Purple Innov | 10-Q: FY2025 Q3 Revenue Misses Estimate at USD 118.77 M

Revenue: As of FY2025 Q3, the actual value is USD 118.77 M, missing the estimate of USD 123.21 M.

EPS: As of FY2025 Q3, the actual value is USD -0.11, missing the estimate of USD -0.1.

EBIT: As of FY2025 Q3, the actual value is USD -3.923 M.

Total Revenue: $118.8 million for Q3 2025, compared to $118.6 million for Q3 2024. For the nine months ended September 30, 2025, total revenue was $328.0 million, compared to $358.9 million for the same period in 2024.

Gross Profit: $50.9 million for Q3 2025, compared to $35.2 million for Q3 2024. Gross profit percentage increased to 42.8% in Q3 2025 from 29.7% in Q3 2024. For the nine months ended September 30, 2025, gross profit was $129.6 million, compared to $125.9 million for the same period in 2024.
Operating Loss: $12.1 million for Q3 2025, compared to $46.8 million for Q3 2024. For the nine months ended September 30, 2025, operating loss was $40.8 million, compared to $84.5 million for the same period in 2024.
Net Loss: $11.7 million for Q3 2025, compared to $39.2 million for Q3 2024. For the nine months ended September 30, 2025, net loss was $48.2 million, compared to $89.4 million for the same period in 2024.

Net Cash Used in Operating Activities: $28.0 million for the nine months ended September 30, 2025, compared to $24.6 million for the same period in 2024.
Net Cash Used in Investing Activities: $6.1 million for the nine months ended September 30, 2025, compared to $6.4 million for the same period in 2024.
Net Cash Provided by Financing Activities: $37.4 million for the nine months ended September 30, 2025, compared to $27.5 million for the same period in 2024.

Restructuring, Impairment and Other Related Charges: $5.3 million for Q3 2025, compared to $18.9 million for Q3 2024. For the nine months ended September 30, 2025, these charges were $11.4 million, compared to $18.9 million for the same period in 2024.
Interest Expense: $8.2 million for Q3 2025, compared to $4.4 million for Q3 2024. For the nine months ended September 30, 2025, interest expense was $20.4 million, compared to $13.0 million for the same period in 2024.
Change in Fair Value – Warrant Liabilities: Gain of $6.9 million for Q3 2025, compared to a gain of $4.8 million for Q3 2024. For the nine months ended September 30, 2025, gain was $11.3 million, compared to a loss of $0.1 million for the same period in 2024.

Core Business Focus: The company plans to continue focusing on its Path to Premium Sleep strategy, which includes pioneering new technologies, promoting product differentiation, and prioritizing gross profit improvements. The company expects significant momentum in Q4 2025, with revenues up in the low-double digits percentage range compared to the same period last year.
Non-Core Business: The company is exploring strategic alternatives, including a merger, sale, or other strategic or financial transactions, to maximize shareholder value. The Board has formed a special committee of independent directors and engaged a financial advisor to evaluate these options.