Purple Innovation’s Q2 2025 Results and Future Outlook

Purple Innovation, Inc. ( (PRPL) ) has released its Q2 earnings. Here is a breakdown of the information Purple Innovation, Inc. presented to its investors.

Purple Innovation, Inc., a leader in sleep technology, is renowned for its innovative mattresses and comfort products that promise ‘less pain, better sleep.’ The company operates primarily in the premium mattress sector, leveraging its patented GelFlex Grid technology to offer superior comfort and support.

In its second quarter of 2025 earnings report, Purple Innovation reported a net loss that exceeded expectations, although it saw an improvement in its adjusted EBITDA margin by 120 basis points compared to the previous year. The company highlighted strong demand for its Rejuvenate 2.0 collection, which more than doubled the launch performance of its predecessor, Rejuvenate 1.0, in the direct-to-consumer market. Additionally, the rollout with Mattress Firm is progressing as planned.

Key financial metrics from the report indicate a 12.6% decline in net revenue to $105.1 million, attributed to shipment delays and reduced wholesale door counts. Gross profit also decreased to $37.7 million, with a gross margin of 35.9%, impacted by tariff costs and the launch of new products. However, operating expenses were reduced by 18.2% due to lower advertising spend and restructuring benefits. Despite a net loss of $17.3 million, the company’s adjusted EBITDA improved to a loss of $2.4 million from $4.1 million last year.

Looking ahead, Purple Innovation remains optimistic about its growth prospects, reaffirming its 2025 guidance with expected full-year revenue between $465 to $485 million and adjusted EBITDA ranging from flat to $10 million. The company anticipates sequential growth in the latter half of the year, driven by the successful launch of Rejuvenate 2.0 and the expansion of its partnership with Mattress Firm.