Pattern Group (PTRN) investor relations material

Executive summary

• Q1 2026 revenue reached $774 million, up 43% year-over-year, with record Adjusted EBITDA of $54 million, driven by broad-based strength across brand partners, geographies, and marketplaces.

• Net income rose to $29 million, a 28% increase year-over-year, with diluted EPS of $0.16.

• Net Revenue Retention Rate (NRR) hit a record 127%, up from 115% last year, reflecting deeper brand relationships and marketplace expansion.

• International revenue doubled year-over-year to $90 million, and non-Amazon revenue grew 119% to $71 million, with strong performance on TikTok Shop, Walmart, and Coupang.

• Other monetization strategies and technology investments, including AI-powered solutions, drove momentum beyond core marketplace offerings.

Financial highlights

• Q1 2026 revenue: $774 million (+43% YoY); Adjusted EBITDA: $54 million (+59% YoY); net income: $29 million (+28% YoY).

• Operating cash flow (TTM): $124 million (+57% YoY); free cash flow (TTM): $99 million (+69% YoY).

• Cash and cash equivalents at quarter-end: $344 million; no outstanding debt; $150 million in available credit.

• Adjusted EBITDA margin improved to 6.9% from 6.3% YoY; gross margin stable at 44%.

• Variable costs and expenses as a percentage of revenue declined or remained stable, reflecting operational efficiencies.

Outlook and guidance

• Full-year 2026 revenue guidance raised to $3.29–$3.33 billion (32–33% YoY growth); Adjusted EBITDA expected at $199–$201 million (30–32% YoY growth).

• Q2 2026 revenue expected at $810–$820 million (35–37% YoY growth); Adjusted EBITDA at $45–$46 million (30–33% YoY growth).

• NRR expected to end the year at approximately 119%, above the long-term target of 115%.

• Guidance reflects continued investment in R&D and technology, with R&D spend expected to outpace revenue growth.

• Liquidity remains strong, supporting ongoing investments and operational flexibility.