Specialty mattress producer Purple Innovation said third quarter revenues were essentially even with last year’s third quarter, but the company slashed its net loss by more than half as it began to benefit from a restructuring program completed earlier this year.
The company also saw its adjusted gross margin jump by 230 basis points to 42.8%
Revenues for the three months ended Sept. 30 totaled $118.8 million, an increase of less than 1% from $118.6 million in the same period last year.
The net loss came to $11.7 million, or 11 cents per share. That compares with a loss of $39.2 million, or 36 cents per share, in last year’s third quarter.
“Our third quarter results reflect the continued progress we’re making in strengthening Purple’s foundation and positioning the company for sustainable, profitable growth,” said Rob DeMartini, CEO. “We delivered results in line with expectations, achieving an improved net loss and positive adjusted EBITDA and a sequential improvement in gross margin despite tariff headwinds. These results highlight the discipline and focus that are driving improved performance across our business.”
The company’s adjusted EBITDA, or earnings before interest, taxes, depreciation and amortization, totaled $189,000 in the quarter. In the comparable period last year, the figure was a negative $6.38 million.
“The success of Rejuvenate 2.0, the ongoing expansion of our Mattress Firm partnership, and strong showroom performance all underscore the power of our innovation and our brand momentum, marking an important inflection point in sales trends after consecutive quarters of year-over-year declines,” DeMartini said.
He said Purple is maintaining the financial guidance issued following the second quarter. Full-year revenues are projected at $465 million to $485 million, while adjusted EBITDA is projected at break-even to $10 million.
For the first nine months of 2025, revenues totaled $328 million, down from $358.9 million in the first nine months of 2024. The nine-month net loss was $48.2 million, or 45 cents per share. The loss totaled $89.4
