← All companies ← PTON Manual PUBM → ← PLBL E-Commerce & Marketplaces REAL →

PTRN, Pattern Group Inc. Series A

Pattern is a global ecommerce acceleration platform that helps consumer brands sell products on global ecommerce marketplaces.

Our proprietary technology and on-demand experts operate across more than 70 marketplaces to increase product sales to consumers in more than 100 countries.

Utilizing more than 66 trillion data points and sophisticated machine learning and artificial intelligence ("AI"), we strive to optimize and automate key levers of ecommerce growth, including advertising, content creation and management, pricing, forecasting and customer service.

Latest annual: FY2025 10-K

PTRN · Pattern Group Inc. Series A

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2025

$2.5B

+39.3% YoY

Vital signs · TTM, with 3-yr average

Revenue $2.7B 3-yr avg $1.9B

Gross margin 44% 3-yr avg 44%

Operating margin 1.3% 3-yr avg 3.2%

Owner-earnings margin 4% 3-yr avg 3%

Free cash flow margin 4% 3-yr avg 3%

The business in brief

read the 10-K →

What this business is and what moves its needle, from its own SEC filings.

What moves the needle: Gross margin has run about 44% and operating margin about 3.9% through the cycle, a solid spread between what it charges and what the product costs to make. That margin has held in a narrow 1.0%–4.9% band over the years, so steadiness itself is the evidence — the lever is unit growth and cost discipline, not a moving line. On its own account, the filing leans hardest on pricing power & competition, set against the numbers in what the filing emphasizes, below.

Every line is arithmetic on the company's filings, shown in full in the sections below.

The record

Ten years of arithmetic, read across the cycle.

The record, 2023–2025

realized figures from each filing · older years to the left

2023’23	2024’24	2025’25	TTMTTMMar 2026
				Income statement
$1.4B	$1.8B	$2.5B	$2.7B	RevenueRevenue
44%	44%	44%	44%	Gross marginGross mgn
20%	19%	21%	21%	SG&A / revenueSG&A/rev
1%	1%	2%	2%	R&D / revenueR&D/rev
$53M	$87M	$25M	$36M	Operating incomeOp. inc.
3.9%	4.9%	1.0%	1.3%	Operating marginOp. mgn
$41M	$68M	$16M	$23M	Net incomeNet inc.
27%	26%	—	—	Effective tax rateTax rate
				Cash flow & returns
$41M	$70M	$99M	$124M	Operating cash flowOp. cash
$12M	$15M	$17M	$18M	DepreciationDeprec.
($12M)	($12M)	($31M)	($22M)	Working capital & otherWC & other
$14M	$20M	$20M	$25M	CapexCapex
1.1%	1.1%	0.8%	0.9%	Capex / revenueCapex/rev
$27M	$56M	$79M	$105M	Owner earningsOwner earn.
2.0%	3.1%	3.2%	3.9%	Owner earnings marginOE mgn
$27M	$50M	$79M	$99M	Free cash flowFCF
2.0%	2.8%	3.2%	3.6%	Free cash flow marginFCF mgn
$0	$0	$19M	$19M	AcquisitionsAcquis.
$0	$3M	$0	—	BuybacksBuybacks
97%	62%	3%	4%	Return on equityROE
97%	62%	3%	4%	Retained to equityRetained/eq
				Balance sheet
$127M	$176M	$289M	$344M	Cash & investmentsCash+inv
—	$107M	$177M	$141M	ReceivablesReceiv.
—	$264M	$295M	$300M	InventoryInvent.
—	$212M	$275M	$264M	Accounts payablePayables
—	$159M	$197M	$177M	Operating working capitalOper. WC
—	$558M	$793M	$807M	Current assetsCur. assets
—	$258M	$339M	$330M	Current liabilitiesCur. liab.
—	2.2×	2.3×	2.5×	Current ratioCurr. ratio
$26M	$26M	$38M	$38M	GoodwillGoodwill
—	$664M	$948M	$967M	Total assetsAssets
($127M)	($176M)	($289M)	($344M)	Net debt / (cash)Net debt
1599.5×	889.6×	110.0×	154.0×	Interest coverageInt. cov.
$42M	$109M	$581M	$610M	Shareholders’ equityEquity
−0.0%	0.0%	3.9%	3.8%	Stock comp / revenueSBC/rev
				Per share
136M	136M	172M	179M	Shares out (diluted)Shares
$10.04	$13.19	$14.50	$15.24	Revenue / shareRev/sh
$0.30	$0.50	$0.09	$0.13	EPS (diluted)EPS
$0.20	$0.41	$0.46	$0.59	Owner earnings / shareOE/sh
$0.20	$0.37	$0.46	$0.55	Free cash flow / shareFCF/sh
$0.11	$0.15	$0.12	$0.14	Cap. spending / shareCapex/sh
$0.31	$0.80	$3.37	$3.40	Book value / shareBVPS

Share counts before TTM are restated ×1.5 for a stock split, so per-share figures sit on one basis.

The record, charted

FY2023–2025

Each measure over its full record; the current point and the worst year marked.

Share count

115Mpeak FY2025

Gross margin

44%low FY2024

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

$79Mowner earningsvs.$16Mnet incomelow FY2023

Where the cash went

ReinvestBuybacksDividendsAcquisitionsRetained

Each year's operating cash, by what management did with it: the mix, and how it drifts.

FY2023FY2025

Owner-earnings bridge

FY2023–FY2025cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2025 the business turned $16M of profit into $79M of owner earnings: more cash than the profit line showed, after the non-cash charges and the capital it put back in.

Reported net income$16M

Owner earnings$79M · 3% of revenue

	FY2025	FY2024	FY2023
Reported net income	$16M	$68M	$41M
Depreciation & amortizationnon-cash charge added back	+$17M	+$15M	+$12M
Stock-based compensationreal costnon-cash, but a real cost	+$97M	—	−$206K
Working capital & othertiming of cash in and out, other non-cash items	−$31M	−$12M	−$12M
Cash from operations	$99M	$70M	$41M
Maintenance capital expenditurethe spending needed just to hold position and volume	−$20M	−$15M	−$14M
Owner earnings	$79M	$56M	$27M
Growth capital expenditurediscretionary; spent to get bigger, not to stand still	—	−$6M	—
Free cash flow	$79M	$50M	$27M
Owner-earnings marginowner earnings ÷ revenue	3%	3%	2%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the capital it must spend to hold its position . The cash-flow statement also adds stock comp back as non-cash, but it is a real cost paid in shares; counted as the expense it is (less $97M), owner earnings is nearer ($18M).

Much of fiscal 2025's profit didn't arrive as operating cash; it sits in “working capital & other” above. That can be a real inventory or timing swing, or profit that doesn't run through operating cash at all: a heavy tax year, equity-method earnings, or investment income booked through investing. For a year like this, owner earnings understates the cash earned; the full cash-flow statement carries the rest.

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 10-K · source on SEC EDGAR →

Will it survive?

Can it pay its interest? 110.0×

Comfortable

Operating income $25M ÷ interest expense $231K

What this means
Operating profit covers interest with the kind of margin Graham wanted for a defensive holding. Necessary, not sufficient, it says solvent, not cheap.
How heavy is the debt, net of cash? +$289M

Net cash, debt-free

Cash $289M − debt $0

What this means
Cash and short-term investments exceed every dollar of debt by $289M, on net the company owes nothing, and can act from strength when others can't. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? 31d

Tight

DSO 26 + DIO 76 − DPO 71 days

What this means
Days cash is tied up between paying suppliers and collecting from customers. Lower is better; a long cycle means growth itself eats cash.

Is it a good business?

Return on invested capital —

Not enough data

Industry peers: median 10%

What this means
The filing data didn't include the inputs for this check.
Owner-earnings margin 3%

Thin through the cycle

3-yr median margin, range 2%–3%; latest $79M = operating cash $99M − maintenance capex $20M

Industry peers: median 3%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 3% of revenue this year, a 3% median across 3 years. Treating stock comp as the real expense it is (less $97M of SBC) leaves ($18M).
Are earnings backed by cash? 6.12×

Cash-backed

Cash from ops $99M ÷ net income $16M

What this means
How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.

How is the cash used?

Where do the earnings go? 0%

Reinvests most of it

Dividends + buybacks $0 ÷ Owner Earnings $79M

What this means
Of $79M Owner Earnings, $0 (0%) went back to shareholders, $0 dividends, $0 buybacks. Returning most of it is the mark of a mature business with little left to reinvest at a high return; reinvesting most could mean a long runway, or empire-building. The split doesn't say which; the return earned on it (see ROIC) does.
Investing or harvesting? 1.22×

Expanding

Capex $20M ÷ depreciation $17M

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 2 of 2 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Pass

Revenue ≥ $2B · $2.5B

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity Pass

Current ratio ≥ 2× · 2.34×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $0.24/share (latest year $0.09), the averaged base the calculator's gate runs on, and book value is $3.29/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Does AI threaten the moat?

Moderate contestability

AI is likely to reshape costs and some products here without clearly contesting or sparing the core moat; how the company itself frames it is the tell.

In its own filing Named as a competitive risk

Its FY2025 10-K names artificial intelligence as a competitive threat.

“To grow our business and be competitive, we must develop solutions, features and functionality that reflect the constantly evolving nature of technology including AI-driven commerce ecosystems and the needs of potential brand partners and our existing brand partners.”

The question is whether a moat the record shows as durable outlasts a technology that lowers the cost of part of what the firm sells. The durability is read in the record above, the filing's own framing of AI beside it; the industry label decides nothing on its own.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Current Position

as of the latest quarter, Mar 31, 2026

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$807M

Cash & short-term investments$344M
Receivables$141M
Inventory$300M
Other current assets$22M

Current liabilities$330M

Accounts payable$264M
Other current liabilities$66M

Current ratio2.45×all current assets ÷ what's due · Graham looked for 2×

Quick ratio1.54×stricter: inventory excluded

Cash ratio1.04×strictest: cash alone against what's due

Working capital$478Mthe cushion left after near-term bills

Revenue, latest quarter vs. a year ago+43.2%the freshest read on whether the business is still growing

Current ratio, recent quarters2.2× → 2.5×

Deeper floors

Tangible book value$557Mequity stripped of goodwill & intangibles

Net current asset value$450MGraham's net-net: current assets less all liabilities

Debt incl. operating leases$31M$31M of it operating leases

From the company's latest filing.

Management, ownership & pay

read the proxy →

From the proxy: how much of the business the people running it own, and how they are paid.

Insider ownership66.9%
The stake all directors and executive officers hold together, per the 2026 proxy: skin in the game, the first thing Munger reads.
CEO pay ratio22:1
What the chief earns for every dollar the median employee makes, per the 2026 proxy. A high ratio alone settles nothing; some businesses are genuinely top-heavy in scarce skill. A runaway figure is where Buffett starts asking whether the board is doing its job.
Stock-based compensation$97M
The slice of the business handed to employees in shares this year, 4% of revenue, equal to 383% of operating profit. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.

What an owner would ask, FY2025

read the 10-K →

Which reported numbers are a judgment call?
Management names Revenue recognition, Income taxes, Inventory, Stock compensation as critical estimates
each rests partly on management's judgment; the filing's note sets out the assumptionsverify →

The questions the record and the charts do not answer on their own; each carries the figure and the place to look.

Peers, E-Commerce & Marketplaces

The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

Company	Revenue	Gross margin	Op. margin	ROIC	Owner earn. margin
WWayfair	$12.5B	28%	-5.4%	—	1%
NSITInsight Enterprises	$8.2B	15%	3.4%	13%	2%
PTRNPattern Group Inc. Series A	$2.5B	44%	3.9%	—	3%
TITNTitan Machinery Inc.	$2.4B	18%	1.9%	7%	5%
GCTGigaCloud Technology Inc	$1.3B	—	11.2%	84%	13%
SFIXStitch Fix Inc.	$1.3B	44%	-3.0%	-35%	3%
RVLVRevolve Group	$1.2B	53%	6.6%	39%	4%
BBBYBed Bath & Beyond Inc.	$1.0B	23%	-4.3%	-201%	-3%
Group median	—	28%	2.7%	—	3%

The price

What a price has to assume.

What the price implies

reverse-DCF

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what Pattern Group Inc. Series A has delivered.

Today’s price $

Base Normalize · through-cycle ($52M) Net of stock comp (−$105M) Steady-state · maintenance capex ($103M)

—

The assumptions Required return 9% Years of high growth 10 Terminal growth 2.5%

9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price—

Owner-earnings growth · since FY2023+71%/yr

Owner-earnings yield—

P/E (3-yr earnings ’23–’25)—

P/B—

Graham’s price gate—

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Free cash flow $99M on 177M shares outstanding (a weighted basic average, the only count this filer tags); net cash $344M. The base is the latest year by default; Normalize values it on the through-cycle median owner-earnings margin (to avoid paying on a peak year). Net of stock comp treats option pay as the expense it is. Capex ($25M) runs well above depreciation ($18M), so this is a build-out; Steady-state swaps total capex for maintenance (≈ depreciation), lifting the base to about $103M, the cash it would throw off if it stopped expanding. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Weigh PTRN against another business →

Cite: Owner Scorecard, "Pattern Group Inc. Series A (PTRN), the owner's record," https://ownerscorecard.com/c/PTRN, data as of 2026-07-09.

Manual order: ← PTON its page in the Manual PUBM →

Industry order: ← PLBL the E-Commerce & Marketplaces chapter REAL →