Purple Innovation Reports Third Quarter 2025 Results

Rhea-AI Summary

Purple Innovation (NASDAQ: PRPL) reported third quarter 2025 results on Nov 4, 2025, highlighting a continued profitability turnaround. Q3 net revenue was $118.8M versus $118.6M year‑ago. Gross profit rose to $50.9M (42.8% of revenue) and adjusted gross margin expanded by 230 basis points vs. the prior year. Operating expense fell 23.2% to $63.0M. Net loss narrowed to $11.7M from $39.2M, and adjusted EBITDA improved to $0.2M from $(6.4)M. Cash was $32.4M and net inventories were $65.8M (up 9.8% YoY). The company maintained full‑year 2025 guidance: $465–$485M revenue and adjusted EBITDA breakeven to $10M.

Management cited Rejuvenate 2.0, Mattress Firm rollout, showroom strength and manufacturing efficiencies as drivers of momentum while e‑commerce remained softer.

Positive

• Adjusted EBITDA improved to $0.2M in Q3
• Net loss narrowed to $11.7M from $39.2M year‑ago
• Adjusted gross margin expanded by 230 basis points to 42.8%
• Q3 revenue stable at $118.8M versus $118.6M
• Cash increased to $32.4M as of Sep 30, 2025

Negative

• Net inventories rose to $65.8M, up 9.8% year‑over‑year
• Company still posted a net loss of $11.7M for Q3
• E‑commerce channel performance was softer in the quarter

Insights

Equity Analyst

Purple shows clear operational improvement: smaller net loss, positive adjusted EBITDA, and maintained full‑year guidance.

Revenue of $118.8 million in Q3 2025 was essentially flat year‑over‑year while gross profit rose to $50.9 million and adjusted gross margin expanded to 42.8%, a 230 basis‑point improvement versus the prior year. Adjusted EBITDA turned positive to $0.2 million from a loss last year, driven by manufacturing scale at the Georgia facility and cost reductions after the restructuring.

The business depends on continued product rollout and wholesale expansion: management cites Rejuvenate 2.0 shipments and the Mattress Firm partnership as growth drivers, and the company reiterates full‑year guidance of revenue $465 to $485 million and adjusted EBITDA breakeven to $10 million. Key financial risks disclosed include elevated inventories of $65.8 million and tariff pressures that compressed prior margins; those items could influence near‑term cash conversion despite a cash balance of $32.4 million as of September 30, 2025.

Watch the rollout and demand signals over the next two quarters: sequential gross‑margin trends, wholesale expansion metrics (pace of Mattress Firm placements and showroom performance), inventory turns, and whether adjusted EBITDA stays sustainably positive through year‑end 2025. These indicators will clarify if the turnaround translates into durable profitability.

Purple Achieves Improved Net Loss and Positive Adjusted EBITDA, Advancing Its Profitability Turnaround

Rejuvenate 2.0 Drives Continued Product and Brand Momentum

Mattress Firm Rollout Remains on Track, Supporting Growth in Premium Segment

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.

"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."

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."

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.

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.  

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.

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.

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.

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.

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.

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.

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.

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 3,800 retailers nationwide.

Purple
Less pain. Better sleep.

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.

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.

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
stacy.turnof@edelmansmithfield.com
917-362-2581

PURPLE INNOVATION, INC. Condensed Consolidated Balance Sheets (unaudited – in thousands, except for par value)
		September 30,				December 31,
		2025				2024
Assets
Current assets:
Cash and cash equivalents		$	32,358			$	29,011
Accounts receivable, net			25,210				33,057
Inventories			65,770				56,863
Prepaid expenses			7,401				6,023
Other current assets			5,667				1,414
Total current assets			136,406				126,368
Property and equipment, net			79,495				93,874
Operating lease right-of-use assets			70,668				75,516
Intangible assets, net			6,895				8,890
Other long-term assets			8,657				3,197
Total assets		$	302,121			$	307,845
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable		$	35,661			$	40,639
Accrued compensation			7,765				9,415
Customer prepayments			5,209				6,411
Accrued rebates and allowances			13,820				10,013
Accrued warranty liabilities – current portion			7,635				6,114
Operating lease obligations – current portion			16,379				15,661
Other current liabilities			10,628				12,750
Total current liabilities			97,097				101,003
Related party debt			102,889				55,394
Accrued warranty liabilities, net of current portion			24,163				26,091
Operating lease obligations, net of current portion			80,837				87,072
Warrant liabilities			22,032				16,067
Other long-term liabilities			2,010				2,009
Total liabilities			329,028				287,636
Commitments and contingencies (Note 13)
Stockholders' equity (deficit):
Class A common stock; $0.0001 par value, 210,000 shares authorized; 108,246 issued and outstanding at September 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; 163 issued and outstanding at September 30, 2025, and at December 31, 2024			—				—
Additional paid-in capital			595,118				594,053
Accumulated deficit			(622,068)				(573,866
Total stockholders' equity (deficit) attributable to Purple Innovation, Inc.			(26,939)				20,198
Noncontrolling interest			32				11
Total stockholders' equity (deficit)			(26,907)				20,209
Total liabilities and stockholders' equity (deficit)		$	302,121			$	307,845

 

PURPLE INNOVATION, INC. Condensed Consolidated Statements of Operations (unaudited – in thousands, except per share amounts)
		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2025				2024				2025				2024
Revenues, net		$	118,766			$	118,598			$	328,037			$	358,902
Cost of revenues:
Cost of revenues			67,915				70,546				197,462				220,190
Cost of revenues - restructuring related charges			—				12,859				995				12,859
Total cost of revenues			67,915				83,405				198,457				233,049
Gross profit			50,851				35,193				129,580				125,853
Operating expenses:
Marketing and sales			40,120				42,939				107,362				125,778
General and administrative			15,200				17,266				44,678				55,111
Research and development			2,367				2,920				6,997				10,572
Restructuring, impairment and other related charges			5,290				18,881				11,387				18,881
Total operating expenses			62,977				82,006				170,424				210,342
Operating loss			(12,126)				(46,813)				(40,844)				(84,489)
Other income (expense):
Interest expense			(8,203)				(4,394)				(20,424)				(13,029)
Other income, net			1,742				7,165				1,812				11,612
Loss on extinguishment of debt			—				—				—				(3,394)
Change in fair value – warrant liabilities			6,892				4,795				11,319				(111)
Total other income (expense), net			431				7,566				(7,293)				(4,922)
Net loss before income taxes			(11,695)				(39,247)				(48,137)				(89,411)
Income tax expense			(53)				(63)				(148)				(176)
Net loss			(11,748)				(39,310)				(48,285)				(89,587)
Net loss attributable to noncontrolling interest			(28)				(82)				(83)				(169)
Net loss attributable to Purple Innovation, Inc.		$	(11,720)			$	(39,228)			$	(48,202)			$	(89,418)
Net loss per share:
Basic		$	(0.11)			$	(0.36)			$	(0.45)			$	(0.84)
Diluted		$	(0.11)			$	(0.36)			$	(0.45)			$	(0.84)
Weighted average common shares outstanding:
Basic			108,245				107,508				108,026				107,008
Diluted			108,409				107,508				108,191				107,008

 

PURPLE INNOVATION, INC. Condensed Consolidated Statements of Cash Flows (unaudited – in thousands)
		Nine Months Ended September 30,
		2025				2024
Cash flows from operating activities:
Net loss		$	(48,285)			$	(89,587)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization			19,659				27,448
Non-cash interest			9,537				5,303
Paid-in-kind interest			11,266				7,028
Non-cash restructuring, impairment and other related charges			3,775				20,115
Loss on extinguishment of debt			—				3,394
Loss on disposal of property and equipment			318				770
Change in fair value – warrant liabilities			(11,319)				111
Stock-based compensation			1,265				2,108
Changes in operating assets and liabilities:
Accounts receivable			7,847				8,140
Inventories			(8,907)				2,971
Prepaid expenses and other assets			755				378
Operating leases, net			(2,080)				(2,105)
Accounts payable			(4,464)				(16,558)
Accrued compensation			(1,650)				10,045
Customer prepayments			(1,202)				(1,940)
Accrued rebates and allowances			307				(3,203)
Accrued warranty liabilities			(407)				(621)
Other accrued liabilities			(4,445)				1,592
Net cash used in operating activities			(28,030)				(24,611)
Cash flows from investing activities:
Sale of property and equipment			464				—
Purchase of property and equipment			(6,076)				(6,160)
Investment in intangible assets			(454)				(221)
Net cash used in investing activities			(6,066)				(6,381)
Cash flows from financing activities:
Proceeds from related party loan			39,000				61,000
Payments on term loan			—				(25,000)
Payments on revolving line of credit			—				(5,000)
Payments for debt issuance costs			(1,557)				(3,466)
Net cash provided by financing activities			37,443				27,534
Net increase (decrease) in cash and cash equivalents			3,347				(3,458)
Cash and cash equivalents, beginning of the year			29,011				26,857
Cash and cash equivalents, end of the period		$	32,358			$	23,399

PURPLE INNOVATION, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(In thousands)

Management believes that the use of the following 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. These non-GAAP financial measures are EBITDA, adjusted EBITDA, adjusted operating expenses, adjusted net loss and adjusted net loss per diluted share. Other companies may calculate these non-GAAP measures differently than we do. These non-GAAP measures have limitations as analytical tools, and you should not consider them in isolation or as a substitute for our financial results prepared in accordance with GAAP.

Reconciliation of GAAP Net Income (Loss) to Non-GAAP EBITDA and Adjusted EBITDA

A reconciliation of GAAP net income (loss) to the non-GAAP measures of EBITDA and adjusted EBITDA is provided below. EBITDA represents net income (loss) before interest expense, income tax expense, other income, net, and depreciation and amortization. Adjusted EBITDA represents EBITDA excluding costs incurred due to changes in the fair value of the warrant liability, debt extinguishment, stock-based compensation expense, restructuring related expenses, loss on project write-off, nonrecurring and debt issuance legal fees, Board special committee costs, executive interim and search costs, severance cost, showroom opening and closing costs and non-operating facility expense. We believe EBITDA and Adjusted EBITDA provide additional useful information with respect to the impact of various adjustments and provide meaningful measures of our operating performance.

		Three Months Ended  September 30,								Nine Months Ended September 30,
		2025				2024				2025				2024
GAAP net loss		$	(11,748)				(39,310)				(48,285)				(89,587)
Interest expense			8,203				4,394				20,424				13,029
Income tax expense			53				63				148				176
Other income, net			(1,742)				(7,165)				(1,812)				(11,612)
Depreciation and amortization			9,777				14,627				19,658				27,448
EBITDA			4,543				(27,391)				(9,867)				(60,546)
Adjustments:
Change in fair value - warrant liability			(6,893)				(4,795)				(11,320)				111
Loss on extinguishment of debt			—				—				795				3,394
Stock-based compensation expense			420				791				1,265				2,108
Restructuring related charges			65				23,669				6,850				23,669
Loss on project write-off			—				—				—				1,355
Non-recurring and debt issuance legal fees			310				16				655				940
Strategic alternative costs			698				—				1,958				—
Executive interim and search costs			—				409				—				3,383
Severance costs			82				202				1,652				1,086
Showroom opening and closing costs			—				724				147				782
Non-operating facility expense			964				—				964				—
Adjusted EBITDA		$	189			$	(6,375)			$	(6,901)			$	(23,718)

Reconciliation of GAAP Gross Profit to Adjusted Gross Profit

A reconciliation of GAAP gross profit to the non-GAAP measures of adjusted gross profit is provided below. Adjusted gross profit represents net revenue less adjusted cost of revenues. Adjusted cost of revenues represents cost of revenues excluding restructuring charges recorded in cost of revenues. We believe adjusted gross margin provides additional useful information with respect to the impact of the restructuring and provides meaningful measures of our operating performance.

(in thousands)		Three Months Ended September 30,								Nine Months Ended September 30,
		2025				2024				2025				2024
Revenues, net		$	118,766			$	118,598			$	328,037			$	358,902
Total cost of revenues			67,915				83,405				198,457				233,049
Restructuring charges in cost of revenues			—				(12,859)				(995)				(12,859)
Adjusted cost of revenues			67,915				70,546				197,462				220,190
Adjusted gross profit		$	50,851			$	48,052			$	130,575			$	138,712
Adjusted gross profit %			42.8 %				40.5 %				39.8 %				38.6 %

Reconciliation of GAAP Operating Expenses to non-GAAP Adjusted Operating Expenses

Our presentation of adjusted operating expenses assumes adjustments for certain nonrecurring items that we do not believe directly reflects our current core operations. Adjusted operating expenses is a supplemental measure of operating performance that does not represent, and should not be considered, alternatives to net loss and earnings per share, as calculated in accordance with GAAP. We believe adjusted operating expenses supplements GAAP measures and enables us to more effectively evaluate our performance period-over-period. A reconciliation of operating expenses, the most directly comparable GAAP measure, to adjusted operating expenses is set forth below:

(in thousands, except per share amounts)		Three Months Ended September 30,								Nine Months Ended September 30,
		2025				2024				2025				2024
Total operating expenses		$	62,977			$	82,006			$	170,424			$	210,342
Restructuring, impairment and other related charges			(5,290)				(18,881)				(11,387)				(18,881)
Adjusted operating expenses		$	57,687			$	63,125			$	159,037			$	191,461

Reconciliation of GAAP Net Loss to non-GAAP Adjusted Net Loss and Adjusted Net Loss per Diluted Share

Our presentation of adjusted net loss assumes that all net loss is attributable to Purple Innovation, Inc. (i.e. there is no allocation of net loss to noncontrolling interests), which assumes the full exchange at the beginning of the period of all outstanding Paired Securities for shares of Class A common stock of Purple Innovation, Inc., adjusted for certain nonrecurring items that we do not believe directly reflect our core operations. Adjusted net loss per share, diluted, is calculated by dividing adjusted net loss by the total shares of Class A common stock outstanding plus any dilutive warrants, options and restricted stock as calculated in accordance with GAAP and assuming the full exchange of all outstanding Paired Securities as of the beginning of each period presented. Adjusted net loss and adjusted net loss per diluted share, are supplemental measures of operating performance that do not represent, and should not be considered, alternatives to net loss and earnings per share, as calculated in accordance with GAAP. We believe adjusted net loss and adjusted net loss per diluted share, supplement GAAP measures and enable us to more effectively evaluate our performance period-over-period. A reconciliation of net loss, the most directly comparable GAAP measure, to adjusted net loss and the computation of adjusted net loss per diluted share, are set forth below:

(in thousands, except per share amounts)		Three Months Ended September 30,								Nine Months Ended September 30,
		2025				2024				2025				2024
Net loss		$	(11,748)			$	(39,310)			$	(48,285)			$	(89,587)
Income tax (benefit) expense, as reported			53				63				148				176
Revenue reduction due to SGI Contract			941				—				1,568				—
Change in fair value – warrant liabilities			(6,892)				(4,795)				(11,319)				111
Loss on extinguishment of debt			—				—				—				3,394
Restructuring related charges			5,290				32,682				12,382				32,682
Gain on insurance proceeds			—				(7,301)				—				(11,601)
Board special committee fees			698				—				1,958				—
Adjusted net loss before income taxes			(11,658)				(18,661)				(43,548)				(64,825)
Adjusted income tax benefit(1)			3,026				4,833				11,279				16,790
Adjusted net loss		$	(8,632)			$	(13,828)			$	(32,269)			$	(48,035)
Adjusted net loss per share, diluted		$	(0.08)			$	(0.13)			$	(0.30)			$	(0.45)
Adjusted weighted-average shares outstanding, diluted(2)			108,409				107,703				108,191				107,203

(1) Represents the estimated effective tax rate of 25.9% for the three and nine months ended September 30, 2025 and 2024, applied to adjusted net income before income taxes. The estimated effective tax rates are what the Company would be subject to and consist of the combined federal statutory tax rate and the Company's blended state tax rates.

(2) Assumes options and restricted stock units calculated in accordance with GAAP and the full exchange of all outstanding Paired Securities for shares of Class A common stock as of the beginning of the period.

A reconciliation of net income (loss) per share, diluted, to adjusted net loss per diluted share is set forth below for the three and nine months ended September 30, 2025 and 2024:

		For the Three Months Ended
		September 30, 2025												September 30, 2024
		Net Loss				Weighted Average  Shares,  Diluted				Net Income per Share, Diluted				Net Loss				Weighted Average Shares, Diluted				Net Income per Share, Diluted
Net loss attributable to Purple Innovation Inc.(1)		$	(11,720)				108,409				(0.11)			$	(39,228)				107,508			$	(0.36)
Assumed exchange of shares(2)			(28)				—								(82)				195
Net loss			(11,748)												(39,310)
Adjustments to arrive at adjusted loss before taxes(3)			90												20,649
Adjusted loss before taxes			(11,658)												(18,661)
Adjusted income tax benefit(4)			3,026												4,833
Adjusted net loss		$	(8,632)				108,409				(0.08)			$	(13,828)				107,703			$	(0.13)

(1) Represents net loss attributable to Purple Innovation, Inc. and the associated weighted average diluted shares, of Class A common stock outstanding. For the three months ended September 30, 2025, the Paired Securities are included in the beginning weighted average shares, diluted.

(2) Assumes the full exchange of all outstanding Paired Securities for shares of Class A common stock as of the beginning of the period if not already included in weighted average diluted shares in footnote (1) above. Also assumes the addition of net income attributable to noncontrolling interests corresponding with the assumed exchange of the Paired Securities for shares of Class A common stock.

(3) Represents the total impact of all adjustments identified in the adjusted net income table above to arrive at adjusted income before income taxes. Also assumes the dilutive warrants, options and restricted stock as calculated in accordance with GAAP.

(4) Represents the estimated effective tax rate of 25.9% for the three months ended September 30, 2025 and 2024, applied to adjusted net income before income taxes. The estimated effective tax rates are what the Company would be subject to and consist of the combined federal statutory tax rate and the Company's blended state tax rates assuming no valuation allowance.

 

		For the Nine Months Ended
		September 30, 2025												September 30, 2024
		Net Income				Weighted Average  Shares,  Diluted				Net Income per Share, Diluted				Net Income				Weighted Average Shares, Diluted				Net Income per Share, Diluted
Net loss attributable to Purple Innovation Inc.(1)		$	(48,202)				108,191				(0.45)			$	(89,418)				107,008			$	(0.84)
Assumed exchange of shares(2)			(83)				—								(169)				195
Net loss			(48,285)												(89,587)
Adjustments to arrive at adjusted loss before taxes(3)			4,737												24,762
Adjusted loss before taxes			(43,548)												(64,825)
Adjusted income tax benefit(4)			11,279												16,790
Adjusted net loss		$	(32,269)				108,191				(0.30)			$	(48,035)				107,203			$	(0.45)

(1) Represents net loss attributable to Purple Innovation, Inc. and the associated weighted average diluted shares, of Class A common stock outstanding. For the nine months ended September 30, 2025, the Paired Securities are included in the beginning weighted average shares, diluted.

(2) Assumes the full exchange of all outstanding Paired Securities for shares of Class A common stock as of the beginning of the period if not already included in weighted average diluted shares in footnote (1) above. Also assumes the addition of net income attributable to noncontrolling interests corresponding with the assumed exchange of the Paired Securities for shares of Class A common stock.

(3) Represents the total impact of all adjustments identified in the adjusted net income table above to arrive at adjusted income before income taxes. Also assumes the dilutive warrants, options and restricted stock as calculated in accordance with GAAP.

(4) Represents the estimated effective tax rate of 25.9% for the nine months ended September 30, 2025 and 2024, applied to adjusted net income before income taxes. The estimated effective tax rates are what the Company would be subject to and consist of the combined federal statutory tax rate and the Company's blended state tax rates assuming no valuation allowance.

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/purple-innovation-reports-third-quarter-2025-results-302604624.html

SOURCE Purple Innovation, LLC

FAQ

What were Purple (PRPL) Q3 2025 revenue and adjusted EBITDA?

Q3 2025 revenue was $118.8M and adjusted EBITDA was $0.2M.

How did Purple (PRPL) gross margin change in Q3 2025?

Adjusted gross margin expanded by 230 basis points to 42.8% in Q3 2025.

What guidance did Purple (PRPL) give for full‑year 2025?

The company maintained full‑year 2025 guidance of $465–$485M revenue and adjusted EBITDA breakeven to $10M.

How much cash did Purple (PRPL) report at September 30, 2025?

Purple reported $32.4M in cash and cash equivalents as of September 30, 2025.

What operational drivers did Purple (PRPL) cite for improved results in Q3 2025?

Management cited Rejuvenate 2.0, the Mattress Firm rollout, showroom strength, and manufacturing efficiencies.

Did Purple (PRPL) reduce expenses in Q3 2025?

Yes; operating expenses declined 23.2% to $63.0M, driven by lower restructuring and related charges.