Revenue reached $773.7 million in 2026Q1, though operating margins remain thin at 5.1%, suggesting that the company has yet to achieve sustainable economies of scale.
| Sales/Revenue | 2.73B | 2.5B | 1.8B | 1.37B |
| Revenue Growth % | - | 39.26% | 31.45% | - |
| Cost of Goods Sold | 1.55B | 1.43B | 1.01B | 765.2M |
| COGS % of Revenue | - | 57.08% | 56.5% | 56% |
| Gross Profit | 1.18B | 1.07B | 781.35M | 601.21M |
| Gross Margin % | 43.18% | 42.92% | 43.5% | 44% |
| Gross Profit Growth % | - | 37.41% | 29.96% | - |
| Operating Expenses | 1.15B | 1.05B | 694.17M | 548.43M |
| OpEx % of Revenue | - | 41.91% | 38.65% | 40.14% |
| Selling, General & Admin | 1.09B | 1B | 676.18M | 533.78M |
| SG&A % of Revenue | - | 40.06% | 37.65% | 39.06% |
| Research & Development | 51.84M | 46.29M | 17.99M | 14.64M |
| R&D % of Revenue | - | 1.85% | 1% | 1.07% |
| Other Operating Expenses | 0 | 0 | 0 | 0 |
| Operating Income | 35.57M | 25.41M | 87.18M | 52.78M |
| Operating Margin % | 1.3% | 1.02% | 4.85% | 3.86% |
| Operating Income Growth % | - | -70.86% | 65.16% | - |
| EBITDA | 53.74M | 42.21M | 101.99M | 64.89M |
| EBITDA Margin % | 1.97% | 1.69% | 5.68% | 4.75% |
| EBITDA Growth % | - | -58.62% | 57.19% | - |
| D&A (Non-Cash Add-back) | 18.17M | 16.8M | 14.81M | 12.1M |
| EBIT | 4.46M | 25.41M | 91.33M | 56.37M |
| Net Interest Income | 8.25M | 7.65M | 6.07M | 2.85M |
| Interest Income | 8.25M | 7.65M | 6.16M | 2.88M |
| Interest Expense | 0 | 0 | 98K | 33K |
| Other Income/Expense | -25.58M | -26.2M | 4.05M | 3.56M |
| Pretax Income | 9.98M | -794K | 91.23M | 56.34M |
| Pretax Margin % | 0.37% | -0.03% | 5.08% | 4.12% |
| Income Tax | -12.67M | -17.04M | 23.38M | 15.08M |
| Effective Tax Rate % | -126.91% | 2146.1% | 25.63% | 26.76% |
| Net Income | -141.27M | 16.25M | 67.86M | 41.26M |
| Net Margin % | -5.17% | 0.65% | 3.78% | 3.02% |
| Net Income Growth % | - | -76.06% | 64.44% | - |
| Net Income (Continuing) | 22.66M | 16.25M | 67.86M | 41.26M |
| Discontinued Operations | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.79 | -0.89 | -1.23 | 0.12 |
| EPS Growth % | - | 27.64% | -1125% | - |
| EPS (Basic) | - | -0.89 | -1.23 | 0.12 |
| Diluted Shares Outstanding | 179.46M | 176.39M | 171.11M | 171.11M |
| Basic Shares Outstanding | 176.84M | 176.39M | 171.11M | 171.11M |
| Dividend Payout Ratio | - | - | - | - |
Thin operating margin buffer
As reported in recent financial filings, Pattern Group achieved a 43.2% year-over-year revenue growth in 2026Q1, reaching $773.7 million, which suggests the company is successfully capturing market share through its principal-based distribution model despite the inherent volatility of consumer discretionary spending across major third-party marketplaces.
The rapid revenue acceleration indicates that the company's strategy of onboarding high-velocity SKUs is gaining traction. However, investors should monitor whether this growth is sustainable or if it relies on aggressive inventory acquisition that could lead to future liquidity constraints.
Based on the provided income statement data, Pattern Group maintains a consistent gross margin profile averaging approximately 43%, which suggests that the company is effectively layering high-margin advertising and software services over its core wholesale product sales to offset the inherent costs of inventory ownership.
While the gross margin remains resilient, the narrow gap between these figures and operating income highlights the heavy reliance on marketplace fulfillment fees. This structural reality implies that any increase in logistics costs could rapidly erode the company's already thin profitability.
According to the quarterly income statement, Pattern Group's operating margin fluctuated significantly, reaching a peak of 5.4% in 2025Q1 before compressing, which suggests that the company has yet to demonstrate the scalable operating leverage typically expected of a technology-enabled business model at this revenue scale.
The inability to consistently expand operating margins despite strong top-line growth indicates that SG&A expenses are scaling in lockstep with revenue. This trend warrants further investigation into whether the company's proprietary software is truly driving efficiency or merely managing a high-overhead distribution operation.
As evidenced by the 2025Q3 net loss of $223 million, Pattern Group's principal-based model introduces significant earnings volatility, suggesting that the company is highly susceptible to inventory obsolescence and seasonal demand shocks that could quickly overwhelm its thin operating profit margins in any given quarter.
Short-term fluctuations in consumer demand may force the company to take aggressive write-downs on unsold stock. Investors should be wary of the potential for 'kitchen sink' quarters where inventory valuation adjustments could severely impact the bottom line and undermine the current growth narrative.
Quick answers to the most common questions about buying PTRN stock.
For fiscal year 2025, Pattern Group Inc. Series A Common Stock (PTRN) reported total revenue of $2.50B. This represents a 83.1% increase compared to $1.37B in 2023.
Pattern Group Inc. Series A Common Stock (PTRN) is profitable, generating $16.2M in net income for the fiscal year ending 2025 with a net profit margin of 0.6%.
Pattern Group Inc. Series A Common Stock (PTRN) reported an operating income of $25.4M, resulting in an operating profit margin of 1.0%. This margin reflects the operational efficiency of the business before interest and taxes.
Pattern Group Inc. Series A Common Stock (PTRN) generated $1.07B in gross profit for the year, representing a gross profit margin of 42.9%. This demonstrates the company's core pricing power and production efficiency.