Purple Innovation, Inc. (NASDAQ: PRPL) reported fourth‑quarter 2025 revenue of $140.7 million, up 9.1% from the same period a year earlier, and a net loss of $3.2 million. Gross profit reached $59.0 million, giving a gross margin of 41.9% for the quarter. Adjusted EBITDA for Q4 was $8.8 million, a sharp improvement over the $2.9 million reported in the prior year. For the full year, revenue declined 3.9% to $468.7 million, and adjusted EBITDA turned positive at $1.9 million. The company’s full‑year gross margin was 40.2%, lower than the 41.9% margin seen in Q4 but higher than the 38.5% margin reported in 2024.
The growth in Q4 was driven largely by the company’s wholesale channel, particularly its partnerships with Mattress Firm and Costco, which offset softness in e‑commerce sales. The company’s restructuring plan, completed in 2025, delivered $25 million to $30 million in annual EBITDA savings and helped lift gross margins. Management noted that operating expenses were partially offset by “strategic alternatives costs,” a one‑time charge that helped improve profitability.
In 2024, Purple Innovation generated $487.9 million in revenue and recorded an adjusted EBITDA loss of $20.8 million. The 2025 decline in revenue reflects a 3.9% year‑over‑year drop, but the return to positive adjusted EBITDA and the improvement in gross margin signal progress in the company’s turnaround strategy.
Rob DeMartini, CEO, said, “2025 marked an important inflection point for Purple. In the fourth quarter, we delivered revenue growth of approximately 9%, delivered gross profit expansion, and generated $8.8 million in adjusted EBITDA.” Todd Vogensen, CFO, added, “Net revenue for the fourth quarter was $140.7 million, and our fourth‑quarter adjusted loss per share was $0.02, while adjusted EBITDA in the fourth quarter was $8.8 million.” The executives emphasized that the decisive, transformative actions already taken are expected to continue stabilizing the company’s financial position.
Management reiterated its 2026 outlook, projecting full‑year revenue of $500 million to $520 million and adjusted EBITDA of $20 million to $30 million. The guidance reflects confidence in continued wholesale growth, cost discipline, and the benefits of the restructuring plan. Investors noted the revenue beat, the narrower loss per share, and the return to positive adjusted EBITDA as key drivers of a positive market reaction.
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