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Dec 30, 2024
Purple Q4 2024 Earnings Report
Purple Innovation, Inc. reported its financial results for the fourth quarter and full year ended December 31, 2024, showing a return to positive Adjusted EBITDA and cash flow in the fourth quarter.
Key Takeaways
Purple Innovation, Inc. achieved a significant milestone in Q4 2024, returning to positive Adjusted EBITDA and generating positive cash flow after eight quarters, driven by disciplined execution, operational improvements, and strategic cost-saving initiatives.
Returned to positive Adjusted EBITDA and cash flow in the fourth quarter for the first time in eight quarters.
GAAP Gross Margin improved significantly to 42.9% in Q4 2024, an increase of 970 basis points year-over-year.
Adjusted Gross Margin expanded to 44.9% in Q4 2024, an improvement of over 810 basis points year-over-year.
Generated incremental liquidity with a new $19.0 million Term Loan increase to support continued investments in innovation and advertising.
Forward Guidance
For 2025, Purple Innovation, Inc. expects full year revenue to be in the range of $465 million to $485 million and adjusted EBITDA to be in the range of flat to positive $10 million. The Company anticipates sequential improvement in quarterly revenue and adjusted EBITDA performance throughout the year.
Positive Outlook
- Anticipated return to positive Adjusted EBITDA for the full year 2025.
- Expected sequential improvement in quarterly revenue and adjusted EBITDA performance.
- Continued focus on driving cost savings beyond the 2024 restructuring plan.
- Plans to bring new products to market from a robust innovation pipeline, including Rejuvenate 2.0 launch in Q2.
- Confidence in building on a strong foundation and driving improved profitability.
Challenges Ahead
- Full year 2025 revenue guidance of $465 million to $485 million is lower than 2024 actual revenue of $487.9 million.
- First quarter 2025 adjusted EBITDA is expected to be negative, in the range of $(6) million to $(9) million.
Historical Earnings Impact
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