Pattern Group, Inc. Class A (PTRN)
NASDAQ:PTRN
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Pattern Group, Inc. Class A
(NASDAQ:PTRN)
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Rating:75Outperform
Price Target:
$20.00
▲(47.82% Upside)
Action:Reiterated
Date:05/22/26
The score is primarily driven by a strong earnings-call signal (raised 2026 guidance, high NRR, and solid liquidity with no debt) and generally healthy underlying financials (rapid revenue growth and positive/free cash flow). This is tempered by weaker profitability trends in 2025, and technical indicators that look overextended, with valuation offering only moderate support and no dividend.
Positive Factors
Multi-year Revenue Growth
Sustained high revenue growth across multiple years with consistent ~43–44% gross margins indicates durable demand and scalable unit economics. This pace supports reinvestment, marketplace expansion and long-term market share gains as the company scales its platform and fulfillment network.
Negative Factors
Profitability Deterioration / ROE Drop
A sharp decline in net margin and ROE indicates operating profitability weakness despite top‑line strength. If margins don't recover, return on capital and long‑term shareholder returns can be impaired, constraining reinvestment capacity or forcing tradeoffs between growth and profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Multi-year Revenue Growth
Sustained high revenue growth across multiple years with consistent ~43–44% gross margins indicates durable demand and scalable unit economics. This pace supports reinvestment, marketplace expansion and long-term market share gains as the company scales its platform and fulfillment network.
Read all positive factors
Pattern Group, Inc. Class A (PTRN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.33B
Dividend YieldN/A
Average Volume (3M)1.21M
Price to Earnings (P/E)―
Beta (1Y)2.31
Revenue Growth41.99%
EPS Growth-350.28%
CountryUS
Employees2,100
SectorConsumer Cyclical
Sector Strength84
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.84
Shares Outstanding155,163,570
10 Day Avg. Volume1,371,264
30 Day Avg. Volume1,214,679
Financial Highlights & Ratios
PEG Ratio-4.53
Price to Book (P/B)3.50
Price to Sales (P/S)0.81
P/FCF Ratio25.79
Enterprise Value/Market Cap0.78
Enterprise Value/Revenue0.95
Enterprise Value/Gross Profit2.20
Enterprise Value/Ebitda115.07
Forecast
1Y Price Target
$22.00Price Target Upside62.60% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)0.55
Revenue Forecast (FY)$3.31B
Pattern Group, Inc. Class A Business Overview & Revenue Model
Company Description
A tech-enabled ecommerce accelerator. Pattern helps brands grow sales across global online marketplaces (including Amazon, Walmart, TikTok Shop, etc.) via technology, analytics, logistics, advertising & content tools; they also purchase, distribut...
How the Company Makes Money
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Pattern Group, Inc. Class A Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call conveyed strong, broad-based performance across revenue, profitability, international expansion, and net revenue retention, supported by healthy cash and no debt. Management raised full-year revenue and EBITDA guidance and highlighted durable operating improvements driven by AI, logistics, and marketplace diversification. Key near-term headwinds include elevated R&D and event/facility investments that may pressure quarterly margins, geopolitical/logistics volatility (mitigated by pass-through arrangements), a slower-than-expected pace for fully agentic transactions, and tougher comps in the back half of the year. Overall, positives materially outweigh the manageable near-term challenges.Positive Updates
Record Revenue Growth
Q1 revenue grew 43% year-over-year to $774 million, marking a record quarter and driving an upgraded full-year revenue outlook of approximately $3.3 billion (up ~32% YoY). Q2 revenue guidance is $810M–$820M (+35%–37% YoY).
Negative Updates
Elevated R&D Spend and Near‑Term Margin Timing
Excluding stock-based compensation, R&D was $10.1 million in Q1, up 77% year-over-year. Management expects R&D growth to outpace revenue growth, which may create timing variations in adjusted EBITDA margin.
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Q1-2026 Updates
Positive
Negative
Record Revenue Growth
Q1 revenue grew 43% year-over-year to $774 million, marking a record quarter and driving an upgraded full-year revenue outlook of approximately $3.3 billion (up ~32% YoY). Q2 revenue guidance is $810M–$820M (+35%–37% YoY).
Read all positive updates
Company Guidance
Pattern raised its 2026 outlook to revenue of approximately $3.3 billion (≈+32% YoY, up from prior guidance that implied ~26% growth) and adjusted EBITDA of roughly $200 million (≈+31% YoY at the midpoint, versus prior implied ~18%), with Q2 guidance of $810–$820 million in revenue (+35%–37% YoY) and $45–$46 million of adjusted EBITDA (+30%–33% YoY). Management expects ending NRR near ~119% (above its 115% long‑term target), cautioned that year‑over‑year growth should moderate in Q3–Q4 as comps steepen, and flagged continued R&D investment (Q1 R&D ex‑stock comp was $10.1M, +77% YoY and expected to outpace revenue growth) plus incremental Q2 costs for the Accelerate conference and East Coast facility; liquidity at quarter end was $344M cash, no debt, and $150M of revolver capacity.Pattern Group, Inc. Class A Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
78
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 |
|---|---|---|---|---|
Income Statement | ||||
| Total Revenue | 2.73B | 2.50B | 1.80B | 1.37B |
| Gross Profit | 1.18B | 1.07B | 781.35M | 601.21M |
| EBITDA | 22.63M | 42.21M | 106.14M | 68.48M |
| Net Income | -141.27M | 16.25M | 67.86M | 41.26M |
Balance Sheet | ||||
| Total Assets | 967.20M | 947.64M | 664.42M | 490.92M |
| Cash, Cash Equivalents and Short-Term Investments | 344.22M | 289.05M | 175.62M | 127.23M |
| Total Debt | 31.07M | 30.84M | 30.13M | 19.10M |
| Total Liabilities | 357.51M | 366.64M | 285.10M | 177.92M |
| Stockholders Equity | 609.69M | 581.00M | 379.32M | 313.00M |
Cash Flow | ||||
| Free Cash Flow | 99.07M | 78.92M | 49.90M | 26.98M |
| Operating Cash Flow | 123.59M | 99.41M | 70.35M | 41.48M |
| Investing Cash Flow | -43.80M | -39.77M | -20.44M | -14.50M |
| Financing Cash Flow | 45.45M | 53.71M | -2.90M | 0.00 |
Pattern Group, Inc. Class A Risk Analysis
Pattern Group, Inc. Class A disclosed 60 risk factors in its most recent earnings report. Pattern Group, Inc. Class A reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
We cannot guarantee that our share repurchase program will be fully consummated or that it will enhance long-term stockholder value. Stock repurchases could also increase the volatility of our stock and could diminish our liquidity. Q1, 2026
Pattern Group, Inc. Class A Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $3.33B | -23.52 | -26.19% | ― | 41.99% | -350.28% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
46 Neutral | $7.21M | -0.24 | -157.27% | ― | 166.83% | 90.08% | |
42 Neutral | $13.50M | -0.87 | -302.04% | ― | 9.71% | 95.35% |
* Consumer Cyclical Sector Average
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Pattern Group, Inc. Class A Corporate Events
Executive/Board ChangesShareholder Meetings
Pattern Group stockholders back directors, auditor and pay
Positive
May 21, 2026
Pattern Group Inc. held its Annual Meeting of Stockholders on May 15, 2026, where a quorum was achieved through in-person, remote, and proxy participation of both Series A and higher-vote Series B shares. Stockholders elected Scott Hilton and Ann ...
Executive/Board Changes
Pattern Group Announces Board Restructuring After Director Resignation
Neutral
Mar 18, 2026
Pattern Group Inc. announced board changes following the resignation of director Daniel Gay, an early investor who participated in the company’s first fundraise in 2020. Gay informed the company on March 12, 2026 that he would not stand for ...
Business Operations and StrategyStock BuybackFinancial Disclosures
Pattern Group Announces $100 Million Share Repurchase Plan
Positive
Mar 5, 2026
Pattern Group Inc., a Nasdaq-listed ecommerce acceleration specialist, reported record fourth-quarter and full-year 2025 results on March 5, 2026, highlighting its AI- and data-driven platform that manages advertising, content, logistics, pricing,...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.