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what it is
Purple sells mattresses, pillows, cushions, bases, and sheets for people who want fancier sleep.
how it gets paid
Last year Purple Innovation made $488M in revenue. Mattresses was the main engine at $215M, or 44% of sales.
what just happened
Purple's latest quarter hit $328M in revenue and pushed gross margin to 39.5%.
At a glance
C balance sheet — red flag territory — real financial stress
20/100 earnings predictability — expect surprises
2.1% return on capital — nothing to write home about
-$0.79 fy2024 eps est
$2B fy2026 rev est
xvary composite: 25/100 — weak
What they do
Purple sells mattresses, pillows, cushions, bases, and sheets for people who want fancier sleep.
Purple's Purple Grid is a gel layer. Hyper-Elastic Polymer® → stretchy gel → it helps with pressure and cooling. That tech has been tested for over 30 years. You get a branded sleep stack across 5 product lines, not one lonely mattress. The catch is the balance sheet: $488M of revenue versus $184M of long-term debt.
How they make money
$488M
annual revenue
Mattresses
$215M
Pillows
$71M
Bases
$60M
Sheets
$92M
Cushions
$50M
The products that matter
core sleep products
Mattresses
primary driver of ~$457M trailing revenue
it is the center of a roughly $457M trailing-revenue business. if mattress demand slips, the rest of the assortment does not save the model.
main revenue engine
add-on accessories
Pillows & Bedding
rides on 42.8% gross margin
these products matter because they sit on top of the same brand and material story, and every extra item helps spread costs across a business still losing money.
basket-builder
distribution channel
Wholesale & Retail
~$195M in shown sales
this is not a product, but it is the channel that matters most right now. with direct sales down 21%, retail execution is carrying more of the turnaround story.
turnaround hinge
Key numbers
$488M
annual revenue
That is the size of the business. It also gives you the yardstick for every margin problem.
18.9%
operating margin
Operating margin means profit after running the business. Negative 18.9% means sales still do not cover costs.
$184M
long-term debt
Debt means money owed. $184M is a huge claim on a $77M market cap company.
2.1%
return on capital
Return on capital means profit made on money invested in the business. 2.1% is weak next to the debt load.
Financial health
C
strength
- balance sheet grade C — very weak — significant financial distress
- risk rank 5 — safer than 5% of stocks
- price stability 5 / 100
- long-term debt $184M (71% of capital)
C — balance sheet grade and long-term debt are flagged. this stock carries more risk than average.
Total return vs. market
Return history isn't available for PRPL right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Purple's latest quarter hit $328M in revenue and pushed gross margin to 39.5%.
Revenue was $328M, up 176% vs. prior year. EPS was $0.45, and gross margin was 39.5%, up from 29.7% in the prior year quarter.
$328M
revenue
$0.45
eps
39.5%
gross margin
gross margin
39.5% gross margin matters because it shows the company kept more of each sale after product costs. That is better than 29.7% a year ago.
source: EDGAR SEC filing
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What could go wrong
the #1 risk is refinancing a $184M debt load with only $34.2M of cash.
high
balance sheet pressure
Purple has $184M in long-term debt and $34.2M in cash. the equity is worth about $77M. that is not a comfortable capital structure.
if profitability does not arrive fast enough, financing risk becomes the story and common shareholders are last in line.
high
direct-to-consumer keeps shrinking
the direct channel still represents roughly 60% of the shown mix at ~$292M, but it fell 21%. if that keeps sliding, retail wins only slow the damage.
continued direct weakness would pressure revenue, brand control, and margin recovery at the same time.
med
Mattress Firm ramp misses the $70M goal
management is counting on the expanded partnership to add $70M in sales. miss that ramp, and a key part of the turnaround case disappears.
that would leave the company trying to fix a 21% direct decline without the retail offset investors are waiting for.
med
strategic review ends in dilution, not rescue
the march 2025 strategic review signals that management is exploring options. when a company this small carries debt this large, new capital can come at shareholder-unfriendly terms.
a financing or weak sale outcome could protect the business while still hurting the stock.
$184M in debt against $34.2M in cash means even modest execution misses can force capital decisions before the turnaround has time to prove itself.
source: institutional data · regulatory filings · risk analysis
Pay attention to
liquidity
cash versus debt
$34.2M of cash against $184M of debt is the number set. if cash drops again without a clean path to profit, the capital structure becomes the main event.
trend
direct-to-consumer decline
the direct channel is still about 60% of the shown mix at ~$292M, but it fell 21%. you want to see that decline stabilize before calling this a real turnaround.
date
next earnings report
estimated for march 12, 2026. the update should tell you whether margin gains are holding and whether losses keep shrinking fast enough to matter.
strategic review
what management actually chooses
a sale, partnership, or capital raise would all reshape the thesis. with a $77M market cap, any deal update can matter more than another quarter of marketing copy.
Analyst rankings
earnings predictability
20 / 100
earnings predictability measures how dependable the profit pattern has been. in human-speak, analysts do not trust this income statement to behave.
risk rank
5
risk rank means safer than only 5% of stocks. in human-speak, this sits near the risky end of the public market.
price stability
5 / 100
price stability tracks how calm a stock has traded. a 5 says calm left the building a while ago.
source: institutional data
Institutional activity
institutional ownership data for PRPL is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$1
current price
n/a
target midpoint · n/a from current
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