Purple Innovation Stock Earnings Reports

Purple reported Q3 2025 revenue of $118.8M (roughly flat YoY) and achieved positive adjusted EBITDA for the quarter. Gross margin improved materially to ~42.8% (up ~700 bps sequentially), reflecting cost savings from the completed restructuring, sourcing shifts, and better warranty/scrap trends. Key commercial drivers included strong showroom performance (showroom net revenue +6.5%, 12% comps, 76% of showrooms profitable YTD), successful Rejuvenate 2.0 product launch (premium positioning, doubled unit sales vs. prior version), and expanded wholesale distribution—most notably the Mattress Firm rollout (≈9,200 slots now, on pace for 12,000 by March 2026; company projects ~$20M incremental revenue this year and ~$70M in 2026). E-commerce declined (~-10%) but showed sequential improvement after a site refresh and stronger Amazon fulfillment. Operating expenses were down ~23% YoY; adjusted operating expenses down ~8.6% YoY. Cash was $32.4M at quarter end and inventories rose modestly. Management reiterated FY2025 guidance of $465–485M revenue and adjusted EBITDA between breakeven and $10M positive, expects Q4 gross margin around ~40%, and sees a path to positive cash generation in 2026. The Board is conducting a review of strategic alternatives (e.g., merger or sale) and the process remains ongoing. Overall, investors should note margin recovery and cost structure improvements driving near-term profitability while growth initiatives (product innovation, Mattress Firm/Costco expansion, marketing) aim to accelerate top-line growth into 2026.