📊 PRPL Key Takeaways
Is Purple Innovation, Inc. (PRPL) a Good Investment?
Purple Innovation exhibits severe financial distress with negative stockholders' equity of -$60.1M (liabilities exceed assets), operating losses of -$16.8M, and inability to cover interest expenses from operations. Declining revenue and minimal free cash flow provide insufficient cushion against the company's substantial $126.7M debt burden.
Purple Innovation, Inc. Key Strengths (PRPL)
- Gross margin of 36.8% demonstrates product pricing power in furniture category
- Positive operating cash flow of $3.0M and free cash flow of $1.4M show some operational viability
- Cash position of $25.0M provides near-term liquidity buffer
PRPL Stock Risks: Purple Innovation, Inc. Investment Risks
- Negative stockholders' equity of -$60.1M indicates technical balance sheet insolvency with liabilities exceeding assets
- Operating losses of -$16.8M and net margin of -31.9% demonstrate unprofitable operations burning cash
- Negative interest coverage ratio of -3.8x means company cannot service debt from operating income
- Revenue decline of 3.9% YoY signals weakening demand and market competitiveness
- Quick ratio of 0.62x raises covenant and short-term liquidity concerns
- Long-term debt of $126.7M is unsustainable relative to asset base and cash generation
Key Metrics to Watch
- Path to positive stockholders' equity and balance sheet solvency
- Operating income recovery from negative position to breakeven and profitability
- Revenue stabilization and return to growth trajectory
- Debt reduction and interest coverage ratio improvement
- Operating cash flow sustainability given continued loss operations
- Quick ratio improvement to support liquidity adequacy
Purple Innovation, Inc. (PRPL) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 1.4% FCF margin may limit capital allocation flexibility.
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 |
|---|---|---|---|
| Q1 2026 | $4.9M | -$19.1M | $-0.18 |
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 grade of D with 92% confidence, based on fundamental analysis of SEC EDGAR filings.
What are PRPL's key strengths?
Claude: Gross margin of 36.8% demonstrates product pricing power in furniture category. Positive operating cash flow of $3.0M and free cash flow of $1.4M show some operational viability.
What are the risks of investing in PRPL?
Claude: Negative stockholders' equity of -$60.1M indicates technical balance sheet insolvency with liabilities exceeding assets. Operating losses of -$16.8M and net margin of -31.9% demonstrate unprofitable operations burning cash.
What is PRPL's revenue and growth?
Purple Innovation, Inc. reported revenue of $95.7M.
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 $-0.28.
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 grade reflects both perspectives for balanced insights.
What is PRPL's fundamental grade?
Based on our AI fundamental analysis in May 2026, Purple Innovation, Inc. has a D grade with 92% confidence. Review the strengths and risks sections above for full context. 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 -31.9% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is PRPL's AI grade for 2026?
Our dual AI analysis gives Purple Innovation, Inc. a combined D grade 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 $3.0M, with capital expenditures of $1.6M. FCF margin is 1.4%.
How does PRPL compare to other Market stocks?
Vs Default sector averages: Net margin -31.9% (avg: 12%), ROE N/A (avg: 15%), current ratio 1.24 (avg: 1.8).