BARK Inc. (BARK) Reports Positive Free Cash Flow, Record Order Value Amid Strategic Efficiency Pivot

BARK Inc. (NYSE:BARK) is one of the best penny stocks under $1 to buy right now. On February 5, BARK reported an adjusted EBITDA of $(1.6) million for FQ3 2026, aligning with prior guidance and the previous year’s performance. The company achieved a consolidated gross margin of 62.5% and recorded its strongest average order value in nearly two years at $31.41. Operational efficiency was a major theme, highlighted by the generation of $1.6 million in positive free cash flow and a transition of last-mile delivery to Amazon, which is expected to further reduce shipping costs and accelerate delivery times.

However, revenue of $98.4 million fell below guidance, largely due to a deliberate $11 million reduction in marketing spend. This pullback is part of a broader strategy to prioritize high-quality customer acquisition over sheer volume, resulting in a 40% year-over-year decrease in marketing expenses. While this shift pressured revenue and contributed to a shrinking subscriber base, management maintains that the focus on bottom-line durability is necessary to navigate a volatile macroeconomic environment.

BARK Inc. (NYSE:BARK) ended the quarter with $22 million in cash after successfully repaying a $45 million convertible note. The company’s CFO noted that inventory levels were reduced by $10 million sequentially, a trend the company plans to continue to support cash conversion. Moving forward, BARK’s priorities remain centered on diversifying revenue streams and maintaining strict operational discipline to ensure long-term profitability.

BARK Inc. (NYSE:BARK) is a dog-centric company that provides products, services, and content for dogs. The company operates in two segments: Direct-to-Consumer and Commerce.

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