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Revenue from Contracts with Customers
 3 Months Ended
Mar. 31, 2026
Revenue from Contracts with Customers [Abstract]  
Revenue from Contracts with Customers

5. Revenue from Contracts with Customers

 

The Company markets and sells its products through direct-to-consumer e-commerce channels, Purple showrooms, retail brick-and-mortar wholesale partners, and third-party online retailers. Revenue is recognized when the Company satisfies its performance obligations under the contract which involves transferring the promised products to the customer, subject to shipping terms. 

 

Disaggregated Revenue

 

The Company classifies revenue as either direct-to-consumer (“DTC”) or wholesale revenue. DTC revenues include the e-commerce channel which sells directly to consumers who purchase online, through the contact center, and through online marketplaces and the showrooms channel that sells directly to consumers who purchase at a Purple showroom location. The wholesale channel includes all product sales to the Company’s retail brick and mortar and online wholesale partners where consumers make purchases at their retail locations or through their online channels.

 

The following tables present the Company’s revenue disaggregated by sales channel (in thousands):

 

   Three Months Ended
March 31,		 
Sales Category  2026   2025 
e-commerce  $40,596   $45,397 
Showrooms   18,847    17,986 
Wholesale   36,287    40,788 
Revenues, net  $95,730   $104,171 

 

Contract Balances

 

Payments for the sale of products through the direct-to-consumer e-commerce channel, Purple showrooms and our contact center are collected at point of sale in advance of shipping the products. The amounts received for unshipped products are recorded as customer prepayments. Customer prepayments totaled $4.7 million and $5.3 million at March 31, 2026 and December 31, 2025, respectively. During the three months ended March 31, 2026, the Company recognized all of the revenue that was deferred in customer prepayments at December 31, 2025.