Purple Innovation stock cuts EBITDA outlook after Q3 revenue drop

Published on 11/05/2026 at 03:48 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Purple Innovation stock faces a lower 2026 EBITDA outlook after third-quarter revenue fell 18.7% year over year. Cash flow stayed positive.

Quarterly results reset expectations

Purple Innovation kept its full-year revenue outlook at 420 million to 440 million US dollars.
The company plans a major mattress portfolio refresh in early 2027.
Positive operating cash flow reached 10.6 million US dollars in the first nine months.

PRPL, US74640Y1064, Illustration mit AI erstellt.

Purple Innovation reported third-quarter results on Wednesday, November 4, for the period ended September 30, 2026. In a Purple Innovation release carried by PR Newswire, the company said revenue fell to 96.5 million US dollars from 118.8 million US dollars a year earlier.

Wholesale weakness weighs on revenue

Wholesale revenue declined to 35.6 million US dollars from 51.5 million US dollars. Direct-to-consumer revenue fell to 60.9 million US dollars, with e-commerce at 42.4 million US dollars and showroom revenue at 18.5 million US dollars.

Gross margin fell to 43.4%, a decline of 410 basis points from the prior-year quarter. Operating expenses dropped 24.7% to 51.7 million US dollars, while the GAAP net loss narrowed to 1.4 million US dollars from 11.7 million US dollars. Adjusted EBITDA was a loss of 0.5 million US dollars, compared with adjusted EBITDA of 0.2 million US dollars in the prior-year quarter.

EBITDA outlook moves lower

Purple maintained its full-year revenue guidance of 420 million to 440 million US dollars. It lowered its adjusted EBITDA outlook to 15 million to 20 million US dollars, citing continued pressure in wholesale alongside planned marketing, seasonal direct-to-consumer demand and new product introductions.

The company said it generated 10.6 million US dollars of operating cash flow in the first nine months, compared with an outflow of 28.0 million US dollars in the same period of 2025. Cash and cash equivalents stood at 28.3 million US dollars at September 30.

Product refresh planned for 2027

Purple said it is preparing new Essentials and Hybrid mattress collections for early 2027. The collections are expected to represent almost 90% of mattress unit volume. The company also opened two showrooms during the quarter, bringing its network to 57 stores.

Purple operates in the consumer cyclical furnishings industry. It designs, manufactures and sells mattresses, pillows, bedding, foundations, bases and cushions in the United States and internationally. The company sells through direct-to-consumer e-commerce, wholesale retail partners, third-party online retailers and its showroom network, and is headquartered in Lehi, Utah.