Key Highlights

• Pattern reported record Q3 2026 Revenue of $886 million, representing 38% year-over-year growth, with approximately 42% growth when adjusted for the timing shift of marketplace promotional events.

• Net revenue retention rate reached 127%, up from 122% in the prior-year period, indicating expanding wallet share from existing Brand partners.

• Revenue not attributable to Amazon surged 86% year-over-year to $88 million, while international revenue grew 56% to $106 million.

• The company raised its full-year outlook, guiding for Q4 2026 revenue of $965 million to $985 million, representing 34% to 36% growth.

Pattern Group Inc (NASDAQ:PTRN), a company focused on accelerating brands on global E-commerce marketplaces, announced record third quarter 2026 financial results on 4 November 2026. The quarter extended the company's growth trajectory with broad-based revenue expansion across geographies and marketplace channels.

Record Revenue and Accelerating Growth

Pattern delivered revenue of $886 million in Q3 2026, a 38% increase compared to the prior-year period. The company noted that the timing of marketplace promotional events shifted approximately four percentage points of revenue growth from Q3 into Q2, meaning that the underlying growth rate was approximately 42% for both quarters when adjusted for this timing effect.

The net revenue retention rate climbed to 127%, up from 122% a year earlier, indicating that existing brand partners are expanding their spending on Pattern's platform. Co-Founder and CEO Dave Wright attributed the performance to both growing relationships with existing partners and new brands choosing Pattern to expand across marketplaces and geographies.

A notable feature of the quarter was the Diversification of revenue sources. Revenue not attributable to Amazon reached $88 million, an 86% increase year-over-year, while international revenue grew 56% to $106 million. These figures suggest Pattern is reducing its concentration risk on any single marketplace or geography.

Profitability and Cash Generation

The growth in top-line revenue translated into meaningful bottom-line improvement. Net Income reached $32 million, a $91 million year-over-year swing that brought the company into profitability on a GAAP basis. Adjusted EBITDA came in at $57 million, representing 40% growth compared to the prior-year quarter.

Cash generation was equally notable. Net cash provided by Operating Activities on a trailing twelve-month basis totaled $142 million, up 54% year-over-year. Free Cash Flow for the same period reached $106 million, a 50% increase. CFO Jason Beesley highlighted the cash generation as enabling the company to invest for growth while returning value to shareholders.

AI and the Pattern Intelligence Platform

Wright positioned Pattern's technology platform, Pattern Intelligence, as central to the company's Competitive Advantage in an e-commerce landscape increasingly shaped by artificial intelligence. The platform brings together technology designed to optimize what the company describes as the four levers of the e-commerce equation: traffic, conversion, price, and availability.

The company's approach combines this intelligence layer with 13 years of execution experience, more than 100 trillion data points, and global logistics infrastructure. As AI creates new pathways for consumers to discover and purchase products, Pattern's position as a technology-enabled intermediary between brands and marketplaces becomes increasingly relevant.

Raised Outlook Signals Continued Momentum

For the fourth quarter of 2026, Pattern guided for revenue in the range of $965 million to $985 million, representing approximately 34% to 36% year-over-year growth. This guidance implies a full-year revenue trajectory that would place Pattern well above $3 billion in annual revenue.

The company's raised outlook, coupled with its expanding profitability and free cash flow generation, marks a transition from a high-growth company burning cash to one generating meaningful returns while sustaining elevated revenue growth rates. The breadth of revenue diversification across marketplaces, geographies, and brand partners provides the foundation for Pattern's forward trajectory.