PURPLE INNOVATION INC (NASDAQ:PRPL) reported its second-quarter 2025 earnings, delivering mixed results compared to analyst expectations. While the company reaffirmed its full-year guidance, the market reaction has been cautiously positive, with the stock rising in after-hours trading.
Key Earnings Metrics vs. Estimates
- Revenue: Reported $105.1 million, slightly below the consensus estimate of $105.76 million.
- Earnings Per Share (EPS): Posted a loss of $0.11 per share, marginally worse than the estimated loss of $0.1081.
- Adjusted EBITDA Margin: Improved by 120 basis points year-over-year, indicating progress in cost management despite the net loss.
Market Reaction
Following the earnings release, PRPL shares rose 3.5% in after-hours trading, suggesting investor optimism despite the slight revenue miss. The stock has shown resilience over the past month, gaining 16.6%, though broader market concerns about consumer spending (as highlighted in recent economic reports) could weigh on sentiment moving forward.
Press Release Highlights
- Strong Demand for Rejuvenate 2.0: The company noted that demand for its latest mattress line more than doubled compared to the initial Rejuvenate 1.0 launch in direct-to-consumer (DTC) channels.
- Reaffirmed 2025 Guidance: Management maintained its full-year outlook, aligning with analyst expectations for revenue and EPS.
Forward-Looking Estimates
Analysts project:
- Q3 2025 Revenue: $123.63 million
- Q3 2025 EPS: -$0.07752
- Full-Year 2025 Revenue: $476.41 million
- Full-Year 2025 EPS: -$0.324
The reaffirmed guidance suggests confidence in hitting these targets, though macroeconomic headwinds—such as weakening consumer discretionary spending—remain a risk.
For a deeper dive into Purple Innovation’s earnings and estimates, visit the earnings page.
Disclaimer: This article is for informational purposes only and does not constitute investment advice.
