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Pattern raised its full-year outlook after third-quarter revenue grew 38% to $886 million and adjusted EBITDA increased 40% to $57 million. It now expects about $3.5 billion in full-year revenue and $220 million in adjusted EBITDA.
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New brand partnerships hit a quarterly record, with average deal size up 41% year over year. Revenue outside Amazon rose 86% and reached about 10% of total revenue, while international revenue grew 56%.
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Pattern is investing more in its technology and AI capabilities: third-quarter R&D expense, excluding stock-based compensation and related taxes, rose 105%. It ended the quarter with $352 million in cash, no debt, and generated $106 million in trailing-12-month free cash flow.
Pattern Group (NASDAQ:PTRN) raised its full-year revenue and adjusted earnings outlook after reporting 38% revenue growth in the third quarter of 2026, as it signed more large brand partners and expanded beyond Amazon.
The e-commerce services company reported revenue of $886 million and net income of $32 million. Adjusted earnings before interest, taxes, depreciation and amortization rose 40% from a year earlier to $57 million, with the adjusted EBITDA margin increasing to 6.5% from 6.4%.
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Chief Financial Officer Jason Beesley said the timing of marketplace promotional events shifted approximately four percentage points of revenue growth from the third quarter into the second. Adjusted for that shift, third-quarter revenue growth was approximately 42%, he said.
Full-Year Outlook Raised
Pattern now expects full-year revenue of approximately $3.5 billion, representing about 40% growth from 2025. It raised its adjusted EBITDA outlook to approximately $220 million, or 34% growth. The company did not specify its previous outlook on the call.
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For the fourth quarter, Pattern forecast revenue of $965 million to $985 million, up 34% to 36% year over year, and adjusted EBITDA of $54 million to $55 million, up 27% to 29%.
Net revenue retention, which the company uses to measure performance with existing brand partners, reached 127%, up from 122% a year earlier. Beesley said the updated outlook implies the measure will end the year at approximately 124% to 125%.
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Co-Founder and Chief Executive Officer Dave Wright reiterated a longer-term net revenue retention target of 115%, while noting that the company has continued to exceed its expectations. Faster technology improvements or wider adoption of e-commerce through AI shopping tools could create upside to that long-term assumption, he said.
