Pattern Group, one of the leading third-party sellers on Amazon, made its Nasdaq debut Friday under the ticker PTRN, opening at $13.50 — slightly below its $14 IPO price in the middle of the expected range. The offering raised $300 million for the company and its investors, valuing the Utah-based e-commerce firm at roughly $2.5 billion. Half of the proceeds from the IPO went to existing investors.
Founded in 2013 by husband-and-wife duo David Wright and Melanie Alder as iServe Products, the company rebranded as Pattern in 2019. Today, Pattern ranks as the No. 2 Amazon seller in the U.S. by customer reviews, according to research firm Marketplace Pulse. The company describes itself as an “ecommerce accelerator,” helping more than 200 brands optimize their sales across platforms including Amazon, Walmart, Target, and TikTok Shop. Its portfolio spans tens of thousands of products in categories ranging from health and wellness to consumer electronics and beauty, with notable brand partners such as Nestle, Panasonic, and Skechers.
Pattern reported strong financial growth in its most recent quarter. Revenue rose 39% year-over-year to $598.2 million, while net income increased to $16.4 million from $11.3 million. Operating income climbed to $30.1 million from $23.1 million over the same period. The company said that 94% of its 2024 revenue came from consumer product sales on Amazon, with the substantial majority generated in the U.S.
Despite its growth, Pattern acknowledged significant risks in its IPO filing. The company highlighted its dependence on Amazon, noting that changes to the platform — including restrictions, terminations, or regulatory impacts — could adversely affect its growth and financial results. CEO David Wright told CNBC, “No matter what you’re doing in this space, you’re going to be playing with them. As long as you stay within the line, they’ve been a great partner for us.”
Pattern also faces broader challenges related to global trade uncertainty. Its prospectus cited President Trump’s tariff threats against trade partners as a potential risk to product demand and pricing. Wright said the company had initially planned its IPO months earlier but delayed due to the uncertainty surrounding tariffs, which first emerged in April.
The IPO comes amid a broader revival in the tech market, following an extended slowdown. Recent listings include ticket reseller StubHub, online lender Klarna, and crypto firm Gemini, with others such as Peter Thiel-backed Bullish, design software company Figma, and stablecoin issuer Circle also entering public markets in recent months.
As Pattern joins the public stage, it faces competition from millions of merchants on Amazon’s marketplace, where third-party sellers now account for more than half of all sales. Its IPO underscores both the opportunities and challenges for top Amazon resellers navigating a complex e-commerce and trade landscape.
Pump Radar
Stock Alerts