Pattern Group (PTRN) investor relations material

Executive summary

• Achieved record Q2 2026 revenue of $877 million, up 47% year-over-year, with adjusted EBITDA up 54% to $54 million and net income rising to $27.5 million.

• Net Revenue Retention Rate (NRR) reached a record 129%, up from 118% a year ago, reflecting deepening brand partner relationships.

• International revenue surpassed $100 million for the first time, growing 87% year-over-year; non-Amazon revenue grew 93%.

• Launched Pattern Intelligence (Pi), an AI-driven platform, and expanded product offerings through acquisitions.

• Raised full-year outlook for both revenue and adjusted EBITDA, reflecting broad-based strength and operational scalability.

Financial highlights

• Q2 2026 revenue: $877 million, up 47% year-over-year; adjusted EBITDA: $54 million, up 54%; net income: $27.5 million.

• Operating cash flow (TTM): $136 million, up 76% year-over-year; free cash flow: $106 million, up 92%.

• Ended Q2 with $346 million in cash, no debt, and $150 million undrawn credit facility.

• Gross margin for Q2 2026: 43.8%, slightly improved from 42.9% in Q2 2025.

• Adjusted EBITDA margin improved to 6.1% in Q2 2026.

Outlook and guidance

• Full-year 2026 revenue guidance raised to $3.42–$3.5 billion, up 37–38% year-over-year.

• Full-year adjusted EBITDA expected at $211–$213 million, up 38–40% year-over-year.

• Q3 2026 revenue guidance: $840–$860 million (31–34% growth); Q3 adjusted EBITDA: $51–$53 million.

• NRR expected to moderate to 123–124% by year-end, still above long-term target.

• Management expects continued growth from brand partners and ongoing investments in AI and technology.