Pet Subscription Revenue Falls as Retail Grows
Operators in pet products and subscription commerce should weigh how the shift toward retail orders affects margins and inventory.
Updated on Nov. 6, 2026 in Retail
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Bark's net revenue fell 18.1% year over year to $87.6 million in its fiscal second quarter ended Sept. 30, 2026, driven by lower direct-to-consumer subscriber activity. The company also reached a preliminary understanding to sell Bark Air's assets and license the brand beginning January 1, 2027, subject to definitive documentation.
Why it matters
The decline came mainly from DTC, where revenue dropped 24.7% to $61.8 million, while the commerce channel grew 3.6% to $25.7 million. For retailers and pet-product sellers, the split suggests that wholesale and retail-channel sales are holding up better than subscription revenue.
Bark's commerce channel grew 3.6% to $25.7 million while its DTC channel fell 24.7% to $61.8 million in the quarter. Subscriber retention improved to 94% even as overall net revenue dropped 18.1%.
The players
Bark
A pet-products company operating a subscription-based DTC toy and treat business alongside a growing commerce and retail channel.
Bark Air
Bark's dog airline subsidiary, launched in May 2024 with service to New York, Los Angeles and London and expansion routes to European and U.S. West Coast cities.
The details
Bark's DTC business relies on recurring subscriptions, so reduced subscriber activity directly lowers net revenue even when retention holds. The company is looking to redirect funds from a Bark Air sale toward commerce operations, partnerships, supply chain and innovation, which would shift resources toward its retail-facing side if the deal closes. Bark also launched Licksters, a new line of enrichment toys, and shipped two of the largest retail orders in its history during fiscal Q3.
Timeline
May 2024: Bark Air launched dog airline service to New York, Los Angeles and London.
Sept. 30, 2026: Bark's fiscal second quarter ended.
Fiscal Q3: Two of the largest retail orders in company history shipped.
January 1, 2027: Bark Air asset sale and brand licensing are scheduled to begin, subject to definitive documentation.
Market Landscape
Bark's subscription-led model is contracting while its commerce channel grows, a shift that mirrors the broader move among pet-product companies toward retail distribution. The planned Bark Air sale signals the company is reallocating capital away from its experimental premium travel line toward its core product operations.
Operators in pet products and subscription commerce should weigh how a shift from subscription revenue toward retail orders affects their own margins and inventory planning. Businesses that depend on DTC recurring revenue should monitor subscriber activity closely, and anyone considering a similar licensing or asset-sale arrangement should consult qualified counsel before acting.
The takeaway
The key operating signal is that Bark's retail and commerce channel is the part of the business gaining ground while subscription revenue shrinks. Operators tracking pet-product or subscription businesses should watch whether the Bark Air sale closes as expected on January 1, 2027, and file the next quarter's DTC and commerce figures to see if the trend holds.
Further reading
For more on how retail channels are reshaping consumer product sales, explore Retail coverage.
Source note: This article includes information reported by Digital Commerce 360.
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