Purple Innovation Reports Second Quarter 2025 Results; Reaffirms 2025 Guidance
Net Loss Exceeded Expectations; Adjusted EBITDA Margin Improved 120 Basis Points versus Last Year
Strong Rejuvenate 2.0 Demand More than Double the Rejuvenate 1.0 Launch in DTC
Mattress Firm Rollout Progressing on Schedule
LEHI, Utah, July 29, 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 second quarter ended June 30, 2025.
"We are pleased with our second quarter performance, which reflects our disciplined execution and continued progress as we build a premium, sustainable, and profitable brand," said Rob DeMartini, CEO of Purple Innovation. "Revenue and profit exceeded our expectations, delivering sequential improvement, where strong demand from consumers and partners has temporarily outpaced our ability to fulfill orders."
DeMartini continued, "We are seeing strong validation of our brand and innovation strategy, led by the breakthrough success of our Rejuvenate 2.0 collection -- the first product to incorporate our new DreamLayer grid technology layered on top of our core GelFlex grid platform. We're also building significant momentum through our ongoing expansion with Mattress Firm, which remains on track, and through deepening relationships with partners such as Walmart and Costco, alongside strong and growing interest from both traditional and non-traditional partners. These initiatives are fueling momentum across our business and advancing our long-term Path to Premium Sleep strategy. With third quarter revenue-to-date up in the mid-single digits range versus the same period last year, we remain confident in our ability to drive profitable growth and create shareholder value."
Second Quarter 2025 Financial ResultsSecond quarter 2025 net revenue declined by 12.6% to $105.1 million, compared to $120.3 million in the second quarter of 2024, reflecting delays in the timing of Rejuvenate 2.0 shipments, lapping reductions in wholesale door count from 2024, and softness in ecommerce.
Gross profit for the second quarter decreased to $37.7 million, compared to $48.9 million in the prior-year period. Gross margin was 35.9%, a decrease of 480 basis points year-over-year, and was adversely impacted by costs related to tariffs and the ramp-up of both the Mattress Firm roll-out and Rejuvenate 2.0 launch, which were partially offset by direct material and sourcing savings.
Second quarter operating expenses were $51.9 million, down 18.2% from $63.5 million in the prior year quarter. The decrease was largely driven by reduced advertising spend and benefits from restructuring and cost savings initiatives completed previously.
Net loss attributable to Purple Innovation, Inc. for the second quarter was $(17.3) million, a decline from $0.0 in the prior year.
Adjusted EBITDA for the second quarter was $(2.4) million, an improvement from $(4.1) million last year, driven primarily by our disciplined cost management.
Balance Sheet As of June 30, 2025, the Company had cash and cash equivalents of $34.2 million compared to $29.0 million as of December 31, 2024.
Net inventories as of June 30, 2025, totaled $60.9 million, down 12.6% compared to June 30, 2024, and an increase of 7.1% compared to December 31, 2024.
2025 Outlook The Company is reiterating its 2025 outlook for full year revenue to be in the range of $465 to $485 million and adjusted EBITDA in the range of flat to positive $10 million. The Company anticipates sequential growth in the second half of the year, driven by the successful launch of Rejuvenate 2.0 and the rollout of our expanded partnership with Mattress Firm.
Conference Call and Webcast InformationPurple Innovation, Inc. will host a live conference call to discuss financial results today, July 29, 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.
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.
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 3,000 retailers nationwide.
PurpleLess pain. Better sleep.
Forward Looking StatementsCertain 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.
Non-GAAP Financial MeasuresEBITDA, adjusted operating expenses, adjusted EBITDA, 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.
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.
Investor Contact:Stacy Turnof, Edelman Smithfield 917-362-2581
PURPLE INNOVATION, INC.Condensed Consolidated Balance Sheets(unaudited, in thousands, except for par value)
June 30,2025
December 31,2024
Assets
Current assets:
Cash and cash equivalents
$
34,248
$
29,011
Accounts receivable, net
21,083
33,057
Inventories
60,903
56,863
Prepaid expenses
4,017
6,023
Other current assets
5,680
1,414
Total current assets
125,931
126,368
Property and equipment, net
87,374
93,874
Operating lease right-of-use assets
73,313
75,516
Intangible assets, net
7,577
8,890
Other long-term assets
9,593
3,197
Total assets
$
303,788
$
307,845
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
$
25,963
$
40,639
Accrued compensation
6,632
9,415
Customer prepayments
8,490
6,411
Accrued rebates and allowances
10,941
10,013
Accrued warranty liabilities, current portion
7,774
6,114
Operating lease obligations, current portion
16,274
15,661
Other current liabilities
8,362
12,750
Total current liabilities
84,436
101,003
Related party debt
94,539
55,394
Accrued warranty liabilities, net of current portion
24,945
26,091
Operating lease obligations, net of current portion
84,651
87,072
Warrant liabilities
28,925
16,067
Other long-term liabilities
1,871
2,009
Total liabilities
319,367
287,636
Commitments and contingencies (Note 13)
Stockholders' equity (deficit):
Class A common stock; $0.0001 par value, 210,000 shares authorized; 108,244 issued and outstanding at June 30, 2025, and 107,545 issued and outstanding at December 31, 2024
11
11
Class B common stock; $0.0001 par value, 90,000 shares authorized; 165 issued and outstanding at June 30, 2025, and at December 31, 2024
—
—
Additional paid-in capital
594,698
594,053
Accumulated deficit
(610,348)
(573,866)
Total stockholders' equity (deficit) attributable to Purple Innovation, Inc.
(15,639)
20,198
Noncontrolling interest
60
11
Total stockholders' equity (deficit)
(15,579)
20,209
Total liabilities and stockholders' equity (deficit)
$
303,788
$
307,845
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
PURPLE INNOVATION, INC.Condensed Consolidated Statements of Operations(unaudited, in thousands, except per share amounts)
Three Months EndedJune 30,
Six Months EndedJune 30,
2025
2024
2025
2024
Revenues, net
$
105,100
$
120,271
$
209,271
$
240,304
Cost of revenues:
Cost of revenues
67,340
71,331
129,547
149,644
Cost of revenues - restructuring related charges
77
—
995
—
Total cost of revenues
67,417
71,331
130,542
149,644
Gross profit
37,683
48,940
78,729
90,660
Operating expenses:
Marketing and sales
30,616
41,377
67,242
82,839
General and administrative
14,991
18,117
29,478
37,845
Research and development
2,178
3,986
4,630
7,652
Restructuring, impairment and other related charges
4,137
—
6,097
—
Total operating expenses
51,922
63,480
107,447
128,336
Operating loss
(14,239)
(14,540)
(28,718)
(37,676)
Other income (expense):
Interest expense
(7,457)
(4,161)
(12,221)
(8,635)
