Q2 2026 Purple Innovation Inc Earnings Call Transcript
Key Points
- Showroom revenue increased 16.6% year-over-year, with comparable store sales up 18%, marking the fourth consecutive quarter of positive comps.
- Adjusted EBITDA improved to $2.1 million from a loss of $2.4 million in the prior year, reflecting stronger profitability.
- GAAP gross margin expanded by 470 basis points to 45.2%, driven by tariff refunds, sourcing initiatives, and favorable inventory adjustments.
- E-commerce revenue improved sequentially for the third consecutive quarter, supported by better marketing execution and strong Amazon performance.
- The company regained compliance with NASDAQ's minimum bid price requirement following the reverse stock split, removing a key overhang.
- Wholesale revenue declined 19.1% year-over-year, impacted by a $5.3 million increase in payments to customers and lower industry demand.
- Total net revenue decreased 6.5% to $98.3 million, reflecting continued softness in the broader mattress market.
- The company lowered its fiscal year 2026 revenue guidance to $420-$440 million due to persistent wholesale weakness.
- E-commerce revenue was still down 1.4% year-over-year, though improving sequentially, indicating ongoing challenges in the channel.
- Pricing actions taken in June to offset inflation led to a more negative consumer reaction than expected, with elasticity assumptions needing reassessment.
Hello everyone. Thank you for joining us and welcome to Purple Innovations second quarter 2026 earnings call. (Operator Instructions)
I will now hand the conference over to Stacy Turnof. Please go ahead.
Thank you for joining Purple Innovations' second quarter 2026 earnings call. A copy of our earnings press release is available on the Investor Relations section of Purple's website at www.purple.com.
Before we begin, I'd like to remind you that certain statements made in this presentation are forward-looking statements. These statements reflect Purple Innovation's judgment and analysis as of today and are subject to a variety of risks and uncertainties that could cause actual results to differ materially from current. We should not place undue reliance on these forward-looking statements. For more information, please refer to the
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