PRPL · Purple Innovation, Inc.

Revenue Decline Driven by E-commerce and Wholesale

Revenue for the first quarter of 2026 was $95.7 million, down 8.1% from $104.2 million in the same period last year. The decrease was primarily due to lower e-commerce sales and recognized wholesale revenue, partially offset by growth in showroom sales.

Gross Margin Compression from Product Mix and Production Volumes

Operating Loss Widens Despite Cost Reductions

Net Loss Swells on Non-Cash Warrant Revaluation

Net loss grew to -$30.5 million from -$19.1 million, a 59.6% increase. The primary drivers were lower gross margins and a non-cash loss from the change in fair value of warrants, partially offset by reduced operating expenses.

Operating Cash Flow Turns Positive on Working Capital Improvements

Net cash provided by operating activities improved to $2.99 million from -$23.1 million in the prior year, driven by working capital improvements and cost reduction initiatives. Capital expenditures were $1.6 million, resulting in free cash flow of $1.4 million.

Going Concern and Outlook

Management has implemented plans to increase revenues and achieve cost savings sufficient to generate positive operating cash flow within the next year. However, the company continues to face going concern uncertainties related to its ability to meet obligations.