Purple Innovation (NASDAQ:PRPL) Releases Quarterly Earnings Results, Beats Estimates By $0.66 EPS

Purple Innovation (NASDAQ:PRPL) announced its earnings results on Monday. The company reported ($1.52) EPS for the quarter, beating analysts’ consensus estimates of ($2.18) by $0.66, Zacks reports. The firm had revenue of $98.27 million for the quarter, compared to analysts’ expectations of $104.39 million.

Here are the key takeaways from Purple Innovation’s conference call:

• Negative Sentiment: Second-quarter revenue fell 6.5% to $98.3 million, driven by a 19.1% decline in wholesale revenue, and Purple lowered its fiscal 2026 revenue outlook to $420 million–$440 million amid continued category softness.
• Positive Sentiment: Direct-to-consumer revenue grew 3.4%, led by a 16.6% increase in showroom sales and a fourth consecutive quarter of positive comparable-store growth. E-commerce declined only 1.4% and improved sequentially for the third straight quarter, while premium Rejuvenate products and Amazon performed well.
• Positive Sentiment: Profitability and cash generation improved despite lower sales: adjusted EBITDA rose to $2.1 million from a $2.4 million loss, operating expenses declined 14.3%, and operating cash flow was positive for the second consecutive quarter.
• Neutral Sentiment: Wholesale results included more than $4 million of incremental partner marketing investments and other customer payments; excluding these items, wholesale revenue would have declined approximately 8% year over year. Management expects to continue selective co-op advertising but said investments must generate sufficient profit returns.
• Positive Sentiment: Purple plans to open five additional showrooms by year-end and is targeting 12–16 more locations in fiscal 2027, while June price increases of 8%–10%, sourcing initiatives, and productivity improvements are expected to support second-half margins and the company’s $20 million–$25 million adjusted EBITDA outlook.

Purple Innovation Stock Performance

PRPL opened at $9.10 on Tuesday. Purple Innovation has a one year low of $6.12 and a one year high of $31.50. The company has a market cap of $39.68 million, a P/E ratio of -0.63 and a beta of 1.46. The business’s 50-day simple moving average is $9.00 and its 200-day simple moving average is $13.18.

Institutional Investors Weigh In On Purple Innovation

Institutional investors have recently added to or reduced their stakes in the business. AQR Capital Management LLC purchased a new position in Purple Innovation in the first quarter valued at approximately $28,000. XTX Topco Ltd purchased a new position in shares of Purple Innovation during the second quarter worth about $30,000. Bank of America Corp DE increased its position in shares of Purple Innovation by 45.1% during the fourth quarter. Bank of America Corp DE now owns 55,984 shares of the company’s stock worth $44,000 after purchasing an additional 17,406 shares in the last quarter. Virtu Financial LLC acquired a new stake in shares of Purple Innovation during the third quarter worth about $53,000. Finally, Two Sigma Investments LP purchased a new stake in shares of Purple Innovation in the 3rd quarter valued at about $57,000. Hedge funds and other institutional investors own 88.41% of the company’s stock.

Analyst Ratings Changes

Several research firms have recently commented on PRPL. Weiss Ratings reissued a “sell (e+)” rating on shares of Purple Innovation in a research note on Friday, July 17th. KeyCorp downgraded Purple Innovation from an “overweight” rating to a “sector weight” rating in a research report on Tuesday, April 28th. UBS Group cut their target price on shares of Purple Innovation from $21.25 to $16.25 and set a “neutral” rating on the stock in a research note on Wednesday, April 29th. Finally, Wall Street Zen downgraded shares of Purple Innovation from a “hold” rating to a “strong sell” rating in a research note on Saturday, May 9th. Two analysts have rated the stock with a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Reduce” and a consensus price target of $16.25.

About Purple Innovation

Purple Innovation, Inc is a consumer products company specializing in the design, development and manufacture of comfort technology for the sleep and home furnishings markets. Best known for its proprietary Hyper-Elastic Polymer “Grid” technology, the company engineers mattresses, pillows and cushions that aim to combine pressure relief, support and temperature neutrality. Purple offers an array of sleep products alongside related lifestyle and wellness solutions.

The company’s product portfolio includes mattress models in various sizes and thicknesses, adjustable bed frames, pillows, sheets and mattress protectors, as well as seat cushions and pet beds.