Purple Innovation Reports Fourth Quarter and Full Year 2024 Results

Core Insights - Purple Innovation, Inc. returned to positive Adjusted EBITDA and cash flow in Q4 2024, marking a significant operational turnaround after eight quarters of losses [2][6] - The company generated a GAAP gross margin of 42.9% in Q4 2024, an increase of 970 basis points year-over-year, and an adjusted gross margin of 44.9%, up over 810 basis points [4][8] - The company secured an additional $19.0 million in term loan financing to support ongoing investments in innovation and advertising [12][13] Financial Performance - Q4 2024 net revenue decreased by 11.6% to $129.0 million from $145.9 million in Q4 2023, attributed to industry softness and the cycling of new mattress line launches [3] - Gross profit for Q4 2024 rose to $55.3 million, compared to $48.5 million in the prior year [4] - Operating expenses for Q4 2024 were $63.0 million, down 2.6% from $64.7 million in Q4 2023, reflecting disciplined cost control [5] - The net loss for Q4 2024 was $(8.5) million, an improvement from $(18.3) million in the prior year [5] Full Year Results - For the full year 2024, net revenue was $487.9 million, a decline of 4.4% compared to $510.5 million in 2023 [7] - Full-year gross profit increased to $181.1 million from $171.8 million in the previous year, with a GAAP gross margin of 37.1% [8] - The full-year net loss attributable to Purple Innovation, Inc. was $(97.9) million, an improvement from $(120.8) million in 2023 [9] Balance Sheet and Liquidity - As of December 31, 2024, cash and cash equivalents were $29.0 million, up from $26.9 million a year earlier, driven by improved EBITDA [11] - Inventories decreased by 15.0% to $56.9 million compared to $66.9 million at the end of 2023 [11] Strategic Outlook - For 2025, the company expects full-year revenue to range between $465 million and $485 million, with adjusted EBITDA projected to be flat to positive $10 million [14] - The company plans to launch new products, including the Rejuvenate 2.0, in the second quarter of 2025 [2] Strategic Alternatives - The Board of Directors has formed a special committee to evaluate strategic alternatives aimed at maximizing shareholder value, which may include a sale or merger [15]