Purple(US:PRPL)2025-11-04 21:02Financial Performance - Third quarter 2025 net revenue was $118.8 million, a slight increase from $118.6 million in the same quarter of 2024, driven by Rejuvenate 2.0 shipments and Mattress Firm partnership expansion [4]. - Gross profit for the third quarter increased to $50.9 million, representing 42.8% of net revenue, compared to $35.2 million or 29.7% in the prior year period [5]. - Net loss for the third quarter was $11.7 million, significantly improved from $39.2 million in the prior year [7]. - Adjusted EBITDA for the third quarter was $0.2 million, an improvement from $(6.4) million last year, attributed to strong gross margin performance and disciplined cost management [7]. - Revenues for the three months ended September 30, 2025, were $118.766 million, a slight increase from $118.598 million in the same period of 2024 [22]. - Gross profit for the three months ended September 30, 2025, was $50.851 million, compared to $35.193 million in 2024, reflecting a significant improvement [22]. - The net loss for the three months ended September 30, 2025, was $11.748 million, an improvement from a net loss of $39.310 million in the same period of 2024 [22]. - Adjusted net loss for the three months ended September 30, 2025, was $8,632,000, resulting in an adjusted net loss per diluted share of $0.08, compared to an adjusted net loss of $13,828,000 and $0.13 per diluted share in 2024 [34]. - For the nine months ended September 30, 2025, the net loss attributable to Purple Innovation, Inc. was $48,285,000, compared to $89,587,000 for the same period in 2024 [36]. - Adjusted net loss for the nine months ended September 30, 2025, was $32,269,000, with an adjusted net loss per diluted share of $0.30, compared to an adjusted net loss of $48,035,000 and $0.45 per diluted share in 2024 [36]. Cost Management - Operating expenses decreased by 23.2% to $63.0 million from $82.0 million in the prior year quarter, primarily due to reduced restructuring and impairment charges [6]. - Total operating expenses decreased to $62.977 million for the three months ended September 30, 2025, from $82.006 million in 2024, indicating a reduction of approximately 23.3% [22]. - Total cost of revenues for the three months ended September 30, 2025, was $67.915 million, down from $83.405 million in 2024, reflecting a decrease of approximately 18.5% [30]. - Restructuring related charges for the three months ended September 30, 2025, amounted to $5,290,000, while for the nine months, it was $12,382,000 [32]. Cash and Inventory - Cash and cash equivalents as of September 30, 2025, were $32.4 million, up from $29.0 million as of December 31, 2024 [8]. - Cash and cash equivalents at the end of the period were $32.358 million, an increase from $23.399 million at the end of September 30, 2024 [24]. - Net inventories as of September 30, 2025, totaled $65.8 million, a 9.8% increase compared to September 30, 2024 [8]. - Net cash used in operating activities for the nine months ended September 30, 2025, was $28.030 million, compared to $24.611 million in 2024 [24]. Guidance and Future Outlook - The company maintains its 2025 guidance, projecting full-year revenue of $465 to $485 million and adjusted EBITDA of breakeven to $10 million [9]. - The success of Rejuvenate 2.0 and the Mattress Firm partnership is expected to support continued growth in the premium segment [3]. - The restructuring program has been completed, leading to improved manufacturing efficiencies and direct material cost savings [5]. Tax and Other Financial Metrics - The effective tax rate for the three and nine months ended September 30, 2025, was estimated at 25.9% [35]. - Revenue reduction due to SGI Contract for the three months ended September 30, 2025, was $941,000, and for the nine months, it was $1,568,000 [32]. - The change in fair value of warrant liabilities for the three months ended September 30, 2025, was $(6,892,000), and for the nine months, it was $(11,319,000) [32]. - The company reported a gain on insurance proceeds of $(7,301,000) for the three months ended September 30, 2024, and $(11,601,000) for the nine months [32]. - Board special committee fees for the three months ended September 30, 2025, were $698,000, and for the nine months, they totaled $1,958,000 [32].