Purple Innovation Misses Q2 Revenue, Slashes 2026 Outlook on Wholesale Weakness
PRPL sits 49% above its 52-week low of $6.12 on elevated volume (3.2× avg).
Summary
Purple Innovation's Q2 revenue fell 6.5% to $98.27M, missing the $105.69M consensus, driven by a 19.1% plunge in wholesale revenue. The company cited lower industry demand and increased payments to customers and a manufacturer. Direct-to-consumer revenue rose 3.4%, with showroom sales up 16.6%, but not enough to offset wholesale softness. A $5.3M tariff refund helped gross margin, and the net loss narrowed to $3.2M from $17.4M a year ago. Adjusted EBITDA turned positive at $2.1M. Management cut full-year 2026 revenue guidance to $420M-$440M and expects adjusted EBITDA of $20M-$25M, signaling continued wholesale headwinds.
Updates
· SEC 8-K — Purple regained Nasdaq compliance with the minimum bid price requirement, closing the previously disclosed deficiency matter.
At the time of this announcement, PRPL was trading at $9.10 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $39.7M. The 52-week trading range was $6.12 to $31.50. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.