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Purple Innovation Expands Credit Facility by $20 Million

Story Highlights
  • Purple Innovation increased its loan facility by $20 million to support expansion.
  • Purple’s expanded deal with Somnigroup will boost its presence in Mattress Firm stores.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.

Purple Innovation ( (PRPL) ) just unveiled an update.

On May 2, 2025, Purple Innovation entered into a Second Amendment to its credit agreement, increasing its senior secured term loan facility by $20 million, bringing the total to $100 million. This financial move aims to support Purple’s expansion and investments in innovation and advertising. Additionally, Purple announced a significant expansion of its commercial relationship with Somnigroup International, which will see Purple’s presence in Mattress Firm stores grow from 5,000 to 12,000 mattress slots. This expansion is expected to generate approximately $70 million in incremental net revenue starting in 2026. The strategic supply agreement with Tempur Sherwood, a subsidiary of Somnigroup, will allow Sherwood exclusive rights to assemble certain Purple product lines, while Purple retains its GelFlex Grid technology.

Spark’s Take on PRPL Stock

According to Spark, TipRanks’ AI Analyst, PRPL is a Neutral.

Purple Innovation’s overall score of 45 reflects significant financial challenges, with declining revenue and high leverage being key concerns. Technical analysis suggests bearish momentum, while the valuation presents speculative opportunities. The corporate event announcement about exploring strategic options provides a positive outlook, potentially improving the company’s financial situation.

To see Spark’s full report on PRPL stock, click here.

More about Purple Innovation

Purple Innovation, Inc. is a comfort innovation company known for creating the ‘World’s First No Pressure™ Mattress.’ It specializes in mattresses, pillows, and other sleep-related products featuring its proprietary GelFlex Grid technology, which is designed to provide superior pressure relief and temperature balance. Purple products are available online, in over 55 Purple stores, and in more than 3,000 retailers nationwide.

Average Trading Volume: 740,423

Technical Sentiment Signal: Sell

Current Market Cap: $71.61M

Find detailed analytics on PRPL stock on TipRanks’ Stock Analysis page.

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