Purple Innovation (PRPL) AI Stock Analysis

• Market Cap: $89.09M
• Dividend Yield: N/A
• Average Volume (3M): 950.92K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.67
• Revenue Growth: -13.19%
• EPS Growth: 20.95%
• Country: US
• Employees: 1,200
• Sector: Consumer Cyclical
• Sector Strength: 74
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): -0.11
• Shares Outstanding: 108,243,940
• 10 Day Avg. Volume: 713,669
• 30 Day Avg. Volume: 950,923
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.70
• Enterprise Value/Revenue: 0.53
• Enterprise Value/Gross Profit: 1.42
• Enterprise Value/Ebitda: -6.00
• 1Y Price Target: $1.60
• Price Target Upside: 100.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 51 Neutral
• Price Target: $1.00 ▲(25.00% Upside)

The overall stock score reflects significant financial challenges, with declining revenues and profitability weighing heavily. While technical signals are neutral and corporate events show potential growth, the valuation remains unattractive due to negative earnings. The earnings call highlights mixed prospects, with strategic efforts to drive growth but ongoing pressures on margins and revenues.

Purple Innovation Business Overview & Revenue Model

Company Description

Purple Innovation, Inc. designs and manufactures mattresses, pillows, and cushions. The company also offers bases, foundations, sheets, mattress protectors, bed frames, seat cushions, weighted blankets, and duvets, as well as pet beds. It markets and sells its products through its e-commerce online channels retail brick-and-mortar wholesale partners, and third-party online retailers, as well as through Purple retail showrooms. The company was founded in 2010 and is headquartered in Lehi, Utah.

How the Company Makes Money

Purple Innovation makes money primarily through the sale of its comfort products, which are sold directly to consumers via its e-commerce platform and through a network of retail partners. The company's revenue model is based on direct-to-consumer sales, which allows it to maintain competitive pricing and high profit margins. Key revenue streams include the sale of mattresses, which represent the largest portion of its income, followed by pillows and seat cushions. Purple also benefits from strategic partnerships with major retailers, which help to expand its market reach and drive additional sales volume. Additionally, the company invests in marketing and innovation to maintain its brand presence and attract a diverse customer base.

Purple Innovation Financial Statement Overview

Summary

Purple Innovation is facing significant financial challenges with declining revenues, high debt levels, and negative free cash flow. Despite some improvements in cash flow, the overall financial health remains precarious, indicating potential liquidity and debt management risks.

Income Statement

Purple Innovation has faced declining revenues over the past few years, with a significant drop from $724.9 million in 2021 to $487.9 million in 2024. The company has struggled with profitability, evidenced by negative net income and EBIT margins. The gross profit margin has also decreased, indicating challenges in maintaining cost efficiency. Overall, the income statement reflects a company under pressure with declining sales and profitability.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio due to significant liabilities and low stockholders' equity, which has decreased substantially from $145.8 million in 2021 to $20.2 million in 2024. The equity ratio is low, indicating heavy reliance on debt financing. These factors suggest financial instability and potential risks in meeting long-term obligations.

Cash Flow

Purple Innovation's cash flow statement reveals negative free cash flow, although there has been some improvement in operating cash flow compared to previous years. The company has managed to reduce its negative free cash flow from $69.9 million in 2023 to $25.1 million in 2024. However, the reliance on financing activities to support cash flow needs indicates potential liquidity concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	456.84M	487.88M	510.54M	573.20M	725.00M	648.47M
Gross Profit	169.20M	181.13M	171.82M	208.09M	293.75M	305.10M
EBITDA	-40.01M	-45.17M	-94.13M	141.47M	12.77M	-260.98M
Net Income	-84.19M	-97.90M	-120.76M	-92.47M	3.11M	-236.87M
Balance Sheet
Total Assets	303.79M	307.85M	390.63M	433.33M	642.47M	554.73M
Cash, Cash Equivalents and Short-Term Investments	34.25M	29.01M	26.86M	41.75M	91.62M	122.95M
Total Debt	100.92M	158.13M	152.97M	150.86M	182.32M	93.58M
Total Liabilities	319.37M	287.64M	275.02M	254.44M	495.93M	394.48M
Stockholders Equity	-15.64M	20.20M	115.42M	177.96M	145.77M	159.91M
Cash Flow
Free Cash Flow	-26.62M	-25.09M	-69.90M	-66.93M	-87.96M	42.12M
Operating Cash Flow	-19.18M	-17.85M	-54.66M	-28.77M	-30.90M	81.26M
Investing Cash Flow	-7.42M	-7.53M	-16.06M	-34.50M	-57.06M	-39.14M
Financing Cash Flow	37.44M	27.53M	55.83M	13.41M	56.62M	47.36M

Purple Innovation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRPL, the sentiment is Neutral. The current price of 0.8 is above the 20-day moving average (MA) of 0.80, above the 50-day MA of 0.77, and below the 200-day MA of 0.84, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 49.89 is Neutral, neither overbought nor oversold. The STOCH value of 16.78 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PRPL.

Purple Innovation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ETD	74 Outperform	$752.22M	14.70	10.69%	6.69%	-4.89%	―
Sector *	61 Neutral	$16.55B	10.17	-9.03%	3.33%	1.46%	-22.85%
BSET	54 Neutral	$140.60M	56.89	1.46%	4.94%	-7.22%	―
PRPL	51 Neutral	$89.09M	―	-331.75%	―	-13.19%	20.95%
HOFT	50 Neutral	$99.91M	―	-5.55%	9.57%	-3.89%	-391.05%
ATER	45 Neutral	$11.72M	―	-35.33%	―	-26.36%	82.23%
SNBR	44 Neutral	$207.22M	―	9.10%	―	-14.40%	-2.14%

Purple Innovation Corporate Events

Purple Innovation Amends Executive Bonus Arrangements

In July 2025, Purple Innovation, Inc. amended its special bonus arrangements for key executives Robert DeMartini, Todd Vogensen, and Eric Haynor. The amendments stipulate that the bonuses, initially due in August 2025, will be paid in two installments: 35% in August 2025 and 65% in January 2026, contingent upon the executives’ continued service. Additionally, a 15% bonus on the January 2026 payment is offered, with conditions tied to employment continuity or a change in company control. These changes aim to incentivize the executives’ ongoing commitment to the company.

The most recent analyst rating on (PRPL) stock is a Buy with a $1.50 price target. To see the full list of analyst forecasts on Purple Innovation stock, see the PRPL Stock Forecast page.

Purple Innovation Approves Executive Incentive Bonuses

On July 17, 2025, Purple Innovation‘s Board of Directors approved long-term incentive cash bonuses for key executives, including Robert DeMartini, Todd Vogensen, and Eric Haynor, with respective amounts of $1,500,000, $450,000, and $393,750. These bonuses are contingent on performance measures such as cumulative net revenue, adjusted EBITDA, and EBITDA margin over a specified period from January 1, 2025, to December 31, 2027. In the event of a company change in control, the bonuses will be determined based on either threshold metrics or actual performance, whichever is greater.

The most recent analyst rating on (PRPL) stock is a Buy with a $1.50 price target. To see the full list of analyst forecasts on Purple Innovation stock, see the PRPL Stock Forecast page.

Purple Innovation Stockholders Approve Key Proposals

On June 10, 2025, Purple Innovation‘s stockholders approved several key proposals during their Annual Meeting. These included the election of nine directors, advisory approval of executive compensation, and the ratification of BDO USA, LLP as the independent accounting firm for the fiscal year ending December 31, 2025. These decisions are pivotal for the company’s governance and financial oversight, potentially impacting its strategic direction and stakeholder confidence.

The most recent analyst rating on (PRPL) stock is a Buy with a $1.50 price target. To see the full list of analyst forecasts on Purple Innovation stock, see the PRPL Stock Forecast page.

Purple Innovation Expands Credit Facility by $20 Million

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.

Purple Innovation Accelerates NOL Rights Plan Expiration

On June 27, 2024, Purple Innovation‘s Board of Directors adopted a stockholder rights agreement, the NOL Rights Plan, to protect $238 million in net operating losses from potential tax limitations due to ownership changes. However, on May 6, 2025, the Board decided to accelerate the plan’s expiration to May 7, 2025, to prevent artificial suppression of share price and remove barriers to new investment, following a strategic review initiated in March 2025.