Pattern Group Inc.

Profitable, fast-scaling ecommerce accelerator with a clean balance sheet but thin margins and heavy Amazon dependence.

Strengths

• Positive net income and FCF $78.9M (3.2% margin); current ratio 2.34 and quick 1.47 (84th pct)
• Proprietary data/AI platform across 70+ marketplaces with metrics consistently above sector median (ROA 71st, net margin 68th pct)

Risks

• 93% of revenue from Amazon — severe channel concentration and at-will, non-negotiable marketplace terms
• Inherently thin returns (net margin 0.6%, ROE 2.8%) leave little margin of safety; founder-controlled dual-class structure

Notable findings

• Exec changeRecent 8-K item 5.02 8-K ↗
• Customer concentration~93% of revenue from one customer/distributor — For the year ended December 31, 2025, we derived 93% of our revenue from consumer product sales on Amazon
• Strong balance sheetStrong balance sheet — $289M cash & investments