PTRN · Nasdaq · Consumer Cyclical
Pattern Group Inc. (PTRN) — Rank #8 by gross profitability (GP/assets 1.02) · ROE 2.5% · Piotroski F-Score 5 / 9.
As-of 2026-10-30 · CIK 0001811935 · all metrics point-in-time as of the filing date.
About
Pattern Group Inc. operates as an e-commerce accelerator that combines proprietary technology and on-demand expertise to support consumer brands operating across e-commerce marketplaces in the United States and internationally.
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The company acquires inventory from brand partners to sell to consumers in various industries, including health and wellness; beauty and personal care; home and lifestyle; pet; sports and outdoors; and consumer electronics. The company was formerly known as Covalent Group, Inc. and changed its name to Pattern Group Inc. in November 2024. Pattern Group Inc.
was incorporated in 2018 and is headquartered in Lehi, Utah.
- Industry
- Internet Retail
- Sector
- Consumer Cyclical
- State
- DE
- Filer Category
- Non-accelerated filer
- Fiscal Year End
- December 31
- Website
- pattern.com
Company Snapshot
P/S is the primary valuation lens — earnings are reinvested, not available for P/E.
Market Cap
—
P/E (annual)
—
P/S (annual)
—
P/B
—
P/OCF (annual)
—
Shareholder Yield
—
Employees
2,300
Industry
Internet Retail
Exchange
Nasdaq
10/12
Flags passed
PTRN fails 1 critical flag
Passes 10 of 12 quality flags, 1 caution
- FAILOperating margin declining
Operating margin lower than prior year
- CAUTIONDilution above 2%
Annual share count increase exceeds 2%. May be acceptable for high-growth companies funding talent via stock compensation
- PASSGross margin holding
- PASSFCF not negative from investment
- PASSDisclosure consistent
- PASSRevenue not declining
- PASSFree cash flow intact
- PASSPasses safety gate
- PASSBalance sheet stable
- PASSNo competitive retreat
- PASSSBC not compressing margin
- PASSNo valuation convergence
Strengths Revenue growth accelerating · Sequential beat (rev + EPS)
A count of the 12 warning flags that could be evaluated. Unweighted: colour follows the worst flag.
Quality Profile
Profitability
1/1 passSafety
1/1 passCash Flow
3/3 passGrowth
1/2 passRevenue growth and the path to profitability (margin trend) are the primary reads at this stage.
Profitability
Does it make money well?
Warning: Operating margin declining · GP/assets 1.02
Gross profitability (GP / assets)
1.02
Primary signal (Novy-Marx).
2nd of 11 SIC 59 peers
Return on equity
2.5%
Gross margin
43.6%
6th of 11 SIC 59 peers
Revenue growth (YoY)
39.3%
Gross margin improving
Margin trend vs prior year.
Operating Leverage
| 2023 | 2024 | 2025 | |
|---|---|---|---|
| Revenue vs COGS | |||
| Revenue vs OpEx | |||
| Op. Income vs Revenue |
Cash Flow Health
Is the cash real?
No warning flags · FCF 386% above net income
Free cash flow
$78.92M
Operating cash flow minus capex.
Positive free cash flow
FCF vs net income
385.8%
(FCF − net income) ÷ |net income|. Positive: cash above earnings. Negative: below.
FCF not below net income
Fails when free cash flow is below net income (yellow flag).
Accruals healthy
Cash-backed earnings.
SBC / revenue
3.9%
Stock-based comp intensity.
Balance Sheet Strength
Can it survive a storm?
Caution: Dilution above 2% · net cash $345.83M, F-Score 5/9
Balance-sheet safety
Composite anti-fragile check.
Debt / equity
0.66
1st of 10 SIC 59 peers (best = lowest)
Current ratio
2.35×
2nd of 11 SIC 59 peers
Quick ratio
1.46×
Net cash
$345.83M
Cash & equivalents minus total debt.
Piotroski F-Score
5 / 9
Fundamental-strength score (0-9).
Valuation
Is the price reasonable?
No warning flags
Capital allocation quality
Composite score
2.0 / 5
Lifecycle Phase History
Price History
Source filings on SEC EDGAR: 10-K annual reports · 10-Q quarterly reports