Purple Innovation Inc. Common Stock (PRPL)

FairStock Score: 30/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor in the Buffett and Graham tradition, I look first for durable earnings and a margin of safety. Purple offers neither today. The company sells mattresses and sleep accessories through e-commerce, wholesale and showrooms, but in fiscal year 2025, the year ended 2025-12-31, revenue was $468.7 million and net income was -$51.4 million. In fiscal year 2024, revenue was $487.9 million and net income was -$97.9 million; in fiscal year 2023, revenue was $510.5 million and net income was -$120.8 million. The losses are narrowing, but revenue is shrinking. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $98.3 million and net income was -$3.2 million, better than the fiscal Q2 2025 net loss of -$17.3 million on $105.1 million of revenue. Yet fiscal Q1 2026, the quarter ended 2026-03-31, showed only $4.9 million of revenue and a -$30.5 million net loss, a disturbing filed result. FairStock's calculations at the 2026-10-13 close of $1.97 show a trailing free cash flow of -$10.7 million, a -15.4% FCF yield, an Altman Z-Score of -3.52, and an EV/EBITDA of 37.10. A negative P/E of -0.17 and ROCE of -6.62% confirm there is no earnings support. The Piotroski F-Score of 5/9 is middling. The mattress industry is competitive, and I see no clear moat. The FairStock score of 30/100 and the lack of a Lynch category because of four straight loss years are telling. This is not a Graham bargain; it is a speculative turnaround. I would need evidence of stable revenue, positive free cash flow, and a repaired balance sheet before calling it investable.

In plain English: Purple makes mattresses, pillows and other sleep products, selling online, through stores and in its own showrooms. The business has been losing money and sales have slipped, and it burned cash over the last year. At $1.97, the price does not look cheap based on profits because there are no profits; it is a turnaround bet.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer