Purple Innovation, Inc. ( (PRPL) ) has released its Q1 earnings. Here is a breakdown of the information Purple Innovation, Inc. presented to its investors.
Purple Innovation, Inc., a leading comfort innovation company known for its GelFlex Grid technology, specializes in premium mattresses and various sleep products, aiming to enhance restorative sleep experiences. In its first quarter of 2025, Purple Innovation reported financial results that aligned with its strategic goals, despite facing macroeconomic challenges. The company achieved a GAAP gross margin of 39.4% and an adjusted gross margin above 40% for the fourth consecutive quarter, with adjusted EBITDA surpassing expectations.
The company’s net revenue for the first quarter of 2025 declined by 13.2% to $104.2 million, primarily due to reduced demand in wholesale and ecommerce channels. However, Purple Innovation improved its gross margin by 460 basis points year-over-year, reaching 39.4%, and reduced operating expenses by 14.4% to $55.5 million, resulting in a net loss of $19.1 million, a significant improvement from the previous year’s $50.2 million loss. The company’s adjusted EBITDA also improved to $(4.7) million from $(13.2) million in the prior year.
Strategically, Purple Innovation is expanding its commercial partnership with Mattress Firm, aiming to double its retail footprint in Mattress Firm stores nationwide. This expansion, along with a strengthened supply relationship with Tempur Sherwood, LLC, is expected to enhance Purple’s brand visibility and top-line growth. Additionally, the company secured an incremental $20 million through a term loan amendment to support its distribution expansion and navigate market uncertainties.
Looking ahead, Purple Innovation reaffirms its 2025 guidance, projecting full-year revenue between $465 to $485 million and adjusted EBITDA ranging from flat to positive $10 million. The company remains focused on innovation and operational optimization to drive long-term growth, despite ongoing economic uncertainties and potential tariff impacts.