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Purple Innovation
(NASDAQ:PRPL)
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Rating:41Neutral
Price Target:
$0.34
▼(-48.18% Downside)
Action:Reiterated
Date:07/08/26
PRPL scores low primarily due to weak financial performance—ongoing losses, negative free cash flow, and negative equity—despite some improvement versus prior periods and reduced debt. Technicals reinforce caution as the stock is in a clear downtrend with negative momentum. Valuation metrics are not meaningfully supportive due to a negative P/E and no dividend, while corporate events add additional uncertainty via a proposed reverse split and leadership transitions.
Positive Factors
Proprietary product technology & channels
Purple's differentiated comfort technology and mixed DTC-plus-retail distribution create a structural product and go-to-market advantage. The Purple Grid supports brand identity and higher accessory attach rates, while diversified channels reduce single-channel dependency and support scaled customer acquisition over time.
Negative Factors
Negative shareholders' equity
Accumulated losses producing negative equity materially constrain financial flexibility. This structural weakness raises refinancing and covenant risk, limits ability to absorb shocks, and increases the likelihood of dilutive capital raises or restructuring if profitability and cash generation don't sustainably improve.
Read all positive and negative factors
Positive Factors
Negative Factors
Proprietary product technology & channels
Purple's differentiated comfort technology and mixed DTC-plus-retail distribution create a structural product and go-to-market advantage. The Purple Grid supports brand identity and higher accessory attach rates, while diversified channels reduce single-channel dependency and support scaled customer acquisition over time.
Read all positive factors
Purple Innovation Key Performance Indicators (KPIs)
Any
Revenue by Channel
Shows how the company’s sales split across channels such as direct-to-consumer, wholesale/retail partners and third-party marketplaces. For Purple Innovation, channel mix drives margins, customer acquisition cost and control over brand experience—direct sales tend to deliver higher margins and better customer data, while heavy wholesale exposure can boost volume but compress pricing and leave the company vulnerable to retailer inventory and promotional cycles.
Shows how the company’s sales split across channels such as direct-to-consumer, wholesale/retail partners and third-party marketplaces. For Purple Innovation, channel mix drives margins, customer acquisition cost and control over brand experience—direct sales tend to deliver higher margins and better customer data, while heavy wholesale exposure can boost volume but compress pricing and leave the company vulnerable to retailer inventory and promotional cycles.
Data provided by:
The Fly
The FlyPurple Innovation (PRPL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$36.77M
Dividend YieldN/A
Average Volume (3M)398.96K
Price to Earnings (P/E)―
Beta (1Y)1.26
Revenue Growth-2.49%
EPS Growth6.65%
CountryUS
Employees1,100
SectorConsumer Cyclical
Sector Strength84
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)-0.58
Shares Outstanding108,825,640
10 Day Avg. Volume517,967
30 Day Avg. Volume398,960
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)-2.51
Price to Sales (P/S)0.16
P/FCF Ratio-1.78
Enterprise Value/Market Cap6.28
Enterprise Value/Revenue0.50
Enterprise Value/Gross Profit1.26
Enterprise Value/Ebitda-32.80
Forecast
1Y Price Target
$0.83Price Target Upside25.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)-0.27
Revenue Forecast (FY)$500.49M
Purple Innovation Business Overview & Revenue Model
Company Description
Purple Innovation, Inc. designs, manufactures, and sells sleep and other products in the United States and internationally. It offers mattresses, pillows, sheets, foundations, waterproof mattress protectors, bases, and seat cushions, as well as bl...
How the Company Makes Money
Purple Innovation makes money primarily by selling sleep and comfort products, with revenue largely recognized from product sales to consumers and to retail/wholesale partners. Its key revenue streams include: (1) Direct-to-consumer (DTC) sales, w...
Purple Innovation Earnings Call Summary
Earnings Call Date:Mar 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 10, 2026
Earnings Call Sentiment Positive
The call conveyed meaningful operational and financial progress — notable EBITDA and margin improvements, $25M in sustained cost savings, strong wholesale growth (Mattress Firm and Costco), and successful premium product rollouts — while also acknowledging ongoing challenges including a full-year revenue decline, persistent e-commerce weakness, a going concern note in the 10-K, and modest near-term cash balances. Management provided optimistic 2026 guidance ($500M–$520M revenue; $20M–$30M adjusted EBITDA) and expects positive free cash flow, signaling that the company believes the turnaround is durable. On balance, the positive operating and profitability momentum and clear plan to scale outweigh the remaining liquidity and top-line risks.Positive Updates
Quarterly Revenue Growth
Net revenue for Q4 2025 was $140.7 million, up 9.1% year-over-year, driven primarily by wholesale expansion (Mattress Firm and Costco).
Negative Updates
Full Year Revenue Decline
Net revenue for full year 2025 was $468.7 million, down 3.9% versus prior year, reflecting continued softness in e-commerce and overall market headwinds.
Read all updates
Q4-2025 Updates
Positive
Negative
Quarterly Revenue Growth
Net revenue for Q4 2025 was $140.7 million, up 9.1% year-over-year, driven primarily by wholesale expansion (Mattress Firm and Costco).
Read all positive updates
Company Guidance
Purple guided full-year 2026 revenue of $500 million to $520 million with adjusted EBITDA of $20 million to $30 million and gross margin sustainably above 40%; for Q1 2026 it expects revenue of $100 million to $105 million and an adjusted EBITDA loss of $7 million to $4 million, with management forecasting neutral cash burn in Q1 and positive free cash flow for 2026, roughly $10–$12 million of CapEx, $25 million of cost savings delivered in 2025 and $25–$30 million of sustainable savings going forward; for context, FY‑2025 net revenue was $468.7 million with adjusted EBITDA of $1.9 million (Q4 adjusted EBITDA $8.8 million), Q4 gross margin ~41.9% (FY gross margin ~40.2% / adjusted ~40.4%), cash of $24.3 million, net inventory $59.7 million, and debt maturities extended to April 30, 2027.Purple Innovation Financial Statement Overview
Summary
Income Statement
27
Negative
Balance Sheet
18
Very Negative
Cash Flow
22
Negative
| Breakdown | Mar 2026 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 468.73M | 487.88M | 510.54M | 573.20M | 726.23M |
| Gross Profit | 188.56M | 181.13M | 171.82M | 208.09M | 294.97M |
| EBITDA | 1.53M | -45.17M | -94.13M | 141.47M | 18.94M |
| Net Income | -51.41M | -97.90M | -120.76M | -92.47M | 4.03M |
Balance Sheet | |||||
| Total Assets | 296.26M | 307.85M | 390.63M | 433.33M | 642.47M |
| Cash, Cash Equivalents and Short-Term Investments | 24.34M | 29.01M | 26.86M | 40.05M | 91.62M |
| Total Debt | 204.29M | 158.13M | 152.97M | 152.96M | 184.62M |
| Total Liabilities | 325.93M | 287.64M | 275.02M | 258.16M | 495.93M |
| Stockholders Equity | -29.69M | 20.20M | 115.42M | 174.26M | 145.77M |
Cash Flow | |||||
| Free Cash Flow | -41.91M | -25.09M | -69.90M | -66.93M | -87.96M |
| Operating Cash Flow | -33.83M | -17.85M | -54.66M | -28.77M | -30.90M |
| Investing Cash Flow | -8.28M | -7.53M | -16.06M | -34.50M | -57.06M |
| Financing Cash Flow | 37.44M | 27.53M | 55.83M | 13.41M | 56.62M |
Purple Innovation Technical Analysis
Negative
0.66
Price Trends
0.42
Negative
0.54
Negative
0.66
Negative
Market Momentum
-0.03
Positive
32.34
Neutral
30.15
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRPL, the sentiment is Negative. The current price of 0.66 is above the 20-day moving average (MA) of 0.38, above the 50-day MA of 0.42, and below the 200-day MA of 0.66, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 32.34 is Neutral, neither overbought nor oversold. The STOCH value of 30.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PRPL.
Purple Innovation Risk Analysis
Purple Innovation disclosed 40 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 |
|---|---|---|---|---|---|---|---|
69 Neutral | $543.53M | 13.84 | 8.46% | 7.86% | -4.79% | -30.21% | |
64 Neutral | $164.45M | -7.01 | -13.04% | 7.20% | -25.67% | -96.05% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
56 Neutral | $181.82M | 32.67 | 3.24% | 4.59% | 1.96% | 122.75% | |
48 Neutral | $12.91M | -0.45 | -47.45% | ― | -43.06% | -63.35% | |
41 Neutral | $36.77M | -0.56 | 189.80% | ― | -2.49% | 6.65% |
* Consumer Cyclical Sector Average
PRPL
Purple Innovation
0.33
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-55.07%
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Purple Innovation Corporate Events
Executive/Board ChangesShareholder MeetingsStock Split
Purple Innovation boosts CEO incentives amid governance changes
Positive
Jul 7, 2026
On July 4, 2026, Purple Innovation’s board amended Chief Executive Officer Robert T. DeMartini’s employment agreement to add a $1 million incremental cash bonus, vesting through mid-2027, contingent on his continued employment and subj...
Executive/Board ChangesShareholder Meetings
Purple Innovation Shareholders Back Board, Pay and Auditor
Positive
Jun 10, 2026
At its June 9, 2026 annual meeting, Purple Innovation shareholders elected eight directors to serve until the next annual meeting or until earlier departure, reaffirming the current board’s oversight of the business. Investors also approved,...
Business Operations and StrategyExecutive/Board Changes
Purple Innovation COO Resignation Creates Leadership Transition Period
Negative
Jun 5, 2026
Purple Innovation announced that Chief Operating Officer Eric Haynor has notified the company of his resignation from the COO role, effective June 5, 2026. The company stated that his departure is not due to any disagreement over operations, polic...
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Purple Innovation Names New CFO Amid Strategic Shift
Negative
Apr 28, 2026
Purple Innovation reported first-quarter 2026 results on April 28, 2026, with net revenue of $95.7 million, down 8.1% year over year as ecommerce and wholesale softened, partly offset by showroom growth and a 7.0% increase in showroom comparable s...
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.