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Pattern Group, Inc. Class A
(NASDAQ:PTRN)
Select Model
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Rating:67Neutral
Price Target:
$24.00
▲(8.25% Upside)
Action:Downgraded
Date:08/07/26
PTRN scores as moderately attractive overall, led by strong financial momentum and a very constructive earnings update (raised outlook, record retention, improving cash generation, debt-free balance sheet). These positives are tempered by weaker recent profitability/ROE in the financial statements and clearly soft near-term technical momentum; valuation is also difficult to support with a negative P/E and no stated dividend yield.
Positive Factors
Sustained revenue growth & stable gross margin
Multi-year revenue growth (~+31–41% annually) combined with consistently healthy gross margins (~43–44%) indicates durable demand, pricing power, and scalable delivery. This supports reinvestment capacity and long-term market share expansion even as operating leverage is managed.
Negative Factors
Sharply weakened profitability and ROE
A steep drop in net margin and ROE signals deteriorating operating leverage or high investment-driven costs that meaningfully reduce returns. If margins remain compressed, the company may struggle to convert strong revenue growth into sustained shareholder returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained revenue growth & stable gross margin
Multi-year revenue growth (~+31–41% annually) combined with consistently healthy gross margins (~43–44%) indicates durable demand, pricing power, and scalable delivery. This supports reinvestment capacity and long-term market share expansion even as operating leverage is managed.
Read all positive factors
Pattern Group, Inc. Class A (PTRN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.90B
Dividend YieldN/A
Average Volume (3M)2.50M
Price to Earnings (P/E)―
Beta (1Y)1.92
Revenue Growth43.94%
EPS Growth-313.68%
CountryUS
Employees2,300
SectorGeneral
Sector StrengthN/A
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.78
Shares Outstanding155,163,570
10 Day Avg. Volume1,891,536
30 Day Avg. Volume2,503,816
Financial Highlights & Ratios
PEG Ratio0.47
Price to Book (P/B)3.50
Price to Sales (P/S)0.81
P/FCF Ratio25.79
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$28.11Price Target Upside26.80% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
EPS Forecast (FY)0.56
Revenue Forecast (FY)$3.31B
Pattern Group, Inc. Class A Business Overview & Revenue Model
Company Description
Pattern operates as a cutting-edge e-commerce accelerator, leveraging sophisticated technology to significantly boost sales for brands. The company enables this growth across major global online retail platforms, such as Amazon, Walmart, and TikTo...
How the Company Makes Money
null...
Pattern Group, Inc. Class A Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call presented a very strong operational and financial picture: record revenue and adjusted EBITDA growth, a record NRR (129%), rapid international and non‑Amazon expansion, sizable SaaS/logistics growth, launch of Pattern Intelligence and new IP, and materially improved cash generation and a debt‑free balance sheet. Near‑term headwinds are primarily strategic investments (R&D, new East Coast facility, summit) and seasonality/timing of marketplace promotional events that create quarter timing noise and expected moderation in YoY growth in the second half. Concentration with Amazon remains a medium‑term diversification priority. Overall, the positives — strong growth, product/IP momentum, improved cash flow, and raised guidance — materially outweigh the operational and timing challenges discussed.Positive Updates
Record Revenue and Adjusted EBITDA
Q2 revenue of $877M, up 47% year‑over‑year; Adjusted EBITDA of $54M, up 54% year‑over‑year. This marks the fourth consecutive quarter where adjusted EBITDA growth outpaced revenue growth.
Negative Updates
Rising R&D and One‑time Operational Costs
Excluding stock‑based compensation, R&D expense was $12M in Q2, up 89% year‑over‑year. Q2 also included costs related to the Accelerate summit and startup costs for the East Coast fulfillment facility, which weighed on near‑term profitability.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Revenue and Adjusted EBITDA
Q2 revenue of $877M, up 47% year‑over‑year; Adjusted EBITDA of $54M, up 54% year‑over‑year. This marks the fourth consecutive quarter where adjusted EBITDA growth outpaced revenue growth.
Read all positive updates
Company Guidance
Pattern raised its full‑year outlook to $3.4–$3.5 billion of revenue (up ~37–38% YoY) and adjusted EBITDA to ~$211–$213 million (up ~38–40% YoY), with management forecasting full‑year adjusted EBITDA margin accretion despite stepped‑up R&D; they expect ending‑year net revenue retention of roughly 123–124% (above the 115% long‑term target) though NRR may slowly moderate as comps get tougher. For Q3 the company guided revenue of $840–$860 million (~31–34% YoY) and adjusted EBITDA of $51–$53 million (~25–29% YoY), noting calendar shifts of major marketplace promotions that moved about 4 percentage points of growth from Q3 into Q2 and that H2 revenue growth should moderate to the low‑30% range. Trailing‑12‑month operating cash flow was $136 million (up 76%), free cash flow $106 million (up 92%), and the balance sheet finished Q2 with $346 million cash, no debt and $150 million of available borrowing 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 | 3.01B | 2.50B | 1.80B | 1.37B |
| Gross Profit | 1.31B | 1.07B | 781.35M | 601.21M |
| EBITDA | 33.42M | 16.01M | 106.14M | 68.48M |
| Net Income | -137.56M | 16.25M | 67.86M | 41.26M |
Balance Sheet | ||||
| Total Assets | 1.07B | 947.64M | 664.42M | 490.92M |
| Cash, Cash Equivalents and Short-Term Investments | 345.83M | 289.05M | 175.62M | 127.23M |
| Total Debt | 51.31M | 30.84M | 30.13M | 19.10M |
| Total Liabilities | 426.97M | 366.64M | 285.10M | 177.92M |
| Stockholders Equity | 645.63M | 581.00M | 379.32M | 313.00M |
Cash Flow | ||||
| Free Cash Flow | 106.13M | 78.92M | 49.90M | 26.98M |
| Operating Cash Flow | 136.23M | 99.41M | 70.35M | 41.48M |
| Investing Cash Flow | -49.39M | -39.77M | -20.44M | -14.50M |
| Financing Cash Flow | 43.18M | 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 (55)
PTRN
Pattern Group, Inc. Class A
21.12
7.12
50.86%
AUUD
Auddia
1.32
-22.09
-94.36%
MYSE
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2.44
0.14
6.09%
IDAI
T Stamp, Inc. Class A
3.16
0.21
7.12%
TGL
Treasure Global, Inc.
2.87
-20.73
-87.84%
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 ...
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.