Revenue +38%.
Operating profit -70%.
Both are true.
Welcome to the financials of a company that IPO'd mid-year and reinvested everything.
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✦ The bottom line
Pattern produced $99M in real cash in FY2025 — positive, real, paid the bills. But operating profit fell from $87M to $25M as IPO costs and growth investments compressed margins. Q1 FY26 already shows the profit recovery.
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✦ Teach me
Real cash left over
After paying every running expense and investing in equipment, software, and infrastructure — what's left as actual cash. For a recently public company, this is the cleanest signal: profitability metrics get distorted by IPO costs and , but cash either showed up or it didn't.
Wall Street calls this
Free cash flow
For a young public company, cash flow tells you whether the business is *self-sustaining* — or still dependent on raising more capital. Pattern's answer in FY2025: *self-sustaining*.
Cash from operations · fiscal year 2025
$99
M
Real cash the business generated during the IPO year. Up from $70M the prior year — +41%. The cash story holds even when the profit story compresses.
$99 million in real cash is the good news. The bad news lives on the operating-income line — the metric that strips out cash flow timing and shows the underlying profitability of running the business. For Pattern in FY2025, that line tells a less flattering story. Growth doesn't come free — and when a company spends heavily during an IPO year, the cost shows up here first.
Operating income · fiscal year 2025 vs. fiscal year 2024
$25
M
FY2025 operating profit. Down from $87M the prior year — a -70% compression. IPO transaction costs, stock-based compensation, and growth investments all hit the operating line this year.
Source · 10-K · Income Statement · FY2025 vs FY2024 · Filed Mar 6, 2026
If FY2025's operating-income compression were structural — meaning the business genuinely makes less money per dollar of revenue at this scale — that's a real problem. If it's one-time — IPO costs that don't repeat, growth bets that pay off — then 2026 should show the recovery. The first new-year quarter is the answer.
Operating income · most recent quarter
$40
M
Q1 FY26 operating profit. Up from $29M a year earlier — the compression is reversing. The IPO-year hangover is fading; the underlying business is more profitable, not less.
Source · 10-Q · Income Statement · Q1 FY26 · Filed May 7, 2026
⚠
Watch
Cash generation real and growing. Operating profit recovering. Story unfolding.
You just finished
Chapter 2 · FINANCIAL HEALTH
Growth at a Cost
you now read: real cash left over (free cash flow)