Purple(US:PRPL)2026-03-31 12:05Revenue Performance - Fourth quarter 2025 net revenue was $140.7 million, representing growth of approximately 9.1% compared to the fourth quarter of 2024[3]. - Full year 2025 net revenue was $468.7 million, a decline of 3.9% compared to the full year 2024, primarily due to e-commerce headwinds[7]. - Revenues for the three months ended December 31, 2025, were $140.688 million, an increase of 9.3% from $128.975 million in the same period of 2024[25]. - For 2026, the company expects full year revenue to be in the range of $500 to $520 million and adjusted EBITDA in the range of $20 to $30 million[12]. Profitability Metrics - Adjusted EBITDA for the fourth quarter was $8.8 million, an improvement from $2.9 million last year, driven primarily by revenue growth and disciplined cost management[6]. - Full year adjusted EBITDA was $1.9 million, a significant improvement from $(20.8) million last year[10]. - Adjusted EBITDA for the year ended December 31, 2025, was $1.945 million, compared to an adjusted EBITDA loss of $20.825 million in 2024[31]. Gross Profit and Margin - Gross margin for the fourth quarter was 41.9%, compared to 42.9% in the prior-year period, reflecting sourcing initiatives and profitable inventory liquidation[4]. - Full year gross profit increased to $188.6 million, with a gross margin of 40.2%, up 310 basis points from last year[8]. - Gross profit for the year ended December 31, 2025, was $188.559 million, compared to $181.132 million in 2024, reflecting a gross margin improvement[25]. - Adjusted gross profit for the year ended December 31, 2025, was $189.554 million, with an adjusted gross profit margin of 40.4%[33]. Operating Expenses - Operating expenses for the fourth quarter were $61.2 million, down 2.9% from $63.0 million in the prior year quarter[5]. - Total operating expenses decreased to $231.588 million for the year ended December 31, 2025, down from $273.315 million in 2024, indicating a reduction of 15.3%[25]. - Adjusted operating expenses for the year ended December 31, 2025, were $212.926 million, down from $253.342 million in 2024, reflecting a 16% reduction[34]. Net Loss and Earnings Per Share - The company reported a net loss of $3.2 million for the fourth quarter, an improvement from a net loss of $(8.5) million in the prior year[6]. - The net loss for the year ended December 31, 2025, was $51.511 million, a significant improvement from a net loss of $98.098 million in 2024[27]. - The company reported a basic net loss per share of $0.48 for the year ended December 31, 2025, improving from a loss of $0.91 per share in 2024[25]. - For the three months ended December 31, 2025, the net loss attributable to Purple Innovation, Inc. was $3.226 million, compared to a net loss of $8.511 million for the same period in 2024, representing a 62% improvement[35]. - The adjusted net loss for the year ended December 31, 2025, was $34.339 million, a decrease from $55.079 million in 2024, indicating a 37% reduction year-over-year[38]. - The adjusted net loss per diluted share for the three months ended December 31, 2025, was $0.02, compared to $0.11 for the same period in 2024, reflecting an 82% improvement[37]. - The adjusted net loss per diluted share for the year ended December 31, 2025, was $0.32, down from $0.51 in 2024, marking a 37% decrease[38]. Cash and Financing - As of December 31, 2025, the company had cash and cash equivalents of $24.3 million, down from $29.0 million as of December 31, 2024[11]. - Cash flows from operating activities resulted in a net cash used of $33.830 million for the year ended December 31, 2025, compared to $17.850 million in 2024[27]. - The company raised $39 million from related party loans during the year ended December 31, 2025, compared to $61 million in 2024[27]. Other Financial Metrics - The total adjusted income tax benefit for the year ended December 31, 2025, was $12.002 million, compared to $19.252 million in 2024, showing a 37% decline[38]. - The revenue reduction due to SGI Contract for the year ended December 31, 2025, was $2.508 million, with no such reduction reported in 2024[35]. - The change in fair value of warrant liabilities for the year ended December 31, 2025, was a loss of $17.202 million, compared to a loss of $3.504 million in 2024, indicating a significant increase in losses[35]. - Restructuring related charges for the year ended December 31, 2025, amounted to $12.382 million, down from $35.415 million in 2024, representing a 65% decrease[35]. - Strategic alternative costs for the year ended December 31, 2025, were $7.275 million, with no such costs reported in 2024[35]. - The estimated effective tax rate for the three and twelve months ended December 31, 2025, was 25.9%[37].