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EarningsQ2 2026 Earnings Report
PRPL Q2 2026 EPS Results
Actual EPS-$1.52
Consensus EPS-$2.18
Beat/MissBeat by +$0.66
One Year Ago EPS-$2.75
PRPL Q2 2026 Revenue Results
Actual Revenue$98.27M
Expected Revenue$104.39M
Beat/MissMissed by -$6.12M
YoY Revenue Growth-6.50%
Earnings Announcement Details
QuarterQ2 2026
Date08/10/2026
TimeAfter Close
Conference CallMonday, August 10, 2026
PRPL Upcoming Earnings
Purple Innovation's next earnings date is estimated for November 10, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
PRPL Q2 2026 Earnings Call
0:00 / 0:00
Q2 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call presented a mix of robust operational and profitability improvements alongside ongoing top-line pressure from a soft wholesale environment. Positive highlights include strong showroom performance (16.6% YoY growth and +18% comps), sequential e-commerce recovery, premium product momentum, a tariff refund and sourcing benefits, reduced operating expenses, an adjusted EBITDA turnaround to $2.1M, and positive operating cash flow and inventory reductions. Key challenges include a 6.5% decline in total revenue, a reported 19.1% drop in wholesale revenue (partly driven by ~$5.3M of customer payments), cost pressures (freight/materials/mineral oil volatility), mixed initial consumer reaction to price increases, and a downward revision to FY26 revenue guidance to $420M–$440M. On balance, the company demonstrated meaningful progress in profitability, cash generation, and strategic execution despite persistent demand headwinds, and management maintained positive adjusted EBITDA guidance for the year.Company Guidance
Showroom Strength and DTC Growth
Showroom retail sales increased 16.6% year-over-year to $18.4M, with comparable store sales (+stores open >=1 year) up ~18% and marking the fourth consecutive quarter of positive comps. Overall direct-to-consumer (DTC) net revenue grew 3.4% to $60.9M vs. $58.9M.
Sequential E-commerce Improvement
E-commerce revenue declined modestly by 1.4% to $42.5M but showed a third consecutive quarter of sequential improvement and continued strong performance on Amazon (double-digit growth), with June aided by Prime Day timing.
Premium Product Momentum
Premium portfolio performed strongly; Rejuvenate 2.0 accounted for more than half of mattress revenue and Rejuvenate remained the strongest collection. Pillows and cushions also showed growth, supporting higher average selling strength in showrooms.
Improved Profitability and Margins
GAAP gross profit rose 4.5% to $44.4M and GAAP gross margin expanded to 45.2% from 40.5% (approx. +470 bps). Management also noted a presentation reclassification that increased reported gross margin by ~505 bps (with a corresponding move to marketing expense).
Adjusted EBITDA Turnaround
Adjusted EBITDA was positive $2.1M, an improvement of $4.4M versus an adjusted EBITDA loss of $2.4M in the prior-year period, reflecting better operating discipline and lower operating expenses.
Lower Operating Expenses and Net Income Improvement
Operating expenses declined by $8.1M (14.3%) to $48.7M from $56.8M, driven by non-recurrence of prior charges and lower payroll/professional services; GAAP net loss narrowed to $3.2M (net loss per share $0.74) versus a $14.1M improvement year-over-year.
Cash Flow, Inventory and Balance Sheet Trends
Cash & cash equivalents were $23.3M (vs. $24.3M Dec 31, 2025). Net inventories decreased to $55.4M (down $4.3M), and operating cash flow was positive for the second straight quarter at $3.6M for the first six months — a $30.7M improvement over prior-year first half.
Tariff Refund and Sourcing Benefits
A $5.3M IEEPA tariff refund and year-over-year tariff mitigation from sourcing projects favorably impacted gross margin in the quarter, and sourcing initiatives plus pricing actions are expected to benefit H2 margins.
Retail Expansion and Distribution Wins
Opened one new showroom and relocated another (both performing well); plan to open 5 additional showrooms before year-end and 12–16 in fiscal 2027. Wholesale partners: completed Purple Royale rollout at Mattress Firm; Costco performing well year-to-date; Amazon growth remained strong.
Regulatory/Listing Milestone
Following a reverse stock split, NASDAQ confirmed regained compliance with the minimum bid price requirement.
PRPL Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed