PRPL · Purple Innovation, Inc.

Purple Innovation's Q1 2026 results showed net revenue of $95.7 million, a decline of 8.1% year-over-year primarily from e-commerce weakness and lower wholesale, though partially offset by showroom comparable sales up 7.0%, marking the third straight quarter of positive comps. Total amounts billed fell less severely at 3.4% to $100.6 million, with a $4.9 million net reporting adjustment impacting the top line. Gross profit dropped to $35.2 million (36.8% margin) from $41.0 million (39.4%), pressured by investments in Purple Royale floor models for Mattress Firm rollout and manufacturing overhead from lower volumes—described as timing-related without signaling underlying business deterioration. Operating expenses improved 6.3% to $52.0 million via cost savings and restructuring benefits, offsetting strategic alternative evaluation costs. Adjusted EBITDA held flat at $(4.8) million, while GAAP net loss widened to $30.5 million amid higher interest and warrant liability changes. Management highlighted sequential e-commerce improvement, premium portfolio traction including Royale at Mattress Firm and Rejuvenate 2.0, and wholesale expansion, positioning for Q2 acceleration. Guidance adjusted full-year net revenue lower to $465-485 million due to the accounting impact, while reaffirming adjusted EBITDA at $20-30 million, signaling confidence in profitability levers. Concurrently, the CFO transition replaces Todd Vogensen (effective May 1) with Robert G. Lucian (starting April 27 week), a finance veteran from La-Z-Boy and Coty with P&G tenure, bringing operational expertise at a $600K base plus incentives amid the company's transformation.