10-Q · April 28, 2026
Purple Innovation reported Q4 2025 performance with revenue of $141 million, a significant increase from $119 million in Q3 2025 and improved EPS loss to -$0.03 compared to -$0.11 in the previous quarter. However,…
Earnings analysis · 10-Q
PRPL earnings analysis
Filed August 11, 2026 · Our reading of the company's report
The latest report
Purple Innovation delivered a mixed Q2: diluted EPS of $(1.52) beat the $(2.18) consensus estimate, but revenue of $98.27 million declined 6.5% year over year and missed expectations. A $5.3 million tariff refund aided…
Read full summary
Purple Innovation delivered a mixed Q2: diluted EPS of $(1.52) beat the $(2.18) consensus estimate, but revenue of $98.27 million declined 6.5% year over year and missed expectations. A $5.3 million tariff refund aided profitability and cash generation, but management lowered 2026 revenue guidance to $420 million-$440 million because of category softness, especially in wholesale; adjusted EBITDA guidance remains $20 million-$25 million. Nasdaq compliance was restored on August 7, 2026, although the company remains subject to a mandatory monitoring period through August 7, 2027.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-1.52
What stood out
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Revenue declined and missed consensus
Q2 revenue was $98.27 million, down 6.5% year over year and below the $102.42 million consensus estimate by 4.1%.
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EPS beat consensus
Diluted EPS was $(1.52), better than the $(2.18) consensus estimate, representing a 30.3% positive surprise.
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Tariff refund aided profitability
A $5.3 million tariff refund supported reported margin, adjusted EBITDA and operating cash flow improvement during the quarter.
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EBITDA outlook maintained
Management lowered 2026 revenue guidance to $420 million-$440 million, while maintaining adjusted EBITDA guidance of $20 million-$25 million.
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Nasdaq compliance restored
Nasdaq confirmed compliance with the $1.00 minimum bid-price requirement on August 7, 2026, and closed the previously disclosed listing matter.
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Controls remained effective
Disclosure controls were judged effective as of June 30, 2026, and management reported no material changes in internal controls during the quarter.
What to watch
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Nasdaq delisting monitoring
The company added a material Nasdaq delisting risk: if its closing bid price falls below $1.00 for 30 consecutive business days during the mandatory monitoring period, Nasdaq may issue a delist determination. The monitoring period runs through August 7, 2027.
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Variable-rate debt exposure
The company had $137.2 million of variable-rate debt associated with the Related Party Loan as of June 30, 2026. A 100-basis-point rate increase would raise interest expense by approximately $1.4 million over the next 12 months.
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Wholesale weakness and lower outlook
The 2026 revenue outlook was lowered to $420 million-$440 million because of continued category softness, particularly in wholesale, while the company continues to target adjusted EBITDA of $20 million-$25 million.
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Demand pressure persists
Q2 revenue was $98.27 million, down 6.5% year over year, indicating continued demand pressure despite a $(1.52) diluted EPS result that exceeded consensus.
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One-time tariff benefit
The $5.3 million tariff refund was a discrete benefit to margins, adjusted EBITDA and operating cash flow; repeating this benefit may be difficult if it does not recur.
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Future listing compliance uncertain
The company stated that it cannot guarantee continued Nasdaq compliance, despite currently meeting the $1.00 bid-price requirement and other applicable criteria.
Management's outlook
2026 revenue guidance was lowered to $420 million-$440 million due to continued category softness, particularly in wholesale. Adjusted EBITDA guidance was maintained at $20 million-$25 million. No numeric EPS guidance was provided.
Earlier filings 4
10-K · March 31, 2026
Purple positions itself as a vertically integrated, innovation-led omni-channel sleep brand built on its proprietary Hyper-Elastic Polymer/GelFlex Grid technology. FY2025 showed mixed results: strong Q4 revenue of…
10-Q · May 6, 2025
Purple reported first-quarter net revenue of $104,171,000 and GAAP diluted loss per share of $(0.18). Revenue declined versus prior-year Q1 ($120,033,000) but gross margin expanded to 39.4% and operating loss narrowed…
10-K · March 14, 2025
Purple positions itself as a proprietary-technology-driven omni-channel sleep brand built on its Hyper-Elastic Polymer (Gelflex) and vertically integrated manufacturing. For the year ended December 31, 2024 DTC…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.