Purple's Q3 revenue flat year-over-year, missed estimates, stock dropped despite margin improvement.

Purple Innovation reported Q3 2025 revenue of $118.8 million, flat year-over-year and below estimates, with a non-GAAP loss per share of $0.08, slightly better than expected. Adjusted EBITDA was $189,000, and operating margin improved to -10.2% from -39.5% a year ago. The company reaffirmed full-year revenue guidance at $475 million, slightly above forecasts, but the stock fell 5% to $0.76 amid investor disappointment. Despite progress in cost control and margin improvement, Purple continues to face profitability challenges, with a five-year EPS decline of 19.9%. Analysts expect losses to narrow to $0.20 from $0.37 over the next year.