Purple Innovation Reports Q2 2025 Results; Reaffirms 2025 Guidance with Strong Rejuvenate 2.0 Demand and Mattress Firm Rollout Progressing on Schedule.

Purple Innovation reported Q2 2025 net loss exceeding expectations, with adjusted EBITDA margin improving 120 basis points YoY. Rejuvenate 2.0 demand more than doubled the Rejuvenate 1.0 launch in DTC, while mattress firm rollout progressed on schedule. Net revenue declined 12.6% to $105.1 million, and gross profit decreased to $37.7 million. Gross margin was 35.9%, a decrease of 480 basis points YoY.

Purple Innovation, Inc. (NASDAQ: PRPL) recently announced its second quarter 2025 financial results, which included a net loss that exceeded expectations. The company reported a net loss of $(17.3) million, compared to a net income of $0.0 in the same period last year. Despite this, the company saw an improvement in its adjusted EBITDA margin, which increased by 120 basis points year-over-year (YoY) to $(2.4) million.

One of the key drivers for the company's performance was the strong demand for its Rejuvenate 2.0 collection, which more than doubled the sales of the Rejuvenate 1.0 launch in direct-to-consumer (DTC) channels. The rollout with Mattress Firm also progressed on schedule, contributing to the company's momentum.

However, net revenue declined by 12.6% to $105.1 million, reflecting delays in the timing of Rejuvenate 2.0 shipments and softness in e-commerce sales. Gross profit decreased to $37.7 million, with a gross margin of 35.9%, down 480 basis points YoY. This decrease was partially offset by direct material and sourcing savings, but costs related to tariffs and the ramp-up of both the Mattress Firm roll-out and Rejuvenate 2.0 launch also had an impact.

Operating expenses decreased by 18.2% to $51.9 million, driven by reduced advertising spend and benefits from restructuring and cost savings initiatives completed previously.

The company's balance sheet as of June 30, 2025, showed cash and cash equivalents of $34.2 million, up from $29.0 million as of December 31, 2024. Net inventories totaled $60.9 million, down 12.6% compared to the same period last year.

Purple Innovation reiterated its 2025 outlook for full year revenue to be in the range of $465 to $485 million and adjusted EBITDA in the range of flat to positive $10 million. The company anticipates sequential growth in the second half of the year, driven by the successful launch of Rejuvenate 2.0 and the rollout of its expanded partnership with Mattress Firm.

References:
[1] https://www.prnewswire.com/news-releases/purple-innovation-reports-second-quarter-2025-results-reaffirms-2025-guidance-302516469.html