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.
First-quarter results and key operating metrics
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.
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.
Drivers of growth: optimization, marketplace expansion, and product depth
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.”
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.
Fulfillment speed, inventory efficiency, and facility expansion
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.
AI, social commerce, and discovery trends
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.
Guidance raised; cash position and macro commentary
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.
About Pattern Group NASDAQ: PTRN
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.
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