Purple Innovation, Inc. (PRPL) AI Stock Analysis

Purple Innovation, Inc. designs and manufactures sleep products, including mattresses, pillows, and cushions, aimed at enhancing sleep comfort. Headquartered in Lehi, Utah, its product lineup includes bases, foundations, sheets, mattress protectors, bed frames, seat cushions, weighted blankets, duvets, and pet beds. The company utilizes proprietary materials like the Purple Grid, an adaptive structure offering support and pressure relief. Purple sells products through direct-to-consumer e-commerce platforms, brick-and-mortar retail outlets, partnerships with third-party online retailers, and its own retail showrooms.

Revenue has contracted over four consecutive fiscal years, declining from $726.2M in FY2021 to $468.7M in FY2025, reflecting a 5-year revenue CAGR of -6.3%. Over this span, gross margin moved from 40.6% in FY2021 down to 33.7% in FY2023 before recovering to 40.2% in FY2025. Operating margins remained negative throughout the period, posting -6.8% in FY2025 alongside a net loss of -$51.4M. For the trailing twelve months, revenue was $453.5M with an operating margin of -4.3% and net margin of -10.7%. In the latest quarter ended June 30, 2026, quarterly revenue fell 6.5% year-over-year while quarterly earnings declined 60.2%.

As of June 30, 2026, Purple held $23.3M in cash and short-term investments against total debt of $215.2M, resulting in net debt of $191.9M. The balance sheet shows negative shareholders' equity of -$63.8M, total assets of $264.5M, and a current ratio of 0.52. Cash flow remains constrained, with free cash flow at -$41.9M and operating cash flow at -$33.8M in FY2025. Capital expenditures totaled $8.1M in FY2025, while the share count expanded by 62.0% over five years.

Purple's enterprise value stands at $203.3M with a market capitalization of $10.4M. Its forward P/E of 285.7x and EV/EBITDA of 28.9x sit well above the median of its US-listed Consumer Cyclical peers, which report 14.1x and 11.1x, respectively. The stock trades at a price-to-sales multiple of 0.0x compared to the peer median of 0.7x. Over the past year, the shares plunged 88.9%, significantly lagging the S&P 500 return of 16.8%. Over five years, the stock dropped 99.5% against an 83.0% gain for the S&P 500.

Wall Street coverage consists of 1 Strong Buy and 2 Hold ratings. The mean price target is $25.00, representing a 946.0% premium over the last close of $2.39. For the current fiscal year ending December 31, 2026, consensus estimates project revenue of $425.8M and an EPS of -$6.03. For the following fiscal year, 3 analysts project revenue to reach $457.7M with EPS of -$5.39. Purple beat EPS estimates in 2 of the last 4 quarters, and its next earnings date is November 3, 2026.

This page is an AI-written research summary of Purple Innovation, Inc. (PRPL). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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