Bark Revenue Falls 18.1% in Q2 as Commerce Growth Returns

Bark's net revenue fell 18.1% year over year to $87.6 million in its fiscal second quarter, ended Sept. 30, even as the pet products seller managed to reignite growth in its retail-partner commerce business and lined up a buyer for its dog-focused airline.

The decline came from the direct-to-consumer side, where reduced subscriber activity dragged DTC revenue down 24.7% to $61.8 million. Commerce revenue — the money Bark makes selling through retail partners — moved the other way, up 3.6% to $25.7 million. Bark sits at No. 261 in the Digital Commerce 360 Top 1000 Database of North America's largest online retailers and No. 806 in the AI Commerce Rankings from Digital Commerce 360 and ReFiBuy.

CEO Matt Meeker framed the quarter as a course correction that's starting to stick.

"Commerce returned to growth, Subscriber Retention improved to 94%, and we put our marketing dollars to work where they were most efficient," said Meeker, Bark's co-founder and CEO. "We also made meaningful progress expanding our product offerings and retail presence, including the launch of Licksters, our new line of enrichment toys, and the shipment of two of the largest retail orders in Bark's history during our fiscal third quarter."

That 94% retention figure matters for a subscription business built on boxes. Holding onto nearly all subscribers while DTC revenue still fell by a quarter suggests the problem is engagement and spend per subscriber, not churn alone.

What happens to Bark Air?

Meeker used the quarter's results to lay out an exit timeline for Bark Air, the dog airline that launched in May 2024 with routes serving New York, Los Angeles and London, later adding Paris, Lisbon, Madrid, Seattle, South Florida and San Francisco. The service flies dogs and their human companions together with specialized onboard accommodations, and a Companion Concierge handles travel planning across commercial and private flights plus ground transportation.

The airline won't be Bark's problem much longer, if the paperwork holds.

"Subsequent to quarter end, we reached a preliminary understanding to sell Bark Air's assets and license the brand beginning January 1, 2027," Meeker stated. "The arrangement remains subject to definitive documentation and there is no assurance it will be completed."

A preliminary understanding, in deal language, is a handshake with a lawyer nearby. The CEO isn't promising closure — he's flagging the risk plainly.

What does this change for Bark's strategy?

If the sale closes, Meeker expects Bark to redirect the funds currently tied up in the airline toward commerce operations, retail partnerships, supply chain and product innovation. That tracks with where the growth already is: commerce rose 3.6% in Q2 while DTC sank by nearly a quarter, and two of the largest retail orders in company history shipped in the fiscal third quarter. The company is putting its money where its momentum points.

The next few quarters will test whether Licksters and the retail push can outpace the DTC slide — and whether the Bark Air deal survives its own disclaimer.