Purple Innovation Reports Second Quarter 2025 Results; Reaffirms 2025 Guidance

Core Insights - Purple Innovation, Inc. reported a net loss of $17.3 million for Q2 2025, which exceeded expectations, while adjusted EBITDA improved to $(2.4) million, an improvement from $(4.1) million in the previous year [1][6][5] - The company experienced a 12.6% decline in net revenue to $105.1 million compared to $120.3 million in Q2 2024, attributed to shipment delays and reduced wholesale door counts [3][4] - The launch of the Rejuvenate 2.0 collection has seen strong demand, more than doubling the initial launch of Rejuvenate 1.0, contributing to a positive outlook for the second half of 2025 [2][8] Financial Performance - Gross profit for Q2 2025 decreased to $37.7 million, with a gross margin of 35.9%, down 480 basis points year-over-year, impacted by tariffs and costs associated with new product launches [4] - Operating expenses were reduced by 18.2% to $51.9 million, primarily due to lower advertising spend and previous restructuring efforts [5] - The company maintains a cash position of $34.2 million as of June 30, 2025, an increase from $29.0 million at the end of 2024 [7] Strategic Initiatives - The company is on track with its expansion plans with Mattress Firm and is seeing increased interest from partners like Walmart and Costco, which is expected to drive future growth [2][8] - Purple Innovation is reiterating its full-year 2025 revenue outlook in the range of $465 to $485 million, with adjusted EBITDA expected to be flat to positive $10 million [8]