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From Home Furnishing Business

Purple Innovation, Inc. Announces Results for First Quarter

April 28, 2026  by Karen Parrish in Business Strategy, Industry   

"During the first quarter, we continued to build on the progress we made at the end of last year, with improving consistency across our business and solid performance in our showroom and wholesale channels," said Rob DeMartini, CEO of Purple Innovation. "While total sales were modestly down, ecommerce trends improved sequentially, and we are seeing early benefits from the more disciplined execution and the actions we've taken to strengthen the business."

"We are encouraged by the strong response to our premium portfolio, including early traction for Purple Royale at Mattress Firm and continued momentum in Rejuvenate 2.0, as we expand our wholesale partnerships and improve operating efficiency. As we enter the second quarter, we remain focused on driving growth through better consumer insight, differentiated innovation rooted in our GelFlex Grid technology, and expanded distribution, and believe that we are well positioned to deliver continued progress in 2026."

First Quarter 2026 Financial Results
First quarter 2026 net revenue was $95.7 million, down approximately 8.1% compared to the first quarter of 2025. The decrease was primarily driven by softness in e-commerce and lower wholesale revenue, partially offset by growth in showrooms. During the first quarter of 2026, total amounts billed were approximately $100.6 million, down 3.4% year over year; however, as a result of required net reporting related to certain wholesale transactions, reported revenue was reduced by $4.9 million to $95.7 million.

Gross profit for the first quarter was $35.2 million or 36.8% of net revenue, compared to $41.0 million or 39.4% in the prior-year period. Gross margin was impacted by a strategic investment in Royale floor models to support the Mattress Firm rollout, as well as modest manufacturing overhead deleverage driven by lower production volumes and less favorable absorption of fixed costs. These impacts are primarily timing-related and not indicative of a change in the underlying health of the business.

First quarter operating expenses were $52.0 million, down 6.3% from $55.5 million in the prior year quarter. The improvement was primarily driven by ongoing cost savings initiatives and the benefits of prior restructuring actions, partially offset by higher expenses related to the ongoing evaluation of strategic alternatives, which may vary by quarter.

Net loss attributable to Purple Innovation, Inc. for the first quarter was $30.5 million, compared to $19.1 million in the prior year.

Adjusted EBITDA for the first quarter was $(4.8) million, flat from this time last year.

Balance Sheet 
As of March 31, 2026, the Company had cash and cash equivalents of $25.0 million compared to $24.3 million as of December 31, 2025.

Net inventories as of March 31, 2026, totaled $58.1 million, down 2.7% compared to December 31, 2025.

2026 Outlook 
The Company is updating its 2026 outlook for full year revenue to a range of $465 to $485 million, from the prior range of $500 to $520 million, due to the accounting adjustment noted earlier in this press release. The Company is maintaining its adjusted EBITDA in the range of $20 to $30 million.

Conference Call and Webcast Information
The call is also being webcast and can be accessed on the investor relations section of the Company's website, investors.purple.com. After the conference call, a webcast replay will remain available on the investor relations section of the Company's website for one year.