Purple Innovation lowered its 2026 revenue guidance to $420 million-$440 million.
The company expects 2026 adjusted EBITDA of $20 million-$25 million.
The company sees continued softness in wholesale impacting results.
Quarterly results
U.S. mattress maker's Q2 revenue fell 6.5% year over year, missing analyst expectations.
The company's GAAP net loss narrowed to $3.2 million from $17.4 million a year earlier.
Adjusted EBITDA turned positive, improving $4.4 million to $2.1 million.
What drove the results
Wholesale weakness — Revenue decline was mainly due to a 19.1% drop in wholesale revenue, reflecting lower industry demand and increased payments to customers and a related manufacturer.
Showroom growth — Direct-to-consumer revenue rose , led by a increase in showroom revenue.
Tariff refund — Gross margin increased due to a $5.3 million tariff refund.
Key metrics and analyst view
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$98.27 million
$105.69 million (3 analysts)
Q2 Net Loss
$3.25 million
Q2 Gross Profit
$44.41 million
Q2 Operating Expenses
$48.66 million
Q2 Operating Income
-$4.25 million
Q2 Pretax Loss
$3.21 million
The current average analyst rating on the shares is hold and the breakdown of recommendations is 1 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 $25.00, about 161% above its Aug. 7 closing price of $9.58.
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