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Purple Innovation lowers FY2026 revenue guidance to $420M-$440M, forecasts $20M-$25M adjusted EBITDA
Purple Innovation has lowered its fiscal 2026 revenue guidance to a range of $420 million to $440 million, down from its prior outlook of $465 million to $485 million, while forecasting adjusted EBITDA of $20 million to $25 million. The company cited continued softness in the mattress category, particularly in its wholesale channel, where second-quarter revenue fell 19.1% to $37.4 million. Direct-to-consumer revenue rose 3.4% to $60.9 million, and total net revenue declined 6.5% to $98.3 million. Purple also revised its gross margin target to approximately 45% due to a reclassification of credit card and financing fees, and it took pricing actions in June to offset commodity and logistics inflation. The company ended the quarter with $23.3 million in cash and positive operating cash flow for the second straight quarter.