BARK’s QQ2 2026 results reflect a clear strategic shift toward revenue diversification and profitability discipline, anchored by meaningful progress in Commerce and Bark Air alongside continued strength in core DTC activity. Total revenue reached $106.97 million, topping the high end of guidance, while adjusted EBITDA stood at negative $1.4 million for the quarter, within guidance, aided by a deliberate incremental marketing investment intended to harvest efficient growth over time. The quarter underscored notable diversification benefits: Commerce revenue of $24.8 million (+6% YoY) as a 24% contribution to total revenue, and Bark Air at $3.6 million (up 138% YoY and 54% QoQ) with a record 93% seat-fill and 99% five-star rating. These dynamics, coupled with improved subscriber retention (six consecutive months of improvement) and a shift toward higher-value, loyalty-driven customers, support the company’s longer-term objective of EBITDA breakeven for the year and a stronger, more resilient balance sheet. Management highlighted debt-free status post-convertible debt payoff and a continued extension of the $35 million credit facility, positioning BARK to invest in growth while weathering tariff and macro headwinds. However, near-term profitability remains contingent on navigating elevated tariff costs (expected full-year impact of $12–$13 million) and ongoing macro uncertainty. The company reiterated a cautious stance on guidance for Q3 and a view toward exiting fiscal 2026 with improved margins and broader diversification across channels and product categories.