Purple Innovation Q4 revenue edges past estimates on wholesale partnerships

Overview

• US mattress maker's Q4 revenue rose 9% yr/yr, slightly beating analyst expectations

• Adjusted EPS for Q4 was a loss but beat analyst expectations

• Company's Q4 growth driven by wholesale partnerships, offset by e-commerce decline

Outlook

• Purple Innovation expects 2026 revenue of $500 mln to $520 mln

• Company sees 2026 adjusted EBITDA between $20 mln and $30 mln

• Company anticipates Q1 revenue of $100 mln to $105 mln and adjusted EBITDA of $(7) mln to $(4) mln

Result Drivers

• WHOLESALE CHANNEL - Q4 growth driven by expanded Mattress Firm placements and continued momentum with Costco, partially offset by e-commerce decline

• COST MANAGEMENT - Operating expenses fell 2.9% yr/yr due to ongoing restructuring and cost-saving initiatives

• GROSS MARGIN GAINS - Gross margin benefited from sourcing initiatives, manufacturing efficiencies, and restructuring actions

Company press release: ID:nPn3dsLkna

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

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