		—		20
Issuance for common stock vested		1,592,597	—		—	—			—		—		—
Issuance of common stock in connection with the employee stock purchase plan		249,650	—		—	—			197		—		197
Common stock withheld for tax upon release		(449,698)	—		—	—			(497)		—		(497)
Repurchase of common stock		—	—		(1,310,627)	(1,770)			—		—		(1,770)
Excise tax from stock repurchases		—	—		—	—			(21)				(21)
Stock-based compensation		—	—		—	—			3,594		—		3,594
Cumulative translation adjustment		—	—		—	—			—		(50)		(50)
Balance - June 30, 2025		187,133,340	$	1	(17,303,225)	$	(26,500)		$	507,315	$	(386,847)	$	93,969


Three months ended June 30, 2024
	Common Stock			Treasury Stock			Additional Paid-in Capital		Accumulated Deficit		Total Stockholders’ Equity
	Shares	Amount		Shares	Amount
Balance - March 31, 2024	180,176,725	$	1	(4,643,589)	$	(6,225)	$	492,427	$	(346,820)	$	139,383
Net loss	—	—		—	—		—		(10,039)		(10,039)
Issuance for stock options exercised	327,913	—		—	—		145		—		145
Issuance for common stock vested	507,130	—		—	—		—		—		—
Issuance of common stock in connection with the employee stock purchase plan	284,220	—		—	—		193		—		193
Common stock withheld for tax upon release	(179,517)	—		—	—		(255)		—		(255)
Repurchase of common stock	—	—		(3,002,432)	(4,286)		—		—		(4,286)
Excise tax from stock repurchases	—	—		—	—		(43)				(43)
Stock-based compensation	—	—		—	—		2,941		—		2,941
Cumulative translation adjustment	—	—		—	—		—		21		21
Balance - June 30, 2024	181,116,471	$	1	(7,646,021)	$	(10,511)	$	495,408	$	(356,838)	$	128,060

See notes to condensed consolidated financial statements

BARK, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)


	Three Months Ended
	June 30,		June 30,
	2025		2024
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(7,030)	$	(10,039)
Adjustments to reconcile net loss to cash (used in) provided by operating activities:
Depreciation & amortization	2,520		2,879
Impairment of assets	—		799
Non-cash lease expense	1,027		957

Amortization of deferred financing fees and debt discount	114		101

Stock-based compensation expense	3,594		2,941
Provision for inventory obsolescence	285		1,229


Change in fair value of warrant liabilities and derivatives	(782)		391

Changes in operating assets and liabilities:
Accounts receivable	2,033		637
Inventory	(10,283)		2,521
Prepaid expenses and other current assets	(417)		(999)
Other noncurrent assets	(356)		343
Accounts payable and accrued expenses	5,837		2,396
Deferred revenue	(356)		542

Operating lease liabilities	(1,403)		(1,281)
Other liabilities	(223)		(1,625)
Net cash (used in) provided by operating activities	(5,440)		1,792

CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures	(708)		(2,043)

Net cash used in investing activities	(708)		(2,043)

CASH FLOWS FROM FINANCING ACTIVITIES:



Payment of finance lease obligations	(59)		(54)
Proceeds from the exercise of stock options	20		145

Proceeds from issuance of common stock under ESPP	197		193
Tax payments related to the issuance of common stock	(497)		(255)
Excise tax from stock repurchases	(21)		(43)


Payments to repurchase common stock	(1,770)		(4,286)

Net cash used in financing activities	(2,130)		(4,300)

Effect of exchange rate changes on cash	(50)		21

NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	(8,328)		(4,530)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH—BEGINNING OF PERIOD	97,531		130,704
CASH, CASH EQUIVALENTS AND RESTRICTED CASH—END OF PERIOD	$	89,203	$	126,174

RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH:
Cash and cash equivalents	84,665		117,795
Restricted cash - prepaid expenses and other current assets, other noncurrent assets	4,538		8,379
Total cash, cash equivalents and restricted cash	$	89,203	$	126,174

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Purchases of property and equipment included in accounts payable and accrued liabilities	$	1,749	$	—
Cash paid for interest	$	5	$	50

See notes to condensed consolidated financial statements

BARK, INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1.ORGANIZATION AND DESCRIPTION OF BUSINESS

BARK, Inc., is an omnichannel brand serving dogs across two categories: toys & accessories, and consumables. The Company is located and headquartered in New York, New York.

BARK, Inc. was incorporated in Delaware on July 8, 2020 as Northern Star Acquisition Corp. (“Northern Star”) as a special purpose acquisition company with the purpose of effecting a merger with one or more operating businesses. On June 1, 2021, Northern Star completed the acquisition of Barkbox, Inc., a Delaware corporation (“Legacy BARK” and the acquisition, the “Merger”), pursuant to that certain Agreement and Plan of Reorganization (the “Merger Agreement”), dated December 16, 2020, by and among Northern Star, NSAC Merger Sub Corp. a wholly-owned subsidiary of Northern Star (“Merger Sub”), and Legacy Bark. Following the Merger, the Company’s legal name became “The Original BARK Company,” and in November 2021 changed its name to BARK, Inc. The Merger between Northern Star and Legacy BARK was accounted for as a reverse recapitalization.

Throughout the notes to the condensed consolidated financial statements, unless otherwise noted, the “Company,” “we,” “us” or “our” and similar terms refer to Legacy BARK and its subsidiaries prior to the consummation of the Merger, and BARK and its subsidiaries after the consummation of the Merger.

2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation and Principles of Consolidation—The accompanying condensed consolidated financial statements include the accounts of BARK, Inc. and its wholly-owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the accounting disclosure rules and regulations of the Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s audited consolidated financial statements as of and for the years ended March 31, 2025 and 2024 contained in the Annual Report on Form 10-K filed with the SEC on June 4, 2025.

The consolidated balance sheet as of March 31, 2025, included herein, was derived from the audited consolidated financial statements as of that date, but does not include all disclosures, including certain notes required by U.S. GAAP, required on an annual reporting basis.

In the opinion of management, the accompanying condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, and cash flows for the interim periods. The results for the three months ended June 30, 2025 are not necessarily indicative of the results to be expected for any subsequent quarter, the year ending March 31, 2026, or any other period.

There have been no material changes to the Company’s significant accounting policies as described in the audited consolidated financial statements as of March 31, 2025 and 2024.

Although the Company has incurred recurring losses in each fiscal year since inception, the Company expects its cash and cash equivalents will be sufficient to fund operations for at least the next twelve months.

Use of Estimates—The Company makes estimates and assumptions about future events that affect the amounts reported in its condensed consolidated financial statements and accompanying notes. Future events and their effects cannot be determined with certainty. On an ongoing basis, management evaluates these estimates, judgments and assumptions.

The Company bases its estimates on historical and anticipated results and trends and on various other assumptions that the Company believes are reasonable under the circumstances, including assumptions as to future events. Changes in estimates are recorded in the period in which they become known. Actual results could differ from those estimates, and any such differences may be material to the Company’s condensed consolidated financial statements. The most significant estimates relate to determination of fair value of the Company’s allowance for uncollectible accounts receivable, excess and obsolete inventory, stock-based compensation, stand-alone selling price of Direct to Consumer offerings, and fair value of right-of-use assets. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, and records adjustments when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ from those estimates.

Fair Value of Financial Instruments—The Company’s financial instruments, including cash and cash equivalents, accounts receivable, prepaid expenses and other current assets, accounts payable, and accrued expenses, are carried at historical cost. At June 30, 2025 and March 31, 2025, the carrying amounts of these instruments approximated their fair values because of their short-term nature. The carrying amounts of the Company’s long-term debt approximate the fair value based on consideration of current borrowing rates available to the Company.

Assets and liabilities recorded at fair value on a recurring basis in the condensed consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair values. Fair value is defined as the exchange price that would be received for an asset or an exit price that would be paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The authoritative guidance on fair value measurements establishes a three-tier fair value hierarchy for disclosure of fair value measurements as follows:

Level 1—Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date;

Level 2—Inputs are observable, unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities; and

Level 3—Unobservable inputs that are supported by little or no market data for the related assets or liabilities.

The categorization of a financial instrument within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

The following summarizes assets and liabilities that are measured at fair value on a recurring basis, by level, within the fair value hierarchy (in thousands):


	As of June 30, 2025
	Level 1		Level 2		Level 3		Total
Assets
Money market funds(1)	$	12,624	$	—	$	—	$	12,624
	$	12,624	$	—	$	—	$	12,624

Liabilities
Public warrant liability(2)	$	85	$	—	$	—	$	85
Private warrant liability(2)	—		46		—		46
	$	85	$	46	$	—	$	131


	As of March 31, 2025
	Level 1		Level 2		Level 3		Total
Assets
Money market funds(1)	$	24,506	$	—	$	—	$	24,506
	$	24,506	$	—	$	—	$	24,506
Liabilities
Public warrant liability(2)	$	593	$	—	$	—	$	593
Private warrant liability(2)	—		319		—		319
	$	593	$	319	$	—	$	912

______________

(1)As of June 30, 2025 and March 31, 2025, the Company had cash equivalents held in a money market account. The Company has concluded that due to the highly liquid nature of the money market account, the carrying value approximates fair value, which represents a Level 1 input. The balance of cash equivalents held in the money market account is included in cash and cash equivalents.

(2)Included in accrued and other current liabilities.

The Company’s warrants include publicly-traded warrants (the “Public Warrants”) which were issued as one-third of a warrant per unit issued during the Company’s initial public offering on November 10, 2020, warrants sold in a private placement to Northern Star’s sponsor (the “Private Warrants”), and preferred share warrants issued by Legacy BARK which were assumed by the Company in connection with the Merger and exchanged into warrants for BARK common stock (the “Common Stock Warrants”). All of the Common Stock Warrants have been exercised and are no longer outstanding.

The Company evaluated its warrants under Accounting Standards Codification (“ASC”) ASC 815-40, Derivatives and Hedging—Contracts in Entity’s Own Equity (“ASC 815”), and concluded that they do not meet the criteria to be classified in stockholders’ equity. Since the Public Warrants and Private Warrants meet the definition of a derivative under ASC 815, the warrants have been recorded as current liabilities on the balance sheet at fair value upon issuance, with subsequent changes in their respective fair values recognized in other income (expense), net on the condensed consolidated statements of operations and comprehensive loss at each reporting date. See further disclosure on the change in fair value of Public and Private Warrant liabilities within Note 10, “Other Income (Expense) Net.”

Restricted Cash— The Company had cash held as collateral by our payments processor for BARK Air and an escrow account under the surety bond requirements of the U.S. Department of Transportation. As of June 30, 2025, the Company has classified $4.5 million within prepaid expenses and other current assets, as restricted cash. As of March 31, 2025 the Company has classified $3.5 million within prepaid expenses and other current assets, as restricted cash.

Concentration of Credit Risk and Major Customers and Suppliers—Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company maintains cash and cash equivalents with two financial institutions.

The Company’s accounts receivable are derived from sales contracts with large retail customers. The Company maintains reserves for potential credit losses on customer accounts when deemed necessary. Accounts receivable net was $7.4 million, $9.5 million, and $7.7 million as of June 30, 2025, March 31, 2025 and March 31, 2024, respectively.

Significant customers are those that represent more than 10% of the Company’s total revenues or gross accounts receivable balance at each balance sheet date. For the three months ended June 30, 2025 and 2024, the Company did not have any customers that accounted for 10% or more of total revenues. The Company had two and one customers that accounted for 33% and 46% of gross accounts receivable as of June 30, 2025 and March 31, 2025, respectively. The Company’s accounts receivable relates to sales to customers within the Commerce segment, which represented 13.3% and 7.9% of total revenue for the three months ended June 30, 2025, and 2024, respectively.

Significant suppliers are those that represent more than 10% of the Company’s total finished goods purchased or accounts payable at each balance sheet date. During the three months ended June 30, 2025 and 2024, the Company had three suppliers that accounted for 52% of total finished goods purchased and two suppliers that accounted for 35% of total finished goods purchased, respectively. The Company had two suppliers that accounted for 41% of the accounts payable balance and one supplier that accounted for 17% of the accounts payable balance as of June 30, 2025 and March 31, 2025, respectively.

Recently Issued Accounting Pronouncements

ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. On April 1, 2025 ASU 2023-09 became effective and requires, among other things, greater disaggregation of information in the rate reconciliation and for paid income taxes to be disaggregated by jurisdiction. ASU 2023-09 affects financial statement disclosure only, which is not required until fiscal year end 2026 and, as a result, does not affect our results of operations or financial condition.

ASU 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. In November 2024, the FASB issued this ASU to improve disclosures regarding the types of expenses included in commonly presented expense captions. This update is effective beginning with the Company’s 2028 fiscal year annual reporting period, with early adoption permitted. The Company is currently evaluating the impact that the adoption of this standard will have on its consolidated financial statements.

ASU 2024-04, Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments. In November of 2024 the FASB issued this ASU to clarify the requirements for determining whether certain settlements of convertible debt instruments should be accounted for as an induced conversion. ASU 2024-04 is effective for the Company’s 2027 fiscal year annual reporting period. The Company is currently evaluating the impact that the adoption of this standard will have on its consolidated financial statements.

3. REVENUE FROM CONTRACTS WITH CUSTOMERS

The Company’s standard payment terms vary but do not result in a significant delay between the timing of invoice and payment. The Company occasionally negotiates other payment terms during the contracting process for its Commerce business. The Company has elected the practical expedient to not adjust the total consideration within a contract to reflect a financing component when the duration of the financing is one year or less.

Disaggregated Revenue

Revenue disaggregated by significant revenue stream for the three months ended June 30, 2025 and 2024 were as follows (in thousands):


	Three Months Ended
	June 30,
	2025		2024
Revenue
Direct to Consumer:
Toys & Accessories(1)	$	51,800	$	70,569
Consumables(1)	35,030		35,904
Other(2)	2,346		586
Total Direct to Consumer	$	89,176	$	107,059
Commerce	13,685		9,153
Revenue	$	102,861	$	116,212

(1) The allocation between Toys & Accessories and Consumables includes estimates and was determined utilizing data on stand-alone selling prices that the Company charges for similar offerings, and also reflects historical pricing practices.

(2) Other Direct to Consumer revenue is derived from BARK Air.

Contract Liability

The Company’s contract liability represents cash collections from its customers prior to delivery of subscription products, which is recorded as deferred revenue on the condensed consolidated balance sheets. Deferred revenue is recognized as revenue upon the delivery of the box, product or service.

Deferred revenue was $20.9 million, $21.3 million, and $26.0 million as of June 30, 2025, March 31, 2025, and March 31, 2024 respectively.

Performance Obligations

A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account. Performance obligations are satisfied as of a point in time when control of promised goods are transferred to customers. The Company has elected to not disclose information related to remaining performance obligations due to their original expected terms being one year or less.

4. DEBT

As of June 30, 2025 and March 31, 2025, the current portion of long-term debt consisted of the following (in thousands):

As of June 30,

As of March 31,

SEC Form 10-Q filed by BARK Inc.