Purple Expects Showroom Profitability in 2025 Amid Q2 Revenue Decline

Purple's Q2 net revenue fell 12.6% to $105.1 million, with a net loss of $17.4 million. The company attributed the decline to delays in Rejuvenate 2.0 shipments, lapping reductions in wholesale door count, and softness in ecommerce. Despite this, Purple expects its showroom channel to become profitable in 2025 and is expanding its e-commerce strategy to reinforce the brand and communicate the benefits of its technology. Tariffs continue to impact the company's operations.

Purple Innovation (PRPL) reported its fiscal 2025 Q2 earnings on July 30th, 2025, revealing a mixed performance despite strong demand for its Rejuvenate 2.0 collection. The company's revenue for Q2 2025 dropped 12.6% year-over-year to $105.1 million, missing the consensus estimate [1]. The net loss widened dramatically to $17.3 million, reflecting operational challenges and increased debt servicing costs. Despite this, the company reaffirmed its full-year 2025 revenue guidance between $465 million and $485 million, aligning with market expectations, and anticipates adjusted EBITDA to range from flat to a positive $10 million [1].

The total revenue of Purple Innovation decreased by 12.6% to $105.1 million in 2025 Q2, down from $120.27 million in 2024 Q2 [1]. The company maintained stable EPS at $-0.16 in 2025 Q2 compared to 2024 Q2. However, the net loss widened to $-17.37 million in 2025 Q2, representing a 192911.1% increase from the $-9000 loss recorded in 2024 Q2 [1]. The EPS performance indicates ongoing financial challenges for the company.

The stock price of Purple Innovation has tumbled 13.04% during the latest trading day, has tumbled 12.16% during the most recent full trading week, and has surged 15.75% month-to-date [1]. Despite the stock's volatility, the company's CEO, Rob DeMartini, emphasized the company's disciplined execution in the second quarter, noting strong consumer demand for the Rejuvenate 2.0 collection and strategic initiatives to drive growth [1].

Purple Innovation expects its showroom channel to become profitable in 2025 and is expanding its e-commerce strategy to reinforce the brand and communicate the benefits of its technology. The company is also strengthening its executive team, focusing on optimizing supply chain and production efficiency, and announced a strategic partnership with Tempur Sherwood to enhance manufacturing capabilities [1]. Additionally, Purple Innovation is increasing its retail footprint through an expanded collaboration with Mattress Firm, aiming to significantly enhance its market presence and consumer reach [1].

In summary, Purple Innovation's Q2 2025 earnings were marked by a decline in revenue and a widening net loss, primarily attributed to delays in Rejuvenate 2.0 shipments, lapping reductions in wholesale door count, and softness in e-commerce. Despite these challenges, the company remains optimistic about its future, driven by strong demand for its products, strategic partnerships, and operational improvements.

References:
[1] https://www.ainvest.com/news/purple-innovation-2025-q2-earnings-misses-targets-net-loss-soars-193-2507/