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Purple Innovation (PRPL) investor relations material

Purple Innovation Q3 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q3 2025 earnings summary4 Nov, 2025

Executive summary

  • Q3 2025 revenue was $118.8 million, up slightly year-over-year, with wholesale up 7.9%, showrooms up 6.5%, and e-commerce down 9.8%.

  • Gross margin improved to 42.8% from 29.7% year-over-year, driven by restructuring, cost savings, and operational efficiencies.

  • Net loss narrowed to $11.7 million from $39.2 million in Q3 2024, with positive adjusted EBITDA of $0.2 million.

  • Strategic focus on innovation, marketing, and expanding retail partnerships, especially with Mattress Firm and Costco.

  • Completed restructuring program, resulting in a leaner organization and $25–$30 million in annual cost savings.

Financial highlights

  • Net revenue for Q3 2025 was $118.8 million, up from $118.6 million in Q3 2024.

  • Gross profit increased to $50.9 million (42.8% margin) from $35.2 million (29.7%) year-over-year.

  • Operating expenses fell 23.2% to $63 million, with adjusted operating expenses down to $57.7 million.

  • Net loss improved to $11.7 million from $39.2 million; adjusted EBITDA was $0.2 million, up from a loss of $6.4 million last year.

  • Adjusted net loss per share was $0.08 vs. $0.13 last year.

Outlook and guidance

  • Maintained full-year 2025 revenue guidance of $465–$485 million and adjusted EBITDA between break-even and $10 million.

  • Q4 expected to see continued top-line growth from holiday sales, Costco expansion, and Mattress Firm rollout.

  • Gross margin for Q4 expected to remain around 40%, slightly lower than Q3 due to promotional activity.

  • Anticipates $70 million incremental revenue in 2026 from Mattress Firm expansion.

  • Clear path to positive cash generation in 2026.

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Frequently asked questions

Purple Innovation, Inc. designs and manufactures mattresses, pillows, and cushions that include elevated cells of air. The cell structure design in the foam core allows person-specific shaping and support for alignment of the spine and important body parts, including hip and back bones. The company's mattress is made for both children and adults. Purple Innovation distributes its products through different websites. Purple Innovation, Inc. is based in Lehi, Utah.

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