Pattern Group Inc.PTRN

Pattern Group Inc. Segments Disclosure

10-KFiled Mar 6, 20262 min read
17. Segment Information
The Company manages its business on a consolidated basis and operates as a single operating and reportable segment. The Company primarily derives its revenue in the United States by selling products to customers via online marketplaces.
The Company’s chief operating decision maker (“CODM”) is the Company’s Chief Executive Officer, who reviews financial information on a consolidated basis. The CODM uses consolidated net income to assess financial performance and allocate resources. Net income is used by the CODM to make key operating decisions by comparing actual net income to historical results and previously forecasted financial information. The CODM does not review assets in evaluating the results of the reportable segment.
The following table presents selected financial information with respect to the Company’s single operating and reportable segment:
Year Ended December 31,
(in thousands)202320242025
Revenues$1,366,417 $1,796,161 $2,501,315 
Significant expenses:
Cost of goods sold765,203 1,014,812 1,410,869 
Fulfillment(1)
217,003 272,288 374,345 
Marketplace commissions(2)
194,753 257,915 357,257 
Sales, general and administrative(3)
116,574 138,345 194,045 
Technology(4)
20,305 25,619 35,044 
Share-based compensation and related taxes(5)
(206)— 104,349 
Stock amendment expense— — 32,676 
Interest income, net(2,849)(6,066)(7,422)
Other (income) expense, net(707)2,013 946 
Provision (benefit) for income taxes15,077 23,379 (17,040)
Net income$41,264 $67,856 $16,246 
__________
(1)Fulfillment include costs incurred from third-party fulfillment centers and cost to operate and staff the Company’s fulfillment centers, excluding share-based compensation and related taxes.
(2)Marketplace commissions includes referral fees charged by the various online marketplaces.
(3)Sales, general and administrative relate to employee headcount, excluding share-based compensation and related taxes, and other selling and general administrative costs.
(4)Technology represents items included in research in development within the consolidated statement of operations, excluding share-based compensation and related taxes, and the amortization of capitalized internally developed software costs.
(5)Share-based compensation and related taxes include compensation expense for both stock and cash settled restricted stock units and the related employer taxes.
See Note 2—Summary of Significant Accounting Policies for additional information about revenue disaggregation.
The Company's long-lived tangible assets, as well as the Company's operating lease right-of-use assets recognized on the consolidated balance sheets were located as follows:
December 31,
(in thousands)20242025
U.S.$53,399 $54,596 
International9,513 14,655 
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About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

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