Pattern Group Inc. Series A Common Stock

Pattern reported Q2 revenue of 877 million, up 47% year over year, and adjusted EBITDA of 54 million, up 54% year over year. Net revenue retention was 129%, versus 127% in Q1 and 118% a year ago. International revenue grew 87% to 110 million; SaaS logistics and other revenue grew 123% to 17 million. For the trailing 12 months ended June 30, operating cash flow was 136 million, up 76% year over year, and free cash flow was 106 million, up 92% year over year. The company ended Q2 with 346 million in cash and cash equivalents, no outstanding debt, and 150 million of borrowing capacity. Full-year guidance was raised to revenue of 3.4 billion to 3.5 billion, implying 37% to 38% growth, and adjusted EBITDA of approximately 211 million to 213 million, implying 38% to 40% growth. For Q3, Pattern expects revenue of 840 million to 860 million and adjusted EBITDA of 51 million to 53 million. Management also said ending NRR for the year should be 123% to 124% and that year-over-year revenue growth should moderate to the 30% plus range in the second half.

David Wright framed the quarter as evidence that Pattern's model is working, emphasizing record NRR, strong international momentum, and continued expansion beyond Amazon into new marketplaces and channels. He spent much of his commentary on Pattern's data/AI ontology, Pattern Intelligence, and the company's positioning for both current ecommerce and future agentic commerce surfaces such as LLMs and ChatGPT. His tone was confident and optimistic, with repeated emphasis on brand outcomes, compounding data advantages, and long-term strategic optionality.

Jason Beesley focused on the financial durability of the quarter: revenue of 877 million, adjusted EBITDA of 54 million, and record NRR of 129%. He highlighted TTM operating cash flow of 136 million and free cash flow of 106 million, plus a strong balance sheet with 346 million in cash, no debt, and 150 million of borrowing capacity. On costs, he noted Q2 included expenses tied to Accelerate, the East Coast facility, and increased R&D; excluding SBC-related taxes, R&D was 12 million, up 89% year over year. He also said the East Coast fulfillment facility is operational with early throughput in line with goals, and that full-year EBITDA margin should still accrete even as R&D investment rises.

Analysts pressed on whether the Thorne acquisition by P&G changes Pattern's relationship with Thorne or signals broader customer-retention risk when brands get acquired. Management said there is no change-of-control provision, that it's business as usual with Thorne, and that Pattern has worked successfully with other brands inside large CPG portfolios. They also addressed whether DTC growth could cannibalize marketplace volume, saying they have not seen that yet and generally view channel expansion as additive. Other questions focused on NRR ceilings, Amazon concentration, margin moderation in Q3/Q4, and Pattern Intelligence; management said newer cohorts are not meaningfully diluting NRR, diversification away from Amazon is progressing naturally, and Q3/Q4 margin pressure is mostly due to promotional timing, seasonal costs, and elevated R&D.