Purple Innovation Reports 12.6% Revenue Decline and $17.3 Million Net Loss in Q2 2025

Purple Innovation, Inc. reported a decline in financial performance for the second quarter of 2025, with net revenues of $105.1 million, a decrease of 12.6% from $120.3 million in the same period last year. The company attributed this drop primarily to longer delivery times for its Rejuvenate 2.0 product, a reduction in wholesale door counts, and overall softness in e-commerce sales. Gross profit also fell to $37.7 million, down 23% from $48.9 million, resulting in a gross profit margin of 35.9%, compared to 40.7% in the prior year. The operating loss for the quarter was $14.2 million, slightly improved from a loss of $14.5 million in the previous year.

In terms of operational changes, Purple Innovation has been implementing a restructuring plan initiated in August 2024, which included the closure of two manufacturing facilities in Utah and consolidation of production in Georgia. This plan is expected to yield long-term efficiencies and cost savings. The company recognized $4.1 million in restructuring-related charges during the second quarter, which included impairment costs and employee-related expenses. Additionally, the company has expanded its partnership with Mattress Firm, increasing product slots from 5,000 to a minimum of 12,000, which is projected to generate approximately $70 million in annualized incremental revenue starting in 2026.

The company’s total liabilities increased to $319.4 million as of June 30, 2025, up from $287.6 million at the end of 2024, largely due to a rise in related party debt. Purple Innovation's accumulated deficit also grew to $610.3 million. The company reported a net loss of $17.3 million for the quarter, compared to a break-even result in the same quarter of 2024. This loss was primarily driven by lower sales and decreased gross profit, although operating expenses decreased due to cost control measures.

Looking ahead, Purple Innovation remains cautiously optimistic about its growth prospects. The company has noted a mid-single-digit percentage increase in revenues for the third quarter to date compared to the same period last year. The successful launch of the Rejuvenate 2.0 collection and the expansion of its retail presence are expected to contribute positively to future performance. However, the company also acknowledged ongoing challenges, including the impact of tariffs and market conditions, which could affect profitability and operational efficiency. The management emphasized the importance of executing its strategic initiatives to drive sustainable growth and improve financial health.