Item 1. Business
Item 1. Business
Overview
Pattern is a global ecommerce acceleration platform that helps consumer brands sell products on global ecommerce marketplaces.
Our proprietary technology and on-demand experts operate across more than 70 marketplaces to increase product sales to consumers in more than 100 countries. Utilizing more than 66 trillion data points and sophisticated machine learning and artificial intelligence (“AI”), we strive to optimize and automate key levers of ecommerce growth, including advertising, content creation and management, pricing, forecasting and customer service.
The result is a powerful platform that allows brands to navigate the complexity of operating on global ecommerce marketplaces at scale.
Our Business Model
Pattern’s platform sits as a thin layer between brands, marketplaces and consumers. We believe that one of the best ways to monetize our technology and expertise is by purchasing products from our brand partners and selling those products to consumers on global marketplaces. We generate the substantial majority of our revenue from consumer product sales on global ecommerce marketplaces.
This model results in a more seamless, low-friction relationship and allows Pattern maximum control over the customer experience, including content, pricing, logistics and customer service. In our experience, this business model aligns Pattern’s and our brand partners’ incentives toward maximizing growth. Importantly, transacting directly with consumers also allows us to accumulate comprehensive marketplace data, perform real-time testing and build more powerful predictive models.
Net Income $14.7 $10.6 $10.8 $(1.0) $(5.2) $(3.0) $41.3 $67.9 $16.2
Ecommerce is Simple for Consumers but Complex for Brands
Ecommerce has made purchasing more convenient for consumers, but it has increased operational complexity for brands. Selling on online marketplaces requires brands to manage dynamic pricing, algorithm-driven product discovery, ongoing advertising and complex fulfillment and logistics requirements across multiple channels. Many brands lack the scale, technology and expertise to manage these activities efficiently and profitably on their own.
Selling products across global ecommerce marketplaces also requires brands to manage a wide range of interrelated activities, including driving traffic, optimizing product content, maintaining consistent brand presentation, managing inventory levels, complying with marketplace policies, coordinating fulfillment and logistics and supporting post-purchase customer engagement across regions. These activities must be executed concurrently and adapted continuously to changing marketplace rules, pricing dynamics and consumer expectations.
3
Table of Contents
With these complexities and opaque marketplace requirements, brands face several key challenges, including:
• Growing profitably: Increasing customer acquisition costs, marketplace fees, fulfillment and logistics expenses, inventory risk and the cost of developing and maintaining internal ecommerce technology place pressure on margins and profitability.
• Lack of integrated technology: Many brands rely on fragmented tools for advertising, inventory and analytics, leading to operational inefficiencies, higher costs and limited real-time visibility across marketplaces.
• Limited access to high-quality data: Brands often face challenges accessing, consolidating and analyzing comprehensive ecommerce data across marketplaces, advertising platforms and social channels, limiting their ability to optimize performance and allocate spend effectively.
• Lack of specialized expertise: Successfully operating across multiple marketplaces and regions requires specialized knowledge of platform rules, regulations and evolving channel dynamics, which can be difficult and costly for brands to build and maintain internally.
• Maintaining brand value and consistency: Brands face challenges maintaining consistent positioning, pricing discipline, product authenticity, delivery standards and customer experience across marketplaces, particularly as competition increases and unauthorized or non-compliant sellers emerge.
How We Do What We Do
Pattern operates as an ecommerce accelerator, combining proprietary technology and on-demand expertise to support consumer brands operating across global ecommerce marketplaces. Given the complexities that consumer brands face in scaling and accelerating global ecommerce, we have organized our platform around a simple and intuitive formula, which we call the ecommerce equation:
Our ecommerce acceleration platform is powered by AI and machine learning and supports thousands of automated optimizations across tens of thousands of products worldwide. It is informed by a proprietary data set of more than 66 trillion data points, including keyword, shipping, advertising, sales, market share, click, social, conversion and customer service data. Our technology organization includes approximately 480 software engineers, data scientists and other technology professionals and is supported by 31 patent cases.
Our platform combines proprietary technology with a global team of in-house experts across marketplace operations, advertising, content, inventory management, fulfillment and brand protection to execute ecommerce operations at scale. We sell tens of thousands of products from more than 200 brands across the Americas, Europe, Australia and Asia.
Our Platform
Our platform combines proprietary technology and on-demand expertise built on a differentiated data set. Our global team of software and industry experts optimize traffic, conversion, pricing and availability across ecommerce marketplaces to support profitable growth for our brand partners.
Our Technology
Our platform is powered by proprietary data set consisting of more than 66 trillion data points. This data set informs our machine learning algorithms and large language models (“LLMs”) we use to support automation and decision-making across the platform.
By virtue of our scale, presence and data collection practices on marketplaces, advertising platforms and social media applications around the world, we continue to add to our data advantage, collecting billions of new data points each day. We believe this data set provides a competitive moat that deepens over time as large quantities of data are collected, further differentiating our platform from alternative solutions.
4
Table of Contents
Our Data Layer and Artificial Intelligence
Our platform includes a data layer that processes marketplace, advertising, fulfillment, and consumer engagement data through millions of daily API calls. The data layer draws on more than 66 trillion historical data points across millions of products, brands and marketplaces, supplemented by third-party data sources and we continue to collect new data points.
This data supports proprietary machine learning models, natural language processing engines, and LLMs trained on operational and marketplace data. We also license certain third-party technologies where appropriate. These models analyze large volumes of product, keyword, brand, and consumer interaction data to generate insights and automate execution workflows. Models are continuously refined as additional data is incorporated. We continue to invest in the development and enhancement of our AI capabilities.
Platform Engines
Our platform includes integrated engines designed to optimize the key components of ecommerce performance, including:
• Traffic Engine: Manages paid and organic demand generation across marketplaces and social platforms, including keyword optimization, advertising management, influencer coordination, and budget allocation.
• Conversion Engine: Supports content management, content optimization, and content creation to improve conversion rates across ecommerce and social platforms using performance and competitive data signals.
• Price Engine: Monitors pricing activity, including authorized and unauthorized sellers, and identifies price suppression, erosion, and competitive positioning across marketplaces and websites.
• Availability Engine: Provides order management, inventory forecasting, and in-stock monitoring tools to support fulfillment efficiency and reduce out-of-stock risk.
• Insights Engine: Aggregates platform-wide data into dashboards, scorecards, reporting tools, and alerts that provide visibility into revenue performance, pricing consistency, inventory health, advertising efficiency, and other operational metrics.
Our On-Demand Expertise
Our global team includes brand managers, advertising and SEO specialists, creative professionals, data scientists, customer service representatives, and inventory managers. These teams use our platform to execute ecommerce operations aligned with brand partner objectives. We believe the integration of proprietary technology and operational expertise enables consistent execution across marketplaces and geographies.
Our teams support onboarding, inventory planning, advertising execution, content optimization, fulfillment coordination, and ongoing performance monitoring. Engagement includes regular business reviews and ongoing collaboration to identify optimization and expansion opportunities.
Our Brand Partners
We partner with more than 200 brand partners across a range of industries and geographies, including the Americas, Europe, Australia and Asia. Our brand partners operate in categories such as health and wellness, beauty and personal care, home and lifestyle, pet, sports and outdoors and consumer electronics.
Our brand partners vary in size, business model and geographic presence, and their results may differ based on a number of factors, including product category, marketplace dynamics and regional execution. More than 53% of our revenue was attributable to brand partners that have worked with Pattern for more than five years.
Our Competitive Strengths
Win-win Partnership Mindset
We operate our business with the view that our success is aligned with the success of our brand partners. Our business model avoids a traditional agency structure and aligns economic incentives by tying our revenue directly to consumer product sales. As a result, growth for our brand partners translates directly into growth for Pattern.
5
Table of Contents
By purchasing inventory and managing key aspects of the ecommerce value chain, including content, pricing, fulfillment, customer service and data collection, we maintain control over execution while providing a low-friction operating model for brand partners. We believe this approach supports long-term relationships and scalability beyond software-only or fee-based models.
Comprehensive Proprietary Technology and Data Sets
As one of the largest third-party sellers globally, we have built a large and growing proprietary data set derived from marketplace activity, advertising performance, fulfillment operations and consumer engagement. We have collected more than 66 trillion data points across millions of products, brands, marketplaces, advertising platforms and social commerce channels since inception and we continue to collect new data points.
Our technology platform integrates data, analytics and AI capabilities to support execution across traffic, conversion, pricing and availability. These capabilities enable data-driven decision-making at scale and provide brand partners with visibility into marketplace performance, brand representation, fulfillment quality and customer experience. We believe the scale and breadth of our data and technology provide differentiation relative to alternative solutions.
Integrated, On-demand Expertise
Our platform combines proprietary technology with on-demand expertise across marketplace operations, advertising, content, inventory management, fulfillment and customer service. Our teams bring experience across brands, categories, marketplaces and regions and use our technology to execute and optimize ecommerce operations on behalf of brand partners.
We work closely with brand partners to support ongoing execution, performance monitoring and expansion into new marketplaces and regions. This integration of technology and expertise enables coordinated execution and operational consistency across channels.
Scale
Our global scale enhances the effectiveness of our platform across data, technology investment, operations and logistics. Scale enables more efficient data collection, greater automation and continued investment in technology and operational capabilities.
Our scale also supports efficiencies across logistics and fulfillment, allowing us to manage large volumes of inventory and shipments while maintaining operational performance. As our platform scales, we are able to further invest in technology and expertise to support brand partner growth.
First-mover Advantage
We invested early in building proprietary technology and operational infrastructure to support brand partners on ecommerce marketplaces. Over time, this has enabled us to accumulate a large data set, establish operations across international markets and develop expertise in managing marketplace complexity.
Our early investments and operating history across global marketplaces support our ability to assist brand partners with marketplace expansion and execution across regions.
Deep and Long-lasting Brand Partner Relationships
We have established long-term relationships with brand partners that reflect the durability of our operating model. For the year ended December 31, 2025, approximately 89% of our revenue was attributable to existing brand partners and more than 53% of our revenue was attributable to brand partners that have worked with Pattern for more than five years.
Proven Leadership Team
Our team brings experience across ecommerce, technology, operations and brand management. We believe our leadership, talent and culture support disciplined execution, ongoing innovation and the continued development of our platform and operations.
Our Flywheel Effect
We use our proprietary data, technology and global logistics network to improve execution across ecommerce marketplaces. As we operate across a growing number of products, brands and marketplaces, we collect additional data that
6
Table of Contents
enhances our insights, supports more effective optimization and improves operational efficiency. This scale enables continued investment in our platform and capabilities, which in turn supports brand partner growth and attracts new brand partners.
Our scale also enables efficiencies across advertising, logistics and fulfillment. Increased volume allows for more effective testing and optimization of marketing strategies and improved logistics coordination, contributing to better delivery performance and cost efficiency. As our operations scale, we are able to reinvest in technology, research and development and operational capabilities to support execution across regions and categories.
Benefits to Our Ecosystem
Our platform drives demonstrable value across the ecommerce ecosystem: consumers, brand partners and marketplaces.
Benefits to Consumers
We provide a consistent and efficient experience for consumers across all ecommerce channels that we operate in.
• Because we follow our brand partners’ brand policies, consumers can trust that they are purchasing authentic products.
• Highly ranked on price competitiveness across marketplaces, offering quick response times to customers, low order defect rate and high in-stock rates, with a 4.9/5.0 seller rating on over 500 thousand ratings.
• Through effective inventory and logistics management, we ensure products are available and delivered quickly and efficiently into marketplaces, enabling fast shipping to consumers.
Benefits to Brand Partners
Whereas traditional marketplace agencies and technology providers charge fees, retainers, or percentages of advertising spend, Pattern’s business model aligns our incentives with those of our brand partners by tying our revenue primarily to consumer product sales.
• We use an integrated, end-to-end technology stack to help brand partners manage the complexity of selling across ecommerce marketplaces and drive consumer sales.
• Our proprietary technology collects and analyzes large volumes of marketplace, advertising, fulfillment and consumer engagement data, providing insights that are not readily available through other providers.
• We leverage our data and analytics capabilities to help brand partners identify growth opportunities, including customer acquisition, product expansion and entry into new marketplaces and regions.
• Our on-demand experts support brand partners across marketing, fulfillment, customer service and inventory management on a global basis.
• We support brand integrity by monitoring marketplace activity and assisting brand partners in identifying unauthorized sellers and potential counterfeit products in accordance with their brand guidelines.
Benefits to Marketplaces
Marketplaces on which we operate benefit from improved consumer experience, increased product availability and sales activity generated through our platform.
• We support marketplaces by enabling brand partners to launch, operate and scale their products across channels, contributing to broader and more diverse product selection.
• We leverage our experience across marketplaces to provide operational feedback and insights intended to support improvements in customer and seller experiences.
• Our technology and data capabilities support advertising activity on marketplaces by providing actionable insights that help brands engage consumers more effectively.
7
Table of Contents
• Through integrated data, technology and operational execution, we help create efficient marketplace operations that support growth and trust across participants.
Our Market Opportunity
Pattern operates within the global ecommerce market, which is estimated to be approximately $4 trillion in size and forecasted to grow at a CAGR of 9.5% from 2026 to 2030, representing more than $500 billion of annual growth 1 . Ecommerce remains the fastest-growing retail channel. Consumers are increasingly shopping online and, as a result, global ecommerce sales are expected to grow more than two times as fast as all other global non-ecommerce sales from 2026 to 2030 2 . U.S. ecommerce sales are expected to grow more than five times as fast as all other U.S. non-ecommerce sales over this span 3 .
Our Growth Strategies
Grow with our Existing Brand Partners
A core priority of our business is retaining and growing revenue attributable to existing brand partners through continued optimization of ecommerce performance. For the year ended December 31, 2025, approximately 89% of our revenue was attributable to existing brand partners, and more than 53% of our revenue was attributable to brand partners that have worked with Pattern for more than five years. For the year ended December 31, 2025, our net revenue retention rate was 124%. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Key Business Metric and Non-GAAP Financial Measure” for additional information.
We seek to grow with existing brand partners by increasing the breadth of products we sell on their behalf and by supporting expansion across additional marketplaces and geographies. As brand partners expand their product selection and marketplace presence, we provide operational support, localized strategies and execution capabilities designed to improve efficiency and sales performance across regions.
Attract New Brand Partners
We also grow by signing new brand partners to our platform. We target brands with established products, loyal customer bases and growth potential, which we evaluate using proprietary data and performance scorecards. Our sales and marketing efforts focus on identifying potential partners that are a strong fit for our platform and operating model.
We leverage our execution track record, scale and reputation to attract new brand partners seeking support in managing and scaling their ecommerce operations. Referrals and industry relationships also contribute to new brand partner acquisition.
Enhance and Expand our Platform
We believe continued investment in our platform enhances our value to brand partners and supports differentiation in the ecommerce accelerator space. We have invested in research and development to build and enhance our technology and data capabilities and expect to continue investing in analytics, automation and AI-enabled solutions.
We also seek to enhance and integrate our platform across existing and new ecommerce marketplaces. We evaluate opportunities for organic development, partnerships, investments and acquisitions to expand our capabilities and support brand partner needs.
Monetize Incremental Solutions
We continue to evaluate opportunities to monetize discrete components of our platform and diversify our revenue mix.
• Software-as-a-Service: We offer and continue to enhance SaaS solutions, including PXM and Creators, which support content management and social commerce workflows.
• Fulfillment: We invest in fulfillment and marketplace preparation services to support shipping efficiency and operational execution for third-party sellers.
1 Euromonitor International Passport: Retail, 2026 edition.
2 Euromonitor International Passport: Retail, 2026 edition.
3 Euromonitor International Passport: Retail, 2026 edition.
8
Table of Contents
• Services: We provide consulting and design services to support brand partners across strategy, analytics and creative execution.
Continue to Expand into Global Geographies
Our global operating capabilities support expansion beyond the United States. We continue to build on our platform and expertise to support brand partners across additional regions, including Asia, and to operate across a broad range of global ecommerce marketplaces.
Our Solutions
We offer a range of solutions that leverage our proprietary technology and ecommerce expertise to support consumer brands selling through online marketplaces and social commerce.
Our primary solution is our Global 3P Accelerator, which drives the majority of consumer product sales on our platform. The Global 3P Accelerator leverages our platform to support execution across traffic, conversion, pricing and availability on behalf of brand partners. This solution includes technology and operational support for forecasting, inventory management, listing optimization, advertising execution, content management and customer service.
Additional Solutions
In addition to our Global 3P Accelerator, we offer additional solutions that leverage our technology, data and operational capabilities:
• 1P Accelerator: Enables brands to access our technology, services and operational expertise without Pattern purchasing inventory, allowing brands to maintain a first-party selling model while paying platform and service fees.
• Software-as-a-Service: Includes PXM and Creators, which provide tools for managing and optimizing product content across ecommerce channels and for recruiting, engaging and managing affiliate and creator marketing campaigns.
• Fulfillment: Includes marketplace preparation and shipping services that support delivery to marketplaces and direct-to-consumer channels and help streamline inbound logistics.
• Services: Includes consulting and design services that support brand partners with market analysis, category insights, packaging, product design and prototyping.
Our Operations
Our Inventory Management and Warehouse Operations
Our inventory management and warehouse operations are designed to support product availability across multiple marketplaces, platforms and physical locations while managing inventory risk. We combine experienced personnel, scalable processes and proprietary technology to help ensure that inventory is positioned in the right locations and quantities to meet consumer demand.
Our investment in inventory management resources and technology supports accurate forecasting and operational flexibility, enabling us to respond to changes in demand, promotional activity and marketplace dynamics.
Forecasting
Our forecasting is supported by proprietary, data-driven models that analyze historical performance and current marketplace conditions to estimate future demand at the product level. These models incorporate a range of inputs, including historical sales trends, pricing competitiveness, inventory pipelines, lead times, seasonality, promotional activity, advertising spend, category trends and broader market dynamics.
Forecasting outputs are reviewed and applied by trained inventory management professionals to inform purchasing decisions. As a result of these processes, our weighted average inventory write-offs as a percentage of revenue have been less than 0.2% over the last three years. In 2025, our inventory turnover ratio was 5.0x and our North American in-stock rate was 98%.
9
Table of Contents
Inventory Purchasing Mechanics
Our purchasing processes are designed to balance product availability with inventory risk. We utilize consistent purchasing cadences for many brand partners, which allows us to adjust inventory levels in response to changes in demand while reducing the risk of stockouts or overbuying.
By leveraging cross-dock facilities, scale efficiencies and integrations with marketplaces, we are able to make products available to consumers more quickly while maintaining lower overall inventory levels.
Global Warehouse Operations and Logistics
We utilize third-party transportation networks to deliver products to consumers and to ecommerce marketplace distribution centers, while focusing our investments on software, automation and systems that support efficient warehouse operations. Our warehouse automation strategy emphasizes scalable software integrated with standardized hardware solutions.
Our proprietary warehouse management system (“WMS”) supports inventory movement, marketplace preparation, fulfillment execution and reverse logistics across our global warehouse network. The WMS integrates with marketplaces and carriers and is designed to support multi-region and multi-language operations. We believe our warehouse operations and systems support efficient, scalable fulfillment and provide flexibility to support future growth.
Sales and Marketing
Our sales and marketing efforts are informed by our ecommerce data and are focused on identifying prospective brand partners that are a strong fit for our platform and partnership model. We use data-driven performance assessments to evaluate potential brand partners across key ecommerce metrics, including traffic, conversion, pricing, availability and operational readiness across major marketplaces. These assessments inform our outreach and engagement with prospective brand partners.
Our sales organization includes global account managers responsible for developing and managing brand partner relationships, supported by inside sales representatives, product specialists and business development personnel. These teams engage with brand partners throughout the customer lifecycle and leverage industry relationships and referrals to support brand partner acquisition.
Our sales efforts are supported by a global, in-house marketing organization focused on brand, communications, product marketing and demand generation. Marketing initiatives leverage data, insights and subject matter expertise to support brand awareness, demand generation and relationship development. As of December 31, 2025, we employed approximately 150 sales and marketing personnel with in-region presence across North America, Europe, Australia and Asia. We expect to continue investing in our sales and marketing capabilities to support growth and the expansion of our platform and solutions.
Our Competition
The ecommerce industry is highly competitive and continues to evolve. Brands have multiple options for managing and growing their ecommerce operations, and competition varies by marketplace, geography, product category and service offering.
We compete with a range of alternatives, including:
• Brands that manage ecommerce operations internally;
• Technology and service providers that address specific components of ecommerce operations, such as advertising, content, logistics, or analytics;
• Marketplaces that offer first-party selling models; and
• Other ecommerce accelerators that provide integrated technology and operational support.
Our ability to compete depends on a number of factors, including the effectiveness and scalability of our technology, the breadth of marketplaces and geographies we support, the quality of our data and analytics, our ability to attract and retain brand partners, pricing and service levels, and our ability to execute consistently while maintaining brand integrity and customer experience.
10
Table of Contents
Our People and Culture
Our people are the driving force behind our mission to accelerate global ecommerce for our brand partners and we believe our team’s talent and expertise is a key competitive advantage. As of December 31, 2025, we employed approximately 2,300 full-time employees and engaged approximately 420 contractors and other personnel worldwide. Our workforce spans technology, operations, data and analytics, sales and marketing, customer service and corporate functions, with offices and distribution centers across North America, Europe, Australia and Asia.
We focus on attracting, developing and retaining talent with experience in ecommerce, technology, logistics and brand management. Our hiring, compensation and development practices emphasize functional expertise, alignment with evolving business needs and operational execution. We seek to empower employees through clear accountability, appropriate autonomy and opportunities for continuous learning and professional growth.
Our leadership principles complement our core values and are designed to support effective collaboration, transparent communication and a focus on outcomes. We prioritize impact, accountability and empathy across teams and aim to foster a culture that supports innovation, connection and consistent execution as our business evolves.
Our core values guide how we operate and make decisions across the organization:
• Data Fanatics: We are deeply passionate about data, using it to uncover opportunities, test hypotheses and drive results. Our teams collaborate to turn data into actionable insights, allowing our brand partners to benefit from precise, high-impact solutions.
• Brand Partner Obsessed: Our brand partners’ success is our success. We listen, empathize and commit to exceeding expectations with integrity and responsiveness. Earning and maintaining brand partner trust through excellence is at the core of our philosophy.
• Team of Doers: Action defines us. We embrace challenges with enthusiasm and a spirit of collaboration. Accountable and resilient, our people work with urgency and responsibility to overcome obstacles and deliver on our promises.
• Game Changers: We don’t just adapt; we innovate. From disrupting industry norms to discovering new opportunities, we are committed to leading change. We believe in thinking boldly and pushing boundaries for our company and our brand partners.
Government Regulation
As with any company operating on the internet, we are subject to a growing number of local, national and international laws and regulations. These laws are often complex and unclear, sometimes contradicting other laws, and are frequently changing. Compliance is costly and can require changes to our business practices, along with significant amounts of management time and focus. In addition, regulatory and other legal proceedings in the United States and abroad are increasingly focused on the activities of ecommerce marketplaces as well as sellers and other third parties.
Laws may be interpreted and enforced in different ways in various locations around the world, posing a significant challenge to our global business. For example, federal and state laws in the United States, EU laws and other national laws govern the processing of payments and consumer protection; other laws define and regulate unfair and deceptive trade practices. Still other laws dictate when and how sales or other taxes must be collected. Defamation laws apply online and vary by country. Jurisdictions vary as to how, or whether, existing laws governing areas such as personal privacy and data security, consumer protection or sales and other taxes, among other areas, apply to the internet and ecommerce, and these laws are continually evolving. Related laws may govern the manner in which we store or transfer sensitive information or impose obligations on us in the event of a security breach or an inadvertent disclosure of such information. International jurisdictions impose different, and sometimes more stringent, consumer and privacy protections. In addition, some of these requirements introduce friction into our platform for the promotion and sale of merchandise and may impact the scope and effectiveness of our marketing efforts. Tax regulations in jurisdictions where we do not currently collect taxes may subject us to the obligation to collect and remit such taxes or to requirements intended to assist jurisdictions with their tax collection efforts. New legislation or regulations, the application of laws from jurisdictions whose laws do not currently apply to our business, or the application of existing laws and regulations to the internet and ecommerce generally could result in significant additional taxes on our business. Further, we could be subject to fines or other payments for any past failures to comply with these requirements. The continued growth of and demand for ecommerce is likely to result in more laws and regulations that impose additional compliance burdens on ecommerce companies. We are also subject to a broad range of federal, state, local and foreign laws and regulations related to public health and safety, including food safety
11
Table of Contents
standards, packaging, labeling, advertising, marketing, shipment, pricing and competition. Additionally, because we operate internationally, we need to comply with various laws associated with doing business outside of the United States, including anti-money laundering, sanctions, anti-corruption and export control laws. See the section titled “Risk Factors — Risks Related to Legal, Regulatory and Compliance—We are subject to extensive laws and regulations and we may incur material liabilities or costs related to complying with existing or future laws and regulations, and our failure to comply may result in enforcements, penalties, recalls and other adverse actions.”
Intellectual Property
Our commercial success depends in part on our ability to protect our brand, proprietary technology and other intellectual property, as well as to operate without infringing the intellectual property rights of third parties. We rely on a combination of patents, trademarks, copyrights, trade secrets and contractual protections, including license agreements, confidentiality obligations and invention assignment agreements, to protect our intellectual property and proprietary rights.
As of December 31, 2025, we owned one issued patent and 30 pending patent applications in the United States and abroad, generally relating to commerce systems and digital marketplaces. Our issued patent and any patents granted from pending applications are expected to expire between 2040 and 2045, subject to potential extensions or adjustments. We also rely on trade secrets to protect certain aspects of our business that are not suitable for patent protection, although such protections may be difficult to enforce.
We protect our brand through trademark registrations and common law rights. As of December 31, 2025, we held 21 registered trademarks and 16 pending trademark applications in the United States, and 53 registered trademarks and 26 pending applications in non-U.S. jurisdictions. We also maintain registered domain names used in our business. While we take commercially reasonable measures to protect our intellectual property, these efforts may not be sufficient to prevent misappropriation or infringement.
Available Information
We make available, free of charge, through our investor relations website at investors.pattern.com, our filings with the Securities and Exchange Commission (“SEC”), including our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, proxy statements, information statements and amendments to reports filed or furnished pursuant to Sections 13(a), 14 and 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as well as corporate governance information (including our Code of Business Conduct and Ethics). The SEC maintains a website at www.sec.gov that contains reports, proxy and information statements and other information regarding issuers that file electronically with the SEC.
We communicate material information to investors and the public through SEC filings, press releases, conference calls, webcasts, or our investor relations website (investors.pattern.com). Information posted on our website could be deemed material to investors. Any reference to our website is intended to be an inactive textual reference only, and the information on our website is not, and shall not be deemed to be, a part hereof or incorporated into this or any of our other filings with the SEC.
12
Table of Contents