Pattern Group (PTRN) investor relations material

Business overview and strategy

• Accelerates profitable growth for brands on global ecommerce marketplaces, leveraging proprietary technology and data-driven insights.

• Operates as an intelligence layer between brands, ecommerce platforms, and consumers, optimizing traffic, conversion, price, and availability.

• Offers a low-friction business model by purchasing inventory from brand partners and selling through global channels, aligning incentives for mutual success.

• Focuses on expanding across new marketplaces and geographies, with 70+ global marketplaces and over 200 brand partners as of 2025.

• Drives growth through targeted acquisition and deepening relationships with existing partners, achieving 124% net revenue retention in 2025.

Technology and data moat

• Utilizes a proprietary data moat with over 66 trillion ecommerce data points and 31 patents/patents pending to power optimization and AI-driven insights.

• AI/ML forecasting engines and integrated warehouse technology enable efficient inventory management and operational excellence.

• Technology platform optimizes every lever of the ecommerce equation, from traffic generation to post-purchase engagement.

• World-class features include competitive insights, AI content at scale, and advanced advertising bid management.

Financial performance and efficiency

• Revenue grew from $991M in 2022 to $2.5B projected in 2025, with a 36% CAGR over three years.

• Adjusted EBITDA increased from $18M in 2022 to $153M in 2025, with margins improving from 1.8% to 6.1%.

• Free cash flow turned positive in 2023 and reached $79M in 2025, with cumulative FCF of $154M over four years.

• Capital efficiency improved, with the cash conversion cycle dropping from 117 days in 2022 to 24 days in 2025.

• Maintained low inventory write-offs (<0.2% of revenue) and high inventory turns (5.0x in 2025).