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Jun 30
Purple Q2 2025 Earnings Report
Purple Innovation reported its second quarter 2025 financial results, with net loss exceeding expectations and adjusted EBITDA margin improving year-over-year.
Key Takeaways
Purple Innovation reported a net revenue decline of 12.6% to $105.1 million in Q2 2025, primarily due to delays in Rejuvenate 2.0 shipments, wholesale door count reductions, and softness in e-commerce. Despite this, the company's net loss was $(17.3) million, and adjusted EBITDA improved to $(2.4) million from $(4.1) million in the prior year, driven by disciplined cost management.
Second quarter 2025 net revenue decreased by 12.6% to $105.1 million compared to $120.3 million in Q2 2024.
Gross profit for the second quarter was $37.7 million, down from $48.9 million in the prior-year period, with gross margin at 35.9%.
Operating expenses decreased by 18.2% to $51.9 million, largely due to reduced advertising spend and cost savings initiatives.
Net loss attributable to Purple Innovation, Inc. for the second quarter was $(17.3) million, a decline from $0.0 in the prior year.
Purple
Purple
Forward Guidance
Purple Innovation is reiterating its full-year 2025 outlook, expecting revenue between $465 million and $485 million and adjusted EBITDA ranging from flat to positive $10 million. The company anticipates sequential growth in the second half of the year, driven by the Rejuvenate 2.0 launch and the expanded partnership with Mattress Firm.
Positive Outlook
- Reaffirming full-year 2025 revenue guidance of $465 million to $485 million.
- Reaffirming full-year 2025 adjusted EBITDA guidance of flat to positive $10 million.
- Anticipating sequential growth in the second half of the year.
- Successful launch of Rejuvenate 2.0 is expected to drive growth.
- Expanded partnership with Mattress Firm is expected to contribute to growth.
Challenges Ahead
- No specific negative forward guidance points were explicitly stated in the provided text, beyond the general risks associated with forward-looking statements.
- Factors that could influence the realization of forward-looking statements include changes in economic, financial, and end-market conditions.
- Fluctuations in raw material prices and cost of labor could impact performance.
- Competitive pressures, including the need for technology improvement and successful new product development, pose risks.
- Changes in consumer demand, including pullbacks in consumer spending, could adversely affect results.