Pattern Group Inc. (PTRN) AI Stock Analysis

Pattern Group Inc. operates as an e-commerce accelerator that combines proprietary technology and on-demand expertise to support consumer brands across e-commerce marketplaces in the United States and internationally. The company acquires inventory from brand partners to sell directly to consumers. It serves several consumer categories, including health and wellness, beauty and personal care, home and lifestyle, pet, sports and outdoors, and consumer electronics. Founded in 2018 and headquartered in Lehi, Utah, the company was formerly known as Covalent Group, Inc. before changing its name to Pattern Group Inc. in November 2024.

Pattern Group expanded annual revenue from $990.5M in FY2022 to $1.37B in FY2023, $1.80B in FY2024, and $2.50B in FY2025, reflecting 39.3% revenue growth in FY2025. Gross margin was 43.3% in FY2022, 44.0% in FY2023, 43.5% in FY2024, and 42.9% in FY2025. Operating margin declined from 4.9% in FY2024 to 1.0% in FY2025 as R&D expense increased to $46.3M. Net income reached $16.2M in FY2025, down from $67.9M in FY2024, with FY2025 EPS of -$1.75. For the trailing twelve months ended June 30, 2026, revenue totaled $3.01B. In the quarter ended June 30, 2026, quarterly revenue increased 46.6% year-over-year, while quarterly earnings fell 16.7%.

As of June 30, 2026, Pattern Group held $345.8M in cash and short-term investments against total debt of $51.3M, yielding net cash of $294.5M. The company's current ratio stood at 2.35, with a debt-to-equity ratio of 0.08 and shareholders' equity of $645.6M out of $1.07B in total assets. In FY2025, operating cash flow reached $99.4M and capital expenditures were $20.5M, generating free cash flow of $78.9M.

At a last close of $17.24, Pattern Group had a market cap of $3.06B and an enterprise value of $3.33B. The stock trades at a price-to-sales ratio of 1.0x, compared to the median of 0.7x for its US-listed Consumer Cyclical peers. Its EV-to-EBITDA multiple is 95.7x, compared to the peer median of 11.1x. Its price-to-book ratio is 5.6x. Over the past year, the stock returned 24.8%, outperforming the 16.8% return of the S&P 500 (SPY).

Wall Street coverage includes 6 Strong Buy, 2 Buy, and 1 Hold ratings, with zero Sell or Strong Sell ratings. The mean price target is $27.62, representing a 60.2% premium over the last close of $17.24. For the fiscal year ending December 31, 2026, consensus estimates project EPS of $0.63 and revenue of $3.44B. For the following fiscal year, 3 analysts project revenue of $4.28B and EPS of $0.79. PTRN has beat EPS estimates in each of the last 4 quarters, with its next earnings date scheduled for November 4, 2026.

This page is an AI-written research summary of Pattern Group Inc. (PTRN). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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