Purple Innov | 8-K: 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 -5.234 M.

Segment Revenue

• Third quarter 2025 net revenue was $118.8 million, slightly up from $118.6 million in the third quarter of 2024.

Operational Metrics

• Gross profit for the third quarter increased to $50.9 million or 42.8% of net revenue, compared to $35.2 million or 29.7% in the prior year period.
• Adjusted gross margin expanded by 230 basis points to 42.8% in the quarter, compared to 40.5% in the year-prior period.
• Third quarter operating expenses were $63.0 million, down 23.2% from $82.0 million in the prior year quarter.
• Net loss attributable to Purple Innovation, Inc. for the third quarter was $11.7 million, a decline from $39.2 million in the prior year.
• Adjusted EBITDA for the third quarter was $0.2 million, an improvement from - $6.4 million last year.

Cash Flow

• As of September 30, 2025, the Company had cash and cash equivalents of $32.4 million compared to $29.0 million as of December 31, 2024.
• Net cash used in operating activities for the nine months ended September 30, 2025, was - $28.0 million compared to - $24.6 million in the same period of 2024.

Unique Metrics

• Net inventories as of September 30, 2025, totaled $65.8 million, up 9.8% compared to September 30, 2024, and an increase of 15.7% compared to December 31, 2024.

Outlook / Guidance

• The Company is maintaining its 2025 guidance, projecting full-year revenue of $465 to $485 million and adjusted EBITDA of breakeven to $10 million.
• This outlook is supported by the strong performance of the Rejuvenate 2.0 mattress launch and the successful rollout of the Mattress Firm partnership.