Second‑Quarter 2026 Results

Purple Innovation, Inc. (NASDAQ: PRPL) reported its financial results for the quarter ended June 30 2026. Net revenue for the period was $98.3 million, a decline of 6.5 % from $105.1 million in the same quarter of 2025. The revenue reduction was primarily driven by a 19.1 % drop in wholesale revenue to $37.4 million, compared with $46.2 million year‑ago. The decrease was attributed to higher payments to customers and a manufacturer under common control, and to a $3.5 million reduction in wholesale sales volume resulting from lower industry demand.

Direct‑to‑consumer revenue rose 3.4 %, supported by a 16.6 % increase in showroom revenue and a modest 1.4 % decline in e‑commerce revenue. Showroom revenue growth contributed to an overall improvement in gross profit, which increased 4.5 % to $44.4 million from $42.5 million in the prior‑year quarter.

Gross margin for the quarter was 45.2 %, an increase of approximately 470 basis points year‑over‑year. The improvement was largely driven by a $5.3 million tariff refund and a reclassification of merchant credit‑card processing fees and third‑party consumer‑financing fees from cost of revenues to marketing and sales costs. The reclassification did not affect revenue or net loss but raised the reported GAAP gross margin by roughly 500 basis points.

Operating expenses were $48.7 million, down about 14.3 % from the same quarter in 2025. The reduction in expenses supported a GAAP net loss of $3.2 million and an adjusted EBITDA of $2.1 million, an improvement of $4.4 million over the prior year.

Highlights

  • Showroom revenue growth: 16.6 % increase, contributing to direct‑to‑consumer growth.
  • Wholesale headwinds: 19.1 % decline due to lower industry demand and customer payments.
  • Gross margin expansion: 470 basis points rise, driven by tariff refunds and cost reclassification.
  • Adjusted EBITDA: $2.1 million, up $4.4 million from the same quarter last year.
  • Nasdaq compliance: Company regained compliance with the Nasdaq minimum bid‑price requirement.

Guidance

The company noted that it has revised full‑year revenue guidance upward after the quarter’s results. The earnings call emphasized continued progress in controllable areas and a focus on strengthening direct‑to‑consumer channels, advancing its innovation pipeline, and maintaining cost discipline to support profitability and cash generation amid a challenging demand environment.

These results underscore Purple Innovation’s ability to improve profitability while navigating wholesale market headwinds, and they provide a clearer view of the company’s operational focus and financial trajectory for the remainder of 2026.