Shay Capital urges Bark board to authorize share buyback program

In a letter to BARK‘s (BARK) board of directors, Shay Capital’s Eric Ebert, wrote in part, “Your management teams disciplined execution has been exemplary: maintaining adjusted EBITDA positivity through turbulent markets, meticulously building a beloved brand and scalable platform that resonates with millions of dog parents, and steadfastly prioritizing prudence and profitability over reckless expansion…That said, now is the moment for bold, decisive action to reward the loyalty of shareholders and unlock the full potential of this extraordinary company. The company’s strong balance sheet acts as a financial fortress in these uncertain times, boasting $85M in cash reserves and $98M in fully paid-for inventory, equating to a staggering $183M in liquid assets and tangible holdings. After accounting for debt and other prepaid expenses, this nets out to approximately $150M in equity value, well in excess of the current market capitalization of $137 M. BARK is trading at negative equity, handing the market a thriving, growth-oriented, adjusted EBITDA-positive business for free. The sheer absurdity of this valuation is a call to arms-I demand that the Board act with the immediacy this crisis warrants. To that end, I urge the swift implementation of the following three key initiatives, with emphasis on advancing the first two without delay. Time is of the essence; hesitation here would be unforgivable. First and foremost, the board should immediately authorize and execute a minimum $25M share buyback program. With the stock languishing in negative equity territory, repurchasing shares at these depressed prices would be an act of profound stewardship, accretive to every remaining shareholder and a direct rebuke to the market’s irrational disregard for BARK’s intrinsic value. The deep value embedded in this equity is irrefutable: by repurchasing shares, you are acquiring a high-quality, data-rich business at a discount that defies logic. Do not let another trading day pass without deploying capital to use this massive dislocation to the advantage of long-term shareholders. Act now to affirm your commitment to shareholder value and ignite the re-rating this company deserves. This can be done through a traditional share buyback program or through a tender offering to buy back shares. We will not tender to sell a single share. Second, secure and deploy inventory financing against the $98M in paid-for inventory to liberate this trapped capital. It is needless to tie up such a large sum in non-earning assets when it could fuel aggressive growth initiatives, marketing firepower and further innovation. BARK’s balance sheet is a war chest begging for optimization: borrow against this inventory immediately, at favorable terms, and redirect the freed-up liquidity to high-ROI opportunities that will accelerate revenue and margins. This is low-hanging fruit that demands immediate execution, and the opportunity cost of inaction is eroding value every day. Move on this with the speed and resolve it requires-your shareholders are counting on it. Third, to capitalize on BARK’s unparalleled moat, strategic plans must be drawn up at the Board level to aggressively expand the company’s product categories to include vitamins & supplements, DNA testing kits for dogs and other wellness products while ramping up product experimentation across the portfolio. With proprietary data on over 6 million dogs across the United States-one of the most valuable pet datasets in existence-BARK must monetize this data goldmine more aggressively. Leverage this database for personalized health recommendations, targeted R&D, and new revenue streams that deepen customer lifetime value. Experiment boldly: test new offerings, iterate rapidly, and grow the top line without compromising your hard-won profitability. This is the natural evolution of your platform into a comprehensive pet health ecosystem, and it must begin in earnest. The time for moving slowly is over.”