Purple Innovation Reports Third Quarter 2025 Results

About this update from Purple Innovation, Inc.

[{"type":"text","content":" Purple Achieves Improved Net Loss and Positive Adjusted EBITDA, Advancing Its Profitability Turnaround ","length":102,"tagName":"p","attribs":{}},{"type":"text","content":" Rejuvenate 2.0 Drives Continued Product and Brand Momentum ","length":58,"tagName":"p","attribs":{}},{"type":"text","content":" Mattress Firm Rollout Remains on Track, Supporting Growth in Premium Segment ","length":76,"tagName":"p","attribs":{}},{"type":"text","content":" LEHI, Utah , Nov. 4, 2025 /PRNewswire/ -- Purple Innovation, Inc. (NASDAQ: PRPL) ("Purple"), a comfort innovation company whose mattresses promise to give you "less pain, better sleep," today announced results for the third quarter ended September 30, 2025.","length":281,"tagName":"p"},{"type":"image","alt":"Purple (PRNewsfoto/Purple Innovation, Inc.)","displaySize":"","headline":null,"caption":"Purple (PRNewsfoto/Purple Innovation, Inc.)","className":"","disableSlideshowImg":false,"size":{"original":{"width":400,"height":123,"url":"https://media.zenfs.com/en/prnewswire.com/6f6783d29573843b0916ff8fdb549bad"},"resized":{"url":"https://s.yimg.com/ny/api/res/1.2/FBY_n3uZq9mMacLoLKxXXQ--/YXBwaWQ9aGlnaGxhbmRlcjt3PTcwNTtoPTIxNztjZj13ZWJw/https://media.zenfs.com/en/prnewswire.com/6f6783d29573843b0916ff8fdb549bad","width":400,"height":123}},"href":"https://mma.prnewswire.com/media/639182/Purple_mattress_logo.html","hrefExternal":true,"rel":"nofollow"},{"type":"text","content":""Our third quarter results reflect the continued progress we're making in strengthening Purple's foundation and positioning the company for sustainable, profitable growth," said Rob DeMartini, CEO of Purple Innovation. "We delivered results in line with expectations, achieving an improved net loss and positive adjusted EBITDA and a sequential improvement in gross margin despite tariff headwinds. These results highlight the discipline and focus that are driving improved performance across our business."","length":535,"tagName":"p"},{"type":"text","content":"DeMartini continued, "One year after launching our restructuring program, Purple is a leaner, more agile company that is now firmly focused on scaling for growth. The success of Rejuvenate 2.0, the ongoing expansion of our Mattress Firm partnership, and strong showroom performance all underscore the power of our innovation and our brand momentum, marking an important inflection point in sales trends after consecutive quarters of year-over-year declines. We are entering the final months of the year with confidence, executing against our Path to Premium Sleep strategy and remaining on track to deliver positive adjusted EBITDA for the full year."","length":661,"tagName":"p"},{"type":"text","content":" Third Quarter 2025 Financial Results Third quarter 2025 net revenue was $118.8 million, up slightly compared to $118.6 million in the third quarter of 2024, fueled by the timing of Rejuvenate 2.0 shipments and the continued expansion of our Mattress Firm partnership. Strength across showroom and wholesale channels was partially offset by softer performance in e-commerce.","length":373,"tagName":"p"},{"type":"text","content":"Gross profit for the third quarter increased to $50.9 million or 42.8% of net revenue, compared to $35.2 million or 29.7% in the prior year period. Adjusted gross margin, which excludes restructuring and related charges, expanded by 230 basis points to 42.8% in the quarter, compared to 40.5% in the year-prior period. With the restructuring now complete, we also benefited as product continues to scale at our Georgia facility, and we delivered greater manufacturing efficiencies and direct material cost savings.","length":514,"tagName":"p"},{"type":"readMore"},{"type":"text","content":"Third quarter operating expenses were $63.0 million, down 23.2% from $82.0 million in the prior year quarter. The improvement was primarily driven by the comparison to significant restructuring, impairment, and related charges recorded last year, which declined by $13.6 million. Adjusted operating expenses, which excludes certain restructuring and impairment charges, were $57.7 million, down $5.4 million from the prior year period.","length":435,"tagName":"p"},{"type":"text","content":"Net loss attributable to Purple Innovation, Inc. for the third quarter was $11.7 million, a decline from $39.2 million in the prior year.","length":142,"tagName":"p"},{"type":"text","content":"Adjusted EBITDA for the third quarter was $0.2 million, an improvement from $(6.4) million last year, driven primarily by our strong gross margin performance and disciplined cost management.","length":190,"tagName":"p"},{"type":"text","content":" Balance Sheet As of September 30, 2025, the Company had cash and cash equivalents of $32.4 million compared to $29.0 million as of December 31, 2024.","length":149,"tagName":"p"},{"type":"text","content":"Net inventories as of September 30, 2025, totaled $65.8 million, up 9.8% compared to September 30, 2024, and an increase of 15.7% compared to December 31, 2024.","length":160,"tagName":"p"},{"type":"text","content":" 2025 Outlook The Company is maintaining its 2025 guidance, projecting full-year revenue of $465 to $485 million and adjusted EBITDA of breakeven to $10 million, supported by the strong performance of the Rejuvenate 2.0 mattress launch and the successful rollout of the Mattress Firm partnership.","length":295,"tagName":"p"},{"type":"text","content":" Conference Call and Webcast Information Purple Innovation, Inc. will host a live conference call to discuss financial results today, November 4, 2025, at 4:30 p.m. Eastern Time. To access the call dial 800-715-9871 (domestic) or 646-307-1963 (international). The call is also being webcast and can be accessed on the investor relations section of the Company's website, investors.purple.com . After the conference call, a webcast replay will remain available on the investor relations section of the Company's website for 30 days.","length":537,"tagName":"p"},{"type":"text","content":" About Purple Purple is a premium mattress company and the leader in sleep technology. Their patented GelFlex Grid® is the only material that instantly relieves pressure for less pain and better sleep.","length":201,"tagName":"p"},{"type":"text","content":"With over 30 years of innovation, Purple's product engineers are paving the way for everyone to experience a proven, deeper sleep by reducing their aches and pains. The GelFlex Grid® does it all—it instantly adapts as you move, balances temperature, relieves pressure, and offers support in all the right places. Purple products, including mattresses, pillows, cushions, frames, sheets, and more, can be found online at Purple.com , in 55 Purple stores, and over 3,800 retailers nationwide.","length":493,"tagName":"p"},{"type":"text","content":"Purple Less pain. Better sleep.","length":31,"tagName":"p"},{"type":"text","content":" Forward Looking Statements Certain statements made in this release that are not historical facts are "forward looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Statements based on historical data are not intended and should not be understood to indicate the Company's expectations regarding future events. Forward-looking statements provide current expectations or forecasts of future events or determinations. These statements include, but are not limited to, statements regarding our innovation pipeline, the timing of new product collection launches, our ability to improve profitability and optimize our business, the expansion of and benefits to us from our commercial relationship with Mattress Firm, the impact of other commercial relationships, including those with Walmart, Costco, and other traditional and non-traditional partners, revenue-to-date for the third quarter, our ability to drive profitable growth and create shareholder value, and our outlook for revenue and adjusted EBITDA for the full year 2025. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company's control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Factors that could influence the realization of forward-looking statements include, among others: changes in economic, financial and end-market conditions in the markets in which we operate; fluctuations in raw material prices and cost of labor; the financial condition of our customers and suppliers; competitive pressures, including the need for technology improvement, successful new product development and introduction; changes in consumer demand, including pullbacks in consumer spending; disruptions to our manufacturing processes; and the risk factors outlined in the "Risk Factors" section of our Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 14, 2025, and in our other filings made with the SEC. The Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.","length":2464,"tagName":"p"},{"type":"text","content":" Non-GAAP Financial Measures EBITDA, adjusted operating expenses, adjusted EBITDA, adjusted gross margin, adjusted net income, and adjusted net income per diluted share are non-GAAP financial measures that remove the impact of certain non-cash and non-recurring costs. Management believes that the use of such non-GAAP financial measures provides investors with additional useful information with respect to the impact of various adjustments, which we view as a better measure of our operating performance. Refer to the attached table for the reconciliation of such non-GAAP financial measures to the most comparable GAAP financial measure.","length":639,"tagName":"p"},{"type":"text","content":"With respect to the Company's Adjusted EBITDA outlook for the full year 2025, a quantitative reconciliation to the corresponding GAAP information cannot be provided without unreasonable effort because of the inherent difficulty of accurately forecasting the occurrence and financial impact of the various adjusting items necessary for such reconciliation that have not yet occurred, are out of our control, or cannot be reasonably predicted, including but not limited to warrant liabilities and stock based compensation. For the same reasons, the Company is unable to assess the probable significance of the unavailable information, which could have a material impact on its future GAAP financial results.","length":709,"tagName":"p"},{"type":"text","content":" Investor Contact: Stacy Turnof, Edelman Smithfield [email protected] 917-362-2581","length":98,"tagName":"p"},{"type":"table","headerItems":[],"items":[{"val":[{"colspan":"8","rowspan":"1","style":"PADDING-RIGHT:0.17em;PADDING-LEFT:0.17em;VERTICAL-ALIGN:BOTTOM;TEXT-ALIGN:CENTER;","val":[{"type":"text","content":" PURPLE INNOVATION, INC. 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