Pattern Group (NASDAQ:PTRN) executives outlined a “defining year” in 2025, pointing to record revenue, record net revenue retention, and expanding profitability as the company completed its first full year as a public company. On the company’s fourth-quarter and full-year 2025 earnings call, management also introduced a new $100 million share repurchase authorization and provided 2026 guidance that implies the company expects to exceed $3 billion in revenue next year.
Record 2025 growth led by retention, international expansion, and channel diversification
Co-Founder and CEO Dave Wright said 2025 was marked by record revenue, retention, and profitability. For the full year, the company reported revenue increased 39% to $2.5 billion. Fourth-quarter revenue rose 40% year-over-year to $723 million, according to CFO Jason Beesley.
- Net revenue retention (NRR): 124% in 2025, up from 116% in 2024.
- International growth: international revenue increased 63% for the year and 69% in Q4.
- Non-Amazon growth: non-Amazon revenue grew 60% for the year and 94% in Q4.
- SaaS services and logistics: grew 58% for the year and 162% in Q4, which management described as a smaller but fast-growing portion of revenue with higher-margin potential.
Beesley added that existing brand partner revenue reached a record $2.2 billion, up 42% year-over-year, while new brand partner revenue was $282 million, up 22% year-over-year. He also said more than 53% of 2025 revenue came from brand partners that have worked with Pattern for over five years.
In discussing drivers behind non-Amazon growth, Beesley said momentum in Q4 was supported by triple-digit year-over-year growth on Coupang, TikTok Shop, and Walmart. Wright later provided additional marketplace detail, saying Pattern’s TikTok results grew 224% in Q4 and 482% for 2025, while noting those were on “reasonably small numbers.” Wright also said Coupang generated $11 million of revenue in 2025 after being “0” in 2024.
AI-driven commerce shifts and Pattern’s “moat”
Wright devoted a significant portion of prepared remarks to the impact of large language models (LLMs), AI-driven discovery, and the evolution toward “agentic shopping,” describing a shift that compresses the consumer funnel and changes how product research and purchasing occur. He argued Pattern is “uniquely positioned to empower brands” in that environment, emphasizing the company’s data, international footprint, logistics scale, and speed.
Management cited several operating and technology-scale metrics, including:
- Pattern’s intelligence layer is powered by more than 66 trillion data points, up from 47 trillion six months earlier.
- In 2025, its automation engine executed 5.53 billion marketplace bid changes and 40 million price changes in real time.
- The company supports expansion across more than 70 marketplaces and operates from 22 global offices.
- Wright said products now reach marketplaces in approximately 1.5 days, and Days Inventory Outstanding (DIO) improved to 72 days, a 10-day year-over-year reduction.
During Q&A, Wright said AI is affecting more than coding and could represent “a complete refactoring of all jobs,” though he also noted some tasks remain physical or compliance-driven. On international growth, he suggested AI-enabled productivity gains could become “quite staggering,” especially for companies moving quickly.
Profitability, cash flow, and buyback authorization
Beesley reported adjusted EBITDA of $153 million for the full year, representing a 6.1% adjusted EBITDA margin and 52% year-over-year growth. In Q4, adjusted EBITDA was $43 million, a 5.9% margin, up 59% year-over-year. He said the quarter benefited from some margin timing due to hiring shifting into Q1.
Cash generation improved as well. For 2025, the company generated $99 million of operating cash flow, up 41%, and $79 million of free cash flow, up 58%. Beesley said that represented a 52% conversion rate from adjusted EBITDA to free cash flow.
Pattern ended the year with $289 million in cash and cash equivalents, no outstanding debt, and $150 million of borrowing capacity available under a revolving credit facility.
Management also announced a board-authorized share repurchase program of up to $100 million. Asked whether repurchases could occur at current price levels, Beesley said implementation would be “facts and circumstances, market-driven” and influenced by board guidance, while reiterating a capital allocation framework of investing in growth first, pursuing M&A opportunities second, and using buybacks as an additional lever to return value to shareholders.
On variable costs, Beesley said sequential cost increases as a percentage of revenue in Q4 reflected typical marketplace seasonality, noting “all marketplaces have slightly higher fees” in Q4 than Q3, including storage and deliveries.
2026 outlook: revenue above $3 billion, NRR expected to converge toward 115%
For 2026, Beesley said the company expects revenue of $3.12 billion to $3.16 billion, representing 25% to 26% growth. For Q1, management guided to revenue of $710 million to $720 million, implying 31% to 33% growth year-over-year.
On profitability, the company guided to adjusted EBITDA of $41 million to $42 million in Q1 and approximately $180 million to $182 million for the full year, which Beesley said would represent about a 5.8% adjusted EBITDA margin and 17% to 19% growth.
Beesley cautioned that the company will face “difficult comps” in the second half of 2026 as it laps record growth rates from the back half of 2025. He also said the company expects a more normalized cadence of new product expansions and is taking a “middle-of-the-road approach” to assumptions for new brand partner revenue due to sales variability.
NRR was another key focus. While noting the company is “extremely happy” with NRR above 120%, Beesley reiterated management views 115% as an “exceptional long-term target” and said NRR is a trailing 12-month metric. In response to analyst questions, management said guidance assumes NRR converges to 115% by the end of 2026 as stronger prior-period performance moves into the denominator of the metric.
Investments: R&D, fulfillment network expansion, and targeted M&A
Beesley said the company plans to increase R&D investment to strengthen “AI-driven technology and automation” and improve efficiency across the platform, which he said may cause “a small deleverage” in margin percentage in the near term. He also said Pattern will invest to accelerate go-to-market efforts across categories, marketplaces, and geographies.
On logistics, Beesley said the company launched a Las Vegas facility last year and plans to launch an East Coast facility in 2026, adding that back-to-back launches may reduce leverage in the near term, with expectations to return to leveraging fulfillment and operations in the following year.
Management also discussed two acquisitions completed in the quarter. Wright described ROI Hunter as an 89-person business based in the Czech Republic that manages over $1 billion in ad spend across “walled gardens,” and he said NextWave is a TikTok Shop operator that Pattern identified via a recommendation from TikTok. Wright said Pattern’s M&A approach is focused on adding capabilities rather than “buying revenue.”
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.
