Purple Innovation Q1 revenue misses estimates, cuts outlook

Overview

• U.S. mattress maker's Q1 revenue fell 8% yr/yr, missing analyst expectations

• Adjusted EBITDA loss for Q1 was flat from a year earlier

• Company cut full-year revenue outlook but reaffirmed adjusted EBITDA guidance

Outlook

• Purple lowers 2026 revenue outlook to $465-$485 mln from $500-$520 mln

• Company maintains 2026 adjusted EBITDA guidance at $20-$30 mln

Result Drivers

• E-COMMERCE AND WHOLESALE SOFTNESS - Co said revenue decline was mainly due to continued softness in e-commerce and lower wholesale revenue, partially offset by showroom growth

• GROSS MARGIN PRESSURE - Gross margin was impacted by strategic investment in Royale floor models for Mattress Firm rollout and lower production volumes, which led to less favorable absorption of fixed costs

• COST SAVINGS - Operating expenses declined due to ongoing cost savings initiatives and prior restructuring actions, partially offset by higher expenses for strategic alternatives evaluation

Company press release: ID:nPn8RJzGMa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the home furnishings peer group is "hold."

• Wall Street's median 12-month price target for Purple Innovation Inc is $1.50, about 132.8% above its April 27 closing price of $0.64

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.