📊 PRPL Key Takeaways
Is Purple Innovation, Inc. (PRPL) a Good Investment?
Purple Innovation is in severe financial distress with negative stockholders' equity, operational losses exceeding -$43M annually, and negative free cash flow of -$41.9M despite reasonable 40% gross margins. The company is technically insolvent with $127M in long-term debt against shrinking revenue and only ~$24M in cash reserves, making near-term solvency a critical concern.
Why Buy Purple Innovation, Inc. Stock? PRPL Key Strengths
- Gross margin of 40.2% demonstrates pricing power and product-market fit in household furniture segment
- Current ratio of 1.35x provides near-term liquidity cushion for operational needs
- Household furniture sector benefits from stable consumer demand for essential home goods
PRPL Stock Risks: Purple Innovation, Inc. Investment Risks
- Negative stockholders' equity of -$29.6M indicates technical insolvency and balance sheet impairment
- Operating cash flow of -$33.8M with negative free cash flow of -$41.9M shows unsustainable cash burn
- Revenue declining 3.9% YoY combined with operating margin of -9.2% indicates structural profitability issues
- Long-term debt of $126.7M cannot be serviced from negative operating income; interest coverage ratio is -9.6x
- Cash reserves of $24.3M insufficient to support continued negative burn rate without refinancing
Key Metrics to Watch
- Quarterly revenue stabilization and path to positive operating cash flow
- Operating margin recovery trajectory and overhead cost reduction initiatives
- Debt covenant compliance and refinancing capacity given negative equity position
- Quick ratio improvement and working capital management amid negative FCF
Purple Innovation, Inc. (PRPL) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Purple Innovation, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
PRPL Profit Margin, ROE & Profitability Analysis
PRPL vs Market Sector: How Purple Innovation, Inc. Compares
How Purple Innovation, Inc. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Purple Innovation, Inc. Stock Overvalued? PRPL Valuation Analysis 2026
Based on fundamental analysis, Purple Innovation, Inc. has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Purple Innovation, Inc. Balance Sheet: PRPL Debt, Cash & Liquidity
PRPL Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Purple Innovation, Inc.'s revenue has declined by 30% over the 5-year period, indicating business contraction. The most recent EPS of $1.17 reflects profitable operations.
PRPL Revenue Growth, EPS Growth & YoY Performance
PRPL Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $118.6M | -$11.7M | $0.11 |
| Q2 2025 | $105.1M | $27.0K | $0.00 |
| Q1 2025 | $104.2M | -$19.1M | $0.18 |
| Q3 2024 | $118.6M | -$36.0M | $-0.34 |
| Q2 2024 | $117.9M | $27.0K | $0.00 |
| Q1 2024 | $106.7M | -$25.9M | $-0.26 |
| Q3 2023 | $140.0M | $2.0M | $0.02 |
| Q2 2023 | $120.9M | -$8.3M | $-0.10 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Purple Innovation, Inc. Dividends, Buybacks & Capital Allocation
PRPL SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Purple Innovation, Inc. (CIK: 0001643953)
📋 Recent SEC Filings
❓ Frequently Asked Questions about PRPL
What is the AI rating for PRPL?
Purple Innovation, Inc. (PRPL) has an AI rating of STRONG SELL with 95% confidence, based on fundamental analysis of SEC EDGAR filings.
What are PRPL's key strengths?
Claude: Gross margin of 40.2% demonstrates pricing power and product-market fit in household furniture segment. Current ratio of 1.35x provides near-term liquidity cushion for operational needs.
What are the risks of investing in PRPL?
Claude: Negative stockholders' equity of -$29.6M indicates technical insolvency and balance sheet impairment. Operating cash flow of -$33.8M with negative free cash flow of -$41.9M shows unsustainable cash burn.
What is PRPL's revenue and growth?
Purple Innovation, Inc. reported revenue of $468.7M.
Does PRPL pay dividends?
Purple Innovation, Inc. pays dividends, with $0.1M distributed to shareholders in the trailing twelve months.
Where can I find PRPL SEC filings?
Official SEC filings for Purple Innovation, Inc. (CIK: 0001643953) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is PRPL's EPS?
Purple Innovation, Inc. has a diluted EPS of $0.48.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is PRPL a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Purple Innovation, Inc. has a STRONG SELL rating with 95% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is PRPL stock overvalued or undervalued?
Valuation metrics for PRPL: ROE of N/A (sector avg: 15%), net margin of -11.0% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy PRPL stock in 2026?
Our dual AI analysis gives Purple Innovation, Inc. a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is PRPL's free cash flow?
Purple Innovation, Inc.'s operating cash flow is $-33.8M, with capital expenditures of $8.1M. FCF margin is -8.9%.
How does PRPL compare to other Market stocks?
Vs Default sector averages: Net margin -11.0% (avg: 12%), ROE N/A (avg: 15%), current ratio 1.35 (avg: 1.8).