Purple Innovation (PRPL) Q3 2026 Earnings Report

The call conveyed a mixed outlook. Purple reported substantial revenue, wholesale and gross-margin pressure, a shift to an adjusted EBITDA loss and lower full-year EBITDA guidance. However, the company also highlighted improving late-quarter DTC and e-commerce trends, positive operating cash flow, lower operating expenses and inventory, showroom expansion, significant product innovation and continued cost and sourcing initiatives. Debt maturity and refinancing discussions remain an important uncertainty.

For the remainder of 2026, Purple continues to expect no meaningful recovery in the broader bedding category and is maintaining full year revenue guidance of $420 million to $440 million, while now expecting full year adjusted EBITDA to be in the range of $15 million to $20 million compared with the prior outlook of $20 million to $25 million; the revenue outlook reflects a stronger Q4, supported by an improved marketing plan, normal seasonal strength in DTC and new product introductions, partially offset by continued pressure in wholesale. The company expects to continue generating cash in the fourth quarter, which is traditionally its strongest cash flow quarter, expects same-store comps to turn positive again in the fourth quarter and deliver positive comps for showrooms for the full year, and should end the year with 60 showrooms. Looking into 2027, it continues to target 9 to 12 new showrooms, with approximately half of those locations already identified; the new hybrid collection is expected to begin rolling into its own stores in the first quarter and begin shipping to wholesale customers in March, while a broader market launch of the new Essentials collection is expected around March. The company believes the new products will get margins back up to where they have got to be well north of 45% on a consistent basis.