Purple (PRPL) Reports Q3 2026 Revenue Decline Amid Wholesale Weakness
Purple (PRPL) reported a significant decline in third-quarter revenue, totaling $96.5 million, which represents a 19% year-over-year decrease. The downturn was primarily driven by a 31% drop in wholesale net revenue and a 9% decline in direct-to-consumer segments. Management attributed the weakness to reduced volume among regional and independent retail partners, as well as higher-than-expected demand sensitivity following price increases implemented in June. Despite the top-line contraction, the company showed signs of improved operational discipline, reducing operating expenses by 25% through cost-cutting measures. While GAAP net loss narrowed significantly to $1.4 million from a prior year loss of $11.7 million, management lowered its full-year adjusted EBITDA guidance to a range of $15 million to $20 million due to manufacturing volume deleverage. The company is currently focusing on a portfolio refresh and expanding its showroom footprint.
Tickers: $PRPL
Topics: GAAP Net Loss improvement Gross Margin compression Net Revenue decline Wholesale channel weakness