Purple Innovation Q2 revenue misses estimates on wholesale weakness

Purple Innovation

10/08/2026 21:20

Overview
U.S. mattress maker's Q2 revenue fell 6.5% yr/yr, missing analyst expectations
Company's GAAP net loss narrowed to $3.2 mln from $17.4 mln a year earlier
Adjusted EBITDA turned positive, improving $4.4 mln to $2.1 mln

Outlook
Purple Innovation lowers 2026 revenue guidance to $420 mln-$440 mln
Company expects 2026 adjusted EBITDA of $20 mln-$25 mln
Company sees continued softness in wholesale impacting results

Result Drivers
WHOLESALE WEAKNESS - Revenue decline was mainly due to a 19.1% drop in wholesale revenue, reflecting lower industry demand and increased payments to customers and a related manufacturer
SHOWROOM GROWTH - Direct-to-consumer revenue rose 3.4%, led by a 16.6% increase in showroom revenue
TARIFF REFUND - Gross margin increased due to a $5.3 mln tariff refund

Company press release: ID:nPn8yXQnya

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$98.27 mln
$105.69 mln (3 Analysts)
Q2 Net Loss
 
$3.25 mln
 
Q2 Gross Profit
 
$44.41 mln
 
Q2 Operating Expenses
 
$48.66 mln
 
Q2 Operating Income
 
-$4.25 mln
 
Q2 Pretax Loss
 
$3.21 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the home furnishings peer group is "hold"
Wall Street's median 12-month price target for Purple Innovation Inc is $25.00, about 161% above its August 7 closing price of $9.58

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)