Pattern Group Inc. Series A Common Stock Q3 FY2025 earnings call

• Pattern operates as a technology infrastructure layer powering global e-commerce, leveraging AI and over 46 trillion customer journey data points. • Strategic priorities include investing in the intelligence layer, expanding channels and markets, reducing brand friction, and driving scale and efficiency. • In Q3, growth was driven by new and existing brands, strong execution in U.S. and international markets, and robust new brand partner pipeline. • Technology investments support agentic workflows and marketplace/international expansion. • International revenue was strong, driven by growth in Europe, China, and the Middle East, with new and existing brand partners contributing equally.

In Q3 2025, Pattern delivered record results. Revenue grew 46% year-over-year to $639.7 million. Net revenue retention (NRR) reached an all-time high of 122%. Adjusted EBITDA increased 88% to $41.1 million, with a 6.4% margin. Total revenue not attributable to Amazon grew 81% year-over-year to $47.1 million, representing 7.4% of total revenue. International revenue grew 72% year-over-year to $52.9 million, making up 8.3% of total revenue.

• For Q4 2025, revenue is expected to be in the range of $680 million to $700 million, representing 32% to 36% growth year-over-year. • Adjusted EBITDA for Q4 is expected to be in the range of $38 million to $40 million, representing 44% to 48% growth year-over-year. • Full-year 2025 is anticipated to have 37% revenue growth and 48% adjusted EBITDA growth.

• Macro-economic risks, including potential impacts from trade policy changes, consumer sentiment/behavior changes related to economic and geopolitical factors. • Difficulties in certain non-e-commerce friendly categories, such as cereal, where logistics and pricing make e-commerce challenging.

Q: Dave, can you provide views on agentic commerce and how it shapes the shopping path?

A: Dave discussed that agentic shopping is evolving, with a shift towards LLMs, and Pattern is well-positioned with its technology to help brands in this transition.

Q: Jason, can you provide more color on revenue growth from existing and new brands?

A: Jason mentioned existing brand growth was strong due to 122% NRR, driven by tech, product line expansions, and international growth. New brand growth had improved year-over-year quarterly growth, with growth across all categories.

Q: David, when expanding into different verticals, are there any categories that don't make sense for Pattern?

A: David noted that oversized items were previously a challenge but a partnership with Chewy helps, while inherently e-com unfriendly categories like cereal are tough due to logistics and pricing issues.

Q: Austin, how should we think about EBITDA margins as mix shifts to non-Amazon and international?

A: Jason explained there are unit economic differences across marketplaces, but Pattern solves for unit economics on a SKU-by-SKU basis, and mix impacts are managed to maintain overall margins.