Pattern Group Inc.

Good day and thank you for standing by. Welcome to the Pattern Second Quarter 2026 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1 1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Hamish Cheung, VP of Finance. Please go ahead.

Hamish Cheung Thank you, operator. Good afternoon and thank you for joining PATINS earnings call for the second quarter 2026. Before we begin, I'd like to remind everyone that today's discussion may contain forward-looking statements based on our current expectations, assumptions, and forecasts about future events. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Please refer to our latest filings with the Securities and Exchange Commission for more information on these risks and uncertainties. We may also refer to certain non-GAAP financial measures. A reconciliation of these non-GAAP measures to the most directly comparable GAAP measures can be found in our earnings release. We'll focus our remarks today on the key highlights and drivers. Additional detail is available in the earnings release. Joining us today are Dave Wright, our co-founder and chief executive officer, and Jason Beesley, our chief financial officer. Today's earnings is being webcast. and a replay will be available on our investor relations website following the call. Following our prepared remarks, we will open the call to questions. I'll now turn the call over to our CEO, Dave Wright. Dave, please go ahead.

Thank you, Hamish, and good afternoon, everyone. We delivered another record quarter. In Q2, revenue grew 47% year over year to $877 million. Adjusted EBITDA grew faster still, up 54% to $54 million. That is the fourth consecutive quarter of adjusted EBITDA outpacing revenue. Before Jason takes you through the details, let me start with net revenue retention. Then I will discuss the mix of that revenue. NRR is how we measure how well the machine is working. In Q2, NRR reached another record at 129%. up from 127% last quarter and 118% a year ago. Against a long-term target of 115%, those are pretty extraordinary numbers. We hold ourselves to NRR because it measures what matters most, the outcomes we deliver for our brands. When our brands win, we win. They stay with us, they expand with us, and that record is the most persuasive thing Our teams bring to the next brand considering pattern. Strong partner results create a reinforcing cycle. Rising revenue across new marketplaces and geographies generates both data and logistics scale. The data gives us higher signal density. The scale gives us lower costs and faster transit times across the network. All of it starts and ends with being obsessed with our brand's outcomes. Inside the 47% revenue growth Three strategic highlights are worth calling out. First, international. International revenue grew 87% year-over-year to $110 million, our first quarter ever above $100 million. Second, non-Amazon. Non-Amazon revenue grew 93% year-over-year with strength across Tmall, TikTok Shop, Walmart, and Coupang. And third, SaaS logistics and other. That line grew 123% year over year to $17 million. It is still a small share of revenue, but it deepens what we do for each brand and gives us optionality as a business. In short, our model is working. We delivered another quarter of record results, and we are again raising our outlook for the full year. Jason will walk you through the specifics. Since day one, our objective has been the same. achieve exceptional brand outcomes by optimizing the four levers that drive commerce, traffic, conversion, price, and availability. What makes that repeatable is an ontology, and we believe ours is one of the most robust in e-commerce. The AI models will keep improving. The ontology keeps compounding regardless. Our ontology has three layers and 44 patents issued or pending across them. Number one, the data layer. 91 trillion data points accumulated across 13 years of execution in hundreds of brands, geographies, and marketplace. Second, the semantic layer. The entities and the map relationships between them. Price against inventory, competitive position against conversion. This is what makes the data reasoning ready rather than merely stored. And third, the execution layer. Pattern Intelligence, or PIE, which we launched in May, PIE runs a center actor framework across those relationships and writes governed actions back to the marketplace, millions a day, on behalf of our brand partners. With PIE's release, brand partners also have interactive visibility into that execution. They can review, approve, and modify inputs. Measurement runs in the execution layer. As part of our advancement in that layer, in Q2, we were awarded a US patent covering True ROAS, our true return on ad sales methodology. True ROAS isolates what an ad actually generated, net of organic conditions, competitive dynamics, and long-term incrementality, so actions can be graded on incrementality, not just attribution. True ROAS pairs with Destiny, our patented ad tech platform, Measurement feeds allocation, and allocation drives durable organic ranking. In April, we were named TikTok Shop's Strategic Partner of the Year. More than 100 of our brand partners now sell on TikTok Shop, and that number is growing every quarter. Social commerce has become a meaningful channel for new brand partner acquisition, particularly in beauty and fashion. As of last week, through ROI Hunter, which we acquired last December Our brand partners can advertise in ChatGPT. From a single platform, they can reach consumers across Meta, Google, Snap, TikTok, and now ChatGPT. Now, I'd like to give you a few examples of brand successes. We accelerated a U.S.-based prestige skincare brand from $5 million to $15 million in revenue over three years. These results were driven by a combination of improvements, including increasing conversion from 9% to 13%, a 36% lift, improving in-stock from 91% to 99%, and subscribe and save revenue doubled. And one more example, a UK-based sports nutrition brand started with us on a single marketplace in Australia. Today, we manage their e-commerce business across 13 countries, including their flagship market in the UK. That's a pattern we see consistently. Brands start with us in one market and expand globally as their confidence in pattern grows. Zooming out to our long-term strategic positioning, we are tracking the shift from discovery to transaction within LLMs closely. And we are making two long-term investments to position Pattern to win in both. The first is commerce infrastructure as a service. Every agentic transaction has to be fulfilled with real-time inventory, forward and reverse logistics, and customer interactions. We operate that layer today, and we are extending it to agentic shopping. The second is our plan to continue expanding our brand agentic commerce acceleration capabilities, which optimize brands for LLM services and carries that same infrastructure underneath. Pattern is building for both the intelligence to win on LLM surfaces and the infrastructure to meet customer expectations. Before I hand it over to Jason, I'll close with the point I care about most. E-commerce is a team sport. As a matter of fact, all businesses are team sport. Everything you heard today came from an exceptional team at Pattern. Culture and execution are the same thing. In the last few months, U.S. News and World Report named Pattern one of the best companies to work for in 26. We also ranked number nine on America's top 100 most loved workplaces of 2026, our second year in the top 100. I am proud of what we are building and even more proud of the team building it. Jason, over to you.