BARK, Inc. (NYSE: BARK) disclosed that it has completed a series of cost‑reduction initiatives in the fourth quarter of fiscal 2026, projecting up to $28 million in annual savings. The company also highlighted the possibility of receiving approximately $15 million in tariff refunds under the International Emergency Economic Powers Act, which could further improve its cost structure.
The announcement follows BARK’s milestone of becoming debt‑free in fiscal year 2025 after repaying its 2025 Convertible Notes, and its first full‑year positive adjusted EBITDA in FY2025. Despite these achievements, the company posted a negative EBITDA of $30.15 million in the twelve months ending Q3 FY2026, underscoring the need for the projected savings to strengthen profitability and free cash flow.
The cost‑cutting package includes workforce reductions, increased automation, and a reduction in corporate office space. These measures were chosen to improve operating efficiency, leverage investments in artificial intelligence technologies, and strengthen key strategic relationships, as the company’s management explained in a recent statement.
The potential tariff refunds stem from a U.S. Supreme Court ruling that allows BARK to recover certain tariffs paid under the IEEPA. While the company anticipates up to $15 million in refunds, the timing and amount remain uncertain due to the need for an administrative refund processing system and the possibility of further legal proceedings or appeals.
Revenue for Q3 FY2026 was $98.4 million, a 22.1% decline year‑over‑year and below guidance. The decline reflects a deliberate reduction in marketing spend amid consumer‑spending headwinds, but the cost‑saving initiatives are expected to offset the revenue shortfall and improve margin resilience.
"These changes are focused on improving our operational effectiveness and further strengthening our bottom line. While the workforce reductions were difficult because they impact our colleagues and friends, who have worked hard to support BARK and its customers, we believe these changes position BARK to operate more efficiently and improve cash generation going forward," said CEO Matt Meeker. "The timing and amount of any IEEPA tariff refunds remain uncertain and are subject to administrative implementation, including the development and deployment of the refund processing system, as well as the potential for further legal proceedings or appeals. The Company intends to maintain all legal and administrative rights to the recovery of IEEPA tariffs paid, however, there is no assurance as to the timing or amount of any recovery."
"Over the past few months, we conducted a comprehensive review of the business with the goal of streamlining our cost structure that leverages our investments in Artificial Intelligence technologies and key strategic relationships."
The combination of debt elimination, positive adjusted EBITDA, and the new cost‑cutting plan positions BARK to navigate ongoing trade‑policy uncertainties and consumer‑spending headwinds while working toward a more resilient financial profile.
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