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Purple Innovation's Third Quarter 2025 Financial Overview

Purple Innovation, Inc. (NASDAQ: PRPL), known for its innovative mattresses designed to provide "less pain, better sleep," has recently released its financial results for the third quarter of 2025, a period that demonstrated significant strides towards recovery and sustained growth. The company, which has been focused on revitalizing its operations, reported revenues that were slightly higher than the same period last year, highlighting its ongoing recovery efforts.

Key Financial Highlights

For the third quarter of 2025, Purple's net revenue reached $118.8 million, an improvement from $118.6 million in the third quarter of 2024. This increase can be attributed to the continued success of their Rejuvenate 2.0 product line and the strengthening partnership with Mattress Firm. Although sales across showroom and wholesale channels performed well, there was a noted dip in e-commerce sales. Notably, the improved gross profit of $50.9 million, accounting for 42.8% of net revenues, marked a substantial increase from $35.2 million (or 29.7%) in the prior year period.

Adjusted EBITDA and Operating Loss

The adjusted EBITDA for the quarter stood at $0.2 million, a remarkable turnaround from the negative $6.4 million recorded last year. This positive change reflects effective cost management and stronger gross margins. Operating expenses decreased significantly by 23.2% to $63.0 million compared to $82.0 million in the prior year, primarily due to reduced restructuring and impairment charges.

In terms of losses, the net loss attributable to Purple Innovation for this quarter was $11.7 million, representing an improvement from $39.2 million in the previous year. These measures collectively signify a positive trend in Purple’s financial health, driven by strategic changes and an emphasis on increasing operational efficiencies.

Operational Developments

CEO Rob DeMartini emphasized the company's transformation under a restructuring program initiated a year ago, stating, "Purple is a leaner, more agile company that is now firmly focused on scaling for growth." This restructuring has streamlined operations, enabling the company to better respond to market demands and consumer preferences. The recent performance of Purple's products in showrooms and through the Mattress Firm partnership has instilled confidence in their ability to drive future growth.

One of the pillars of Purple's recovery has been the successful launch of Rejuvenate 2.0, which not only revitalizes the brand's product offerings but has also contributed positively to sales trends, marking a crucial turning point after several quarters of declining year-over-year results. The enthusiasm around the Rejuvenate line showcases Purple's commitment to innovation in sleep technology, which remains at the core of their mission.

Future Outlook

Looking ahead, Purple remains confident in maintaining its revenue guidance for 2025, projecting full-year revenues in the range of $465 to $485 million and aiming for adjusted EBITDA to either break even or reach up to $10 million. The success of ongoing product launches, along with strategic partnerships, are seen as instrumental in achieving these targets.

As of September 30, 2025, Purple's balance sheet indicated cash and cash equivalents of $32.4 million, demonstrating a healthy liquidity position compared to $29.0 million at the end of 2024. The company's inventory levels also saw an increase, totaling $65.8 million, marking a 9.8% year-over-year rise.

Overall, with a clear path towards operational excellence and a reinforced focus on high-quality product offerings, Purple Innovation is poised to rebound effectively in the competitive mattress industry. Their ongoing efforts to enhance profitability through better cost management and innovative products are crucial as they navigate the challenges ahead, ensuring a promising future for the brand.

Conference Call Details

Purple Innovation will host a conference call today, November 4, 2025, at 4:30 p.m. ET to discuss these financial results in further detail. Investors and analysts can join the call by dialing 800-715-9871 (domestic) or 646-307-1963 (international), with the option to access a live webcast via the investor relations section of the company’s website. A replay will remain available for review for 30 days following the call.

About Purple Innovation

Founded as a premium mattress manufacturer, Purple is at the forefront of sleep technology. With patented materials like the GelFlex Grid®, Purple aims to alleviate pressure points, providing consumers with deeper and more restful sleep. The company’s range of products can be found online and in retail partnerships across the nation, embodying their motto of "Less pain. Better sleep."