Purple Innovation (NASDAQ:PRPL) Releases Earnings Results, Misses Estimates By $1.15 EPS

Purple Innovation (NASDAQ:PRPL) released its quarterly earnings data on Wednesday. The company reported ($2.41) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($1.26) by ($1.15), FiscalAI reports. The company had revenue of $96.51 million during the quarter, compared to analysts’ expectations of $105.72 million.

Here are the key takeaways from Purple Innovation’s conference call:

• Third-quarter revenue fell 19% to $96.5 million, with wholesale down 31% and DTC down 9%; management said pressure was especially pronounced among regional and independent retailers. Purple cut its full-year adjusted EBITDA outlook to $15 million–$20 million from $20 million–$25 million, citing lower production volume and manufacturing cost deleverage.
• DTC trends improved as the quarter progressed: sales across August and September rose about 1% year over year, while e-commerce increased about 2%, supported by Amazon and purple.com. Management said website conversion rates improved, though July weakness left full-quarter DTC revenue down.
• Purple is launching refreshed Essentials and Hybrid mattress collections, together representing nearly 90% of mattress unit volume, along with new pillow products. Management said early retailer feedback was strong and expects the products to help re-engage wholesale partners, while acknowledging that a channel recovery will take time.
• Cost reductions and working-capital management helped produce positive operating cash flow for a third consecutive quarter; cash was $28.3 million at quarter-end, up from $24.3 million at year-end 2025. Management expects cash generation to continue in the fourth quarter.
• The company is within six months of its debt maturity and is discussing options with lenders, while a special committee continues evaluating strategic alternatives. Executives did not provide details on the refinancing path or timing.

Purple Innovation Stock Performance

Shares of Purple Innovation stock traded down $0.16 during midday trading on Friday, reaching $2.38. 8,948 shares of the company’s stock traded hands, compared to its average volume of 21,509. The company has a market cap of $10.39 million, a price-to-earnings ratio of -0.27 and a beta of 1.43. The company’s 50 day simple moving average is $2.78 and its 200 day simple moving average is $10.18. Purple Innovation has a 52 week low of $1.83 and a 52 week high of $21.75.

Analysts Set New Price Targets

Separately, Weiss Ratings reiterated a “sell (e+)” rating on shares of Purple Innovation in a report on Thursday, October 15th. Two investment analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, Purple Innovation currently has a consensus rating of “Reduce” and a consensus target price of $16.25.

About Purple Innovation

Purple Innovation, Inc develops, manufactures and sells comfort products designed to support sleep and other aspects of home wellness. The company is best known for its Purple mattresses, which use its proprietary GelFlex Grid material to provide pressure relief, support and airflow. Its product portfolio also includes pillows, cushions, sheets, mattress protectors, adjustable bases and other bedding accessories.

Purple sells its products primarily through direct-to-consumer e-commerce, company-owned retail locations and third-party wholesale partners.