PRPL
Purple Innovation, Inc.
Next earnings Jul 27, 2026 · consensus $-0.07 EPS, $108M rev
Last earnings -17.1% on 2026-04-28
$0.36
▼ -4.86%$0.36▼ -50.56%
over 1Y
L $0.36H $1.25
Earnings Dividend Split Congress buy Congress sellGrouped by date · hover a pin to expand
Today-4.9%
1W-7.8%
1M-11.6%
3M-44.8%
YTD-50.0%
1Y-50.6%
Avoid
Conviction
Horizon
Short (<3mo)
Street · 10 analysts
Buy
Negative book equity, cash burn exceeding cash on hand, and rising debt make PRPL a broken balance sheet — a Q4 turn doesn't fix insolvency.
Stockholders' equity -$29.7M · FY2025
The read
It screens cheap (~4961% below fair value), but the weak fundamentals are why — more potential value trap than bargain.
Purple is a five-year secular decliner: revenue has fallen every year from $725M (FY2021) to $469M (FY2025), and it has lost money in four straight years (-$92.5M, -$121M, -$97.9M, -$51.4M). The loss is narrowing and gross margin is respectable at 40.2% (41.9% in Q4), and management's 'Path to Premium Sleep' restructuring — supplier diversification, plant efficiencies, lower warranty costs — is real and showing up in a Q4 revenue rebound of +9.1% (wholesale +39.8% on Mattress Firm and Costco expansion). Those are genuine green shoots. But they do not repair the capital structure.
The balance sheet is the disqualifier. Stockholders' equity is NEGATIVE -$29.7M against a -$625M accumulated deficit — the company is book-insolvent, which is why the liabilities/equity ratio (-10.98x) is meaningless. Liquidity is the acute problem: cash is just $24.3M (down 16%) while operating cash flow was -$33.8M for the year (worse by 89.5%), and that's before $8.08M of capex. In other words, annual cash burn exceeds the entire cash balance. Meanwhile long-term debt jumped 79.2% to $127M and there is a $55.4M current debt slug — the company is funding losses with rising leverage into a shrinking revenue base.
Is PRPL a buy? The one-page verdict, explained →
The options angle
model · matches our verdictBear put spread (caution)~30d expiry
- Long put 0.5 @ ~0.14 est
- Short put 0.5 @ ~0.14 est
debit $0max +$0max $0
AVOID means we wouldn't engage at all — if expressing the short side anyway, only with capped risk.
Educational template, not a trade recommendation. Strikes and premiums are Black-Scholes model estimates from the last close and 30-day realized volatility — real chains, spreads and IV will differ. Options involve substantial risk.
Financials · annual, by fiscal year
| Line item | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue | $725M | $573M | $511M | $488M | $469M |
| Gross profit | $294M | $208M | $172M | $181M | $189M |
| Operating income | -$24.6M | -$42.8M | -$114M | -$92.2M | -$43.0M |
| Net income | $3.11M | -$92.5M | -$121M | -$97.9M | -$51.4M |
| Diluted EPS | -$0.31 | -$1.13 | $1.17 | $0.91 | $0.48 |
| Net margin | 0.4% | -16.1% | -23.7% | -20.1% | -11.0% |
10-year statements — income, cash flow, balance sheet & CSV export →
Annual figures from SEC 10-K XBRL filings. Open the filing links below for full statement detail.
Key statistics
Valuation
Enterprise value$197M
EV / EBITDA—
EV / Sales0.4
EV / FCF—
P / FCF—
PEG (trailing)0.02
Earnings yield-131.1%
FCF yield-106.9%
Quality & risk
ROIC (est.)—
Free cash flow-$41.9M
Total debt$182M
Net cash-$158M
Altman Z-Score-1.64 distress
Piotroski F-Score4/9
Capital returns
Buyback yield0.2%
Dividend yield (est.)0.3%
Shareholder yield0.5%
Shares Δ YoY+0.9%
Computed from SEC XBRL annual figures + the current quote. EV and ROIC use long-term + current debt where filed; estimates, not investment advice.
Disclosure timeline
SEC · 8-Ks + reportsRecent disclosure tone has skewed negative — read the flagged items.
- 8-K Shareholder vote2026-06-10
Annual meeting vote results — directors elected, auditor ratified; routine governance
- DEF 14A Proxy statement2026-06-08
Annual meeting proxy — director slate and compensation items for vote
- 8-K Officer / director change2026-06-05
Leadership change disclosed (Item 5.02) — executive/board transition
- 8-K Delisting notice2026-05-11
Nasdaq listing-rule deficiency notice — delisting risk on sub-$1 stock
- 8-K Officer / director change2026-04-28
Q1'26 results extend Q4'25 momentum but negative equity persists
- 10-Q Quarterly report2026-04-28
Q1'26 results extend Q4'25 momentum but negative equity persists
- DEF 14A Proxy statement2026-04-22
Proxy statement filed ahead of 2026 annual meeting — governance items
- 8-K Material agreement2026-03-31
FY25 loss narrowed 47.5%, Q4 rev +9.1%; equity negative, leverage up
- 10-K Annual report2026-03-31
FY25 loss narrowed 47.5%, Q4 rev +9.1%; equity negative, leverage up
Recent filings
all on EDGAR ↗8-KPeriod ending 2026-06-092026-06-10open ↗DEF 14APeriod ending 2026-07-022026-06-08open ↗8-KPeriod ending 2026-06-012026-06-05open ↗PRE 14APeriod ending 2026-05-292026-05-29open ↗8-KPeriod ending 2026-05-052026-05-11open ↗4Period ending 2026-05-042026-05-06open ↗3Period ending 2026-04-272026-05-05open ↗10-QPeriod ending 2026-03-312026-04-28open ↗8-KPeriod ending 2026-04-242026-04-28open ↗DEFA14AFiling2026-04-22open ↗DEF 14APeriod ending 2026-06-092026-04-22open ↗4Period ending 2026-03-312026-04-02open ↗
Frequently asked
- Is Purple Innovation, Inc. (PRPL) a buy?
- PRPL currently carries a Avoid rating with 4/5 conviction, derived from its latest SEC filings. Negative book equity, cash burn exceeding cash on hand, and rising debt make PRPL a broken balance sheet — a Q4 turn doesn't fix insolvency.
- What is PRPL's fair value?
- A Modified-Graham model based on PRPL's SEC fundamentals estimates a fair value of about $18.24. It is an estimate from reported earnings, not a price target.
- Is PRPL overvalued or undervalued?
- Against a Modified-Graham fair-value estimate, PRPL currently appears undervalued relative to its SEC-grounded earnings power.
- What is Purple Innovation, Inc.'s quality score?
- PRPL scores 42.511360919317326/100 (grade D) on a SEC-grounded quality model spanning value, growth, profitability, financial health and momentum.
Sources: SEC EDGAR (CIK 0001643953, latest 10-Q filed 2026-04-28) · EODHD · Proprietary analysis · as of 7/4/2026, 3:58:27 AM.
About this recommendation — produced by TENK/calls (tenkcalls.com), Luxembourg · not investment advice
AI-generated analysis, produced by our proprietary engine from SEC filing data.
Investment recommendation produced by TENK/calls (tenkcalls.com), Luxembourg. Completed Jul 3, 2026, 11:58 PM ET. Ratings & methodology: definitions · All recommendations to date: track record · Conflicts: disclosures. Not investment advice.
Research and education only — not financial advice. TENKis not a registered investment adviser or broker-dealer and gives no personalized advice. Every call is impersonal — identical for all users, generated on a schedule from SEC filings plus a delayed/third-party price feed — may be wrong or out of date, and is not a recommendation to buy or sell any security. The operator and an affiliated trading operation may hold or trade the securities TENK rates; see Disclosures. Past performance does not guarantee future results. Do your own research.