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Purple Innovation (PRPL)
NASDAQ:PRPL
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Purple Innovation
(NASDAQ:PRPL)
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Rating:50Neutral
Price Target:
$0.80
▼(-2.68% Downside)
Purple Innovation's overall stock score reflects significant financial challenges, with declining revenues and high leverage being major concerns. Technical indicators and valuation metrics are unfavorable, further weighing on the score. Despite some positive developments in the earnings call and corporate events, the risks and uncertainties remain substantial.
Positive Factors
Revenue Growth
A slight increase in revenue indicates potential stabilization and recovery, suggesting improved market positioning and operational strategies.
Gross Margin Improvement
Improved gross margins reflect better cost management and pricing strategies, enhancing profitability potential and competitive edge.
Cost Savings and Restructuring
Significant cost savings from restructuring enhance operational efficiency and financial health, supporting long-term sustainability.
Negative Factors
Declining Revenues
Persistent revenue decline indicates challenges in market demand and competitive pressures, impacting long-term growth prospects.
High Leverage
High leverage increases financial risk, limiting flexibility and potentially impacting the company's ability to invest in growth opportunities.
E-commerce Revenue Decline
Declining e-commerce revenue highlights challenges in digital sales channels, crucial for future growth in an increasingly online market.
Purple Innovation (PRPL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$87.51M
Dividend YieldN/A
Average Volume (3M)398.96K
Price to Earnings (P/E)―
Beta (1Y)1.37
Revenue Growth-9.47%
EPS Growth48.11%
CountryUS
Employees1,200
SectorConsumer Cyclical
Sector Strength84
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)-0.08
Shares Outstanding108,243,940
10 Day Avg. Volume517,967
30 Day Avg. Volume398,960
Financial Highlights & Ratios
PEG Ratio0.04
Price to Book (P/B)4.14
Price to Sales (P/S)0.17
P/FCF Ratio-3.33
Enterprise Value/Market Cap0.00
Enterprise Value/Revenue0.00
Enterprise Value/Gross Profit0.00
Enterprise Value/Ebitda0.00
Forecast
1Y Price Target
$1.60Price Target Upside95.12% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Purple Innovation Business Overview & Revenue Model
Company DescriptionPurple 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 MoneyPurple Innovation generates revenue primarily through direct-to-consumer sales of its mattresses and sleep products via its e-commerce platform, as well as through partnerships with major retailers. The company employs a subscription model for certain products, allowing customers to receive replacement items at regular intervals. Additionally, Purple benefits from a strong brand presence and customer loyalty, which are bolstered by strategic marketing efforts, influencer partnerships, and promotional campaigns. The company also explores licensing opportunities for its patented materials and technologies, further diversifying its revenue streams.
Purple Innovation Earnings Call Summary
Earnings Call Date:Nov 04, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 12, 2026
Earnings Call Sentiment Positive
Purple Innovation displayed significant progress with revenue growth, gross margin improvement, successful product launches, and strategic partnerships, despite challenges in e-commerce and market softness. The positive developments slightly outweigh the challenges.Q3-2025 Updates
Positive Updates
Revenue Growth and Positive Adjusted EBITDA
Purple Innovation delivered revenue of $118.8 million, up slightly compared to last year, and achieved a positive adjusted EBITDA, demonstrating progress towards sustainable growth.
Gross Margin Improvement
Gross margin improved nearly 700 basis points sequentially to approximately 43%, even with tariff-related headwinds.
Successful Product Launches
Rejuvenate 2.0 sold more than twice the number of units compared to Rejuvenate 1.0, with more than 3,000 units sold at an average sales price of $5,800.
Expansion with Mattress Firm
Purple products are now represented in nearly 9,200 slots, with plans to reach 12,000 slots by 2026, contributing roughly $20 million in incremental revenue this year.
Showroom Sales Growth
Showroom sales grew 6.5% to $22 million, with a 12% comparable sales growth, marking strong performance in the quarter.
Cost Savings and Restructuring
The restructuring program is expected to deliver $25 million to $30 million in savings annually, reducing fixed costs and improving operational efficiency.
Negative Updates
E-commerce Revenue Decline
E-commerce was down 10%, but showed early signs of improvement following a site refresh and growing traction with Amazon.
Soft Market Conditions
The market was mixed and soft post-Labor Day, affecting revenue pacing and contributing to a flat revenue year-over-year.
Adjusted Net Loss
Adjusted net loss for the third quarter was $8.6 million, compared to an adjusted net loss of $13.8 million in the prior year.
Company Guidance
During the Purple Innovation Third Quarter 2025 Earnings Call, the company reported a slight increase in revenue to $118.8 million, signaling a positive turn after previous declines. The gross margin improved significantly by nearly 700 basis points to approximately 43%, despite facing tariff-related challenges. The adjusted EBITDA was positive, aligned with expectations, and the company remains on track to achieve a positive adjusted EBITDA for the year. Purple Innovation's strategic initiatives, including the rollout of the Rejuvenate 2.0 mattress collection and expansion within the Mattress Firm partnership, contributed to a 6.5% increase in showroom sales and an 8% growth in wholesale revenue. However, e-commerce sales were down by 10%, although they showed early signs of recovery following a website refresh. The restructuring program initiated in August 2024 has led to significant cost savings, with fixed costs reduced and an expected $25 million to $30 million in annual savings. The company's guidance for the full year 2025 anticipates revenue between $465 million and $485 million and adjusted EBITDA between breakeven and $10 million, with a clear path to positive cash generation in 2026.Purple Innovation Financial Statement Overview
Summary
Purple Innovation is facing significant financial challenges with declining revenues, persistent losses, high leverage, and reduced equity. Despite some improvements in cash flow, the company's financial health remains precarious, with potential risks related to liquidity and debt management.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.45
Neutral
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.40
Negative
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.50
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 457.01M | 487.88M | 510.54M | 573.20M | 726.23M | 648.47M |
| Gross Profit | 184.86M | 181.13M | 171.82M | 208.09M | 294.97M | 305.10M |
| EBITDA | -4.29M | -45.17M | -94.13M | 141.47M | 18.94M | -260.98M |
| Net Income | -56.68M | -97.90M | -120.76M | -92.47M | 4.03M | -236.87M |
Balance Sheet | ||||||
| Total Assets | 302.12M | 307.85M | 390.63M | 433.33M | 642.47M | 554.73M |
| Cash, Cash Equivalents and Short-Term Investments | 32.36M | 29.01M | 26.86M | 40.05M | 91.62M | 122.95M |
| Total Debt | 200.10M | 158.13M | 152.97M | 152.96M | 184.62M | 95.58M |
| Total Liabilities | 329.03M | 287.64M | 275.02M | 258.16M | 495.93M | 487.19M |
| Stockholders Equity | -26.94M | 20.20M | 115.42M | 174.26M | 145.77M | 67.20M |
Cash Flow | ||||||
| Free Cash Flow | -28.49M | -25.09M | -69.90M | -66.93M | -87.96M | 42.12M |
| Operating Cash Flow | -21.27M | -17.85M | -54.66M | -28.77M | -30.90M | 81.26M |
| Investing Cash Flow | -7.21M | -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
Positive
0.82
Price Trends
0.81
Positive
0.90
Negative
0.82
Positive
Market Momentum
<0.01
Negative
57.92
Neutral
88.46
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRPL, the sentiment is Positive. The current price of 0.82 is above the 20-day moving average (MA) of 0.76, above the 50-day MA of 0.81, and below the 200-day MA of 0.82, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 57.92 is Neutral, neither overbought nor oversold. The STOCH value of 88.46 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PRPL.
Purple Innovation Risk Analysis
Purple Innovation disclosed 42 risk factors in its most recent earnings report. Purple Innovation reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Purple Innovation Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $148.05M | 19.09 | 4.70% | 4.69% | -2.74% | ― | |
66 Neutral | $614.02M | 13.07 | 9.96% | 7.23% | -4.61% | -25.66% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
50 Neutral | $87.51M | -1.03 | -9999.00% | ― | -9.47% | 48.11% | |
49 Neutral | $117.18M | ― | -11.25% | 8.73% | -12.09% | -204.31% | |
48 Neutral | $8.53M | ― | -46.32% | ― | -26.81% | 40.22% | |
42 Neutral | $95.95M | ― | ― | ― | -16.95% | -88.00% |
* Consumer Cyclical Sector Average
PRPL
Purple Innovation
0.82
-0.12
-12.77%
BSET
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16.96
3.44
25.44%
ETD
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25.03
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-9.93%
HOFT
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10.75
-5.35
-33.23%
SNBR
Sleep Number
8.46
-10.79
-56.05%
ATER
Aterian
0.77
-1.51
-66.23%
Purple Innovation Corporate Events
Delistings and Listing ChangesRegulatory Filings and Compliance
Purple Innovation Faces Nasdaq Delisting Notice
Negative
Nov 6, 2025
On November 5, 2025, Purple Innovation, Inc. received a notice from Nasdaq indicating noncompliance with the minimum bid price requirement, as its stock price remained below $1.00 for 30 consecutive business days. The company has until May 4, 2026, to meet the requirement or risk delisting, with options to transfer to The Nasdaq Capital Market for an additional compliance period if necessary. Purple Innovation plans to monitor its stock price and explore options to regain compliance, but there is no assurance of success.
Delistings and Listing ChangesRegulatory Filings and Compliance
Purple Innovation Regains Nasdaq Compliance
Positive
Sep 9, 2025
On September 8, 2025, Purple Innovation, Inc. announced that it had regained compliance with the Nasdaq’s Bid Price Rule after its stock maintained a minimum bid price of $1.00 per share for ten consecutive business days. This development follows a previous notification on April 4, 2025, when the company fell out of compliance, highlighting a positive shift in its market positioning and potential stability for stakeholders.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.