Purple Q2 revenue beats estimates

Purple Innovation

29/07/2025 21:17

Overview

Purple Q2 revenue declines 12.6% yr/yr but beats analyst expectations, per LSEG data

Net loss for Q2 was $17.3 mln, a decline from breakeven last year

Adjusted EBITDA margin improved 120 basis points yr/yr

Outlook

Purple Innovation reaffirms 2025 revenue guidance of $465 mln to $485 mln

Company expects adjusted EBITDA between flat and positive $10 mln in 2025

Company anticipates sequential growth in H2 2025

Third-quarter revenue-to-date up mid-single digits year-over-year

Result Drivers

REJUVENATE 2.0 DEMAND - Strong demand for Rejuvenate 2.0 collection, more than double the Rejuvenate 1.0 launch in DTC

MATTRESS FIRM EXPANSION - Rollout with Mattress Firm progressing on schedule, contributing to business momentum

COST MANAGEMENT - Reduced advertising spend and restructuring benefits led to decreased operating expenses

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$105.10 mln
$103.70 mln (5 Analysts)
Q2 Net Income
-$17.37 mln
Q2 Gross Profit
$37.68 mln
Q2 Operating Expenses
$51.92 mln
Q2 Operating Income
-$14.24 mln
Q2 Pretax Profit
-$17.32 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the home furnishings peer group is "buy."

Wall Street's median 12-month price target for Purple Innovation Inc is $3.30, about 69.7% above its July 28 closing price of $1.00

Press Release: ID:nPnbj426Wa

(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.)