PTRN

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved record Net Revenue Retention (NRR) of 129%, driven by a reinforcing cycle where brand success generates data and logistics scale, lowering costs and transit times. International revenue surpassed $100 million for the first time, growing 87% year-over-year as brands increasingly utilize Pattern to expand from single markets to global footprints. Non-Amazon revenue grew 93%, reflecting a strategic shift to follow consumer GMV across platforms like TikTok Shop, Walmart, and Tmall. Launched Pattern Intelligence (PI), an execution layer that runs a sensor-actor framework to write millions of governed actions daily back to marketplaces on behalf of brands. Secured a U.S. patent for 'True ROAS' methodology, which isolates incremental ad impact from organic conditions to optimize long-term brand ranking rather than just attribution. Strategic positioning is shifting toward 'Agentic Commerce,' focusing on the infrastructure required to fulfill transactions initiated within Large Language Models (LLMs). Acquisition of ROI Hunter enabled brand partners to begin advertising directly within ChatGPT, expanding the reach of the semantic data layer. Raised full-year revenue guidance to $3.4-$3.5 billion, assuming continued momentum in international markets and non-Amazon channels. Expect year-over-year revenue growth to moderate to the 30% plus range in the second half as the company laps record growth rates from the prior year. Projecting full-year NRR to end between 123% and 124%, remaining above the long-term target of 115% despite tougher comparables. Anticipating Q3 revenue between $840-$860 million, accounting for a 4-percentage point growth shift as major promotional events moved from Q3 to Q2. Continuing to invest R&D ahead of revenue to expand data infrastructure and AI capabilities, while targeting full-year adjusted EBITDA margin accretion. The new East Coast fulfillment facility is now operational, with early throughput meeting internal goals to support logistics scale. R&D expense increased 89% year-over-year to $12 million, reflecting a deliberate prioritization of software and AI development over short-term margin maximization. Q2 results included one-time costs related to the Accelerate global summit and startup expenses for the new East Coast facility. Management noted that 19.3% of global goods are returned, identifying reverse logistics as a critical complex problem the company is solving to enable agentic shopping. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed there is no 'change of control' provision in the agreement and expects 'business as usual' with Thorne. Noted that Pattern already manages other brands within the P&G portfolio, suggesting the acquisition may provide more resources for the partnership. Attributed NRR strength to a technology roadmap that has doubled in execution speed over the last 12 months due to AI-assisted software development. Stated that even older cohorts are outgrowing the market because there are still significant levers for marketplace and geographic expansion. Non-Amazon revenue rose from 7% to 9% of the total business in one year, with Walmart business growing 3.4x over two years. Emphasized a channel-agnostic strategy, aiming to follow consumer GMV shifts toward social commerce and agentic surfaces. Investing in 'commerce infrastructure as a service' to handle fulfillment for agentic transactions, including real-time inventory and reverse logistics. Leveraging 13 years of SEO data to map 'semantic intent' (e.g., specific product use cases) which is critical for being surfaced by LLMs compared to traditional keyword search.

Interested in Pattern Group Inc.? Here are five stocks we like better. Record Q2 performance: Revenue rose 47% year over year to $877 million, while adjusted EBITDA increased 54% to $54 million. Net revenue retention reached 129%, well above Pattern’s 115% long-term target. Growth is diversifying beyond Amazon: International revenue jumped 87% to $110 million, and non-Amazon revenue increased 93%, led by marketplaces including Tmall, TikTok Shop, Walmart and Coupang. Outlook raised: Pattern now expects full-year revenue of $3.4 billion to $3.5 billion and adjusted EBITDA of approximately $211 million to $213 million, supported by strong cash flow, technology investments and momentum in AI-driven commerce tools. Pattern Group (NASDAQ:PTRN) reported record second-quarter results, with revenue rising 47% year over year to $877 million and adjusted EBITDA increasing 54% to $54 million. Chief Executive Officer Dave Wright said the company’s adjusted EBITDA growth exceeded revenue growth for the fourth consecutive quarter. The company also reported net revenue retention of 129%, up from 127% in the first quarter and 118% a year earlier. Pattern uses the metric to measure expansion among existing brand partners. Wright said the result exceeded the company’s long-term target of 115% and reflected brand partners expanding across marketplaces, geographies and product lines. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control International revenue increased 87% from a year earlier to $110 million, marking the first quarter in which that business surpassed $100 million in revenue. Non-Amazon revenue rose 93%, supported by activity on Tmall, TikTok Shop, Walmart and Coupang. Chief Financial Officer Jason Beesley said Pattern operates in 20 marketplaces across China, Hong Kong, Korea, Malaysia, Japan and Singapore. He noted that Pattern was the only non-China-based company named a Gold Star service provider for the health category by Tmall. → 3 Drone Stocks That Should Soar After the Summer Slump SaaS, logistics and other monetization revenue grew 123% to $17 million. Wright said the category remains a small portion of total revenue but provides additional ways to deepen relationships with brands and offers business optionality. During the question-and-answer session, Beesley said non-Amazon revenue represented 9% of total business, up from 7% a year earlier. While the company did not provide a forecast for that mix, he said diversification should continue as Pattern follows consumers across global marketplaces. → The Bitcoin Comeback May Already Be Underway—2 ETFs for Exposure Wright highlighted Walmart’s progress, saying Pattern’s business on the marketplace was 3.4 times its level of two years ago. He also said the company expects its channel mix to evolve as commerce expands to new marketplace and agentic-shopping surfaces. Wright said Pattern’s technology platform is built around an e-commerce ontology with a data layer, semantic layer and execution layer. The company said it has accumulated 91 trillion data points over 13 years and has 44 patents issued or pending across those layers. Pattern launched its Pattern Intelligence, or Pi, platform in May. According to Wright, Pi uses a sensor-and-actor framework to take governed actions across marketplaces on behalf of brand partners, while allowing partners to review, approve and modify inputs. The company also said it received a U.S. patent during the quarter for its True ROAS methodology, which seeks to measure advertising-generated sales after accounting for organic conditions, competition and long-term incrementality. The technology works alongside Destiny, Pattern’s advertising technology platform. Pattern said it was named TikTok Shop’s Strategic Partner of the Year in April and now has more than 100 brand partners selling through TikTok Shop. Wright said social commerce has become a meaningful source of new brand acquisition, particularly in beauty and fashion. Through ROI Hunter, which Pattern acquired in December, brand partners can now advertise through ChatGPT in addition to Meta, Google, Snap and TikTok. Management also discussed investments related to large language models and agentic commerce. Wright said Pattern is developing commerce infrastructure services involving real-time inventory, fulfillment, returns and customer interactions, while also building capabilities to help brands optimize their presence for LLM-driven shopping experiences. Pattern generated $136 million in operating cash flow during the trailing 12 months ended June 30, up 76% year over year, and $106 million in free cash flow, up 92%. The company ended the quarter with $346 million in cash and cash equivalents, no outstanding debt and $150 million of borrowing capacity. Beesley said adjusted EBITDA growth came despite expenses associated with Pattern’s annual Accelerate e-commerce summit, startup costs for an East Coast fulfillment facility and higher research and development spending. The East Coast facility is now operational, with early throughput in line with company targets. R&D expense, excluding stock-based compensation and related taxes, rose 89% to $12 million. Pattern said it is investing ahead of revenue in data infrastructure, the expansion of Pi and AI capabilities, while seeking leverage in other operating areas. Based on second-quarter results and momentum entering the second half, Pattern raised its full-year outlook. The company now expects: Revenue of $3.4 billion to $3.5 billion, representing approximately 37% to 38% year-over-year growth. Adjusted EBITDA of approximately $211 million to $213 million, representing approximately 38% to 40% growth. Ending net revenue retention for the year of approximately 123% to 124%. For the third quarter, Pattern forecast revenue of $840 million to $860 million, or 31% to 34% growth, and adjusted EBITDA of $51 million to $53 million, or growth of 25% to 29%. Beesley said third-quarter comparisons will be affected by the timing of promotional events. Amazon Prime Day, Walmart Deals and Target Circle events moved into the second quarter this year, creating an estimated four percentage-point growth shift from the third quarter to the second quarter and affecting both revenue and adjusted EBITDA. Asked about Procter & Gamble’s announced acquisition of Thorne, Beesley said Pattern learned of the transaction at the same time as the market and would not comment on transaction specifics. He said Pattern already works with other brands in P&G’s portfolio and that its agreement with Thorne does not contain a change-of-control provision. Beesley said Pattern and Thorne management had discussed the transaction and reiterated the importance of their partnership, describing the current relationship as “business as usual.” Wright added that Pattern has worked with brands that were later acquired by larger consumer packaged goods companies, including some of its longest-running partnerships. Management said it has not seen direct-to-consumer investment by brands materially cannibalize marketplace revenue. Wright said success in a brand’s direct channel can increase marketplace awareness, and Pattern’s focus remains on supporting brand outcomes across channels. At Pattern, we are on a mission to help brands accelerate profitable growth on global ecommerce marketplaces. Today, our proprietary technology and on-demand experts operate across more than 60 marketplaces to increase product sales to consumers in more than 100 countries. Utilizing more than 46 trillion data points and sophisticated machine learning and artificial intelligence (“AI”) models, we strive to optimize and automate key levers of ecommerce growth, including advertising, content creation and management, pricing, forecasting and customer service. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Pattern Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Revenue: $877 million, up 47% year-over-year. Adjusted EBITDA: $54 million, up 54% year-over-year. Net Revenue Retention (NRR): Record 129%, up from 127% in Q1 and 118% a year ago. International Revenue: $110 million, up 87% year-over-year, first quarter above $100 million. Non-Amazon Revenue: Up 93% year-over-year, with strength across Tmall, TikTok Shop, Walmart, and Coupang. SaaS, Logistics, and Other Revenue: $17 million, up 123% year-over-year. R&D Expense (excl. stock-based compensation): $12 million, up 89% year-over-year. Operating Cash Flow (TTM): $136 million, up 76% year-over-year. Free Cash Flow (TTM): $106 million, up 92% year-over-year. Cash and Cash Equivalents: $346 million, with no outstanding debt and $150 million of borrowing capacity. Q3 2026 Outlook: Revenue expected between $840 million-$860 million (31%-34% growth); Adjusted EBITDA expected between $51 million-$53 million (25%-29% growth). Full-Year 2026 Outlook: Revenue expected between $3.4 billion-$3.5 billion (37%-38% growth); Adjusted EBITDA expected between $211 million-$213 million (38%-40% growth). Warning! GuruFocus has detected 2 Warning Sign with PTRN. Is PTRN fairly valued? Test your thesis with our free DCF calculator. Release Date: August 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Record Q2 revenue of $877 million, up 47% year-over-year, with adjusted EBITDA up 54% to $54 million. Net revenue retention (NRR) hit a record 129%, up from 127% in Q1 and 118% a year ago, exceeding the long-term target of 115%. International revenue grew 87% year-over-year to $110 million, surpassing $100 million for the first time. Non-Amazon revenue grew 93% year-over-year, with strong performance across Tmall, TikTok Shop, Walmart, and Coupang. SaaS, logistics, and other revenue grew 123% year-over-year to $17 million, providing additional optionality. Raised full-year revenue outlook to $3.4-$3.5 billion (37-38% growth) and adjusted EBITDA to $211-$213 million (38-40% growth). Strong cash flow generation: trailing 12-month operating cash flow up 76% to $136 million and free cash flow up 92% to $106 million. Awarded a U.S. patent for True ROAS methodology, enhancing measurement capabilities. Named TikTok Shop's Strategic Partner of the Year, with over 100 brand partners now selling on the platform. Expanded advertising capabilities to ChatGPT through ROI Hunter, reaching consumers across multiple platforms. Q3 revenue growth is expected to moderate to 31-34% year-over-year due to tougher comparables and the shift of marketplace promotional events from Q3 to Q2. Q3 adjusted EBITDA growth is expected to be 25-29% year-over-year, lower than recent quarters, partly due to the event shift and seasonal pressures. NRR is expected to moderate to approximately 123-124% by year-end, down from the record 129% in Q2. R&D investment increased 89% year-over-year to $12 million, which is growing faster than revenue and could pressure margins. The company faces potential risks from brand acquisitions, such as P&G's acquisition of Thorne, which could lead to changes in partnerships, though no change of control provisions exist. Amazon still represents over 90% of total revenue, indicating high concentration risk despite diversification efforts. Q4 typically sees seasonal EBITDA margin pressure due to higher costs during the holiday period. Q: With P&G's announced acquisition of Thorne, does a change of control create any considerations for your relationship with Thorne, and how do you think about customer retention when brands are acquired by larger strategic owners?A: Jason Beesley (CFO) confirmed there is no change of control provision in the agreement and that it is "business as usual" with Thorne, noting Pattern already works with other P&G portfolio brands. Dave Wright (CEO) added that this is a positive outcome, as Pattern has historically built some of its best and longest partnerships inside large CPG conglomerates, either through brands starting there or being acquired, and expects the acquisition to bring more resources and investment to the Thorne brand. Q: Given the record net revenue retention (NRR) results, what is the signal on any ceiling for NRR among existing cohorts, and how should we think about faster growth in newer cohorts or verticals potentially diluting NRR while contributing to overall revenue growth?A: Dave Wright (CEO) attributed the 129% NRR to the company's technology roadmap, which has "approximately doubled" expectations from 12 months ago, driven by AI leverage in its Software Factory. Jason Beesley (CFO) added that even long-tenured brands can significantly outgrow the market due to technology optimizations and expansion levers, and while newer cohorts could theoretically dilute NRR, the company is not seeing any meaningful impact. Q: Non-Amazon revenue still implies over 90% of total revenue runs through Amazon. Where do you see that non-Amazon share going in one to two years?A: Jason Beesley (CFO) noted that while Pattern loves operating on Amazon, the global GMV split is lower for Amazon than Pattern's current concentration, making diversification a natural progression. He highlighted that non-Amazon revenue has grown from 7% to 9% of total business in just one year, with growth rates double or triple that of Amazon. Dave Wright (CEO) added that Walmart's business is up 3.4 times from two years ago, and the company remains channel-agnostic, focusing on brand outcomes as the ecosystem evolves. Q: Can you walk through where you're seeing the strong outperformance across the growth categories (technology, geography/marketplaces, selection), and what infrastructure needs are required to support continued rapid growth?A: Dave Wright (CEO) stated that the bulk of performance comes from the technology stack, as millions of daily actions cannot be manually executed. On infrastructure, he highlighted the new Bethlehem, Pennsylvania facility with hardware and software innovations increasing throughput by 2x, and emphasized the company's measured approach to avoid overbuilding. He also noted the complex problem of returns (19.3% of global goods) and the company's investment in commerce infrastructure as a service to address future agentic shopping needs. Q: Can you provide more color on the investments in commerce infrastructure as a service and agentic commerce acceleration capabilities?A: Dave Wright (CEO) explained that commerce infrastructure involves solving natural problems like inventory placement, delivery speed, redirects, exchanges, and returns, which will be more broadly used in the future. For agentic commerce, he highlighted Pattern's data advantages in mapping semantic intent, using the example of a blanket search where product descriptions must include dimensions to avoid being skipped in an LLM world. The company's SEO data is incredibly useful for understanding intent mapping, positioning Pattern well to help brands accelerate on LLM surfaces. Q: Given four consecutive quarters of margin expansion, the Q3 guidance implies year-over-year margin contraction. What are the specific drivers of those trends?A: Jason Beesley (CFO) explained that the calendar shift of marketplace promotional events (Prime Day, Walmart Deals, Target Circle) from Q3 to Q2 caused approximately four points of growth shift, creating noise between quarters. He also noted that Q4 typically has seasonal pressure on EBITDA margins due to higher costs during the holiday period. The only real year-over-year drag is increased R&D investment growing faster than revenue, but on a full-year basis, the company still expects margin accretion with adjusted EBITDA growing faster than revenue. Q: The number of data points on the platform has increased about 38% year-to-date to 91 trillion. How does that drive the pace of A/B tests and feed into product philosophy? Also, how is the health and wellness category comparing versus other verticals?A: Dave Wright (CEO) stated that Pattern is possibly best in the world at building frameworks for measurement, and the growing data moat creates a virtuous cycle where brand success leads to expansion, attracting more brands and more data. Jason Beesley (CFO) noted that the company doesn't manage category mix, but highlighted beauty growth of 85% and pet supplies growth of over 100%. He added that health and wellness as a percentage of new business is lower than the overall business, but the same flywheel of reputation and expertise that drove success in that category is happening across many others. Q: Amazon discussed positive performance of their first-party AI interface. Are you able to take advantage of that on the marketplace, and what's the near-term roadmap for Pattern Intelligence (Pi) to drive more brand engagement?A: Dave Wright (CEO) confirmed Pattern's data aligns with Amazon's results, noting that AI interfaces provide better consumer understanding. He emphasized that brands focused on quality will be rewarded in a world of higher transparency, as LLMs narrow down search results to the most relevant products. Jason Beesley (CFO) added that Pi is built on 13 years of data with a better interface layer for brands, providing more transparency, and while the focus is on effectiveness and revenue growth, efficiencies will naturally emerge as automation increases. Q: How are brands balancing marketplace participation versus DTC investment, and what does that imply for long-term client attrition or channel shift risk?A: Dave Wright (CEO) stated that Pattern hasn't seen cannibalization between channels, and the company generally encourages collaboration across all channels. He noted that when brands are successful in any channel, it tends to raise marketplace awareness and benefit the overall business. Pattern's goal is to support what's best for each brand's outcomes, which typically also benefits Pattern. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Q2 Revenue Growth of 47% Year over Year, for a Record $877 million Record NRR of 129%, up from 118% in the Prior Year Period LEHI, Utah, August 05, 2026--(BUSINESS WIRE)--Pattern Group Inc. (NASDAQ: PTRN), a leader in accelerating brands on global ecommerce marketplaces, today announced financial results for the second quarter ended June 30, 2026. "Q2 marked our fourth consecutive quarter of 40%-plus revenue growth, and the fourth consecutive quarter of adjusted EBITDA growth outpacing revenue. NRR reached a record 129% and our international business crossed $100 million for the first time. Our model is working," said Dave Wright, Co-Founder and CEO of Pattern. "The deeper brands engage with Pattern, the stronger our data advantage becomes, and the faster they grow." "The brands we serve are operating in a faster, more competitive, and more complex ecommerce landscape than they were even just a year ago. In May, we launched Pattern Intelligence, or Pi, powered by more than 91 trillion data points and 44 patents issued or pending, delivering real-time optimization across every lever of ecommerce growth. Pi represents years of deliberate investment in our data and AI architecture. We enter the second half of 2026 with momentum and a model that keeps compounding," said Wright. Second Quarter 2026 Financial Highlights Record Revenues of $877 million, up 47% year over year. Record Net Revenue Retention Rate ("NRR") of 129%, up from 118% in the prior year. Record Revenue, not attributable to Amazon, of $82 million, up 93% year over year. Record International Revenue of $110 million, up 87% year over year. Net income of $27 million, up 16% year over year, and diluted earnings per share of $0.15. Adjusted EBITDA (non-GAAP) of $54 million, up 54% year over year. Net cash provided by operating activities for the trailing twelve months ("TTM") ended June 30, 2026 of $136 million, up 76% year over year. Free Cash Flow (non-GAAP) for the TTM ended June 30, 2026 of $106 million, up 92% year over year. See "Non-GAAP Financial Measures" for additional information on non-GAAP financial measures and a reconciliation to the most comparable GAAP measures. Financial Outlook "Q2 demonstrates the strength of our model. Revenue grew 47% year over year, Adjusted EBITDA grew 54%, trailing twelve-month free cash flow grew 92%, and we ended the quarter with $346 million in cash and no debt. This performance gives us confidence to again raise our full-year outlook," said Jason Beesley, Chief Financial Officer. "Our Q3 outlook reflects about 4 points of revenue and Adjusted EBITDA growth moving into Q2 from Q3, due to the calendar shift of the large marketplace promotional events, which changed from July last year to June this year. We are seeing strong momentum across the business and look forward to continuing to deliver for our brand partners." For the third quarter 2026, Pattern anticipates: Revenues in the range of $840 million to $860 million, representing approximately 31% to 34% growth year over year. Adjusted EBITDA (non-GAAP) in the range of $51 million to $53 million, representing approximately 25% to 29% growth year over year. For the full year 2026, Pattern anticipates: Revenues in the range of $3.42 billion to $3.46 billion, representing approximately 37% to 38% growth year over year. Adjusted EBITDA (non-GAAP) in the range of $211 million to $213 million, representing approximately 38% to 40% growth year over year. See "Non-GAAP Financial Measures" for additional information on non-GAAP financial measures. Conference Call, Webcast, and Other Information Pattern will host a conference call and live webcast to discuss its second quarter 2026 financial results at 2:30 p.m. Mountain Time today, August 5, 2026. A live webcast of the call can be accessed from Pattern’s investor relations website at https://investors.pattern.com/. An archived version of the webcast will be available from the same website after the call. About Pattern Pattern accelerates brands on global ecommerce marketplaces leveraging proprietary technology and AI. Utilizing more than 91 trillion data points, sophisticated machine learning and AI models, Pattern optimizes and automates all levers of ecommerce growth for global brands, including advertising, content management, logistics and fulfillment, pricing, forecasting and customer service. Hundreds of global brands depend on Pattern’s ecommerce acceleration platform every day to drive profitable revenue growth across more than 70 global marketplaces—including Amazon, TikTok Shop, Walmart.com, Target.com, eBay, Tmall, JD, and Mercado Libre. Forward-Looking Statements This press release and corresponding presentation contain "forward-looking statements" within the meaning of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include all statements other than statements of historical fact, including but not limited to statements regarding the Company’s future performance, growth, opportunities, profitability, cash flows, offerings, momentum, growth of new and existing brand partners, expectations regarding our share repurchase program, growth of our non-Amazon and international business, strategies, market position, macro environment, geopolitical conflict, impacts of trade policies, potential supply chain disruptions, price increases, market trends, consumer spending, sentiment and practices, and our ability to navigate the same; financial guidance regarding revenues, revenue growth, adjusted EBITDA, adjusted EBITDA growth, and other financial items; and statements involving timing, beliefs or assumptions underlying any of the foregoing. You should not place any undue reliance on any forward-looking statements, which speak only as of the date they were made. We undertake no obligation to update any forward-looking statements to reflect events or circumstances arising after the date hereof. Forward-looking statements are inherently difficult to predict. Actual results could differ materially for a number of reasons, including but not limited to those related to the Company’s relatively limited history operating as a public company which makes it difficult to evaluate the Company’s business and prospects, the market for the Company’s product or service offerings developing slower or differently than expected; any difficulties we may experience with brand partners, marketplaces, sourcing of products, accessing and utilizing marketplace data, responding to technological advancement, attracting/retaining key employees, forecasting consumer demand and practices, maintaining customer satisfaction, optimizing operations, driving traffic to our products; any difficulties with our infrastructure, fulfillment partners, supply chain, payment processors, data storage, data processing, shipping, insurance, competition, macroeconomic factors, consumer discretionary spending, tariffs or trade policies, global or political conflict, inflation rates, exchange rates, or any inability to sustain profitable growth. Other risks and uncertainties include, among others, any problems with product or tool integration, protection of our intellectual property, cyber-attacks or data breaches affecting us, adverse tax, compliance, regulatory or legal developments, lawsuits or claims, and other risks and uncertainties that are detailed under the caption "Risk Factors" and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission ("SEC") on March 6, 2026, our quarterly report on Form 10-Q for the quarter ended March 31, 2026, filed with the SEC on May 7, 2026, and in our subsequent filings with the SEC. Supplemental Operational Data We measure our business using both financial and operating metrics to assess the near-term and long-term performance of our overall business, including identifying trends, formulating financial projections, making strategic decisions, assessing operational efficiencies and monitoring our business. Existing brand partners are brand partners that have been with Pattern for more than twelve months since Pattern first generated over $1,000 in revenue attributable to such brand partner. New brand partners are all other brand partners that are not existing brand partners. NRR is an important metric to measure the long-term performance of our brand partner relationships. In any given period, we calculate NRR by comparing total revenue attributable to all existing brand partners in the current trailing 12-month period to that of the previous trailing 12-month period. This metric, expressed as a percentage, provides valuable insight into the accelerated growth delivered through our platform, the effectiveness of our brand expansion strategies and our ability to deepen relationships with existing brand partners. For the purpose of our NRR calculation, we only include brand partners that, as of the measurement date, are existing brand partners. Additionally, for those existing brand partners that, as of the measurement date, have been with Pattern for more than twelve full months but less than 24 full months since we first generated over $1,000 in revenue attributable to such brand partner, we only include current period revenue for the corresponding months in the current period for which the brand partner had attributable revenue in the previous period. Non-GAAP Financial Measures We are providing certain non-GAAP financial measures in this release and related earnings conference call, including adjusted EBITDA and free cash flow. We use these non-GAAP measures internally in analyzing our financial results and we believe they are useful to investors, as a supplement to GAAP measures, in evaluating our ongoing operational performance in the same manner as our management and board of directors. We have provided reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures in this earnings release. These non-GAAP financial measures should be used in addition to and in conjunction with the results presented in accordance with GAAP and should not be relied upon to the exclusion of GAAP financial measures. We calculate forward-looking non-GAAP financial measures, such as Adjusted EBITDA, based on internal forecasts that omit certain amounts that would be included in forward-looking GAAP financial measures. We do not attempt to provide a reconciliation of forward-looking non-GAAP financial measures to forward-looking GAAP financial measures because forecasting the timing or amount of items that have not yet occurred and are out of our control is inherently uncertain and unavailable without unreasonable efforts. Further, we believe that such reconciliations would imply a degree of precision and certainty that could be confusing to investors. Such items could have a substantial impact on GAAP measures of financial performance. We calculate Adjusted EBITDA, as net income excluding depreciation and amortization; interest income, net; provision for income taxes; share-based compensation expense and related taxes; indirect initial public offering and secondary offering costs; and other items that we do not consider representative of our underlying operations. We believe it is useful to exclude charges, such as depreciation and amortization and share-based compensation expense from our Adjusted EBITDA because the amount of such expenses in any specific period may not directly correlate to the underlying performance of our business operations. We believe it is useful to exclude interest income, net; provision for income taxes; and other items that are not components of our core business operations. Non-GAAP financial measures such as Adjusted EBITDA should not be considered in isolation or as an alternative to net income or any other measure of financial performance calculated and prescribed in accordance with GAAP. In addition, Adjusted EBITDA may not be comparable to similarly titled measures in other organizations because other organizations may not calculate Adjusted EBITDA in the same manner as we do, thus limiting its usefulness as a comparative measure. Free cash flow is a non-GAAP financial measure that is calculated as net cash provided by operating activities reduced by purchases for property and equipment. We believe free cash flow is a useful measure to evaluate the cash impact of the operations of the business including purchases of property and equipment which are a necessary component of our ongoing operations. View source version on businesswire.com: https://www.businesswire.com/news/home/20260805514868/en/ Contacts Media Contact: Tom CookGlobal [email protected] Investor Contact: Whitney KukulkaThe Blueshirt [email protected]

Delivered Q1 Revenue Growth of 43% Year over Year, for a Record $774 million Delivered Record NRR of 127%, up from 115% in the Prior Year Period LEHI, Utah, May 06, 2026--(BUSINESS WIRE)--Pattern Group Inc. (NASDAQ: PTRN), a leader in accelerating brands on global ecommerce marketplaces leveraging proprietary technology and AI, today announced financial results for the first quarter ended March 31, 2026. "Our Q1 results demonstrate the compounding power of our model at scale," said Dave Wright, Co-Founder and CEO of Pattern. "Revenue grew 43%, NRR reached a record 127%, and both international and non-Amazon revenue more than doubled year over year. As brands deepen their engagement with Pattern and our data advantage grows, their growth accelerates." "Ecommerce is being reshaped by AI, and we believe this will accelerate global ecommerce penetration while making the landscape increasingly complex for brands. Pattern is built to help brands navigate that complexity and win. Our results are a clear indication that in the midst of a rapidly changing landscape, we are executing successfully at scale. We continue to make strong progress on our technology roadmap and underlying data architecture, and our platform is making us faster and more effective for the brands we serve. Our technology, data, and global scale are compounding, and we enter the rest of 2026 with momentum, a durable model, and a clear view of where ecommerce is going and how Pattern wins in it," said Wright. First Quarter 2026 Financial Highlights Record Revenues of $774 million, up 43% year over year. Record Net Revenue Retention Rate ("NRR") of 127%, up from 115% in the prior year. Record Revenue, not attributable to Amazon, of $71 million, up 119% year over year. International Revenue of $90 million, up 101% year over year. Net income of $29 million, up 28% year over year, and diluted earnings per share of $0.16. Adjusted EBITDA (non-GAAP) of $54 million, up 59% year over year. Net cash provided by operating activities for the trailing twelve months ("TTM") ended March 31, 2026 of $124 million, up 57% year over year. Free Cash Flow (non-GAAP) for the TTM ended March 31, 2026 of $99 million, up 69% year over year. See "Non-GAAP Financial Measures" for additional information on non-GAAP financial measures and a reconciliation to the most comparable GAAP measures. Financial Outlook "We delivered $774 million in revenue and $54 million in adjusted EBITDA, meaningful outperformance driven by broad-based strength across existing brand partners," said Jason Beesley, Chief Financial Officer. "We are raising our full year outlook and now expect revenue in the range of $3.29 to $3.33 billion, representing 32% to 33% growth year over year, and Adjusted EBITDA in the range of $199 to $201 million, representing 30% to 32% growth year over year. Our balance sheet is strong, free cash flow is growing, and the financial profile of this business continues to improve. We are operating from a position of strength heading into the rest of 2026." For the second quarter 2026, Pattern anticipates: Revenues in the range of $810 million to $820 million, representing approximately 35% to 37% growth year over year. Adjusted EBITDA (non-GAAP) in the range of $45 million to $46 million, representing approximately 30% to 33% growth year over year. For the full year 2026, Pattern anticipates: Revenues in the range of $3.29 billion to $3.33 billion, representing approximately 32% to 33% growth year over year, up from our prior guidance range of approximately 25% to 26% growth year over year. Adjusted EBITDA (non-GAAP) in the range of $199 million to $201 million, representing approximately 30% to 32% growth year over year. See "Non-GAAP Financial Measures" for additional information on non-GAAP financial measures. Conference Call, Webcast, and Other Information Pattern will host a conference call and live webcast to discuss its first quarter 2026 financial results at 3:00 p.m. Mountain Time today, May 6, 2026. A live webcast of the call can be accessed from Pattern’s investor relations website at https://investors.pattern.com/. An archived version of the webcast will be available from the same website after the call. About Pattern Pattern accelerates brands on global ecommerce marketplaces leveraging proprietary technology and AI. Utilizing more than 77 trillion data points, sophisticated machine learning and AI models, Pattern optimizes and automates all levers of ecommerce growth for global brands, including advertising, content management, logistics and fulfillment, pricing, forecasting and customer service. Hundreds of global brands depend on Pattern’s ecommerce acceleration platform every day to drive profitable revenue growth across more than 70 global marketplaces—including Amazon, TikTok Shop, Walmart.com, Target.com, eBay, Tmall, JD, and Mercado Libre. Forward-Looking Statements This press release and corresponding presentation contain "forward-looking statements" within the meaning of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include all statements other than statements of historical fact, including but not limited to statements regarding the Company’s future performance, growth, opportunities, profitability, cash flows, offerings, momentum, growth of new and existing brand partners, expectations regarding our share repurchase program, growth of our non-Amazon and international business, strategies, market position, macro environment, geopolitical conflict, impacts of trade policies, potential supply chain disruptions, price increases, market trends, consumer sentiment and practices, and our ability to navigate the same; financial guidance regarding revenues, revenue growth, adjusted EBITDA, adjusted EBITDA growth, and other financial items; and statements involving timing, beliefs or assumptions underlying any of the foregoing. You should not place any undue reliance on any forward-looking statements, which speak only as of the date they were made. We undertake no obligation to update any forward-looking statements to reflect events or circumstances arising after the date hereof. Forward-looking statements are inherently difficult to predict. Actual results could differ materially for a number of reasons, including but not limited to those related to the Company’s relatively limited operating history which makes it difficult to evaluate the Company’s business and prospects, the market for the Company’s product or service offerings developing slower or differently than expected; any difficulties we may experience with brand partners, marketplaces, sourcing of products, accessing and utilizing marketplace data, responding to technological advancement, attracting/retaining key employees, forecasting consumer demand and practices, maintaining customer satisfaction, optimizing operations, driving traffic to our products; any difficulties with our infrastructure, fulfillment partners, supply chain, payment processors, data storage, data processing, shipping, insurance, competition, macroeconomic factors, tariffs or trade policies, global or political conflict, exchange rates, or any inability to sustain profitable growth. Other risks and uncertainties include, among others, any problems with product or tool integration, protection of our intellectual property, cyber-attacks or data breaches affecting us, adverse tax, compliance, regulatory or legal developments, lawsuits or claims, and other risks and uncertainties that are detailed under the caption "Risk Factors" and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission ("SEC") on March 6, 2026, and in subsequent filings with the SEC. Supplemental Operational Data We measure our business using both financial and operating metrics to assess the near-term and long-term performance of our overall business, including identifying trends, formulating financial projections, making strategic decisions, assessing operational efficiencies and monitoring our business. Existing brand partners are brand partners that have been with Pattern for more than twelve months since Pattern first generated over $1,000 in revenue attributable to such brand partner. New brand partners are all other brand partners that are not existing brand partners. NRR is an important metric to measure the long-term performance of our brand partner relationships. In any given period, we calculate NRR by comparing total revenue attributable to all existing brand partners in the current trailing 12-month period to that of the previous trailing 12-month period. This metric, expressed as a percentage, provides valuable insight into the accelerated growth delivered through our platform, the effectiveness of our brand expansion strategies and our ability to deepen relationships with existing brand partners. For the purpose of our NRR calculation, we only include brand partners that, as of the measurement date, are existing brand partners. Additionally, for those existing brand partners that, as of the measurement date, have been with Pattern for more than twelve full months but less than 24 full months since we first generated over $1,000 in revenue attributable to such brand partner, we only include current period revenue for the corresponding months in the current period for which the brand partner had attributable revenue in the previous period. Non-GAAP Financial Measures We are providing certain non-GAAP financial measures in this release and related earnings conference call, including adjusted EBITDA and free cash flow. We use these non-GAAP measures internally in analyzing our financial results and we believe they are useful to investors, as a supplement to GAAP measures, in evaluating our ongoing operational performance in the same manner as our management and board of directors. We have provided reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures in this earnings release. These non-GAAP financial measures should be used in addition to and in conjunction with the results presented in accordance with GAAP and should not be relied upon to the exclusion of GAAP financial measures. We calculate forward-looking non-GAAP financial measures, such as Adjusted EBITDA, based on internal forecasts that omit certain amounts that would be included in forward-looking GAAP financial measures. We do not attempt to provide a reconciliation of forward-looking non-GAAP financial measures to forward-looking GAAP financial measures because forecasting the timing or amount of items that have not yet occurred and are out of our control is inherently uncertain and unavailable without unreasonable efforts. Further, we believe that such reconciliations would imply a degree of precision and certainty that could be confusing to investors. Such items could have a substantial impact on GAAP measures of financial performance. We calculate Adjusted EBITDA, as net income excluding depreciation and amortization; interest income, net; provision for income taxes; share-based compensation expense and related taxes; indirect IPO costs; and other items that we do not consider representative of our underlying operations. We believe it is useful to exclude charges, such as depreciation and amortization and share-based compensation expense from our Adjusted EBITDA because the amount of such expenses in any specific period may not directly correlate to the underlying performance of our business operations. We believe it is useful to exclude interest income, net; provision for income taxes; and other items that are not components of our core business operations. Non-GAAP financial measures such as Adjusted EBITDA should not be considered in isolation or as an alternative to net income or any other measure of financial performance calculated and prescribed in accordance with GAAP. In addition, Adjusted EBITDA may not be comparable to similarly titled measures in other organizations because other organizations may not calculate Adjusted EBITDA in the same manner as we do, thus limiting its usefulness as a comparative measure. Free cash flow is a non-GAAP financial measure that is calculated as net cash provided by operating activities reduced by purchases for property and equipment. We believe free cash flow is a useful measure to evaluate the cash impact of the operations of the business including purchases of property and equipment which are a necessary component of our ongoing operations. View source version on businesswire.com: https://www.businesswire.com/news/home/20260506627184/en/ Contacts Media Contact: Tom Cook Global Communications [email protected] Investor Contact: Whitney Kukulka The Blueshirt Group [email protected]

Image source: The Motley Fool. Wednesday, May 6, 2026 at 5 p.m. ET Co-Founder and Chief Executive Officer — David Wright Chief Financial Officer — Jason Beesley Head of Investor Relations — Hamish Chung Need a quote from a Motley Fool analyst? Email [email protected]. Hamish Chung: Thank you, operator. Good afternoon, and thank you for joining Pattern Group Inc. Series A Common Stock’s earnings call for the first quarter 2026. Before we begin, I would like to remind everyone that today's discussion may contain forward-looking statements based on our current expectations, assumptions, and forecasts about future events. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Please refer to our latest filings with the Securities and Exchange Commission for more information on these risks and uncertainties. We may also refer to certain non-GAAP financial measures. A reconciliation of these non-GAAP measures to the most directly comparable GAAP measures can be found in our earnings release. We will focus our remarks today on the key highlights and drivers. Additional detail is available in the earnings release. Joining us today are David Wright, our Co-Founder and Chief Executive Officer, and Jason Beesley, our Chief Financial Officer. Today’s earnings call is being webcast, and a replay will be available on our Investor Relations website following the call. Following our prepared remarks, we will open the call to questions. I will now turn the call over to our CEO, David Wright. David, please go ahead. David Wright: We delivered another record quarter to start 2026. In Q1, revenue grew 43% year over year to $774 million. Adjusted EBITDA was $54 million, up 59% year over year. Before Jason walks through the financials, four metrics stand out to me. First, net revenue retention. We have said previously that NRR is one of the clearest indicators of the health and durability of our model. In Q1, NRR reached another record at 127%, up from 115% last year, reflecting the impact of optimization, marketplace expansion, and deeper brand relationships. Second, international growth. International revenue increased 101% year over year. We are beginning to convert international scale into improved efficiency and profitability, and we expect that to continue. Third, non-Amazon growth. Non-Amazon revenue grew 119% year over year with strength across TikTok Shop, Walmart, and Coupang. And fourth, our other monetization strategies grew 173% year over year, reflecting continued momentum beyond our core marketplace offering. To understand the drivers behind these results, it is helpful to step back and look at the platform and data that power them. Ecommerce performance is driven by four variables: traffic, conversion, price, and availability—the same ecommerce equation we have referenced previously. These levers are highly interdependent and continuously shifting, as changes in one area, like price or availability, dynamically influence performance in others, like conversion or traffic. Optimizing them together is complex, but with scale across brands, data, geographies, logistics, technology, and AI, that complexity becomes an advantage for us. Our platform is designed to operate across these variables simultaneously—marketplaces, geographies, and channels. That scale allows us to improve outcomes for our brand partners while lowering costs across fulfillment, ad spend, and operations in ways that are difficult for a single brand to replicate. In our primary monetization model, we purchase inventory, which aligns our incentives with our brand partners’ objective to grow consumer sales. We win when they win. The movement of physical goods under this model also creates a durable and competitive moat as AI continues to evolve. AI makes us more efficient, rather than commoditizing what we do for brands. In simple terms, we break down a complex system into controllable levers at scale. That becomes both a growth driver and a cost advantage for our brand partners. Across brands, we see a consistent pattern: when these levers are aligned, they can unlock a step-function improvement in performance. For example, when a premium hair care brand started with us, in-stock was 79.6%. Since then, we improved in-stock to 96.1%, increased conversion 23%, which resulted in revenue growth of more than 15x. For a global tools brand, we launched their products across 25 marketplaces in one year, generating millions in international revenue and selling more than 100 thousand units. These outcomes are the result of coordinated optimization across availability, content, pricing, logistics, and marketplace execution. Once the foundation is in place, we expand where demand is shifting—across geographies, marketplaces, social commerce, and AI-driven discovery. That is the brand journey on our platform, and it continues to evolve. Two areas changing quickly for brands are social commerce and AI-driven discovery. We were recently named TikTok Shop’s Strategic Partner of the Year, reflecting our leadership on the platform. Over the last 12 months, we have launched more than 100 brands on 365 thousand creators, and grown our social commerce business triple digits again in Q1. One of the most competitive categories on TikTok Shop is beauty, and over the last few months, we have served as a launch partner for some of the largest beauty brands in the world. Social commerce has become a meaningful contributor for Pattern Group Inc. Series A Common Stock and the brands we work with. It has become an important entry point, and as these brands grow with us, the opportunity to expand across marketplaces, geographies, and channels grows with them. LLMs are increasingly used at the start of product research—how consumers find, compare, and evaluate products before reaching a marketplace. Both channels operate on intent. Social commerce captures it through creators and content. LLMs surface it through semantic understanding—interpreting what a customer means, not just what they typed. Pattern Group Inc. Series A Common Stock is built to win in both. While full agentic transactions are developing more slowly than we initially expected, their influence on the customer journey is already meaningful. There are varying ranges and some debate on what percentage of purchases are influenced by LLMs, but I do not think there is much debate on the fact that it is significant and growing. We approach this from a data-first perspective. We have deep bottom-of-funnel search and conversion data across categories, which allows us to identify where brands have the highest probability of winning in LLM-driven discovery. We also have a strong understanding of consumer personas and intent, which we use to map how products should be positioned in these LLMs’ environments. Taken together, this allows us to evaluate a brand's current presence versus its potential across LLM-driven surfaces and to optimize content, positioning, and availability accordingly. As agentic shopping develops, brand execution becomes even more important. Buyers’ agents are likely to evaluate not only product relevance, but also whether a brand consistently delivers on what it promises—availability, delivery speed, customer service, returns, and overall brand experience. Those execution signals will have significant staying power in an LLM world, which will have meaningful influence on how products are surfaced and selected over time. We are laser-focused on these key metrics on behalf of our brand partners, to ensure they perform well against these metrics for years to come. We are excited about the opportunities ahead and believe Pattern Group Inc. Series A Common Stock is well positioned as commerce continues to evolve. With that, I will turn it over to Jason. Jason Beesley: Thank you, David, and thank you to everyone for joining us today. We entered this year with a high degree of confidence in our business, and Q1 validated that. Revenue grew 43% year over year to $774 million, driven by continued new brand partner revenue growth and healthy expansion within our existing brand partners. What is particularly encouraging is that the strength was broad-based across many brand partners, geographies, and marketplaces. We are just starting the diversification journey, and the growth we are seeing further validates the opportunity in front of us. This strong performance gives us confidence to raise our full-year outlook. I will talk more about our biggest portion of revenue and biggest growth area—existing brand partner revenue. We believe the best measure of this is our NRR, which was 127% in Q1 compared to 115% last year. We have three distinct drivers of that growth. First, technology-driven optimization. This remains the foundation of our growth formula and the primary driver of our growth, representing approximately three-fourths of growth in Q1. Our unified, AI-native intelligence layer monitors and acts across every marketplace we operate in, driving stronger conversion, traffic, and availability. Because it operates across multiple variables simultaneously, the impact compounds. A good example of how these optimizations work together are improvements in our supply chain or availability tech that continue to improve the proportion of same-day and one-day delivery times, which mathematically increases our conversion. Second, new marketplaces and geographies. In Q1, non-Amazon revenue grew 119%. Three regions we operate in grew over 100% in the quarter, and we had another quarter of triple-digit growth in several marketplaces, including TikTok Shop, Walmart, and Coupang. Third, product depth. We also grow by expanding the product selection from our brand partners, either by bringing on more product lines or launching new products on existing marketplaces. We give brands visibility into consumer intent and category whitespace to help them innovate faster. These opportunities to expand product selection come every year but can vary in timing across quarters. Turning to operating expenses and profitability. Adjusted EBITDA was $54 million in Q1, representing 59% growth year over year, primarily driven by revenue growth as well as some leverage in our sales, marketing, and operations costs, despite increased R&D spend. Excluding stock-based compensation, R&D was $10.1 million, up 77% year over year. We are doubling down on our tech spend, which includes AI token usage, and continue to expect R&D growth to outpace revenue growth. However, as our Q1 results indicate, we are doing so responsibly. This spend, as well as our spend in sales and marketing and the start-up costs related to our new East Coast facility, will create some timing variations within quarterly adjusted EBITDA margin. For example, we will expense marketing spend related to our May Accelerate conference in the second quarter. Our variable cost components—cost of goods sold, marketplace commissions, and fulfillment—grew slightly slower than revenue. This was primarily driven by revenue mix across various products and other monetization strategies. We generated $124 million of operating cash flow for the trailing twelve-month period and $99 million of free cash flow. We ended Q1 with $344 million in cash and cash equivalents, no outstanding debt, and $150 million of borrowing capacity available under our revolving credit facility. Before we turn to guidance, I want to briefly address the macro environment and what we are seeing. While the Middle East is an immaterial portion of our revenue today, geopolitical tensions have introduced volatility into global logistics and energy costs, as well as uncertainty around consumer sentiment. In response to increased energy costs, various marketplaces implemented fuel surcharges for sellers during the quarter. Generally, our agreements with brand partners allow us to pass through such cost changes for marketplaces, including fulfillment costs, providing a structural buffer against cost pressure. On the revenue side, we are not currently seeing any indication of meaningful consumer weakness in the categories or markets in which we operate. We believe our portfolio approach and category diversification leave us well positioned to weather macro headwinds, including our position in nondiscretionary categories, which we believe are less sensitive to potential changes in consumer spending. We will continue to monitor developments across all regions we operate in, and we believe our Q1 results demonstrate our relative resilience. Turning to our outlook. We had an exceptional start to 2026 and are seeing strong and consistent momentum heading into the rest of the year. We are meaningfully increasing our full-year outlook. We now expect revenue of approximately $3.3 billion, up 32% year over year, an increase from our prior guidance, which implied approximately 26% growth. We are also raising our full-year adjusted EBITDA outlook to approximately $200 million, up 31% year over year at the midpoint, an increase from our prior guidance, which implied approximately 18% growth. Consistent with the guidance framework we laid out in March, there are a few things to keep in mind as you think about the shape of the year. First, as a reminder, we will face stronger comps in the back half of the year as we lap the record growth rates and therefore expect year-over-year growth to moderate in Q3 and Q4. Second, we are maintaining our middle-of-the-road approach to new brand partner revenue assumptions and new product expansion, given the inherent variability in these factors. Third, we will continue to invest in R&D ahead of our new growth, consistent with our strategy of strengthening our technology moat and expanding our AI capabilities. We are extremely pleased with our NRR performance of 127%, and this updated outlook will elevate the ending point of NRR this year to approximately 119%, above our long-term target of 115%. For the second quarter, we expect revenue in the range of $10 million to $820 million, representing 35% to 37% growth year over year. We expect Q2 adjusted EBITDA in the range of $45 million to $46 million, up 30% to 33% year over year. We expect to see incremental costs in the quarter related to Accelerate, our annual global ecommerce summit, our continued investment in R&D, and start-up costs related to our East Coast facility. We are confident that these short-term investments will drive continued growth in the future. We are extremely pleased with the momentum we have seen so far this year. We believe our results and outlook reflect the durable, compounding nature of this business. We continue to operate from a position of strength, supported by a healthy balance sheet and robust consumer demand within our categories. We remain fully committed to delivering long-term value to our shareholders. With that, I will turn it back to David before we open the call for questions. David Wright: Thanks, Jason. Q1 was a strong start to the year, and a quarter that continues to strengthen the foundation of our model—NRR at a record 127%, international doubling, non-Amazon up 119%, and our agentic investments are delivering. We enter Q2 with a pipeline and a platform we feel great about. Ecommerce is being built around AI—how products are discovered, how decisions are made, how transactions are completed—and Pattern Group Inc. Series A Common Stock is built to operate at the center of that stage. We remain focused on optimizing the ecommerce equation, removing friction for brands, and delivering measurable outcomes at scale. Thank you for your continued support. We will now open the call for questions. Operator: Thank you. At this time, we will conduct a question-and-answer session. As a reminder, to ask a question, you will need to press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. Our first question comes from the line of Ralph Schackart of William Blair. Your line is now open. Ralph Schackart: Maybe just kind of highlight, if you can, what drove the exceptionally strong performance in the quarter. Is it just a bunch of factors coming together? The performance is really strong—any color you could add there? And then maybe on the non-Amazon channel, that growth was obviously very strong. Maybe talk more specifically about what is driving that. You mentioned some channel partners in the script, but just more color around that and maybe some of the initiatives you have there to keep driving that growth further would be great. Thank you. Jason Beesley: Thanks, Ralph. Q1 was a great performance. To give you a sense of what drove it, it was really hitting on all cylinders across the many levers we have for growth. I mentioned some of those in the prepared remarks, but with an existing brand, we can grow them with better tech, more marketplaces, more products, and then we are bringing on new brand partners all the time. You also mentioned the non-Amazon marketplace growth—that hit in a really nice way as well. In terms of marketplaces, we called out some of the ones we already had in the prepared remarks—Coupang, TikTok, Walmart specifically. All of those worked well. I think the biggest takeaway for me is this business model has a lot of ways to help brands grow across multiple vectors. When we hit on all of them, that gives us confidence to raise the outlook, and that is what we did with the 32% growth for the full year. David Wright: Yeah, Ralph, thanks for the question. I will do a quick follow-on. It is just a tremendous business, quite frankly. There are very few businesses that have a pipeline of what we measure as $5 billion and growing. Of course, that is a long-term pipeline. We are not making any immediate statements there, but if we continue to execute like I know we are capable of, I think you will just see measured improvement quarter over quarter—better execution, broader reach across geographies, across markets and places. And then the technology is moving at a speed that I never anticipated two years ago. The roadmap and the deliverables that we are able to finish—sometimes we are able to complete things that used to take an entire sprint in hours. So, it is acceleration on all levels. Much of it is driven by advancements in technology, but we are positioned well, and we have the infrastructure and scale to take advantage of them. Operator: One moment for our next question. Our next question comes from the line of Eric Sheridan of Goldman Sachs. Your line is now open. Eric Sheridan: Thanks so much for taking the question. Maybe building on Ralph's question and asking it a little bit differently. When you look at the exit velocity of the business at Q1 and the backlog of both partners and platforms that you are discussing the business with longer term, how should we think about industry vertical diversification deeper into 2026, and platform diversification as we exit 2026 as well, and how some of those could be drivers of the business or even how mix might change? David Wright: We get a lot of questions on category. Internally, category diversification is not a primary focus. We are simply focused on the brand. The brands that would like our help worldwide—we will jump in. Now, when you think of the technology, of course there are product sets that are good for ecommerce. But that set is widening quickly. It used to be that there were some things that were just completely off limits—like having your diet soda delivered to your doorstep. Now many of those things are coming into focus for us. Every time we take another look at the pipeline, we can see the categories and product sets expanding. Jason Beesley: In terms of marketplaces, to finish on that question there, Eric, we are seeing our non-Amazon platform growth at much larger rates than our Amazon growth. The non-Amazon growth you saw is over 100%. The good news is Amazon growth is still very healthy at 38% in Q1. That will continue to diversify us over time. We are pretty comfortable that we have the right initiatives in place to continue that journey, and there is a lot of whitespace for brands to grow everywhere across many marketplaces. Pretty much, long term, our view is that however consumers are spending online is what our revenue mix should look like long term. Operator: One moment for our next question. Our next question comes from the line of Douglas Anmuth of JPMorgan Chase. Your line is now open. Brian Smilak: Great. Thanks for taking the questions. It is Brian Smilak on for Doug. Obviously, good to see the continued supply chain efficiencies. I guess, David and Jason, can you talk about how much more room there is to optimize inbound and outbound fulfillment? Specifically, David, you had mentioned same-day and one-day delivery capturing a greater share of overall units. Could you talk to the velocity of delivery speeds improving across the platform, and more broadly, how that could change with Amazon expanding multichannel fulfillment more broadly? Thank you. David Wright: I love the question—very insightful and something we focus on. In terms of numbers, in Q1, approximately 57% of our total clicks get a same-day or one-day delivery promise, up from around 52%. The conversion rate in that group is around 18%, versus if you go to two-day or two-plus, it comes in at around 9%. So, of course, the closer you can get to the consumer, the better your conversion rate is. It is a dramatic focus for us. Before you buy stock in Pattern Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Pattern Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Pattern (PTRN) Q1 2026 Earnings Transcript was originally published by The Motley Fool

Record quarter and raised guidance: Q1 revenue rose 43% YoY to $774 million and adjusted EBITDA increased 59% to $54 million, and Pattern raised its 2026 outlook to about $3.3 billion in revenue and $200 million in adjusted EBITDA. Growth driven by retention, marketplaces, and AI: Net revenue retention climbed to 127%, international revenue grew 101% and non-Amazon revenue grew 119%, with the company saying technology- and AI-driven optimization accounted for roughly three-quarters of Q1 growth and social commerce (notably TikTok Shop) accelerating discovery. Operational and balance-sheet strength: Fulfillment speed improved (57% of clicks received same- or one-day delivery) and days inventory fell to 62, while Pattern ended Q1 with $344 million cash, no debt, and $99 million free cash flow over the trailing 12 months. Interested in Pattern Group Inc.? Here are five stocks we like better. Pattern Group (NASDAQ:PTRN) reported what executives described as a record start to 2026, highlighting strong growth across international markets and non-Amazon channels, rising retention within existing brand partners, and continued investment in technology and AI capabilities. Co-Founder and CEO Dave Wright said the company “delivered another record quarter,” with first-quarter revenue up 43% year-over-year to $774 million. Adjusted EBITDA rose 59% to $54 million. → Berkshire Hathaway’s Record Cash Hoard: Why and What's Next? Wright pointed to four metrics he said “stand out” from the quarter: Net revenue retention (NRR): 127% in Q1, up from 115% a year ago. International growth: international revenue increased 101% year-over-year. Non-Amazon growth: non-Amazon revenue grew 119% year-over-year, with strength across TikTok Shop, Walmart, and Coupang. Other monetization strategies: grew 173% year-over-year, which Wright said reflected “continued momentum beyond our core marketplace offering.” Chief Financial Officer Jason Beesley said the quarter’s performance was “broad-based across many brand partners, geographies, and marketplaces,” and added that Q1 validated the company’s confidence entering the year. → A Prada Payday: Is AMC Back in Style? Beesley framed existing brand partner expansion—measured by NRR—as the company’s “biggest portion of revenue and biggest growth area.” He outlined three drivers behind NRR improvement: Technology-driven optimization. Beesley said optimization represented “approximately 3/4 of growth in Q1.” He described a “unified AI native intelligence layer” that monitors and acts across marketplaces to improve conversion, traffic, and availability. As an example, he cited supply chain and availability technology that increases same-day and one-day delivery, which he said “mathematically increases our conversion.” → Insider Sales: Top AST SpaceMobile Insider Cuts Postion Over 30% New marketplaces and geographies. Beesley said non-Amazon revenue grew 119% in Q1, with “another quarter of triple-digit growth” in several marketplaces including TikTok Shop, Walmart, and Coupang. He added that three regions grew more than 100% in the quarter. Product depth. Beesley said Pattern also expands with brand partners by increasing product selection through additional product lines and new product launches on existing marketplaces. He said the company provides visibility into consumer intent and “category white space” to help brands “innovate faster,” while noting the timing of product expansion can vary quarter to quarter. On logistics and fulfillment, Wright emphasized delivery speed as a meaningful conversion driver. He said that in Q1, about 57% of Pattern’s “total clicks” received same-day or one-day delivery, up from roughly 52% previously. He also cited conversion differences by delivery speed, saying conversion was “around 18%” for same-day/one-day delivery versus “around 9%” for two-day or longer delivery. Wright also said the company reduced days of inventory on hand to 62 in the quarter, calling it “an exceptional quarter,” and noted that figure was down 13 days from the same quarter last year. Beesley said Pattern sees “more room for optimization in the future,” pointing to the planned launch of a new East Coast facility that will build on technology advances implemented at its Las Vegas facility. Wright described social commerce and AI-driven discovery as two rapidly changing areas for brands. He said Pattern was recently named TikTok Shop’s strategic partner of the year, and over the past 12 months the company launched more than 100 brands on TikTok Shop, activated over 365,000 creators, and grew social commerce “triple digits again” in Q1. Wright also discussed the growing influence of large language models (LLMs) on product research and purchase journeys. He said Pattern is approaching this shift “from a data-first perspective,” leveraging bottom-of-funnel search and conversion data and an understanding of consumer personas and intent to help brands improve positioning across “LLM-driven surfaces.” While he said “full agentic transactions are developing more gradually than we initially expected,” he argued their influence on the customer journey is “already meaningful” and “significant and growing.” In response to a question about AI and image generation, Wright said conversion overall was up “from 17% to 19% year on year.” He also described “The Portal,” which he called “almost like an AI photo studio,” where Pattern captures product imagery to train a LoRA (low-rank adaptation) model. He said 50 to 80 images can provide enough reference data to take a product “globally in any setting,” enabling localization and personalization. Wright added that the system is being deployed in warehouses and can produce AI-generated product photography “at a fraction of cost,” while referencing patents and intellectual property supporting the approach. Beesley said the company’s strong Q1 performance led Pattern to “raise our full-year outlook.” Pattern now expects approximately $3.3 billion in revenue for 2026, implying 32% growth year-over-year, up from prior guidance that implied about 26% growth. The company raised its full-year adjusted EBITDA outlook to approximately $200 million (31% growth at the midpoint), up from prior guidance implying about 18% growth. For Q2, Pattern expects revenue of $810 million to $820 million (35% to 37% growth) and adjusted EBITDA of $45 million to $46 million (30% to 33% growth). Beesley said the company expects incremental costs in the quarter related to its May Accelerate conference, continued R&D investment, and startup costs for the East Coast facility. Beesley said Pattern generated $124 million of operating cash flow over the trailing 12 months and $99 million of free cash flow. The company ended Q1 with $344 million in cash and cash equivalents, “no outstanding debt,” and $150 million of borrowing capacity under its revolving credit facility. On the macro environment, Beesley said the Middle East is an “immaterial portion” of revenue, but geopolitical tensions have increased volatility in global logistics and energy costs and created uncertainty around consumer sentiment. He said marketplaces implemented fuel surcharges for sellers during the quarter, and that Pattern’s agreements generally allow it to pass through such marketplace cost changes, including fulfillment costs. On demand, Beesley said the company was “not currently seeing any indication of meaningful consumer weakness” in the categories or markets where it operates, adding that diversification and exposure to non-discretionary categories positions the business to “weather macro headwinds.” In Q&A, Wright said category diversification is “not a primary focus” internally, emphasizing that the company is “simply focused on the brands.” He also discussed international brand sourcing efforts, describing an “East to West” initiative in APAC to work with manufacturers that supply goods to U.S. consumers, and said the company’s largest deal signed in 2025 came from that effort. At Pattern, we are on a mission to help brands accelerate profitable growth on global ecommerce marketplaces. Today, our proprietary technology and on-demand experts operate across more than 60 marketplaces to increase product sales to consumers in more than 100 countries. Utilizing more than 46 trillion data points and sophisticated machine learning and artificial intelligence (“AI”) models, we strive to optimize and automate key levers of ecommerce growth, including advertising, content creation and management, pricing, forecasting and customer service. The article "Pattern Group Q1 Earnings Call Highlights" was originally published by MarketBeat.