Purple Innovation (PRPL) investor relations material

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.