Financial Analysis

COMMITMENTS AND CONTINGENCIES Litigation On March 20, 2024, three alleged stockholders filed a putative class action complaint in the lawsuit styled Kenville v. Northern Star Sponsor LLC, et al., Case No. 2024-276, which is pending in the Delaware Court of Chancery. The lawsuit asserts claims arising from Northern Star Acquisition Corp.s (Northern Star) 2021 acquisition of Legacy BARK. The claims are asserted on behalf of a putative class consisting of Northern Star stockholders who held stock as of the redemption deadline and who elected not to redeem all or some of their stock. On February 21, 2025, the plaintiffs filed a Verified Second Amended Complaint (the SAC), which asserts claims that certain former officers and directors of Northern Star breached fiduciary duties to Northern Stars stockholders and were unjustly enriched in connection with the acquisition of Legacy BARK and that Legacy BARK, two of its founders, and BARK, Inc. (collectively, the BARK Defendants) aided and abetted the alleged breaches of fiduciary duties. On March 7, 2025, the BARK Defendants filed a motion to dismiss the aiding and abetting claim alleged against them, and the remaining defendants filed an answer to the SAC. On July 1, 2025, the Court entered an order granting the parties stipulation dismissing the claims against the BARK Defendants without prejudice. On October 31, 2025, the Court entered an order granting plaintiffs motion for class certification. Fact discovery in the case is curre …

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DEBT As of March 31, 2026 and 2025, long-term debt consisted of the following: March 31, 2026 2025 Current portion of long-term debt 2025 Convertible Notes $ $ 42,880 Less: deferred financing fees and debt discount (307) Total current portion of long-term debt $ $ 42,573 Total debt $ $ 42,573 During the fiscal years ended March 31, 2026, 2025, and 2024, the Company incurred interest expense of $1.9 million, $2.8 million, and $4.4 million, respectively, on the Consolidated Statements of Operations and Comprehensive Loss. Interest expense for the fiscal years ended March 31, 2026, 2025, and 2024 included deferred financing fees and debt discount amortization of $0.3 million, $0.4 million, and $0.6 million, respectively. As of March 31, 2026 the Company had no accrued interest. As of 2025, the Company had accrued interest of $0.8 million within Accrued and other current liabilities and Other long-term liabilities on the Consolidated Balance Sheet. 2025 Convertible Notes On November 27, 2020, the Company issued $75.0 million aggregate principal amount of 2025 Convertible Notes (the 2025 Convertible Notes) to Magnetar Capital, LLC (Magnetar) under an indenture, dated as of November 27, 2020, between Legacy BARK and U.S. Bank National Association, as trustee and collateral agent (the Indenture). The Company received net proceeds of approximately $74.7 million from the sale of the 2025 Convertible Notes, after deducting fees and expenses of approximately $0.3 million. The Company re …

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Revenue disaggregated by significant revenue stream for the fiscal years ended March 31, 2026, 2025, and 2024 were as follows (in thousands): Fiscal Year Ended March 31, 2026 2025 2024 Revenue Direct to Consumer: Toys & Accessories (1) $ 189,399 $ 262,307 $ 284,676 Consumables (1) 123,129 147,683 151,770 Other (2) 12,399 5,847 Total Direct to Consumer $ 324,927 $ 415,837 $ 436,446 Commerce 69,916 68,345 53,738 Revenue $ 394,843 $ 484,182 $ 490,184 (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. …

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STOCK-BASED COMPENSATION PLANS Equity Incentive Plans The Barkbox, Inc. 2011 Stock Incentive Plan (as amended from time to time, the 2011 Plan) provides for the award of stock options and other equity interests in the Company to directors, officers, employees, advisors or consultants of the Company. On June 1, 2021, in connection with the Merger, the 2021 Equity Incentive Plan (the 2021 Plan) became effective and 846,475 authorized shares of common stock were reserved for issuance thereunder. In addition, pursuant to the terms of the Merger Agreement, on the Closing Date of the Merger, options to purchase shares of Legacy BARKs common stock previously issued under the 2011 Plan were converted into options to purchase an aggregate of 1,469,517 shares of BARK common stock. For each fiscal year beginning on April 1, 2022 and ending on (and including) March 31, 2031, the aggregate number of shares of common stock that may be issued under the 2021 Plan may be increased by a number, determined and approved by the Board on or before May 1st of such fiscal year, not to exceed 5% of the total number of shares of common stock issued and outstanding on the last day of the preceding fiscal year. In April 2023, the Board approved an increase of the aggregate number of common stock that may be issued under the 2021 Plan by 443,808 shares. As of March 31, 2026, 739,010 shares of shares of common stock were available for the Company to grant under the 2021 Plan; there were no remaining share …

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INCOME TAXES Beginning with the fiscal year ended March 31, 2026 annual reporting period, the Company adopted ASU 2023-09 prospectively. See Note 2 Summary of Significant Accounting Policies Recently Adopted Accounting Pronouncements for additional details. A reconciliation of the Companys effective tax rate to the statutory federal income tax rate pursuant to the disclosure requirements of ASU 2023-09 for the fiscal year ended March 31, 2026 is as follows (in thousands, except percentages): March 31, 2026 Federal statutory rate $ (8,192) 21.00 % State taxes, net of federal benefits Change in valuation allowance 4,203 (10.77) % Nontaxable and Nondeductible items Stock Compensation 3,970 (10.18) % Other 151 (0.39) % Other Adjustments (132) 0.34 % Total $ % A reconciliation of the Companys effective tax rate to the statutory federal income tax rate for the fiscal years ended March 31, 2025 and 2024 is as follows: March 31, 2025 2024 Federal statutory rate 21.00 % 21.00 % Permanent differences (0.22) (0.19) State taxes, net of federal benefits 3.51 (0.27) Change in valuation allowance (17.34) (14.08) Interest expense (1.47) (2.06) Warrant mark-to-market (0.34) 1.56 Stock-based compensation (5.01) (5.71) Other deferred adjustments (0.13) (0.25) Total % % The components of the Companys deferred taxes are as follows (in thousands): As of March 31, 2026 2025 Net operating loss carryforwards $ 84,368 $ 73,456 Charitable contributions 1,166 1,132 Interest expense 63 499 UNICAP 3,225 3 …

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LEASES The Company has operating leases for its offices and fulfillment centers. Fulfillment and customer service centers and corporate office leases expire at various dates through 2038, excluding renewal options. The Company also leases certain equipment under operating and finance leases. The terms of equipment leases are generally five years and do not contain renewal options. These finance leases expire at various dates through 2028. The Companys finance leases as of March 31, 2026 and March 31, 2025 were not material and were included in property and equipment, net, on the Companys consolidated balance sheets. The following schedule represents the components of the Companys operating lease assets as of March 31, 2026 and 2025 (in thousands): March 31, Leases Consolidated Balance Sheets Location 2026 2025 Assets Operating Operating lease right-of-use assets $ 24,799 $ 28,277 Total operating lease assets $ 24,799 $ 28,277 Liabilities Operating lease liabilities (current) Operating lease liabilities, current $ 5,211 $ 5,798 Operating lease liabilities (non-current) Operating lease liabilities $ 32,466 $ 36,802 Total operating lease liabilities $ 37,677 $ 42,600 The following schedule represents the components of operating lease expense for the fiscal years ended March 31, 2026 and 2025 (in thousands): Fiscal Year Ended Consolidated Statements of Operations and Comprehensive Loss Location March 31, 2026 March 31, 2025 Operating lease costs General and administrative $ 7,110 …

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Recently Adopted Accounting Pronouncements Beginning in the fiscal year 2026 annual reporting period, the Company adopted ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, on a prospective basis. This standard improves the transparency of income tax disclosures by requiring consistent categories and greater disaggregation of information in the effective tax rate reconciliation and income taxes paid disaggregated by jurisdiction. It also includes certain other amendments to improve the effectiveness of income tax disclosures. The adoption of this standard did not have a material impact on our consolidated financial statements. For additional information, See Note 12 - Income Taxes. Recently Issued Accounting Pronouncements 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 Companys 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 …

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RELATED PARTY TRANSACTIONS There were no related party transactions during the fiscal years ended March 31, 2026 and 2025. During the fiscal year ended March 31, 2024, the Company repurchased 300,000 shares of the Companys common stock, held by a former director for total consideration of $0.3 million. The repurchased shares of common stock were recorded as treasury stock and were accounted for under the cost method. None of the repurchased shares of common stock have been retired. …

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REVENUE FROM CONTRACTS WITH CUSTOMERS The Companys 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 fiscal years ended March 31, 2026, 2025, and 2024 were as follows (in thousands): Fiscal Year Ended March 31, 2026 2025 2024 Revenue Direct to Consumer: Toys & Accessories (1) $ 189,399 $ 262,307 $ 284,676 Consumables (1) 123,129 147,683 151,770 Other (2) 12,399 5,847 Total Direct to Consumer $ 324,927 $ 415,837 $ 436,446 Commerce 69,916 68,345 53,738 Revenue $ 394,843 $ 484,182 $ 490,184 (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 Companys contract liability primarily represents cash collections from its customers prior to delivery of subscription products, which is recorded as deferred revenue on the consolidated balance sheets. Deferred revenue i …

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"SEGMENTS The Company applies ASC 280, Segment Reporting , in determining reportable segments for its financial statement disclosure. The Company operates and manages the business across multiple operating segments which are aggregated based on similar qualitative and economic characteristics into two reportable segments: Direct to Consumer and Commerce. The Direct to Consumer segment derives revenue from the sale of toys & accessories and consumables through BarkBox, Super Chewer, and the Companys consumables website, Bark.co. The Commerce segment derives revenue primarily from the sale of individual toys through major retailers and online marketplaces. Reporting in this format provides management with the financial information necessary to evaluate the success of the segments and the overall business. There are no internal revenue transactions between the Companys segments. The Companys Chief Executive Officer is the chief operating decision maker (""CODM"") and manages and allocates resources between the Direct to Consumer and Commerce segments. Consistent with this decision-making process, the CODM uses financial information disaggregated between the Direct to Consumer and Commerce segment for purposes of evaluating performance, forecasting future period financial results, allocating resources and setting incentive targets. The CODM evaluates segment business performance based primarily on gross profit. The CODM considers budget-to-actual variances on a monthly basis …

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"SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The consolidated financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) as determined by the Financial Accounting Standards Board (FASB). Certain prior year information has been reclassified to conform to the current year presentation. These reclassifications had no effect on previously reported results of operations or accumulated deficit. Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP and regulations of the U.S. Securities and Exchange Commission requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period covered by the financial statements and accompanying notes. The most significant estimates relate to determination of fair value of the Companys allowance for uncollectible accounts receivable, excess and obsolete inventory reserve, stock-based compensation, fair value of right-of-use assets, stand-alone selling price of Direct-to-Consumer offerings and the valuation of embedded derivatives. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, …

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"STOCKHOLDERS EQUITY On August 17, 2023, June 3, 2024, and February 26, 2025, the Company respectively announced that its Board of Directors (the Board) had authorized a stock repurchase program, pursuant to which the Company may repurchase, from time to time, up to an aggregate of $7.5 million, $15.0 million, and $4.0 million or $26.5 million in total, of the Companys outstanding shares of common stock, exclusive of any fees, commissions or other expenses related to such repurchases, in open market transactions made in accordance with the provisions of Rule 10b-18 and/or Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, privately negotiated transactions or by other means in accordance with applicable securities laws. The Companys stock repurchase programs may be limited or terminated at any time without prior notice. The timing and actual number of shares repurchased will depend on a variety of factors, including corporate and regulatory requirements, price and other market conditions and managements determination as to the appropriate use of cash. During the fiscal year ended March 31, 2025, the Company purchased 567,450 shares of its common stock under the program in open market transactions for $18.5 million at an average price of $32.61. During the fiscal year ended March 31, 2026, the Company repurchased a total of 65,531 shares of its common stock under the program for $1.8 million at an average price of $27.00. The repurchased shares of common stock w …

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"SUBSEQUENT EVENTS Tariff Refund On February 20, 2026, the U.S. Supreme Court held that tariffs imposed under the International Emergency Economic Powers Act (""IEEPA"") were unconstitutional. On April 20, 2026, CBP launched its Consolidated Administration and Processing of Entries (""CAPE"") portal to process refund claims. The Company paid a total of $15.4 million in IEEPA tariffs on imported goods between February 4, 2025 and February 24, 2026. Our recovery of IEEPA tariffs represents a loss recovery. To date, the Company submitted claims that were accepted by the CAPE portal in the amount of $3.3 million and a corresponding refund receivable was recorded within accounts receivable, net in the Company's consolidated balance sheet as of March 31, 2026. Of the $3.3 million, $2.7 million, and $0.6 million were recorded as reductions of cost of revenue, and inventory, respectively. An additional $7.1 million and $5.0 million of the IEEPA tariffs paid by the Company allocable to cost of revenue and inventory, respectively, for the fiscal year ended March 31, 2026 were not recorded. These amounts are not currently eligible for submission under the CAPE portal and therefore the Company was unable to recognize any receivable or loss recovery with respect to these amounts. Share Repurchase Program On June 5, 2026, the Companys Board of Directors authorized a share repurchase program of up to $40.0 million of the Companys common stock. Repurchases may be made from time to time throu …

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