Pattern Group (PTRN) 46th Annual William Blair Growth Stock Conference summary

Business performance and growth

• Achieved 43% year-over-year growth and net revenue retention (NRR) of 127%, significantly outpacing global digital growth rates of 7%-10%.

• Q1 2026 revenues reached $774M, with adjusted EBITDA of $54M and a margin of 6.9%.

• Revenue CAGR from 2022 to 2025 was 36%, with adjusted EBITDA CAGR at 104%.

• Free cash flow improved cumulatively to $154M by 2025, with operating cash flow rising to $99M.

• SaaS services and logistics line item grew 173%, with increasing volume from non-owned goods in the middle mile offering.

Technology and innovation

• Holds 41 patents and patents pending as of May 2026, including for machine learning models that optimize marketplace listings and ad spend.

• Proprietary platform and tools like Destiny, True ROAS, and the Portal optimize traffic, conversion, and ad spend across 70+ global marketplaces.

• AI and ML drive insights, ad tech, SEO, content management, and competitive analysis.

• Developed AI-driven content briefs and eye-tracking analysis to optimize conversion rates for brands.

• Launched Pattern Intelligence, an interface integrating LLMs and data analytics, fully integrated with ChatGPT and Slack.

Business model and client relationships

• Operates as a middle layer between brands and over 70 online marketplaces, managing inventory, logistics, and optimization.

• Requires exclusivity by marketplace and geography in contracts, ensuring deep partnerships and channel focus.

• Monetization is aligned with partner success, leveraging comprehensive data and efficient operations.

• Inventory model provides scale and logistics advantages, with brands benefiting from increased sales and margin.

• Seller of record status is essential for data access and technology effectiveness.