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- **Revenue Resilience**: Q3 revenue $118.8M, flat year-over-year, with 8% wholesale growth and 6.5% showroom sales gain. 
- **Profitability Breakthrough**: 43% gross margin (vs. 36% Q2), breakeven EBITDA after restructuring savings. 
- **Strategic Growth**: Mattress Firm to drive $70M+ in 2026, Rejuvenate 2.0 doubling unit sales. 
- **Channel Momentum**: Showroom profitability at 76%, e-commerce improving with Amazon and website refresh. 
- **Financial Health**: $32.4M cash, 23.2% opex reduction, 2026 guidance for $465-485M revenue and breakeven-$10M EBITDA.

**【CEO Summary Section】**
- **Revenue Growth and Strategic Progress**: Q3 revenue of $118.8 million, slightly up year-over-year, driven by Rejuvenate 2.0 and Mattress Firm expansion. Positive adjusted EBITDA achieved, with a path to $70 million in 2026 from Mattress Firm. 
- **Product Success**: Rejuvenate 2.0 sold twice as many units as Rejuvenate 1.0, with 3,000+ units sold at $5,800 average price. Showroom sales grew 6.5%, with 76% of showrooms profitable. 
- **Channel Performance**: Wholesale up 8% on expanded distribution; e-commerce down 10% but improving with Amazon and website refresh. 
- **Gross Margin Improvement**: 43% in Q3 (vs. 36% Q2), sustained by restructuring savings and tariff mitigation. 
- **Strategic Alternatives**: Ongoing review of transactions to maximize shareholder value, with no updates yet.

**【CFO Financial Commentary】**
- **Financial Highlights**: Q3 net revenue $118.8M, gross profit $50.9M (42.8% margin). Adjusted EBITDA breakeven vs. -$6.4M last year. Operating expenses down 23.2% to $63M, benefiting from $25-30M annual cost savings. 
- **Balance Sheet**: $32.4M cash, up from $29M last quarter. Inventory $65.8M, up 15.7% year-over-year. 
- **Guidance**: Full-year revenue $465-485M, EBITDA breakeven-$10M. Q4 expects top-line growth from holiday sales, Costco, and Mattress Firm expansion.

**【Q&A Highlights】**
- **Market Trends**: CEO notes industry softness post-Labor Day, but Purple outperforming peers with 12% showroom comps. 
- **Margin Sustainability**: CFO targets 40%+ gross margin, with breakeven at $40M/month revenue. 
- **2026 Outlook**: Mattress Firm slots to reach 12,000 by March 2026, with $70M+ revenue contribution. 
- **E-commerce Strategy**: Website refresh and Amazon growth driving premium product mix shift. 
- **Showroom Expansion**: 76% profitable showrooms vs. 56% last year, with focus on premium pricing and technology storytelling.

Purple Innovation, Inc. (PRPL) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

PRPL

PRPL fundamentals

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