Pattern Reports Third Quarter 2025 Financial Results

About this update from Pattern Group Inc. - Series A

Delivered Revenue Growth of 46% Year-over-Year, for a Record $640 million in Third Quarter Revenue Delivered Record NRR of 122% in the Third Quarter, up from 113% in the Prior Year Period LEHI, Utah, November 05, 2025 --( BUSINESS WIRE )--Pattern Group Inc. (NASDAQ: PTRN), a leader in accelerating brands on global ecommerce marketplaces leveraging proprietary technology and AI, today announced financial results for the third quarter ended September 30, 2025. "We are pleased to report that we delivered record results for Revenue, NRR, and Adjusted EBITDA in our first quarter as a public company. We believe our performance demonstrates the power of our intelligence platform to grow across the digital commerce ecosystem," said Dave Wright, Co-Founder and CEO of Pattern. "The forces reshaping our industry—AI-driven discovery, social engagement, automation, and global logistics innovation—are accelerating faster than ever. Our platform stands at the intersection of intelligence and execution, connecting brands and consumers seamlessly across digital surfaces." "I want to thank the entire Pattern team for their hard work and dedication. The results we’ve achieved reflect our team’s relentless commitment to excellence," concluded Wright. Third Quarter 2025 Financial Highlights See "Non-GAAP Financial Measures" for additional information on non-GAAP financial measures and a reconciliation to the most comparable GAAP measures. Financial Outlook "We are having a record year and are pleased to see the momentum continue. Our guidance reflects success across our three vectors of growth with existing brand partners, as well as traction adding and expanding new brand partners," commented Jason Beesley, Chief Financial Officer. "Zooming out, based on the midpoint of our Q4 outlook, we anticipate full year 2025 Revenue growth of 37%, coupled with 48% Adjusted EBITDA growth. We have a business model that delivers growth, profits and generates cash; and we operate in a massive space. We believe that is the winning formula for success and our team is executing to drive outsized growth." For the fourth quarter 2025, Pattern anticipates: See "Non-GAAP Financial Measures" for additional information on non-GAAP financial measures. Conference Call, Webcast, and Other Information Pattern will host a conference call and live webcast to discuss its third quarter 2025 financial results at 3:00 p.m. Mountain Time today, November 5, 2025. A live webcast of the call can be accessed from Pattern’s investor relations website at https://investors.pattern.com/ . An archived version of the webcast will be available from the same website after the call. About Pattern Pattern accelerates brands on global ecommerce marketplaces leveraging proprietary technology and AI. Utilizing more than 46 trillion data points, sophisticated machine learning and AI models, Pattern optimizes and automates all levers of ecommerce growth for global brands, including advertising, content management, logistics and fulfillment, pricing, forecasting and customer service. Hundreds of global brands depend on Pattern’s ecommerce acceleration platform every day to drive profitable revenue growth across 60+ global marketplaces—including Amazon, Walmart.com, Target.com, eBay, Tmall, TikTok Shop, JD, and Mercado Libre. Forward-Looking Statements This press release and corresponding presentation contain "forward-looking statements" within the meaning of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include all statements other than statements of historical fact, including but not limited to statements regarding the Company’s future performance, growth, opportunities, profitability, cash flows, future offerings and their effectiveness, anticipated momentum, growth of our new and existing brand partners, investments, business strategies, market position, macro environment, impacts of trade policies, potential supply chain disruptions, price increases, market trends, consumer sentiment, and our ability to navigate the same; financial guidance regarding revenues, revenue growth, adjusted EBITDA, adjusted EBITDA growth, and other financial items; and statements involving timing, beliefs or assumptions underlying any of the foregoing. You should not place any undue reliance on any forward-looking statements, which speak only as of the date they were made. We undertake no obligation to update any forward-looking statements to reflect events or circumstances arising after the date hereof. Forward-looking statements are inherently difficult to predict. Actual results could differ materially for a number of reasons, including but not limited to those related to the Company’s relatively limited operating history which makes it difficult to evaluate the Company’s business and prospects, the market for the Company’s product or service offerings developing slower or differently than expected; any difficulties we may experience with brand partners, marketplaces, sourcing of products, accessing and utilizing marketplace data, responding to technological advancement, attracting/retaining key employees, forecasting consumer demand, maintaining customer satisfaction, optimizing operations, driving traffic to our products; any difficulties with our infrastructure, fulfillment partners, supply chain, payment processors, data storage, data processing, shipping, insurance, competition, macroeconomic factors, tariffs or trade policies, global or political conflict, exchange rates, or any inability to sustain profitable growth. Other risks and uncertainties include, among others, any problems with product or tool integration, protection of our intellectual property, cyber-attacks or data breaches affecting us, adverse tax, compliance, regulatory or legal developments, lawsuits or claims, and other risks and uncertainties that are detailed under the caption "Risk Factors" and elsewhere in our final prospectus filed with the Securities and Exchange Commission ("SEC") on September 19, 2025, in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2025, to be filed with the SEC, and in our subsequent filings with the SEC. Supplemental Operational Data We measure our business using both financial and operating metrics to assess the near-term and long-term performance of our overall business, including identifying trends, formulating financial projections, making strategic decisions, assessing operational efficiencies and monitoring our business. NRR is an important metric to measure the long-term value of our brand partner relationships. In any given period, we calculate NRR by comparing total revenue attributable to all existing brand partners in the current trailing 12-month period to that of the previous trailing 12-month period. This metric, expressed as a percentage, provides valuable insight into the accelerated growth delivered through our platform, the effectiveness of our brand expansion strategies and our ability to deepen relationships with existing brand partners. For the purpose of our NRR calculation, we only include brand partners that, as of the measurement date, have been with Pattern for more than twelve months since we first generated over $1,000 in revenue attributable to such brand partner. Additionally, for those existing brand partners that, as of the measurement date, have been with Pattern for more than twelve full months but less than 24 full months since we first generated over $1,000 in revenue attributable to such brand partner, we only include current period revenue for the corresponding months in the current period for which the brand partner had attributable revenue in the previous period. Non-GAAP Financial Measures We are providing certain non-GAAP financial measures in this release and related earnings conference call, including adjusted EBITDA and free cash flow. We use these non-GAAP measures internally in analyzing our financial results and we believe they are useful to investors, as a supplement to GAAP measures, in evaluating our ongoing operational performance in the same manner as our management and board of directors. We have provided reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures in this earnings release. These non-GAAP financial measures should be used in addition to and in conjunction with the results presented in accordance with GAAP and should not be relied upon to the exclusion of GAAP financial measures. We calculate forward-looking non-GAAP financial measures, such as Adjusted EBITDA, based on internal forecasts that omit certain amounts that would be included in forward-looking GAAP financial measures. We do not attempt to provide a reconciliation of forward-looking non-GAAP financial measures to forward-looking GAAP financial measures because forecasting the timing or amount of items that have not yet occurred and are out of our control is inherently uncertain and unavailable without unreasonable efforts. Further, we believe that such reconciliations would imply a degree of precision and certainty that could be confusing to investors. Such items could have a substantial impact on GAAP measures of financial performance. We calculate Adjusted EBITDA, a non-GAAP financial measure, as net income (loss) excluding depreciation and amortization; interest income (expense), net; provision (benefit) from income taxes; share-based compensation expense and related taxes; the Founder Preferred Stock Amendment charge; indirect initial public offering costs; and other recurring and nonrecurring items that we do not consider representative of our underlying operations. We believe it is useful to exclude non-cash charges, such as depreciation and amortization and share-based compensation expense from our Adjusted EBITDA because the amount of such expenses in any specific period may not directly correlate to the underlying performance of our business operations. We believe it is useful to exclude interest income (expense), net; provision (benefit) from income taxes; and other items that are not components of our core business operations. Non-GAAP financial measures such as Adjusted EBITDA should not be considered in isolation or as an alternative to net income (loss) or any other measure of financial performance calculated and prescribed in accordance with GAAP. In addition, Adjusted EBITDA may not be comparable to similarly titled measures in other organizations because other organizations may not calculate Adjusted EBITDA in the same manner as we do, thus limiting its usefulness as a comparative measure. Free cash flow is a non-GAAP financial measure that is calculated as net cash provided by or used in operating activities reduced by purchases for property and equipment. We believe free cash flow is a useful measure to evaluate the cash impact of the operations of the business including purchases of property and equipment which are a necessary component of our ongoing operations. We define trailing twelve months ("TTM") free cash flow as net cash provided by operating activities less capital expenditures for the most recent twelve consecutive months. The following table provides a reconciliation of net cash provided by operating activities to free cash flow:   View source version on businesswire.com: https://www.businesswire.com/news/home/20251104510280/en/ Contacts Media Contact: Tom Cook Global Communications [email protected] Investor Contact: Whitney Kukulka The Blueshirt Group [email protected]

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