Purple Innovation Reports Positive Q4 EBITDA Turnaround

Purple Innovation, Inc. ( (PRPL) ) has released its Q4 earnings. Here is a breakdown of the information Purple Innovation, Inc. presented to its investors.

Purple Innovation, Inc., a company renowned for its innovative comfort products, including the ‘World’s First No Pressure™ Mattress,’ operates in the premium mattress industry, offering a range of sleep-related products designed to enhance comfort and support.

In its latest earnings report, Purple Innovation announced a return to positive adjusted EBITDA and cash flow in the fourth quarter of 2024, marking a significant turnaround after eight quarters of negative results. The company also highlighted improvements in gross margins and the securing of additional liquidity through a $19 million term loan to support ongoing investments.

Key financial metrics for the fourth quarter included a net revenue decline of 11.6% to $129 million, attributed to industry softness and the previous year’s new product launch. However, gross profit rose to $55.3 million, with a notable improvement in GAAP gross margin to 42.9%. Operating expenses saw a slight reduction, and the net loss narrowed to $8.5 million from $18.3 million the previous year. For the full year, net revenue decreased by 4.4% to $487.9 million, but the company achieved a significant improvement in adjusted EBITDA, reflecting its strategic focus on profitability.

Looking ahead, Purple Innovation is optimistic about its Path to Premium strategy, supported by recent cost-saving measures and additional financial resources. The company plans to launch new products, such as the Rejuvenate 2.0, in the second quarter of 2025, aiming to enhance its market position and drive profitability.

Purple Innovation’s management remains confident in the company’s ability to execute its strategic initiatives and improve financial performance, with expectations for sequential improvements in revenue and adjusted EBITDA throughout 2025.