Pattern Group Inc. (NASDAQ:PTRN) is one of the best low priced technology stocks to buy according to analysts. On December 11, Jefferies lowered the firm’s price target on Pattern Group to $20 from $21 with a Buy rating on the shares. The firm’s 2026 outlook suggests being highly selective with Internet equities. Jefferies cites two main headwinds: rising costs that could stall margin growth, and fears that AI will cut out the middleman, making investors less willing to pay a premium for these stocks. Ad ...

LEHI, Utah & LOS ANGELES--(BUSINESS WIRE)--Pattern Group Inc. (Nasdaq: PTRN), a global leader in accelerating brands on ecommerce marketplaces through proprietary technology and AI, today announced that it has acquired NextWave, a fast-growing TikTok commerce agency specializing in creator-led product discovery, TikTok Shop operations, live selling, and affiliate acceleration. "NextWave was built to help brands win in the new era of social commerce, where creator-led content drives discovery and performance ...

9月19日，跨境电商加速平台Pattern Group（下称"Pattern"或"公司"）宣布，其普通股首次公开发行 （IPO）于美国东部时间当日在纳斯达克全球精选市场挂牌交易，股票代码为"PTRN"。此次IPO共发行 21,428,572股A类普通股，其中包含公司新发行的10,714,286股及现有股东出让的10,714,286股，发行定 价为每股14.00美元，合计募资3.0亿美元。截至上周五收盘，Pattern股价报15.63美元，较发行价上涨 11.64%，对应市值达27.51亿美元，这一表现充分体现了市场对其业务模式与增长潜力的高度认可。 Pattern从亚马逊一家卖冰箱贴的小店起步，后来逐步研发了为电商销售加速的人工智能和机器学习技 术。目前其业务主要包括：一是采购品牌产品，直接在各大平台销售；二是代运营，为品牌提供涵盖运 营、渠道、营销、履约交付等在内的一站式跨境电商解决方案。此外还有物流履约、软件与数据营销 等。核心就是帮品牌运营线上渠道并转化为销量。 根据招股书，Pattern的收入来源多元，包括经销差价、服务佣金、SaaS订阅费以及定制化咨询服务等， 业务覆盖全球 60多个主流电商平台，包 ...

Financial Performance - Total revenues for the nine months ended September 30, 2025, reached $1,778.2 million, up from $1,280.7 million in the same period of 2024, representing a growth of approximately 39%[121] - Adjusted EBITDA for the nine months ended September 30, 2025, was $109.99 million, compared to $73.74 million in 2024, reflecting a year-over-year increase of about 49%[110] - Revenues for the three months ended September 30, 2025, increased by 45.6% to $639,655,000, driven by a 122% net revenue retention rate and significant growth in both Amazon and non-Amazon marketplaces[123] - For the nine months ended September 30, 2025, revenues increased by 38.8% to $1,778,211,000, supported by a 122% net revenue retention rate and substantial growth in international markets[132] Cost and Expenses - Cost of goods sold for the nine months ended September 30, 2025, was $1,002.1 million, up from $719.8 million in 2024, indicating a rise of approximately 39%[121] - Cost of goods sold for the same period rose by 43.0% to $356,132,000, reflecting a smaller percentage increase compared to revenue due to product and brand mix[124] - Operating expenses for the three months ended September 30, 2025, totaled 109.4% of revenue, with significant increases in general and administrative expenses by 106.6% to $177,936,000, largely due to stock-based compensation[125][128] - Research and development expenses surged by 503.9% to $24,584,000, primarily driven by stock-based compensation and increased headcount in technology roles[129] Profitability - Operating income for the nine months ended September 30, 2025, showed a loss of $642, compared to a profit of $64.1 million in 2024, highlighting a significant decline in operational profitability[121] Cash Flow and Financing - Cash and cash equivalents as of September 30, 2025, stood at $312.8 million, bolstered by $135.0 million in proceeds from the IPO after expenses[139] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $90,913,000, influenced by significant non-cash adjustments[142] - Net cash provided by operating activities was $68.9 million for the nine months ended September 30, 2024, consisting of $49.7 million of net income, $10.9 million of non-cash adjustments, and a cash increase of $8.4 million from working capital management[143] - As of September 30, 2025, the company had a $150 million borrowing capacity under a revolving credit facility, with no outstanding borrowings[149] - The revolving credit facility bears interest at a variable base rate plus an applicable margin ranging from 0.50% to 2.00%[148] Taxation - The provision for income taxes for the nine months ended September 30, 2025, showed a significant decrease of 193.5% to a benefit of $(16,202,000), primarily due to stock compensation and non-deductible expenses[138] Operational Insights - The company operates across more than 60 marketplaces, utilizing over 46 trillion data points to optimize ecommerce growth[96] - The technology platform is supported by approximately 400 professionals, including software engineers and data scientists, enhancing operational capabilities[98] - The company has developed strong relationships with over 200 brand partners across various industries, including health and wellness, beauty, and consumer electronics[98] - The company’s operating model leverages global economies of scale to optimize costs while investing in future growth, enhancing operational efficiencies through technology and warehouse automation[102] Stock and Amendments - The stock amendment expense recognized was $32.7 million, a non-cash expense related to the amendment of the Founder Preferred Stock, which is not expected to recur[119] - The company recognized a non-cash stock amendment expense of $32,676,000 in 2025, related to changes in the conversion terms of its preferred stock, which is not expected to recur[130] Risk Management - The company monitors foreign currency risk as fluctuations may impact financial results, although historically, transaction gains and losses have not been material[156] - The company has not engaged in foreign currency hedging transactions but may consider it in the future[156] - The company continues to monitor inflation impacts and aims to offset higher costs through pricing strategies and cost efficiency measures[158] - As of September 30, 2025, there have been no material changes to contractual obligations or commitments from previous disclosures[151]

Financial Data and Key Metrics Changes - Revenue grew 46% year-over-year to $639.7 million, driven by both new and existing brands [5][15] - Net revenue retention (NRR) reached an all-time high of 122% [5][15] - Adjusted EBITDA increased 88% to $41.1 million, reflecting a 6.4% margin, up from 5% a year ago [5][15] Business Line Data and Key Metrics Changes - Total revenue not attributable to Amazon grew 81% year-over-year, reaching $47.1 million [6][15] - Revenue outside Amazon represented 7.4% of total revenue in Q3 2025, up from 5.9% in Q3 2024 [6] - International revenue grew 72% year-over-year to $52.9 million, representing 8.3% of total revenue, up from 7.0% a year ago [6][17] Market Data and Key Metrics Changes - Coupang revenue grew more than 150 times from the prior quarter, contributing $4.5 million in Q3 [11][15] - Walmart grew 96% and TikTok Shop grew 392% off a small base [15][65] - Europe grew 73%, APAC grew 68%, and MENA grew 222% [44] Company Strategy and Development Direction - The company focuses on investing in its intelligence layer and expanding channels and markets [10][11] - Aims to reduce brand friction through integrated technology and scalable logistics [12] - Plans to drive scale and efficiency as a strategic moat for brand partners [12][13] Management's Comments on Operating Environment and Future Outlook - Management has not seen material effects on business or decreased consumer demand despite macroeconomic challenges [23] - For Q4, the company expects revenue in the range of $680-$700 million, representing 32%-36% growth year-over-year [24] - Full-year 2025 revenue growth is anticipated at 37%, coupled with 48% adjusted EBITDA growth [25] Other Important Information - The company raised $135 million net of fees in its September IPO and had $313 million in cash and cash equivalents with zero debt as of quarter end [21][22] - GAAP net loss was $59 million, which includes IPO-related charges [19] Q&A Session Summary Question: Views on Agentic Commerce and its impact - Management believes the shift towards agentic shopping is significant, with a growing number of consumers using AI tools for product research [30][31] Question: Revenue growth from existing and new brands - Existing brand revenue growth was strong, with record NRR of 122%, driven by traffic and conversion improvements [32][39] Question: International capabilities and investments - International growth is a strong moat, with significant growth in Europe, APAC, and MENA, and investments are focused on technology and logistics [43][44] Question: Guidance for Q4 revenue and new brand contributions - Q4 guidance reflects strong growth expectations, with a focus on long-term trends rather than quarterly fluctuations [46][47] Question: Product roadmap and logistics role - The company is focused on developing its intelligence layer and improving logistics efficiency to reduce costs for brands [53][55] Question: Density in verticals and its economic impact - Increasing density in verticals enhances data advantages, improving conversion rates and overall performance for brands [61] Question: Growth from revenue outside Amazon - Revenue from non-Amazon marketplaces was up 81% year-over-year, with significant contributions from new marketplaces like Coupang [64]

Revenue Growth - Record revenue of $640 million in Q3 2025, representing a 46% year-over-year growth[1] - Total revenue not attributable to Amazon increased by 81% year-over-year, reaching $47.1 million[6] - International revenue hit a record of $53 million, up 72% year-over-year, with strong performance in Europe, Asia-Pacific, and the Middle East[6] - Anticipated full year 2025 revenue growth of 37% and adjusted EBITDA growth of 48%[5] - Projected Q4 2025 revenues in the range of $680 million to $700 million, indicating 32% to 36% growth year-over-year[12] Net Revenue Retention - Net Revenue Retention (NRR) reached 122%, up from 113% in the prior year period[1] EBITDA and Cash Flow - Adjusted EBITDA (non-GAAP) for Q3 2025 was $41 million, an 88% increase year-over-year[6] - Free Cash Flow (non-GAAP) for the trailing twelve months was $71 million, up from $49 million in the prior period[6] - Adjusted EBITDA for the three months ended September 30, 2024, was $21,831 thousand, increasing to $41,054 thousand in 2025, indicating a growth of approximately 88%[28] - Free cash flow for the last twelve months ended September 30, 2024, was $70,775 thousand, compared to $48,586 thousand in 2025, reflecting a decrease of about 31%[29] - Net cash provided by operating activities for the trailing twelve months ended September 30, 2025, was $92 million, compared to $67 million in the prior period[6] - The net cash provided by operating activities increased from $66,509 thousand in 2024 to $92,373 thousand in 2025, representing a growth of approximately 39%[29] Assets and Liabilities - Total assets increased from $664,422 thousand as of December 31, 2024, to $843,109 thousand as of September 30, 2025, representing a growth of approximately 27%[19] - Total current assets rose from $558,082 thousand to $718,085 thousand, an increase of approximately 29%[19] - Total current liabilities increased from $257,699 thousand to $279,022 thousand, a rise of about 8%[19] - The company’s total liabilities increased from $285,097 thousand to $301,736 thousand, reflecting an increase of approximately 6%[19] Cash and Retained Earnings - The company reported a significant increase in cash and cash equivalents from $175,615 thousand to $312,803 thousand, a growth of approximately 78%[19] - The company’s retained earnings were reported at $106,855 thousand as of December 31, 2024, with no retained earnings reported as of September 30, 2025[19] Net Income and Loss - Net loss attributable to common stockholders was $223 million, including a $164 million non-cash deemed dividend related to the IPO[6] - Net income for the three months ended September 30, 2024, was $14,196 thousand, while for the same period in 2025, it showed a loss of $59,059 thousand[28]

Group 1 - The article highlights the emergence of Pattern Group (PTRN) as a notable IPO stock, approaching its first buy point after a recent initial public offering [1] - Pattern Group, founded in 2013, operates as an e-commerce accelerator, utilizing artificial intelligence tools combined with inventory purchasing to assist brands in expanding their presence in global marketplaces [1]

Core Viewpoint - The article emphasizes the importance of fundamental analysis in identifying undervalued companies with long-term growth potential, advocating for a value investing approach that focuses on purchasing quality companies at a discount to their intrinsic value and holding them for compounding returns. Group 1: Investment Philosophy - The investment approach combines value investing principles with a focus on long-term growth [1] - The strategy involves buying quality companies at a discount to their intrinsic value [1] - Holding investments for the long term allows for compounding of earnings and shareholder returns [1]

Core Insights - Pattern Group Inc. (NASDAQ: PTRN) experienced a disappointing public debut, with shares priced at the middle of the offer range but subsequently declining significantly in the initial days of trading [1]. Company Overview - Pattern Group Inc. is highlighted as a recent IPO that has not performed well in the market, indicating potential challenges in investor sentiment or market conditions [1]. Investment Opportunities - The investing group "Value In Corporate Events" focuses on identifying actionable investment opportunities related to major corporate events such as IPOs, mergers and acquisitions, and earnings reports [1]. - The group provides coverage of approximately 10 major events each month, aiming to find the best investment opportunities for its members [1].

Core Viewpoint - Pattern Group, an e-commerce acceleration platform, recently went public on NASDAQ with an initial offering price of $14 per share, raising a total of $300 million [1][25]. Financial Performance - As of last Friday, Pattern's stock closed at $15.63, reflecting an increase of 11.64% from its initial offering price, resulting in a market capitalization of $2.751 billion [3]. - The company reported revenues of $991 million, $1.366 billion, and projected $1.796 billion for the years 2022, 2023, and 2024 respectively, with operating profits of $4.12 million, $52.79 million, and $87.18 million for the same years [15][48]. - For the first half of 2023, Pattern generated $1.139 billion in revenue, a 35.4% increase from $841 million in the same period of the previous year [17]. Business Model and Market Dependency - Pattern's business model heavily relies on sales through Amazon, with 94% of its revenue coming from Amazon sales as of the fiscal year ending December 31, 2024 [9][11]. - The company has established partnerships with various brands, including Gaia, Bosch, and Tumi, to sell products on platforms like Amazon, Walmart, and Tmall [9][13]. Risks and Challenges - The primary risk for Pattern is its dependence on Amazon, as any significant changes in Amazon's policies or operations could adversely affect Pattern's growth and financial performance [11][19]. - The CEO, David Wright, acknowledged the competitive landscape with Amazon and the potential challenges that could arise from their partnership [11]. Ownership Structure - Prior to the IPO, David Wright and associated entities held 58.7% of Series A shares and 100% of Series B shares, controlling 89.7% of the voting power [21][22]. - Post-IPO, their ownership will decrease to 48.5% of Series A shares while maintaining 100% of Series B shares, resulting in 86.5% voting power [22].