Pattern Raises Full-Year Outlook After Fourth 40% Quarter
Second-quarter revenue reached a record $877 million, up 47% from a year earlier, and the company lifted 2026 revenue guidance to as much as $3.46 billion.
Pattern Group Inc. (PTRN) posted a record $877 million of revenue in the second quarter ended June 30, 2026, up 47% from a year earlier, accelerating from 43% growth in the first quarter and 40% in the fourth quarter of 2025.
The ecommerce acceleration company said the quarter was its fourth consecutive period of 40%-plus revenue growth and its fourth consecutive period in which adjusted EBITDA growth outpaced revenue. Net revenue retention, which the company uses to gauge expansion among brand partners that have been with Pattern for more than twelve months, reached a record 129%, up from 118% a year earlier.
Revenue not attributable to Amazon reached a record $82 million, up 93% year over year. International revenue reached a record $110 million, up 87% year over year, crossing $100 million for the first time. Adjusted EBITDA was $54 million, up 54% year over year. Net income was $27 million, with diluted earnings of $0.15 a share.
Trailing-twelve-month free cash flow ended June 30, 2026, at $106 million, up 92% year over year. Cash and cash equivalents were $346 million at quarter-end, with no debt.
Chief Executive Dave Wright said the company launched Pattern Intelligence, or Pi, in May, an AI product line he described as powered by more than 91 trillion data points and 44 patents issued or pending, delivering real-time optimization across advertising, content, logistics, pricing, forecasting, and customer service. Pattern said it optimizes ecommerce growth for brands across more than 70 marketplaces, including Amazon, TikTok Shop, Walmart.com, Target.com, eBay, Tmall, JD, and Mercado Libre.
Chief Financial Officer Jason Beesley said the quarter’s results gave the company confidence to raise its full-year outlook again. Pattern now anticipates 2026 revenue of $3.42 billion to $3.46 billion, representing approximately 37% to 38% growth year over year, and adjusted EBITDA of $211 million to $213 million, representing approximately 38% to 40% growth. After the first quarter, the company had guided to revenue of $3.29 billion to $3.33 billion and adjusted EBITDA of $199 million to $201 million.
For the third quarter of 2026, Pattern anticipates revenue of $840 million to $860 million, representing approximately 31% to 34% growth year over year, and adjusted EBITDA of $51 million to $53 million, representing approximately 25% to 29% growth. Beesley said the third-quarter outlook reflects about four points of revenue and adjusted EBITDA growth moving into the second quarter from the third, due to a calendar shift of large marketplace promotional events from July last year to June this year.
Operating income for the three months ended June 30, 2026, was $35.5 million. Cost of goods sold was $492 million, operations, general and administrative expense was $165 million, sales and marketing was $171 million, and research and development was $13 million. Inventory was $318 million at June 30, 2026.
Wright said the brands Pattern serves are operating in a faster, more competitive, and more complex ecommerce landscape than a year earlier, and that the company enters the second half of 2026 with a model that keeps compounding. Beesley said the company is seeing strong momentum across the business.
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