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Segment Information and Concentrations | 3 Months Ended
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Mar. 31, 2026
Segment Information and Concentrations [Abstract] |
Segment Information and Concentrations | 20. Segment Information and Concentrations The Company designs and manufactures a variety of innovative, branded and premium comfort products, including mattresses, pillows, cushions, bases, sheets, and other products. The Company has one reportable segment that operates an omni-channel distribution strategy which allows the Company to offer a seamless shopping experience to its customers across multiple sales channels. The Company’s one segment markets and sells products through its direct-to-consumer e-commerce channels, retail brick-and-mortar wholesale partners, Purple showrooms, and third-party online retailers. The accounting policies for the Company’s one segment are the same as those described in Note 2 – Summary of Significant Accounting Policies. The CODM assesses performance for the segment and decides how to allocate resources based on consolidated net income or loss as reported in the consolidated statement of operations. The measure of segment assets is reported on the consolidated balance sheets as total consolidated assets. The Company does not have intra-entity sales or transfers. The CODM uses consolidated net loss to evaluate earnings generated from segment assets (return on assets) in deciding whether to reinvest profits into its single reportable segment or into other parts of the entity, such as for acquisitions. Consolidated net loss is also used to monitor budget versus actual results. The monitoring of budgeted versus actual results are used in assessing the segment’s performance and in establishing management’s compensation. The following table summarizes segment revenue, significant segment expenses, other segment items and segment profit or loss (in thousands):
|  | Three Months Ended March 31, |
|  | 2026 |  |  | 2025 |
Revenues, net |  | $ | 95,730 |  |  | $ | 104,171 |
Reductions (additions): |  |  |  |  |  |  |  |
Cost of revenues |  |  | 60,535 |  |  |  | 62,207 |
Cost of revenues – restructuring related charges |  |  | — |  |  |  | 918 |
Advertising expense |  |  | 11,342 |  |  |  | 14,602 |
Marketing sales expense |  |  | 5,132 |  |  |  | 7,187 |
Wholesale marketing and sales expense |  |  | 4,932 |  |  |  | 4,323 |
Showrooms marketing and sales expense |  |  | 10,151 |  |  |  | 10,514 |
General and administrative expense |  |  | 18,033 |  |  |  | 14,487 |
Research and development expense |  |  | 2,448 |  |  |  | 2,452 |
Restructuring, impairment and other related charges |  |  | — |  |  |  | 1,960 |
Other segment items, net (1) |  |  | 13,686 |  |  |  | 4,646 |
Income tax expense |  |  | 47 |  |  |  | 41 |
Net loss attributable to noncontrolling interest |  |  | (35 | ) |  |  | (29 | )
Net reductions |  |  | 126,271 |  |  |  | 123,308 |
Segment net loss |  | $ | (30,541 | ) |  | $ | (19,137 | )
(1) | Other segment items, net include interest expense, other (income) expense, net, loss on extinguishment of debt, and change in fair value of warrant liabilities.
The Company classifies products into two major categories: sleep products and other. Sleep products include mattresses, platforms, adjustable bases, mattress protectors, pillows and sheets. Other products include cushions and various other products. In the three months ended March 31, 2026 and 2025 sales of other products accounted for less than 3.0% of net revenues. The Company defines international revenues as sales to customers located outside of the United States. In the three months ended March 31, 2026 and 2025 international customers accounted for less than 1.0% of net revenues. The Company had one individual customer that accounted for approximately 40.8% and 36.0% of accounts receivable at March 31, 2026 and 2025, respectively, and approximately 8.3% and 11.9% of net revenue during the three months ended March 31, 2026 and 2025, respectively. The Company currently obtains materials and components used in production from outside sources. As a result, the Company is dependent upon suppliers that in some instances, are the sole source of supply. The Company is continuing efforts to dual-source key components. The failure of one or more of the Company’s suppliers to provide materials or components on a timely basis could significantly impact the results of operations. The Company believes that it can obtain these raw materials and components from other sources of supply in the ordinary course of business, although an unexpected loss of supply over a short period of time may not allow for the replacement of these sources in the ordinary course of business. The Company maintains its cash balances in financial institutions based in the United States that are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 for each financial institution per entity. At times, the Company’s cash balance deposited at financial institutions exceed the federally insured deposit limits. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk related to these deposits.

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