Form 8-K

8-K — Purple Innovation, Inc.

Accession: 0001213900-26-087318

Filed: 2026-08-10

Period: 2026-08-10

CIK: 0001643953

SIC: 2510 (HOUSEHOLD FURNITURE)

Item: Results of Operations and Financial Condition

Item: Financial Statements and Exhibits

Documents

8-K — ea0301257-8k_purple.htm (Primary)

EX-99.1 — PRESS RELEASE DATED AUGUST 10, 2026, REGARDING FINANCIAL RESULTS FOR THE SECOND QUARTER ENDED JUNE 30, 2026 (ea030125701ex99-1.htm)

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):

August 10, 2026

Purple Innovation, Inc.

(Exact Name of Registrant as Specified in its

Charter)

Delaware

001-37523

47-4078206

(State of Incorporation)

(Commission File Number)

(IRS Employer

Identification No.)

4100 North Chapel Ridge Rd., Suite 200

Lehi, Utah

84043

(Address of Principal Executive Offices)

(Zip Code)

Registrant’s telephone number, including

area code: (801) 756-2600

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended

to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐

Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐

Pre-commencements communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Class A Common Stock, par value $0.0001 per share

PRPL

The NASDAQ Stock Market LLC

Preferred Stock Purchase Rights

N/A

The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant

is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b–2

of the Securities Exchange Act of 1934 (§240.12b–2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check

mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting

standards provided pursuant to Section 13(a) of the Exchange Act. ☐

ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On August 10, 2026, Purple Innovation, Inc. (the

“Company”) issued a press release announcing its financial results for the second quarter ended June 30, 2026, and providing

revised net revenue guidance for 2026. A copy of this press release is furnished as Exhibit 99.1 to this report and incorporated by reference

herein.

The information furnished pursuant to this Item

2.02, including Exhibit 99.1 hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act

of 1934, as amended (the “Exchange Act”), and shall not be deemed to be incorporated by reference in any filing under the

Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

The press release furnished herewith in Exhibit

99.1 contains non-GAAP financial measures. Management believes non-GAAP financial measures assist management and investors in evaluating

and comparing period-to-period results and projections in a more meaningful and consistent manner. Reconciliations for these non-GAAP

financial measures to the most directly comparable GAAP financial measures are included in the press release.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS

(d) Exhibits.

Exhibit

Number

Description

99.1

Press Release dated August 10, 2026, regarding financial results for the second quarter ended June 30, 2026.

104

Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURE

Pursuant to the requirements of the Securities

Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: August 10, 2026

PURPLE INNOVATION, INC.

By:

/s/ Robert G. Lucian

Robert G. Lucian

Chief Financial Officer

EX-99.1 — PRESS RELEASE DATED AUGUST 10, 2026, REGARDING FINANCIAL RESULTS FOR THE SECOND QUARTER ENDED JUNE 30, 2026

EX-99.1

Filename: ea030125701ex99-1.htm · Sequence: 2

Exhibit 99.1

Purple Innovation Reports Second Quarter 2026

Results

Showroom Revenue Up 16.6% and Comparable Revenue

Up 18%

GAAP Net Loss of $3.2 Million in the Second

Quarter

Adjusted EBITDA Improves $4.4 Million to $2.1

Million

Regains Compliance with Nasdaq Minimum Bid

Price Requirement

Lehi, Utah, August 10, 2026 – Purple Innovation, Inc. (NASDAQ:

PRPL) (“Purple”), a comfort innovation company whose mattresses promise to give you “less pain, better sleep,”

today announced results for the second quarter ended June 30, 2026.

“The second quarter demonstrated continued progress in the areas

we can control, even as industry conditions remained challenging and we fell short of our top-line expectations,” said Rob DeMartini,

CEO of Purple Innovation. “Our direct-to-consumer business grew, led by another strong quarter in showrooms, while e-commerce trends

improved sequentially for the third consecutive quarter. GAAP Net Loss and Adjusted EBITDA improved compared with last year, including

the benefit from tariff refunds.”

“These results reinforce that Purple is operating from a stronger

and more disciplined foundation. We remain focused on helping consumers better understand why the GelFlex Grid is different, strengthening

the experience across our direct channels, advancing our innovation pipeline and maintaining the cost discipline that is supporting improved

profitability and cash generation in a difficult demand environment.”

Second Quarter 2026 Financial Results

Second quarter 2026 net revenue was $98.3 million, down 6.5% compared

to $105.1 million in the second quarter of 2025. The decrease was primarily driven by lower wholesale revenue, partially offset by strong

growth in showroom revenue.

Direct-to-consumer revenue increased 3.4%, reflecting a 16.6% increase

in showroom revenue and a 1.4% decrease in e-commerce revenue. Wholesale revenue decreased 19.1% to $37.4 million, compared with $46.2

million in the prior-year period. The decrease reflected a $5.3 million increase in certain payments to customers and a manufacturer under

common control and a $3.5 million decrease in wholesale sales volume related to lower industry demand.

Gross profit increased 4.5% to $44.4 million, compared to $42.5 million

in the prior-year period. Gross margin was 45.2%, an increase of approximately 470 basis points year-over-year, primarily due to the $5.3

million tariff refund.

Beginning in the second quarter of 2026, the Company changed the presentation

of costs associated with merchant credit-card processing fees and third-party consumer-financing fees from being presented in cost of

revenues to now being presented in marketing and sales costs. Prior periods have been revised to conform to the current presentation.

This reclassification had no impact on previously reported revenue, operating loss, net loss, adjusted EBITDA or cash flow. The

reclassification increases GAAP gross margin in the second quarter by approximately 500 basis points, with a corresponding 500 basis point

increase in marketing and sales expense.

Second quarter operating expenses were $48.7 million, down approximately

14.3% from the prior-year quarter. The improvement was primarily driven by the absence of restructuring related costs incurred in the

prior year period, lower employee related expenses and professional services and all other operating expenses, partially offset by an

increase in advertising spending.

GAAP Net Loss for the second quarter was $3.2 million, a $14.1 million

improvement versus the prior period.

Adjusted EBITDA for the second quarter was $2.1 million, an improvement

of $4.4 million from an adjusted EBITDA loss of $2.4 million in the prior-year period. Adjusted EBITDA is a non-GAAP financial measure.

See discussion under the heading “Non-GAAP Financial Measures” below for additional information.

Balance Sheet

The Company ended the second quarter with cash and cash equivalents

of $23.3 million, compared with $24.3 million as of December 31, 2025.

Net inventories as of June 30, 2026, totaled $55.4 million, down 7.2%

compared to December 31, 2025. Cashflow from operating activities YTD as of June 30, 2026 was $3.6M, a $30.7 million improvement over

the prior year’s same period.

Nasdaq Listing Update

Subsequent to the end of the second quarter,

Purple Innovation has received written notification from The Nasdaq Stock Market LLC confirming that the Company has regained compliance

with the minimum bid price requirement under Nasdaq Listing Rule 5450(a)(1). Accordingly, the previously disclosed bid price deficiency

matter has been closed.

2026 Outlook

Given the continued softness in the

category, particularly in wholesale, we are lowering our revenue guidance in the range of $420 million to $440 million. Importantly, the

continued strength of our DTC business, coupled with our cost discipline, gives us confidence in our ability to deliver adjusted EBITDA

of $20 million to $25 million for fiscal 2026.

Conference Call and Webcast Information

Purple Innovation, Inc. will host a live conference call to discuss

financial results today, Monday, August 10, 2026, at 4:30 p.m. Eastern Time. Investors and analysts interested in participating in the

call are invited to dial 833-461-5787 (domestic) or 585-542-9983 (international) and enter Conference ID 765 786 843. The conference call

will also be available through a live webcast on the investor relations section of the Company’s website at investors.purple.com.

Please visit the website at least 15 minutes prior to the start of the call to register and download any necessary software. After the

conference call, a webcast replay will remain available on the investor relations section of the Company’s website for one year.

About Purple

Purple exists to help people get the best sleep of their lives —

by reducing pain, deepening sleep, and unlocking the potential for brighter dawns and better days. At the center of that mission is our

signature innovation, the GelFlex Grid®. Originally developed in medical settings to support the body in its most vulnerable moments,

the GelFlex Grid delivers a one-of-a-kind combination of pressure relief, alignment, and temperature balance that helps people fall asleep

easier, stay asleep longer, and wake up with less pain.

That same comfort technology extends beyond mattresses into pillows,

bedding, and cushions designed to make everyday life feel a little lighter and a lot more comfortable. Because when pain eases and sleep

improves, everything else gets better too — your energy, your outlook, and your ability to show up for the moments that matter.

Less pain. Better sleep.

Learn more at www.purple.com

Forward Looking Statements

Certain statements made in this release that are not historical facts

are “forward looking statements” within the meaning of the “safe harbor” provisions of the United States Private

Securities Litigation Reform Act of 1995. Statements based on historical data are not intended and should not be understood to indicate

the Company’s expectations regarding future events. Forward-looking statements provide current expectations or forecasts of future

events or determinations. These statements include, but are not limited to, statements regarding our innovation pipeline, our ability

to improve profitability, manage costs, generate cash, and optimize our business, the expansion of and benefits to us from our commercial

relationships, our ability to drive profitable growth and create shareholder value, and our outlook for revenue and adjusted EBITDA for

the full year 2026. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number

of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company’s control,

that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Factors that

could influence the realization of forward-looking statements include, among others: changes in economic, financial and end-market conditions

in the markets in which we operate; fluctuations in raw material prices and cost of labor; the financial condition of our customers and

suppliers; competitive pressures, including the need for technology improvement, successful new product development and introduction;

changes in consumer demand, including pullbacks in consumer spending; disruptions to our manufacturing processes; and the risk factors

outlined in the “Risk Factors” section of our Annual Report on Form 10-K filed with the Securities and Exchange Commission

on March 25, 2026, and in our other filings made with the SEC. The Company does not undertake any obligation to update or revise any forward-looking

statements, whether as a result of new information, future events or otherwise, except as required by law.

Non-GAAP Financial Measures

EBITDA, adjusted EBITDA, adjusted net loss, and adjusted net loss per

diluted share are non-GAAP financial measures that remove the impact of certain non-cash and non-recurring costs. Management believes

that the use of such non-GAAP financial measures provides investors with additional useful information with respect to the impact of various

adjustments, which we view as a better measure of our operating performance. Refer to the attached table for the reconciliation of such

non-GAAP financial measures to the most comparable GAAP financial measure.

With respect to the Company’s adjusted EBITDA outlook for the

full year 2026, a quantitative reconciliation to the corresponding GAAP information cannot be provided without unreasonable effort because

of the inherent difficulty of accurately forecasting the occurrence and financial impact of the various adjusting items necessary for

such reconciliation that have not yet occurred, are out of our control, or cannot be reasonably predicted, including but not limited to

warrant liabilities and stock-based compensation. For the same reasons, the Company is unable to assess the probable significance of the

unavailable information, which could have a material impact on its future GAAP financial results.

Investor Contact:

Stacy Turnof, Edelman Smithfield

stacy.turnof@edelmansmithfield.com

917-362-2581

PURPLE INNOVATION, INC.

Condensed Consolidated Balance Sheets

(unaudited – in thousands, except for

par value)

June 30,

2026

December 31,

2025

Assets

Current assets:

Cash and cash equivalents

$ 23,300

$ 24,345

Accounts receivable, net

26,229

41,272

Inventories

55,397

59,725

Prepaid expenses

4,131

5,487

Other current assets

5,418

5,891

Total current assets

114,475

136,720

Property and equipment, net

73,763

77,961

Operating lease right-of-use assets

64,424

67,271

Intangible assets, net

5,909

6,346

Other long-term assets

5,925

7,961

Total assets

$ 264,496

$ 296,259

Liabilities and Stockholders’ Equity

Current liabilities:

Accounts payable

$ 41,186

$ 40,312

Accrued compensation

3,818

7,673

Customer prepayments

4,035

5,276

Accrued rebates and allowances

11,633

13,416

Accrued warranty liabilities – current portion

8,135

7,141

Operating lease obligations – current portion

16,967

17,366

Related party debt – current portion

127,006

—

Other current liabilities

6,934

10,339

Total current liabilities

219,714

101,523

Related party debt, net of current portion

—

111,305

Accrued warranty liabilities, net of current portion

20,030

19,570

Operating lease obligations, net of current portion

71,209

75,616

Warrant liabilities

15,715

16,150

Other long-term liabilities

1,628

1,764

Total liabilities

328,296

325,928

Commitments and contingencies (Note 13)

Stockholders’ equity (deficit):

Class A common stock; $0.0001 par value, 210,000 shares authorized; 4,353 issued and outstanding at June 30, 2026 and 4,330 issued and outstanding at December 31, 2025

Class B common stock; $0.0001 par value, 90,000 shares authorized; 7 issued and outstanding at June 30, 2026 and at December 31, 2025

—

Additional paid-in capital

595,280

595,589

Accumulated deficit

(659,051 )

(625,280 )

Total stockholders’ equity (deficit) attributable to Purple Innovation, Inc.

(63,767 )

(29,687 )

Noncontrolling interest

(33 )

Total stockholders’ equity (deficit)

(63,800 )

(29,669 )

Total liabilities and stockholders’ equity (deficit)

$ 264,496

$ 296,259

PURPLE INNOVATION, INC.

Condensed Consolidated Statements of Operations

(unaudited – in thousands, except per

share amounts)

Three Months Ended

June 30,

Six Months Ended

June 30,

2026

2025

2026

2025

Revenues, net

$ 98,270

$ 105,100

$ 194,000

$ 209,271

Cost of revenues:

Cost of revenues

53,857

62,509

109,366

120,101

Cost of revenues - restructuring related charges

—

995

Total cost of revenues

53,857

62,586

109,366

121,096

Gross profit

44,413

42,514

84,634

88,175

Operating expenses:

Marketing and sales

33,733

35,447

70,316

76,688

General and administrative

12,445

14,991

30,478

29,478

Research and development

2,485

2,178

4,933

4,630

Restructuring, impairment and other related charges

—

4,137

—

6,097

Total operating expenses

48,663

56,753

105,727

116,893

Operating loss

(4,250 )

(14,239 )

(21,093 )

(28,718 )

Other income (expense):

Interest expense

(7,812 )

(7,457 )

(16,031 )

(12,221 )

Other income, net

1,455

2,946

Change in fair value – warrant liabilities

7,393

4,378

435

4,427

Total other income (expense), net

1,036

(3,078 )

(12,650 )

(7,724 )

Net loss before income taxes

(3,214 )

(17,317 )

(33,743 )

(36,442 )

Income tax expense

(32 )

(54 )

(79 )

(95 )

Net loss

(3,246 )

(17,371 )

(33,822 )

(36,537 )

Net loss attributable to noncontrolling interest

(16 )

(26 )

(51 )

(55 )

Net loss attributable to Purple Innovation, Inc.

$ (3,230 )

$ (17,345 )

$ (33,771 )

$ (36,482 )

Net loss per share:

Basic

$ (0.74 )

$ (4.01 )

$ (7.77 )

$ (8.45 )

Diluted

$ (0.74 )

$ (4.01 )

$ (7.77 )

$ (8.45 )

Weighted average common shares outstanding:

Basic

4,353

4,329

4,344

4,317

Diluted

4,360

4,329

4,351

4,317

PURPLE INNOVATION, INC.

Condensed Consolidated Statements of Cash Flows

(unaudited – in thousands)

Six Months Ended

June 30,

2026

2025

Cash flows from operating activities:

Net loss

$ (33,822 )

$ (36,537 )

Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation and amortization

8,888

9,881

Non-cash interest

6,797

5,656

Paid-in-kind interest

9,249

6,797

Non-cash restructuring, impairment and other related charges

—

3,816

Loss on disposal of property and equipment

152

224

Change in fair value – warrant liabilities

(435 )

(4,427 )

Stock-based compensation

(221 )

845

Changes in operating assets and liabilities:

Accounts receivable

15,043

11,974

Inventories

4,328

(4,040 )

Prepaid expenses and other assets

3,755

2,671

Operating leases, net

(1,960 )

(1,018 )

Accounts payable

947

(17,111 )

Accrued compensation

(3,855 )

(2,783 )

Customer prepayments

(1,241 )

2,079

Accrued rebates and allowances

(1,783 )

(2,572 )

Accrued warranty liabilities

1,454

514

Other accrued liabilities

(3,660 )

(3,031 )

Net cash provided by (used in) operating activities

3,636

(27,062 )

Cash flows from investing activities:

Sale of property and equipment

—

363

Purchase of property and equipment

(3,557 )

(5,222 )

Investment in intangible assets

(778 )

(285 )

Net cash used in investing activities

(4,335 )

(5,144 )

Cash flows from financing activities:

Proceeds from related party loan

—

39,000

Payments for debt issuance costs

(346 )

(1,557 )

Net cash (used in) provided by financing activities

(346 )

37,443

Net (decrease) increase in cash and cash equivalents

(1,045 )

5,237

Cash and cash equivalents, beginning of the period

24,345

29,011

Cash and cash equivalents, end of the period

$ 23,300

$ 34,248

PURPLE INNOVATION, INC.

RECONCILIATION OF GAAP TO NON-GAAP MEASURES

(In thousands)

Management believes that the use of the following

non-GAAP financial measures provides investors with additional useful information with respect to the impact of various adjustments, which

we view as a better measure of our operating performance. These non-GAAP financial measures are EBITDA, adjusted EBITDA, adjusted net

loss and adjusted net loss per diluted share. Other companies may calculate these non-GAAP measures differently than we do. These non-GAAP

measures have limitations as analytical tools, and you should not consider them in isolation or as a substitute for our financial results

prepared in accordance with GAAP.

Reconciliation of GAAP Net Income (Loss) to

Non-GAAP EBITDA and Adjusted EBITDA

A reconciliation of GAAP net income (loss) to

the non-GAAP measures of EBITDA and adjusted EBITDA is provided below. EBITDA represents net loss before interest expense, income tax

expense, other income, net, and depreciation and amortization. Adjusted EBITDA represents EBITDA excluding costs incurred due to changes

in the fair value of the warrant liability, stock-based compensation expense, restructuring related charges, nonrecurring legal fees,

strategic alternative costs, severance cost and showroom opening and closing costs. We believe EBITDA and Adjusted EBITDA provide

additional useful information with respect to the impact of various adjustments and provide meaningful measures of our operating performance.

Three Months Ended

June

30,

Six Months Ended

June

30,

2026

2025

2026

2025

GAAP net loss

$ (3,246 )

$ (17,371 )

$ (33,822 )

$ (36,537 )

Interest expense

7,812

7,457

16,031

12,221

Income tax expense

Other income, net

(286 )

(1 )

(515 )

(70 )

Depreciation and amortization

4,461

4,831

8,888

9,881

EBITDA

8,773

(5,030 )

(9,339 )

(14,410 )

Adjustments:

Change in fair value - warrant liability

(7,393 )

(4,378 )

(435 )

(4,427 )

Stock-based compensation expense

(377 )

439

(221 )

845

Restructuring related charges

—

4,137

—

6,785

Non-recurring legal fees

189

907

189

1,140

Strategic alternative costs

706

1,086

5,030

1,260

Severance costs

168

361

2,058

1,570

Showroom opening and closing costs

—

114

—

147

Adjusted EBITDA

$ 2,066

$ (2,364 )

$ (2,718 )

$ (7,090 )

Reconciliation of GAAP Net Loss to non-GAAP Adjusted Net Loss and

Adjusted Net Loss per Diluted Share

Our presentation of adjusted net loss assumes

that all net loss is attributable to Purple Innovation, Inc. (i.e. there is no allocation of net loss to noncontrolling interests), which

assumes the full exchange at the beginning of the period of all outstanding Paired Securities for shares of Class A common stock of Purple

Innovation, Inc., adjusted for certain nonrecurring items that we do not believe directly reflect our core operations. Adjusted net loss

per share, diluted, is calculated by dividing adjusted net loss by the total shares of Class A common stock outstanding plus any dilutive

warrants, options and restricted stock as calculated in accordance with GAAP and assuming the full exchange of all outstanding Paired

Securities as of the beginning of each period presented. Adjusted net loss and adjusted net loss per diluted share, are supplemental measures

of operating performance that do not represent, and should not be considered, alternatives to net loss and earnings per share, as calculated

in accordance with GAAP. We believe adjusted net loss and adjusted net loss per diluted share, supplement GAAP measures and enable us

to more effectively evaluate our performance period-over-period. A reconciliation of net loss, the most directly comparable GAAP measure,

to adjusted net loss and the computation of adjusted net loss per diluted share, are set forth below:

(in thousands, except per share amounts)

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

Net loss

$ (3,246 )

$ (17,371 )

$ (33,822 )

$ (36,537 )

Income tax expense, as reported

Revenue reduction due to SGI contract

941

627

1,882

627

Change in fair value – warrant liabilities

(7,393 )

(4,348 )

(435 )

(4,427 )

Restructuring related charges

—

4,213

—

7,092

Strategic alternative costs

706

1,086

5,030

1,260

Adjusted net loss before income taxes

(8,960 )

(15,739 )

(27,266 )

(31,890 )

Adjusted income tax benefit(1)

2,321

4,076

7,062

8,260

Adjusted net loss

$ (6,639 )

$ (11,663 )

$ (20,204 )

$ (23,630 )

Adjusted net loss per share, diluted

$ (1.52 )

$ (2.69 )

$ (4.64 )

$ (5.46 )

Adjusted weighted-average shares outstanding, diluted(2)

4,360

4,336

4,351

4,324

(1) Represents the estimated effective tax rate of 25.9% for the

three and six months ended June 30, 2026 and 2025, applied to adjusted net income before income taxes. The estimated effective tax rates

are what the Company would be subject to and consist of the combined federal statutory tax rate and the Company’s blended state

tax rates.

(2) Assumes options and restricted stock units calculated in accordance

with GAAP and the full exchange of all outstanding Paired Securities for shares of Class A common stock as of the beginning of the period.

A reconciliation of net income (loss) per share,

diluted, to adjusted net loss per share, diluted is set forth below for the three months ended June 30, 2026 and 2025:

For the Three Months Ended

(in thousands, except per share amounts)

June 30, 2026

June 30, 2025

Net Loss

Weighted Average

Shares,

Diluted

Net Loss per Share, Diluted

Net Loss

Weighted Average Shares, Diluted

Net Loss per Share, Diluted

Net loss attributable to Purple Innovation Inc.(1)

$ (3,230 )

4,360

$ (0.74 )

$ (17,345 )

4,329

$ (4.01 )

Assumed exchange of shares(2)

(16 )

—

(26 )

Net loss

(3,246 )

(17,371 )

Adjustments to arrive at adjusted loss before taxes(3)

(5,714 )

1,632

Adjusted loss before taxes

(8,960 )

(15,739 )

Adjusted income tax benefit(4)

2,321

4,076

Adjusted net loss

$ (6,639 )

4,360

$ (1.52 )

$ (11,663 )

4,336

$ (2.69 )

(1) Represents net loss attributable to Purple Innovation, Inc.

and the associated weighted average diluted shares, of Class A common stock outstanding. For the three months ended June 30, 2026, the

Paired Securities are included in the beginning weighted average shares, diluted.

(2) Assumes the full exchange of all outstanding Paired Securities

for shares of Class A common stock as of the beginning of the period. Also assumes the addition of net income attributable to noncontrolling

interests corresponding with the assumed exchange of the Paired Securities for shares of Class A common stock.

(3) Represents the total impact of all adjustments identified in

the adjusted net income table above to arrive at adjusted income before income taxes.

(4) Represents the estimated effective tax rate of 25.9% for the

three months ended, June 30, 2026 and 2025, applied to adjusted net income before income taxes. The estimated effective tax rates are

what the Company would be subject to and consist of the combined federal statutory tax rate and the Company’s blended state tax

rates assuming no valuation allowance.

A reconciliation of net loss per share, diluted,

to adjusted net loss per share, diluted is set forth below for the six months ended June 30, 2026 and 2025:

For the Six Months Ended

June 30, 2026

June 30, 2025

Net Income

Weighted Average

Shares,

Diluted

Net Loss per Share, Diluted

Net Income

Weighted Average Shares, Diluted

Net Income per Share, Diluted

Net loss attributable to Purple Innovation Inc.(1)

$ (33,771 )

4,351

$ (7.77 )

$ (36,482 )

4,317

$ (8.45 )

Assumed exchange of shares(2)

(51 )

—

(55 )

Net loss

(33,822 )

(36,537 )

Adjustments to arrive at adjusted loss before taxes(3)

6,556

4,647

Adjusted loss before taxes

(27,266 )

(31,890 )

Adjusted income tax benefit(4)

7,062

8,260

Adjusted net loss

$ (20,204 )

4,351

$ (4.64 )

$ (23,630 )

4,324

$ (5.46 )

(1) Represents net loss attributable to Purple Innovation, Inc.

and the associated weighted average diluted shares, of Class A common stock outstanding. For the six months ended June 30, 2026, the

Paired Securities are included in the beginning weighted average shares, diluted.

(2) Assumes the full exchange of all outstanding Paired Securities

for shares of Class A common stock as of the beginning of the period if not already included in weighted average diluted shares in footnote

(1) above. Also assumes the addition of net income attributable to noncontrolling interests corresponding with the assumed exchange of

the Paired Securities for shares of Class A common stock.

(3) Represents the total impact of all adjustments identified in

the adjusted net income table above to arrive at adjusted income before income taxes.

(4) Represents the estimated effective tax rate of 25.9% for the

six months ended June 30, 2026 and 2025, applied to adjusted net income before income taxes. The estimated effective tax rates are what

the Company would be subject to and consist of the combined federal statutory tax rate and the Company’s blended state tax rates

assuming no valuation allowance.

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