Pattern Surges on Record Q1 Revenue Growth and 127% Net Revenue Retention Rate
Pattern Group Inc. (NASDAQ: PTRN) isn’t slowing down—Q1 2026 numbers show a business firing on all cylinders. With revenue jumping 43% to $774 million and net revenue retention (NRR) spiking to a record 127%, Pattern is accelerating its lead in ecommerce growth. Here’s what stands out in the company’s latest results.
Record Revenue and Profitability Drive Upbeat Outlook
Pattern’s first quarter revenue of $774 million marks a new high and a sharp year-over-year climb from $540.4 million last year. Adjusted EBITDA leapt 59% to $53.74 million, and net income reached $29.21 million, up 28%. Diluted earnings per share came in at $0.16. Notably, Pattern’s international revenue more than doubled (up 101% to $90 million), and revenue not tied to Amazon surged 119% to $71 million—a sign of growing diversification beyond marketplaces like Amazon.
| Key Metric | Q1 2025 | Q1 2026 | YoY Change (%) |
|---|---|---|---|
| Revenue ($M) | 540.41 | 773.73 | 43.1% |
| Net Revenue Retention (NRR) | 115% | 127% | +12 pts |
| International Revenue ($M) | 44.78 | 90 | 101% |
| Non-Amazon Revenue ($M) | 32.42 | 71 | 119% |
| Adjusted EBITDA ($M) | 33.90 | 53.74 | 59% |
| Net Income ($M) | 22.80 | 29.21 | 28% |
| Free Cash Flow ($M, TTM) | 58.74 | 99.07 | 69% |
Momentum Accelerates Across Core Business Segments
The numbers aren’t just impressive—they tell a story of strengthening partnerships and operational scale. Net Revenue Retention at 127% (up from 115%) signals deepening relationships with existing brand partners and effective upselling. Free cash flow is also robust at $99.07 million for the trailing twelve months, up 69% from last year.
Geographic and channel diversification are key highlights: international markets and non-Amazon channels are growing more than 100% year-over-year. This suggests Pattern’s AI-driven platform is winning share in a rapidly evolving ecommerce arena, not just relying on a single marketplace.
2026 Guidance Raised on Revenue and Profit Growth
CFO Jason Beesley shared an upbeat outlook, guiding full-year 2026 revenue to $3.29–$3.33 billion (32–33% YoY growth), sharply above earlier expectations. Adjusted EBITDA is projected to hit $199–$201 million (30–32% growth). For Q2 2026, the company expects $810–$820 million in revenue and $45–$46 million in adjusted EBITDA, highlighting confidence in scalable growth and balance sheet strength.
Financial Health: Balance Sheet and Cash Flow Strengthening
At quarter-end, Pattern held $344.22 million in cash and equivalents—up $55.17 million this quarter. Free cash flow improved nearly 70% YoY, and cash flow from operations reached $72.58 million in Q1 alone.
Condensed Balance Sheet Highlights (in millions):
| March 31, 2026 | December 31, 2025 |
|---|---|
| Cash and Equivalents: $344.22 | $289.05 |
| Total Assets: $967.20 | $947.64 |
| Accounts Payable: $263.86 | $274.98 |
| Total Liabilities: $357.51 | $366.64 |
| Stockholders’ Equity: $609.69 | $580.99 |
Key Takeaways: Strong Execution, Expanding Opportunity
Pattern’s results deliver more than just headline growth: they point to a scalable, diversified, and cash-generative business. Record NRR and broad-based sales increases show that existing partners are growing, not churning. Cash generation, robust guidance, and operational leverage suggest a well-defended position in an AI-powered ecommerce future.
Investors and analysts will be looking for continued execution on the company’s technology roadmap and updates on international and non-Amazon contributions when Pattern hosts its conference call later today. The company’s ability to deliver on raised guidance—and sustain these growth rates—will be closely watched as 2026 unfolds.
For more details, visit Pattern’s investor relations page or listen to the Q1 results webcast.
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