Cover - USD ($) $ in Millions	12 Months Ended
Cover - USD ($) $ in Millions	Dec. 31, 2024	Mar. 07, 2025	Jun. 30, 2024
Document Information [Line Items]
Document Type	10-K
Document Annual Report	true
Document Transition Report	false
Document Financial Statement Error Correction [Flag]	false
Entity Interactive Data Current	Yes
ICFR Auditor Attestation Flag	false
Amendment Flag	false
Document Period End Date	Dec. 31, 2024
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	FY
Documents Incorporated by Reference [Text Block]	Certain portions of the registrant’s definitive proxy statement relating to the Annual Meeting of Stockholders are specifically incorporated by reference in Part III, Items 10, 11, 12, 13 and 14 of this Annual Report on Form 10-K.
Entity Information [Line Items]
Entity Registrant Name	PURPLE INNOVATION, INC.
Entity Central Index Key	0001643953
Entity File Number	001-37523
Entity Tax Identification Number	47-4078206
Entity Incorporation, State or Country Code	DE
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Shell Company	false
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Public Float			$ 58.5
Entity Contact Personnel [Line Items]
Entity Address, Address Line One	4100 NORTH CHAPEL RIDGE ROAD
Entity Address, Address Line Two	SUITE 200
Entity Address, City or Town	LEHI
Entity Address, State or Province	UT
Entity Address, Postal Zip Code	84043
Entity Phone Fax Numbers [Line Items]
City Area Code	(801)
Local Phone Number	756-2600
Class A Common Stock, par value $0.0001 per share
Entity Listings [Line Items]
Title of 12(b) Security	Class A Common Stock, par value $0.0001 per share
Trading Symbol	PRPL
Security Exchange Name	NASDAQ
Preferred Stock Purchase Rights
Entity Listings [Line Items]
Title of 12(b) Security	Preferred Stock Purchase Rights
No Trading Symbol Flag	true
Security Exchange Name	NASDAQ
Class A Common Stock
Entity Listings [Line Items]
Entity Common Stock, Shares Outstanding		107,545,493
Class B Common Stock
Entity Listings [Line Items]
Entity Common Stock, Shares Outstanding		164,982

Audit Information	12 Months Ended
Audit Information	Dec. 31, 2024
Auditor [Table]
Auditor Name	BDO USA, P.C.
Auditor Firm ID	243
Auditor Location	Salt Lake City, Utah
Auditor Opinion [Text Block]	We have audited the accompanying consolidated balance sheets of Purple Innovation, Inc. (the “Company”) as of December 31, 2024 and 2023, the related consolidated statements of operations, stockholders’ equity (deficit), and cash flows for each of the three years in the period ended December 31, 2024, and the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2024, in conformity with accounting principles generally accepted in the United States of America.

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 29,011	$ 26,857
Accounts receivable, net	33,057	37,802
Inventories	56,863	66,878
Prepaid expenses	6,023	8,536
Other current assets	1,414	1,737
Total current assets	126,368	141,810
Property and equipment, net	93,874	128,661
Operating lease right-of-use assets	75,516	95,767
Intangible assets, net	8,890	22,196
Other long-term assets	3,197	2,191
Total assets	307,845	390,625
Current liabilities:
Accounts payable	40,639	49,831
Accrued compensation	9,415	5,064
Customer prepayments	6,411	5,718
Accrued rebates and allowances	10,013	13,243
Accrued warranty liabilities – current portion	6,114	9,793
Operating lease obligations – current portion	15,661	14,843
Other current liabilities	12,750	12,490
Total current liabilities	101,003	110,982
Related party debt	55,394
Long-term debt, net of current portion		26,909
Accrued warranty liabilities, net of current portion	26,091	25,798
Operating lease obligations, net of current portion	87,072	109,094
Warrant liabilities	16,067
Other long-term liabilities	2,009	2,235
Total liabilities	287,636	275,018
Commitments and contingencies (Note 15)
Stockholders’ equity:
Additional paid-in capital	594,053	591,380
Accumulated deficit	(573,866)	(475,969)
Total stockholders’ equity attributable to Purple Innovation, Inc.	20,198	115,422
Noncontrolling interest	11	185
Total stockholders’ equity	20,209	115,607
Total liabilities and stockholders’ equity	307,845	390,625
Class A Common Stock
Stockholders’ equity:
Common stock; value	11	11
Class B Common Stock
Stockholders’ equity:
Common stock; value

Consolidated Balance Sheets (Parentheticals) - $ / shares shares in Thousands	Dec. 31, 2024	Dec. 31, 2023
Class A Common Stock
Common stock, par value (in Dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized	210,000	210,000
Common stock, shares issued	107,545	105,507
Common stock, shares outstanding	107,545	105,507
Class B Common Stock
Common stock, par value (in Dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized	90,000	90,000
Common stock, shares issued	165	205
Common stock, shares outstanding	165	205

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Revenues, net	$ 487,877	$ 510,541	$ 573,201
Cost of revenues:
Total cost of revenues	306,745	338,716	365,110
Gross profit	181,132	171,825	208,091
Operating expenses:
Marketing and sales	171,263	182,313	165,388
General and administrative	69,117	84,446	76,702
Research and development	12,962	11,898	8,755
Restructuring, impairment and other related charges	19,973
Loss on impairment of goodwill		6,879
Total operating expenses	273,315	285,536	250,845
Operating loss	(92,183)	(113,711)	(42,754)
Other (expense) income:
Interest expense	(17,510)	(1,967)	(3,536)
Other income (expense), net	11,548	(1,198)	423
Loss on extinguishment of debt	(3,394)	(4,331)
Change in fair value – warrant liabilities	3,504		4,343
Tax receivable agreement income			161,970
Total (expense) other income, net	(5,852)	(7,496)	163,200
Net (loss) income before income taxes	(98,035)	(121,207)	120,446
Income tax expense	63	8	213,169
Net loss	(98,098)	(121,215)	(92,723)
Net loss attributable to noncontrolling interest	(201)	(458)	(253)
Net loss attributable to Purple Innovation, Inc.	$ (97,897)	$ (120,757)	$ (92,470)
Net loss per share:
Basic (in Dollars per share)	$ (0.91)	$ (1.17)	$ (1.13)
Diluted (in Dollars per share)	$ (0.91)	$ (1.17)	$ (1.13)
Weighted average common shares outstanding:
Basic (in Shares)	107,139	103,602	81,779
Diluted (in Shares)	107,324	103,936	81,779
Cost of revenues
Cost of revenues:
Total cost of revenues	$ 291,303	$ 338,716	$ 365,110
Restructuring charges
Cost of revenues:
Total cost of revenues	$ 15,442

Consolidated Statements of Stockholders’ Equity (Deficit) - USD ($) shares in Thousands, $ in Thousands	Common Stock Class A	Common Stock Class B	Additional Paid-in Capital	Accumulated Deficit	Total Stockholders’ Equity attributable to Purple Innovation, Inc.	Noncontrolling Interest	Class A	Class B	Total
Balance at Dec. 31, 2021	$ 7		$ 407,591	$ (262,742)	$ 144,856	$ 762			$ 145,618
Balance (in Shares) at Dec. 31, 2021	66,493	448
Net loss				(92,470)	(92,470)	(253)			(92,723)
Stock-based compensation			3,366		3,366				3,366
Exercise of stock options			166		166				166
Exercise of stock options (in Shares)	20
Issuance of stock upon underwritten offering, net of costs	$ 1		92,865		92,866				92,866
Issuance of stock upon underwritten offering, net of costs (in Shares)	16,100
Issuance of stock for Intellibed acquisition	$ 1		26,105		26,106				26,106
Issuance of stock for Intellibed acquisition (in Shares)	8,613
Accrued distributions			(228)		(228)				(228)
Issuance of stock under equity compensation plans
Issuance of stock under equity compensation plans (in Shares)	154
Impact of transactions affecting NCI			(399)		(399)	399
Balance at Dec. 31, 2022	$ 9		529,466	(355,212)	174,263	908			175,171
Balance (in Shares) at Dec. 31, 2022	91,380	448
Net loss				(120,757)	(120,757)	(458)			(121,215)
Exchange of stock
Exchange of stock (in Shares)	243	(243)
Proportional Representation Preferred Linked Stock redemption fee			(105)		(105)				(105)
Escrow shares cancelled in connection with Intellibed acquisition			(118)		(118)				(118)
Escrow shares cancelled in connection with Intellibed acquisition (in Shares)	(41)
Stock-based compensation			4,875		4,875				4,875
Issuance of stock upon underwritten offering, net of costs	$ 2		56,997		56,999				56,999
Issuance of stock upon underwritten offering, net of costs (in Shares)	13,400
Issuance of stock under equity compensation plans
Issuance of stock under equity compensation plans (in Shares)	525
Impact of transactions affecting NCI			265		265	(265)
Balance at Dec. 31, 2023	$ 11		591,380	(475,969)	115,422	185			115,607
Balance (in Shares) at Dec. 31, 2023	105,507	205					105,507	205
Net loss				(97,897)	(97,897)	(201)			(98,098)
Exchange of stock
Exchange of stock (in Shares)	40	(40)
Stock-based compensation			2,815		2,815				$ 2,815
Issuance of stock upon underwritten offering, net of costs (in Shares)	1,500						8,100		500
Issuance of stock for Intellibed acquisition
Issuance of stock for Intellibed acquisition (in Shares)	1,500
Issuance of stock under equity compensation plans			(115)		(115)				(115)
Issuance of stock under equity compensation plans (in Shares)	498
Impact of transactions affecting NCI			(27)		(27)	27
Balance at Dec. 31, 2024	$ 11		$ 594,053	$ (573,866)	$ 20,198	$ 11			$ 20,209
Balance (in Shares) at Dec. 31, 2024	107,545	165					107,545	165

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Cash flows from operating activities:
Net loss	$ (98,098)	$ (121,215)	$ (92,723)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	35,355	25,106	17,487
Non-cash interest	7,229	1,237	1,072
Paid-in-kind interest	9,679
Non-cash restructuring, impairment and other related charges	20,238
Loss on impairment of goodwill		6,879
Loss on extinguishment of debt	3,394	4,331
Loss on disposal of property and equipment	770	1,680	620
Change in fair value – warrant liabilities	(3,504)		(4,343)
Tax receivable agreement income			(161,970)
Stock-based compensation	2,815	4,875	3,366
Gain from effective settlement of preexisting relationship			(1,421)
Deferred income taxes			213,548
Changes in operating assets and liabilities:
Accounts receivable	4,745	(3,651)	(4,112)
Inventories	5,989	5,903	28,956
Prepaid expenses and other assets	2,345	1,574	1,757
Operating leases, net	(2,412)	1,404	7,709
Accounts payable	(6,376)	4,382	(33,609)
Accrued compensation	4,351	(1,627)	(2,892)
Customer prepayments	693	1,266	(6,456)
Accrued rebates and allowances	(3,230)	3,439	(365)
Accrued warranty liabilities	(3,386)	11,128	6,854
Other accrued liabilities	1,553	(1,373)	(2,251)
Net cash used in operating activities	(17,850)	(54,662)	(28,773)
Cash flows from investing activities:
Cash, cash equivalents and restricted cash acquired from acquisition, net of cash paid			3,660
Excess restricted cash returned to acquiree		(826)
Purchase of property and equipment	(7,244)	(14,391)	(35,376)
Investment in intangible assets	(286)	(844)	(2,785)
Net cash used in investing activities	(7,530)	(16,061)	(34,501)
Cash flows from financing activities:
Proceeds from term loan		25,000
Proceeds from revolving line of credit		17,000
Proceeds from related party loan	61,000
Payments on term loan	(25,000)	(24,656)	(17,531)
Payments on revolving line of credit	(5,000)	(12,000)	(55,000)
Payments for debt issuance costs	(3,466)	(6,143)	(1,242)
Proceeds from stock offering		60,300	98,210
Payments for stock offering costs		(3,301)	(5,344)
Proceeds from exercise of stock options			166
Proportional Representation Preferred Linked Stock redemption fee		(105)
Tax receivable agreement payments		(269)	(5,847)
Net cash provided by financing activities	27,534	55,826	13,412
Net increase (decrease) in cash, cash equivalents and restricted cash	2,154	(14,897)	(49,862)
Cash, cash equivalents and restricted cash, beginning of the year	26,857	41,754	91,616
Cash, cash equivalents and restricted cash, end of the year	29,011	26,857	41,754
Supplemental disclosures of cash flow information:
Cash paid during the year for interest, net of amounts capitalized	159	189	2,693
Cash paid during the year for income taxes	317	385	303
Supplemental schedule of non-cash investing and financing activities:
Property and equipment included in accounts payable	416	3,232	4,162
Issuance of stock for acquisition			26,106
Escrow shares cancelled in connection with Intellibed acquisition		118
Accrued distributions			$ 228

Organization

12 Months Ended

Dec. 31, 2024

Organization [Abstract]

Organization

1. Organization

The Company’s mission is to help people feel and live better through innovative comfort solutions.

Purple Innovation, Inc., collectively with its subsidiary (the “Company” or “Purple Inc.”), is an omni-channel Company that began as a digitally-native vertical brand founded on comfort product innovation with premium offerings. 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 markets and sells its products through its direct-to-consumer e-commerce channels, retail brick-and-mortar wholesale partners, Purple showrooms, and third-party online retailers.

The Company was incorporated in Delaware on May 19, 2015 as a special purpose acquisition company under the name of Global Partnership Acquisition Corp (“GPAC”). On February 2, 2018, the Company consummated a transaction structured similar to a reverse recapitalization (the “Business Combination”) pursuant to which the Company acquired a portion of the equity of Purple Innovation, LLC (“Purple LLC”). At the closing of the Business Combination (the “Closing”), the Company became the sole managing member of Purple LLC, and GPAC was renamed Purple Innovation, Inc.

As the sole managing member of Purple LLC, Purple Inc. through its officers and directors is responsible for all operational and administrative decision making and control of the day-to-day business affairs of Purple LLC without the approval of any other member.

On August 31, 2022, the Company acquired all the issued and outstanding stock of Advanced Comfort Technologies, Inc., dba Intellibed (“Intellibed”) pursuant to an Agreement and Plan of Merger (the “Merger Agreement”), in which Gelato Merger Sub, Inc., a wholly owned subsidiary of Purple Inc., merged with and into Intellibed, with Intellibed continuing as a wholly owned subsidiary of Purple Inc. On October 3, 2022, Purple Inc. contributed 100% of the membership interest in Intellibed to Purple LLC and Intellibed became a wholly owned subsidiary of Purple LLC. Refer to Note 4 — Acquisition for more information.

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2024

Summary of Significant Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

This summary of significant accounting policies is presented to assist in understanding the Company’s consolidated financial statements. The consolidated financial statements and notes are representations of the Company’s management, which is responsible for their integrity and objectivity.

Basis of Presentation and Principles of Consolidation

The consolidated financial statements include the accounts of Purple Inc., its controlled subsidiary Purple LLC, and Intellibed, Purple LLC’s wholly owned subsidiary, from the date of acquisition. All intercompany balances and transactions have been eliminated in consolidation. As of December 31, 2024, Purple Inc. held 99.8% of the common units of Purple LLC and other Purple LLC Class B Unit holders held 0.2% of the common units in Purple LLC. The Company’s consolidated financial statements did not include consolidated statements of comprehensive income since it had no items of other comprehensive income in any of the periods presented.

Liquidity

The accompanying financial statements have been prepared on a going concern basis of accounting, which contemplates continuity of operations, realization of assets and liabilities and commitments in the normal course of business. In connection with the preparation of the consolidated financial statements for the year ended December 31, 2024, the Company conducted an evaluation as to whether there were conditions and events, considered in the aggregate, which raised substantial doubt as to its ability to continue as a going concern within one year after the date of the issuance of such financial statements. The Company had cash and cash equivalents of approximately $29.0 million and an accumulated deficit of $573.9 million at December 31, 2024, and a net loss of $97.9 million and net cash used in operating and investing activities of $25.4 million for the year ended December 31, 2024. The Company entered into an Amendment to the Amended and Restated Credit Agreement (the “2025 Amendment”), pursuant to which it received $19.0 million on March 12, 2025 in additional term loan proceeds from the 2025 Term Loan Lenders pursuant to the 2025 Amendment (see Note 23— Subsequent Events).

The Company has also taken a number of other actions to increase cash flow. In August 2024, the Company implemented the Restructuring Plan to consolidate manufacturing operations to create efficiencies and cost savings. The Company has realized and plans to continue to realize direct material cost savings through supply chain initiatives and supplier diversification efforts. The Company has taken additional cost-saving initiatives in 2025 to maintain liquidity to support our operations and strategies.

Accordingly, the Company has concluded that it will have sufficient liquidity to fund its operations for at least one year from the date these consolidated financial statements are issued.

Although the Company currently expects its sources of capital to be sufficient to meet its near-term liquidity needs, there can be no assurance that such sources will be sufficient to satisfy its liquidity requirements in the future. If the Company cannot generate or obtain needed funds, it might be forced to make substantial reductions in its operating and capital expenses or pursue restructuring plans, which could adversely affect its business operations and ability to execute its current business strategy.

Variable Interest Entities

Purple LLC is a variable interest entity. The Company determined that it is the primary beneficiary of Purple LLC as it is the sole managing member and has the power to direct the activities most significant to Purple LLC’s economic performance as well as the obligation to absorb losses and receive benefits that are potentially significant. At December 31, 2024, Purple Inc. had a 99.8% economic interest in Purple LLC and consolidated 100% of Purple LLC’s assets, liabilities and results of operations in the Company’s consolidated financial statements contained herein. The holders of Class B Units held 0.2% of the economic interest in Purple LLC as of December 31, 2024. Refer to Note 17—Stockholders’ Equity for more information.

Reclassification

Certain prior year amounts in the consolidated financial statements have been reclassified to conform to the current year presentation with no effect on previously reported net loss, cash flows or stockholders’ equity. Accrued compensation, previously included in the consolidated balance sheets within other current liabilities, is now presented separately. Also, the change in accrued compensation, previously reflected in the consolidated statement of cash flows within the change in other accrued liabilities, is now presented separately.

Use of Estimates

The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) and reflect the financial position, results of operations and cash flows of the Company. The preparation of consolidated financial statements in conformity with GAAP requires the Company to establish accounting policies and to make estimates and judgments that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates on historical experience and on various other assumptions believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. The Company regularly makes estimates and assumptions including, but not limited to, estimates that affect revenue recognition, accounts receivable and the allowance for credit losses, valuation of inventories, sales returns, warranty returns, fair value of assets acquired and liabilities assumed in a business combination, impairment reviews of long-lived assets and definite-lived intangible assets, warrant liabilities, stock based compensation, the recognition and measurement of loss contingencies, the recognition and measurement of restructuring and related charges, estimates of current and deferred income taxes, deferred income tax valuation allowances, and amounts associated with the Company’s tax receivable agreement with InnoHold, LLC (“InnoHold”). Predicting future events is inherently an imprecise activity and, as such, requires the use of judgment. Actual results could differ materially from those estimates.

Restructuring

Restructuring actions may result in various costs, including employee-related costs, accelerated depreciation expense, write-downs of long-lived assets and inventory, impairment of long-lived and indefinite-lived assets, contract termination costs and other associated costs. Employee-related costs represent one-time termination benefits for severance and other post-employment costs that are recognized as incurred upon communication of the plan to the identified employees. If the employee must provide future service beyond a minimum retention period, the benefits are expensed ratably over the future service period. Accelerated depreciation expense represents additional expense resulting from shortening the useful lives of production and other assets to coincide with the end of production and other activities under an approved restructuring plan. Write-downs of long-lived assets represent losses on assets expected to be disposed of or equipment in progress that will not be put in service. Costs to terminate contracts are recognized upon entering a termination agreement with the provider. Other associated restructuring costs are expensed as incurred. Any impairment or write-down of assets resulting from restructuring activities are recognized immediately in the period the related plan is approved. Refer to Note 5–Restructuring, Impairment and Other Related Charges for more information.

Business Combinations

The Company accounts for business combinations using the acquisition method of accounting, in accordance with ASC 805, Business Combinations. The Company records an acquisition based on the fair value of the consideration transferred and then allocates the purchase price to the identifiable assets acquired and liabilities assumed based on their respective preliminary estimated fair values as of the acquisition date. Goodwill on the acquisition date is measured as the excess of the fair value of consideration transferred over the net of the acquisition date fair values of the assets acquired and the liabilities assumed. While best estimates and assumptions are used to accurately value assets acquired and liabilities assumed at the acquisition date as well as contingent consideration, where applicable, the Company’s estimates are inherently uncertain and subject to refinement. If the Company obtains new information within the measurement period (up to one year from the acquisition date) about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date, the Company records adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are reflected in the consolidated statement of operations.

In the event an acquisition involves an entity with which the Company has a preexisting relationship, the Company will generally recognize a gain or loss within the consolidated statement of operations to settle that relationship as of the acquisition date. Transaction costs associated with business combinations are expensed as incurred.

Cash and Cash Equivalents

The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. The carrying value of cash and cash equivalents approximates fair value because of the short-term maturity of those instruments.

Accounts Receivable and Allowance for Credit Losses

Accounts receivable are recorded net of an allowance for expected losses and consist primarily of receivables from wholesale customers and receivables from third-party consumer financing partners and credit card processors. The allowance is recognized in an amount equal to anticipated future write-offs over the expected life of the receivables. Management estimates the allowance for credit losses based on historical experience, customer payment practices and current economic trends. Actual credit losses could differ from those estimates. Account balances are charged-off against the allowance when management believes it is probable the receivable will not be recovered.

The Company had the following activity in its allowance for credit losses (in thousands):

	Years Ended December 31,
	2024			2023		2022
Balance at beginning of period	$	26		$	1	$	20
Additions charged to expense		1,075			25		—
Reductions to allowance, net		(1	)		—		(19	)
Balance at end of period	$	1,100		$	26	$	1

Inventories

Inventories are comprised of raw materials, work-in-process and finished goods and are stated at the lower of cost or net realizable value. Manufactured inventory consists of raw material, direct labor and manufacturing overhead costs. Inventory cost is calculated using a method that approximates average cost. The Company reviews the components of its inventory on a regular basis for excess and obsolete inventory and makes appropriate adjustments when necessary. Once established, the original cost of the inventory less the related inventory reserves represents the new cost basis of such products.

Property and Equipment

Property and equipment are stated at cost, net of depreciation. Property and equipment are depreciated using the straight-line method over the estimated useful lives of the respective assets, ranging from 1 to 17 years, as follows:

		Years
Equipment		5 - 10
Furniture and fixtures		2 - 7
Office equipment		3 - 5
Leasehold improvements		1 - 17

Major renewals and betterments that increase value or extend useful life are capitalized. The Company records depreciation and amortization in cost of sales for long-lived assets used in the manufacturing process, and within each line item of operating expenses for all other long-lived assets. Leasehold improvements are amortized over the shorter of the useful life of the leasehold improvements or the contractual term of the lease, with consideration of lease renewal options if exercise is reasonably certain. The cost and related accumulated depreciation of assets sold or retired is removed from the accounts with any resulting gain or loss included in the consolidated statement of operations. Estimated useful lives of property and equipment are periodically reviewed and, when appropriate, changes are made and accounted for prospectively. When certain events or changes in operating conditions occur, asset lives may be adjusted and an impairment assessment may be performed on the recoverability of the carrying amounts.

As a result of initiating closure of its two Utah manufacturing facilities in August 2024, the Company shortened the estimated useful lives of the production equipment at these two facilities to reflect the remaining period these assets will remain in service. Closure of these two facilities is expected to be completed during the first quarter of 2025. Reducing the estimated useful lives of these assets increased both depreciation expense and the Company’s net loss in 2024 by $11.2 million. Refer to Note 5–Restructuring, Impairment and Other Related Charges for more information.

The Company capitalizes interest on borrowings during the active construction period of major capital projects. Interest capitalization ceases once a project is substantially complete or no longer undergoing construction activities to prepare it for its intended use. Capitalized interest is added to the cost of the underlying assets and is amortized over the useful lives of the assets. When no debt is specifically identified as being incurred in connection with a construction project, the Company capitalizes interest on amounts expended on the project using the weighted average cost of the Company’s outstanding borrowings.

Leases

The Company determines if an agreement contains a lease at the inception of a contract. For leases with an initial term greater than 12 months, a related lease liability is recorded on the balance sheets at the present value of future payments discounted at the estimated fully collateralized incremental borrowing rate (discount rate) corresponding with the lease term. In addition, a right-of-use (“ROU”) asset is recorded as the initial amount of the lease liability, plus any lease payments made to the lessor before or at the lease commencement date and any initial direct costs incurred, less any tenant improvement allowance incentives received. The Company elected not to separate lease and non-lease components for all real estate leases.

The Company calculates the present value of future payments using its incremental borrowing rate when the discount rate implicit in the lease is not known. The incremental borrowing rate is the rate of interest that a lessee would have to pay to borrow on a collateralized basis over a similar term at an amount equal to the lease payments in a similar economic environment. The Company determines the applicable incremental borrowing rate at the lease commencement date based on the rates of its secured borrowings, which is then adjusted for the appropriate lease term and risk premium. In determining the Company’s ROU assets and corresponding lease liabilities, the Company applies these incremental borrowing rates to the minimum lease payments within each lease agreement.

Lease expense is recognized on a straight-line basis over the lease term. Tenant incentive allowances received from the lessor are amortized through the ROU asset as a reduction of rent expense over the lease term. Any variable lease costs are expensed as incurred. Leases with an initial term of 12 months or less (short-term leases) are not recorded as ROU assets and corresponding lease liabilities. Short-term lease expense is recognized on a straight-line basis over the lease term. ROU assets are assessed for impairment as part of long-lived assets, which is performed whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable.

Goodwill

The Company accounts for goodwill in a business combination as the excess of the cost over the fair value of net assets acquired and is assigned to the reporting unit in which the acquired business will operate. The Company does not amortize goodwill but tests it for impairment each fiscal year or whenever events or changes in circumstances indicate the carrying amount may not be recoverable.

The recoverability of goodwill is measured at the reporting unit level by comparing the reporting unit’s carrying amount, including goodwill, to the fair value of the reporting unit. The Company may elect to perform a qualitative assessment to determine whether it is more likely than not that a reporting unit is impaired. If the qualitative assessment is not performed or if the Company determines that it is not more likely than not that the fair value of the reporting unit exceeds the carrying value, the Company determines the fair value of its reporting units based on an average weighting of both projected discounted future results and the use of comparative market multiples. If the carrying amount of the reporting unit exceeds its fair value, goodwill is considered impaired and a loss recognized in the amount equal to that excess. During the year ended December 31, 2023, the Company determined goodwill was impaired and recorded an impairment charge to write off the entire $6.9 million balance of goodwill. Refer to Note 4—Acquisition for more information.

Intangible Assets

Intangible assets include a customer relationship intangible associated with the Intellibed acquisition, developed technologies by Purple and Intellibed, trade names and trademarks, internal-use software, domain name costs, intellectual property and other patent and trademark related costs. Definite-lived intangible assets are being amortized using the straight-line method over their estimated lives, ranging from two to 15 years.

For software developed or obtained for internal use, the Company capitalizes direct external costs associated with developing or obtaining internal-use software. In addition, the Company capitalizes certain payroll and payroll-related costs for employees who are directly involved with the development of such applications. Capitalized costs related to internal-use software under development are treated as construction-in-progress until the program, feature or functionality is ready for its intended use, at which time amortization commences. Capitalized software costs are amortized on a straight-line basis over three years.

Asset Impairment Charges

Long-Lived Assets and Definite-lived Intangible Assets – The Company reviews its long-lived assets and definite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When evaluating long-lived assets and definite-lived intangible assets for potential impairment, the Company first determines if there are any indicators of impairment and if the carrying amount of the long-lived assets and definite-lived intangible assets might not be recoverable. If there are indicators of impairment, then the Company performs a recoverability test by comparing the carrying value of the assets to the estimated future cash flows (undiscounted and without interest charges - plus proceeds expected from disposition, if any). If the estimated undiscounted cash flows are less than the carrying value of the assets, the Company calculates an impairment loss. The impairment loss calculation compares the carrying value of its assets to the assets’ estimated fair value. When the Company recognizes an impairment loss, the carrying amount of the impaired assets are reduced to estimated fair value based on discounted cash flows, quoted market prices or other valuation techniques. Assets to be disposed of are reported at the lower of the carrying amount of the asset or fair value less costs to sell. If the Company recognizes an impairment loss for a depreciable long-lived asset, the adjusted carrying amount of the asset becomes its new cost basis and will be depreciated (amortized) over the remaining useful life of that asset. The Company concluded there were indicators of impairment that existed at December 31, 2024 and a recoverability test was required. Based on the results of this recoverability test, the Company determined its long-lived and definite-lived assets were not impaired as of December 31, 2024 and no resultant impairment charges were recorded. There were no impairment charges realized on long-lived assets and definite-lived intangible assets during the years ended December 31, 2023 and 2022.

In conjunction with a restructuring action initiated in August 2024, the Company recorded impairment charges of $2.5 million on various long-lived assets associated with entering into a sublease on one of the Utah manufacturing facilities that is expected to close during the first quarter of 2025. Refer to Note 5–Restructuring, Impairment and Other Related Charges for more information.

Indefinite-lived Intangible Assets – Intangible assets that have indefinite lives are not amortized but are reviewed for impairment annually or when events or changes in circumstances indicate the carrying value of these assets might exceed their current fair values. Impairment testing is based upon the best information available including estimates of fair value which incorporate assumptions marketplace participants would use in making their estimates of fair value. Accounting guidance provides for the performance of either a quantitative assessment or a qualitative assessment before calculating the fair value of an asset. If events or market conditions affect the estimated fair value to the extent that an indefinite-lived intangible asset is impaired, the Company will adjust the carrying value of these assets in the period in which impairment occurs.

The restructuring action initiated by the Company in August 2024 was determined to be a triggering event for potential impairment of intellectual property that was being accounted for as an indefinite-lived intangible asset. The resultant impairment assessment performed by the Company determined this asset no longer had any supportable value and an $8.5 million impairment charge to write off the entire balance of the asset was recorded in 2024.

Revenue Recognition

The Company markets and sells its products through the DTC channel, which includes Purple.com (direct-to-consumer e-commerce), Purple showrooms, their customer contact center and online marketplaces, and the wholesale channel through retail brick-and-mortar and online wholesale partners. Revenue is recognized when the Company satisfies its performance obligations under the contract which involves transferring the promised products to the customer. This principle is achieved in the following steps:

Identify the contract with the customer. A contract exists when (i) the Company enters into an enforceable contract with a customer that defines each party’s rights regarding the goods to be transferred and identifies the payment terms related to these goods, (ii) the contract has commercial substance and, (iii) the Company determines that collection of substantially all consideration for the goods that are transferred is probable based on the customer’s intent and ability to pay the promised consideration. The Company does not have significant costs to obtain contracts with customers.

Identify the performance obligations in the contract. The Company’s contracts with customers do not include multiple performance obligations to be completed over a period of time. The performance obligations generally relate to delivering products to a customer, subject to the shipping terms of the contract. The Company has made an accounting policy election to account for shipping and handling activities performed after a customer obtains control of the goods, including “white glove” delivery services, as activities to fulfill the promise to transfer the goods. The Company does not offer extended warranty or service plans. The Company does not provide an option to its customers to purchase future products at a discount and therefore there are no material option rights.

Determine the transaction price. Payment for sale of products through the direct-to-consumer e-commerce channel and Purple showrooms is collected at point of sale in advance of shipping the products. Amounts received for unshipped products are recorded as customer prepayments. Payment by traditional wholesale customers is due under customary fixed payment terms. None of the Company’s contracts contain a significant financing component. Revenue is recorded at the net sales price, which includes estimates of variable consideration such as product returns, volume rebates, wholesale warranty returns, and other adjustments. The estimates of variable consideration are based on historical return experience, historical and projected sales data, and current contract terms. Variable consideration is included in revenue only to the extent that it is probable that a significant reversal of the revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Taxes collected from customers relating to product sales and remitted to governmental authorities are excluded from revenues.

Allocate the transaction price to performance obligations in the contract. The Company’s contracts with customers do not include multiple performance obligations. Therefore, the Company recognizes revenue upon transfer of the product to the customer’s control at contractually stated pricing.

Recognize revenue when or as we satisfy a performance obligation. The Company satisfies performance obligations at a point in time upon either shipment or delivery of goods, in accordance with the terms of each contract with the customer. With the exception of third-party “white glove” delivery and certain wholesale partners, revenue generated from product sales is recognized at shipping point, the point in time the customer obtains control of the products. Revenue generated from sales through third-party “white glove” delivery is recognized at the point in time when the product is delivered to the customer. Revenue generated from certain wholesale partners is recognized at a point in time when the product is shipped or when it is delivered to the wholesale partner’s warehouse. The Company does not have service revenue.

Sales Returns

The Company’s policy provides customers up to 100-days to return a mattress, pet bed or pillow and up to 30-days to return all other products (except power bases) for a full refund. Estimated sales returns, which are recorded as a reduction of revenue at the time of sale and recorded in other current liabilities on the consolidated balance sheets, are based on historical trends and product return rates and are adjusted for any current or expected trends as appropriate. Actual sales returns could differ from these estimates. The Company regularly assesses and adjusts the estimate of accrued sales returns by updating the return rates for actual trends and projected costs. The Company classifies the estimated sales returns as a current liability as they are expected to be paid out in less than one year.

The Company had the following activity for accrued sales returns (in thousands):

	Years Ended December 31,
	2024			2023			2022
Balance at beginning of period	$	5,404		$	5,107		$	7,116
Additions that reduced net revenue		38,913			34,090			35,479
Deduction from reserves for current year returns		(37,802	)		(33,793	)		(37,488	)
Balance at end of period	$	6,515		$	5,404		$	5,107

Accrued Warranty Liabilities

The Company provides a limited warranty on most of the products it sells. The estimated warranty costs associated with products sold through DTC channels are expensed at the time of sale and included in cost of revenues. The estimated warranty return costs associated with products sold through the wholesale channel are recorded at the time of sale and included as an offset to net revenues. Estimates for warranty costs are based on the results of historical trends and warranty claim rates incurred, and are adjusted for any current or expected trends as appropriate. Actual warranty claim costs could differ from these estimates. The Company regularly assesses and adjusts the estimate of accrued warranty claims by updating claims rates for actual trends and projected claim costs. The Company expects the estimated warranty liability to continue to increase as the Company has not reached a full 10 years of history on its 10-year mattress warranty. The Company classifies estimated warranty costs expected to be paid beyond a year as a long-term liability.

The Company had the following activity for accrued warranty liabilities (in thousands):

	Years Ended December 31,
	2024			2023			2022
Balance at beginning of period	$	35,591		$	24,463		$	16,241
Additions charged to cost of sales		3,291			5,866			9,856
Additions that reduced net revenue		6,288			11,996			3,453
Deduction from reserves for current year claims		(12,965	)		(6,734	)		(5,087	)
Balance at end of period	$	32,205		$	35,591		$	24,463

Cost of Revenues

Costs associated with net revenues are recorded as cost of revenues in the same period in which related sales have been recorded. Cost of revenues includes the costs of receiving, producing, inspecting, warehousing, insuring, and shipping goods during the period, as well as depreciation and amortization of long-lived assets used in these processes. Cost of sales also includes shipping and handling costs associated with the delivery of goods to customers.

In conjunction with a restructuring action initiated in August 2024, the Company recorded restructuring charges of $15.4 million in cost of revenues for accelerated depreciation of production equipment and inventory write-downs. Refer to Note 5–Restructuring, Impairment and Other Related Charges for more information.

Cooperative Advertising, Rebate and Other Promotion Programs

The Company enters into programs with certain wholesale partners to provide funds for advertising and promotions as well as volume and other rebate programs. When sales are made to these customers, the Company records liabilities pursuant to these programs. The Company periodically assesses these liabilities based on actual sales to determine whether all the cooperative advertising earned will be used by the customer or whether the customer will meet the requirements to receive rebate funds. Estimates are required at any point in time regarding the ultimate reimbursement to be claimed by the customers. Subsequent revisions to the estimates are recorded and charged to earnings in the period in which they are identified. Rebates and certain cooperative advertising amounts are classified as a reduction of revenue and presented within net revenues in the accompanying consolidated statements of operations. Cooperative advertising expenses that can be identified as a distinct good or service and for which fair value can be reasonably estimated are recorded, when incurred, as components of marketing and sales expense in the accompanying consolidated statements of operations. Marketing and sales expense in 2024, 2023 and 2022 included $2.3 million, $2.0 million and $4.1 million, respectively, related to shared advertising costs that the Company incurred under its cooperative advertising programs.

Advertising Costs

The Company incurs advertising costs associated with print, digital and broadcast advertisements. Advertising costs are expensed when the advertisements are run for the first time and included in marketing and selling expenses in the accompanying consolidated statements of operations. Advertising expense was $65.2 million, $72.4 million and $66.6 million for the years ended December 31, 2024, 2023 and 2022, respectively.

Debt Issuance Costs and Discounts

Debt issuance costs and discounts that relate to borrowings are presented in the consolidated balance sheets as a direct reduction from the carrying amount of the related debt liability and are amortized into interest expense using an effective interest rate over the duration of the debt. Debt issuance costs that relate to revolving lines of credit are carried as an asset in the consolidated balance sheets and amortized to interest expense on a straight-line basis over the term of the related line of credit facility. Refer to Note 12– Debt for more information.

Warrant Liabilities

The Company issued warrants to purchase 20.0 million shares of the Company’s Class A common stock to the lenders associated with a related party credit agreement entered into in January 2024. These warrants contain a repurchase provision which, upon the occurrence of a fundamental transaction as defined in the warrant agreement, could give rise to an obligation of the Company to pay cash to the warrant holders. In addition, other provisions may lead to a reduction in the exercise price of the warrants. The fundamental transaction provisions of the warrants resulted in them being recorded as a liability at fair value on their issue date, with the corresponding offset included in debt issuance costs. The initial liability is subsequently re-measured to fair value at each reporting date or exercise date with changes in the fair value included in earnings. The Company uses a Monte Carlo Simulation model to determine the fair value of the liability associated with these warrants. The model uses various key assumptions and inputs, including exercise price of the warrants, fair market value of the Company’s common stock, risk free interest rate, warrant life, expected volatility and the probability of a warrant re-price event. Refer to Note 12– Debt and Note 13– Warrant Liabilities for more information.

The Company issued 12.8 million sponsor warrants pursuant to a private placement conducted simultaneously with its initial public offering. The Company recorded its sponsor warrants as liabilities since they did not meet the criteria for equity classification. Because the sponsor warrants met the definition of a derivative, these warrants were measured at fair value at inception and at each reporting date thereafter with changes in fair value recognized in earnings in the period of change. The Company used the Black-Scholes model to determine the fair value of the liability associated with the sponsor warrants. The model used key assumptions and inputs such as exercise price, fair market value of common stock, risk free interest rate, warrant life and expected volatility. Unexercised sponsor warrants totaling 1.9 million expired in February 2023 and were cancelled pursuant to the terms of the warrant agreement. These sponsor warrants had no fair value on the date of expiration.

Fair Value Measurements

The Company uses the fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, essentially an exit price, based on the highest and best use of the asset or liability. The levels of the fair value hierarchy are:

Level 1—Quoted market prices in active markets for identical assets or liabilities;

Level 2—Significant other observable inputs (e.g., quoted prices for similar items in active markets, quoted prices for identical or similar items in markets that are not active, inputs other than quoted prices that are observable, such as interest rate and yield curves, and market-corroborated inputs); and

Level 3—Unobservable inputs in which there is little or no market data, which require the reporting unit to develop its own assumptions.

The classification of fair value measurements within the established three-level hierarchy is based upon the lowest level of input that is significant to the measurements. Financial instruments, although not recorded at fair value on a recurring basis include cash, cash equivalents and restricted cash, receivables, accounts payable, and the Company’s debt obligations. The carrying amounts of cash, cash equivalents and restricted cash, accounts receivable and accounts payable approximate fair value because of the short-term nature of these accounts.

The estimated fair value of the Company’s debt arrangements are based on Level 2 inputs, which include observable inputs estimated using discounted cash flows and market-based expectations for interest rates, credit risk and the contractual terms of debt instruments is shown in the table below (in thousands):

		December 31,
	Level	2024		2023
2023 Credit Agreement	2	$	—	$	30,000
2024 Credit Agreement	2		56,617		—

The warrants issued in 2024 and the sponsor warrants (refer to Note 12– Warrant Liabilities for more information.) are Level 3 instruments and use internal models to estimate fair value based on certain significant unobservable inputs which require determination of relevant inputs and assumptions. Accordingly, changes in these unobservable inputs may have a significant impact on fair value. Such inputs include risk free interest rate, expected average life, expected dividend yield, and expected volatility. These Level 3 liabilities generally decrease (increase) in value based upon an increase (decrease) in risk free interest rate and expected dividend yield. Conversely, the fair value of these Level 3 liabilities generally increase (decrease) in value if the expected average life or expected volatility increases (decreases).

The following table presents information about the Company’s liabilities that are measured at fair value on a recurring basis and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value (in thousands):

			December 31,
	Level		2024
Warrants		3	$	16,067

Unexercised sponsor warrants totaling 1.9 million expired in February 2023 and were cancelled pursuant to the terms of the warrant agreement. These sponsor warrants had no fair value on the date of expiration.

The following table summarizes the Company’s total Level 3 liability activity for the years ended December 31, 2024, 2023 and 2022 (in thousands):

	Sponsor Warrants			Warrants			Total Level 3 Liabilities
Fair value as of December 31, 2021	$	4,343		$	—		$	4,343
Change in valuation inputs⁽¹⁾		(4,343	)		—			(4,343	)
Fair value as of December 31, 2022	$	—		$	—		$	—
Change in valuation inputs⁽¹⁾		—			—			—
Fair value as of December 31, 2023	$	—		$	—		$	—
Initial measurement at time of issuance		—			19,571			19,571
Change in valuation inputs⁽¹⁾		—			(3,504	)		(3,504	)
Fair value as of December 31, 2024	$	—		$	16,067		$	16,067

(1)	Changes in valuation inputs are recognized as the change in fair value – warrant liabilities in the consolidated statement of operations.

Stock Based Compensation

The Company accounts for stock-based compensation under the provisions of ASC 718, Compensation—Stock Compensation. This standard requires the Company to record an expense associated with the fair value of stock-based compensation over the requisite service period.

During 2023 and 2022, the Company granted stock options under the Company’s 2017 Equity Incentive Plan (the “2017 Equity Incentive Plan”) to certain officers, executives and employees of the Company. The fair value for these awards was determined using the Black-Scholes option valuation model at the date of grant. Stock based compensation on these awards is expensed on a straight-line basis over the vesting period. Option pricing models require the input of subjective assumptions including the expected term of the stock option, the expected price volatility of the Company’s common stock over the period equal to the expected term of the grant, and the expected risk-free rate. Changes in these assumptions can materially affect the fair value estimate. The Company recognizes forfeitures of stock option awards as they occur. There were no stock options granted in 2024.

During 2023 and 2022, the Company granted stock awards under the 2017 Equity Incentive Plan to independent directors on the Company’s board of directors (the “Board”) for services performed. Since all of these awards vested immediately, stock-based compensation was recorded on the grant date using the publicly quoted closing price of the Company’s common stock on that date as fair value. There were no stock awards granted to independent directors in 2024.

During 2024, 2023 and 2022, the Company granted restricted stock units under the Company’s 2017 Equity Incentive Plan to certain employees of the Company. A portion of the restricted stock units granted included a market vesting condition. The estimated fair value of the restricted stock units that do not have the market vesting condition is recognized on a straight-line basis over the vesting period. The estimated fair value of the stock units that included a market vesting condition was measured on the grant date using a Monte Carlo Simulation of a Geometric Brownian Motion stock path model and incorporated the probability of vesting occurring. The estimated fair value of these awards is recognized over the derived service period (as determined by the valuation model), with such recognition occurring regardless of whether the market condition is met.

Income Taxes

Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. In assessing the realizability of deferred tax assets, management considers whether it is more-likely-than-not that the deferred tax assets will be realized. Deferred tax assets and liabilities are calculated by applying existing tax laws and the rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the year of the enacted rate change. The Company’s effective tax rate is primarily impacted by changes in its valuation allowance.

The Company accounts for uncertainty in income taxes using a recognition and measurement threshold for tax positions taken or expected to be taken in a tax return, which are subject to examination by federal and state taxing authorities. The tax benefit from an uncertain tax position is recognized when it is more likely than not that the position will be sustained upon examination by taxing authorities based on technical merits of the position. The amount of the tax benefit recognized is the largest amount of the benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The effective tax rate and the tax basis of assets and liabilities reflect management’s estimates of the ultimate outcome of various tax uncertainties. The Company recognizes penalties and interest related to uncertain tax positions within the provision (benefit) for income taxes line in the accompanying consolidated statements of operations.

The Company files U.S. federal and certain state income tax returns. The income tax returns of the Company are subject to examination by U.S. federal and state taxing authorities for various time periods, depending on those jurisdictions’ rules, generally after the income tax returns are filed.

Tax Receivable Agreement

In connection with the Business Combination, the Company entered into a tax receivable agreement with InnoHold, which provides for the payment by the Company to InnoHold of 80% of the net cash savings, if any, in U.S. federal, state and local income tax that the Company actually realizes (or is deemed to realize in certain circumstances) in periods after the Closing as a result of (i) any tax basis increases in the assets of Purple LLC resulting from the distribution to InnoHold of the cash consideration, (ii) the tax basis increases in the assets of Purple LLC resulting from the redemption by Purple LLC or the exchange by the Company, as applicable, of Class B Paired Securities or cash, as applicable, and (iii) imputed interest deemed to be paid by the Company as a result of, and additional tax basis arising from, payments it makes under the agreement.

As noncontrolling interest holders exercise their right to exchange or cause Purple LLC to redeem all or a portion of its Class B Units, a liability under the tax receivable agreement may be recorded based on 80% of the estimated future cash tax savings that the Company may realize as a result of increases in the basis of the assets of Purple LLC attributed to the Company as a result of such exchange or redemption. The amount of the increase in asset basis, the related estimated cash tax savings and the attendant liability to be recorded will depend on the price of the Company’s Class A common stock at the time of the relevant redemption or exchange. The estimation of liability under the agreement is imprecise and subject to significant assumptions regarding the amount and timing of future taxable income.

Segment Information

Operating segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the chief operating decision maker (“CODM”). The role of the CODM is to make decisions about allocating resources and assessing performance. The Company’s operations are based on an omni-channel distribution strategy that allows the Company to offer a seamless shopping experience to its customers across multiple sales channels. The Company concluded its business operates in one operating segment as all the Company’s sales channels are complementary and analyzed in the same manner. Also, the CODM reviews financial information presented on a consolidated basis for the purpose of allocating resources and evaluating financial performance as the Company does not accumulate discrete financial information with respect to separate divisions and does not have distinct operating or reportable segments. Since the Company operates in one operating segment, most of the required financial segment information can be found throughout the consolidated financial statements. The Company’s chief executive officer has been identified as its CODM. Refer to Note 21– Segment Information and Concentrations for more information.

Net Loss Per Share

Basic net loss per common share is calculated by dividing net loss attributable to common stockholders by the weighted average number of shares of Class A common stock outstanding during each period. Diluted net loss per share reflects the weighted-average number of common shares outstanding during the period used in the basic net loss computation plus the effect of common stock equivalents that are dilutive. The Company uses the “if-converted” method to determine the potential dilutive effect of conversions of its outstanding Class B common stock, and the treasury stock method to determine the potential dilutive effect of its outstanding warrants and share-based payment awards.

Recent Accounting Pronouncements

Disclosure Improvements

In October 2023, the Financial Accounting Standards Board (the “FASB”) issued ASU 2023-06 Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative. This ASU amends the disclosure or presentation requirements related to various subtopics in the FASB Accounting Standards Codification. For SEC registrants, the effective date for each amendment will be the date on which the SEC’s removal of that related disclosure requirement from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited. The Company will monitor the removal of various requirements from the current regulations in order to determine when to adopt the related amendments but does not anticipate the adoption of the new guidance will have a material impact on the Company’s Consolidated Financial Statements. The Company will continue to evaluate the impact of this guidance on its consolidated financial statements.

Enhanced Segment Disclosures

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires public entities, including those that have a single reportable segment, to provide enhanced disclosures about significant expenses. The ASU requires disclosure to include significant segment expenses that are regularly provided to the CODM, a description of other segment items by reportable segment, and any additional measures of a segment’s profit or loss used by the CODM when deciding how to allocate resources. The ASU also requires all annual disclosures currently required by Topic 280 to be included in interim periods. The update is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted and requires retrospective application to all prior periods presented in the financial statements. This standard was adopted by the Company beginning with its 2024 consolidated financial statements. The adoption of this standard resulted in the addition of required segment disclosures for 2024 and all prior periods included in these consolidated financial statements.

Improvements to Income Tax Disclosures

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The ASU amends existing income tax disclosure guidance, primarily requiring more detailed disclosures for income taxes paid and the effective tax rate reconciliation. This ASU is effective for fiscal years beginning after December 15, 2024, may be applied prospectively or retrospectively, and allows for early adoption. The Company is currently evaluating the impact this update will have on the income tax disclosures in its consolidated financial statements.

Expense Disaggregation Disclosures

In November 2024, the FASB issued ASU No. 2024-03, Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires disclosure of certain costs and expenses on an interim and annual basis in the notes to the consolidated financial statements. The prescribed cost and expense categories requiring disaggregated disclosures include purchases of inventory, employee compensation, depreciation and intangible asset amortization, along with certain other expense disclosures already required by GAAP that would need to be integrated within the new tabular disaggregated expense disclosures. Additionally, the amendments also require the disclosure of total selling expenses and an entity’s definition of those expenses. The guidance is effective for annual reporting periods beginning after December 15, 2026 and interim periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The guidance is to be applied either (1) prospectively to financial statements issued for reporting periods after the effective date or (2) retrospectively to any or all prior periods presented in the financial statements. The Company is currently evaluating the potential impact this update will have on its expense disclosures in the notes to the consolidated financial statements.

Underwritten Offerings of Class A Common Stock

12 Months Ended

Dec. 31, 2024

Underwritten Offerings of Class A Common Stock [Member]

Underwritten Offerings of Class A Common Stock

3. Underwritten Offerings of Class A Common Stock

In February 2023, the Company completed an underwritten offering of 13.4 million shares of Class A common stock at a price of $4.50 per share. The underwriters did not exercise their over-allotment option. The aggregate net proceeds received by the Company from the offering, after deducting offering fees and expenses of $3.3 million, totaled $57.0 million.

In March 2022, the Company completed an underwritten offering of 16.1 million shares of Class A common stock, which included the underwriters exercising their over-allotment option in full to purchase an additional 2.1 million shares. The underwriters purchased the Class A common stock from the Company at a price of $5.65 per share, except that any shares sold by the underwriters to Coliseum Capital Partners, L.P. (“CCP”) and Blackwell Partners LLC – Series A (“Blackwell”), up to an aggregate of 29.81% of the shares of Class A common stock pursuant to the offering, were purchased from the Company by the underwriters at a price of $6.10 per share. The aggregate net proceeds received by the Company from the offering, after deducting offering fees and expenses of $5.3 million, totaled $92.9 million.

Acquisition

12 Months Ended

Dec. 31, 2024

Acquisition [Abstract]

Acquisition

4. Acquisition

On August 31, 2022, pursuant to the Merger Agreement, the Company acquired Intellibed, a premium sleep and health wellness company, offering gel-based mattresses scientifically designed for maximum back support, spinal alignment and pressure point relief. The addition of Intellibed increased product offerings to customers, expanded market opportunities, capitalized on synergies of the combined companies, and increased opportunities for innovation. In addition, the acquisition allowed the Company to consolidate ownership of its intellectual property licensed to Intellibed and more fully capitalize on growing demand for products with gel technologies.

The acquisition date fair value of the consideration transferred for Intellibed was $28.2 million, which consisted of the following (in thousands):

Fair value of Class A common stock issued at closing	$	23,069
Fair value of Class A common stock held in escrow		1,349
Fair value of contingent consideration		1,471
Fair value of effective settlement of preexisting relationships		1,672
Transaction expenses paid on behalf of Intellibed		546
Due to seller		75
Fair value of total purchase consideration	$	28,182

The fair value of common stock issued at closing consisted of approximately 8.1 million shares of Class A common stock valued using the acquisition date closing price of $2.86. The fair value of common stock held in escrow consisted of 0.5 million shares of Class A common stock valued using the acquisition date closing price of $2.86. These shares were originally held in escrow pending resolution of net working capital adjustments and certain indemnification matters.

Contingent consideration represents the fair value of 1.5 million shares of Class A common stock issuable to Intellibed security holders if the closing price of the Company’s stock did not equal or exceed certain thresholds during the period beginning on the six-month anniversary of the closing date and ending on the 18-month anniversary of the closing date. The contingent shares were valued using a Monte-Carlo simulation model. Because the contingent consideration was payable with a fixed number of shares of the Company’s Class A common stock, it was classified as equity and did not require remeasurement in subsequent periods. During March 2024, the Company issued 1.5 million shares of Class A common stock to Intellibed security holders since the Company’s stock price did not meet any of the indicated thresholds during the contingency period.

The fair value of effective settlement of preexisting relationships included $1.4 million related to the fair value of a preexisting legal matter with Intellibed that was effectively settled on the acquisition date and $0.3 million related to the fair value of a preexisting royalty liability owed by Intellibed to the Company that was also effectively settled on the acquisition date. As a result of effectively settling the preexisting legal matter with Intellibed, the Company recorded a gain of $1.4 million as other income (expense), net in the consolidated statement of operations for the year ended December 31, 2022. As a result of effectively settling the preexisting royalty liability, the Company and Intellibed recorded a corresponding receivable and payable, respectively, for the same $0.3 million amount that was then eliminated in consolidation.

During the measurement period that ended August 31, 2023, the Company finalized the determination of the working capital adjustments and the fair values allocated to various assets and liabilities, income tax provision, intangible assets and the residual amount allocated to goodwill. The table below reflects final measurement period adjustments made to various assets acquired and liabilities assumed based on updated information, and revisions to reflect the final fair value analysis associated with the two intangible assets. The corresponding offsets for these final measurement period adjustments was goodwill. The $0.1 million decrease in the acquisition date fair value of net assets acquired and liabilities assumed reflected the impact of certain Class A common shares initially held in escrow being returned to the Company upon final determination of the working capital adjustments. The following table summarizes the preliminary fair value of the assets acquired and liabilities assumed as of the date of acquisition, the final measurement period adjustments and the final adjusted balances (in thousands):

Net tangible assets (liabilities):	At Date of Acquisition			Measurement Period Adjustments			Final Adjusted Balances
Cash, cash equivalents and restricted cash	$	4,194		$	(418	)	$	3,776
Accounts receivable		5,051			(443	)		4,608
Inventory		4,182			(1,135	)		3,047
Other current assets		126			200			326
Property and equipment		7,000			—			7,000
Operating lease right-of-use assets		5,491			—			5,491
Other long-term assets		68			—			68
Accounts payable		(2,285	)		(460	)		(2,745	)
Other current liabilities		(2,818	)		(313	)		(3,131	)
Operating lease obligations		(4,373	)		—			(4,373	)
Deferred tax liabilities		(3,868	)		(416	)		(4,284	)
Net tangible assets (liabilities)		12,768			(2,985	)		9,783
Goodwill		6,441			438			6,879
Customer relationships		8,476			2,400			10,876
Developed technology		615			29			644
Net assets acquired and liabilities assumed	$	28,300		$	(118	)	$	28,182

The amount of goodwill that resulted from the purchase price allocation was attributed to expected synergies from the assembled workforce, an increase in development capabilities, increased offerings to customers, expanded market opportunities, and enhanced opportunities for growth and innovation. Goodwill was not being amortized but instead tested for impairment at least annually or more frequently if certain indicators of impairment were present. The goodwill recorded was not deductible for income tax purposes.

The ongoing decline in the Company’s market capitalization, along with other qualitative considerations was determined to be a triggering event for potential goodwill impairment. Accordingly, the Company performed a goodwill impairment analysis as of September 30, 2023. The Company, considered as a single reporting unit, estimated the implied fair value of its goodwill using a variety of valuation methods, including both the income and market approaches. As a result of the impairment assessment performed, the Company determined goodwill was impaired and recorded an impairment charge to write off the entire $6.9 million balance of goodwill. The impairment charge was recorded in the 2023 consolidated statement of operations as a loss on impairment of goodwill.

The two identified definite lived intangible assets, comprised of customer relationships and developed technology, are being amortized over their estimated useful lives of 10 and two years, respectively. The customer relationships intangible asset represents the estimated fair value of the underlying relationships with Intellibed customers, valued utilizing the multi-period excess earnings method. The developed technology intangible represents the fair value of Intellibed industry-specific cloud and mobile software and related technologies, valued using the cost to recreate method.

The acquired cash, cash equivalents and restricted cash balance included $1.7 million of cash deposited by Intellibed in a separate account pursuant to an escrow agreement with the Company. The purpose of the escrow cash amount was to cover Intellibed’s estimated state income tax liabilities, sales tax liabilities and related filing expenses that existed prior to the acquisition date. If the actual liabilities were less than estimated, any excess cash was to be returned to the previous shareholders of Intellibed. If payments for these items exceeded the escrow balance, the Company would have been required to pay the excess. The Company recorded the escrow account balance of $1.7 million as an acquired restricted cash balance on the date of acquisition and used $0.9 million of the escrow account balance for actual expenses incurred. The excess escrow balance of $0.8 million was returned by the Company to the previous shareholders of Intellibed during the third quarter of 2023.

The Company included the financial results of Intellibed in its consolidated financial statements from the date of acquisition and recorded net revenues and pre-tax income of $9.7 million and $1.6 million, respectively, for the period from August 31, 2022 through December 31, 2022. The $3.9 million of transaction costs associated with the acquisition were recorded as general and administrative expense in the consolidated statement of operations for the year ended December 31, 2022.

The following table provides unaudited pro forma financial information as if Intellibed had been acquired by the Company as of January 1, 2022. The unaudited pro forma information reflects adjustments for transaction and litigation expenses, immediate restructuring savings and additional depreciation and amortization resulting from the fair value adjustments to assets acquired. The pro forma results do not include any other anticipated cost synergies or effects of the combined companies. Accordingly, the following pro forma amounts for the year ended December 31, 2022 are not necessarily indicative of the results to be expected had the acquisition been completed on the date indicated, nor is it indicative of the future results of operations of the combined company (in thousands):

Net revenues		$	603,739
Net (loss) income			(86,119	)

The unaudited pro forma amounts above include the following adjustments:

●

A $4.4 million decrease in operating expenses to eliminate costs directly related to the acquisition that do not have a continuing impact on results of operations.

●

A $1.5 million decrease in operating expenses to eliminate costs directly related to immediate restructuring that do not have a continuing impact on results of operations.

●

A $2.2 million increase in operating expenses to reflect the additional depreciation and amortization expense related to the increase in property and equipment assets and definite lived intangible assets.

●

The combined pro forma results were tax effected using the Company’s effective tax rate for the period.

Restructuring, Impairment and Other Related Charges

12 Months Ended

Dec. 31, 2024

Restructuring, Impairment and Other Related Charges [Abstract]

Restructuring, Impairment and Other Related Charges

5. Restructuring, Impairment and Other Related Charges

In August 2024, the Company initiated a restructuring plan to strategically realign the Company’s focus on the achievement of operational efficiencies that are expected to improve profitability and provide for reinvesting in technology and marketing initiatives (the “Restructuring Plan”). The Company’s Restructuring Plan includes the permanent closure of its Grantsville and Salt Lake City, Utah manufacturing facilities to consolidate mattress production in its Georgia plant, and a headcount reduction at the Company’s Utah headquarters to drive additional operating efficiencies. Closure of the two Utah manufacturing facilities will be completed by the end of the first quarter of 2025 while consolidation into the Georgia facility was finalized in December 2024. The reduction in workforce at the Utah headquarters was completed in August 2024.

The following table summarizes the restructuring, impairment and other related charges the Company recognized in the 2024 consolidated statement of operations (in thousands):

	Cost of Revenues		Operating Expenses		Restructuring, Impairment and Other Related Charges		Total
Cash charges:
Employee-related costs	$	241	$	942	$	3,098	$	4,281
Other costs		—		—		528		528
Total cash charges		241		942		3,626		4,809
Non-cash charges:
Accelerated depreciation		11,175		—		135		11,310
Inventory write-downs		4,026		—		—		4,026
Write-down of long-lived assets		—		—		5,245		5,245
Impairment of assets		—		—		10,967		10,967
Total non-cash charges		15,201		—		16,347		31,548
Total restructuring, impairment and other related charges	$	15,442	$	942	$	19,973	$	36,357

Accelerated depreciation primarily represents $11.2 million of increased depreciation expense associated with shortening the useful lives of the production equipment at the two Utah manufacturing facilities that are being closed to reflect the remaining period these assets will remain in service.

The $5.2 million write-down of long-lived assets represents the write-down to salvage value of other property and equipment located at the two Utah manufacturing facilities that are being closed.

Impairment of assets included impairment charges of $2.5 million associated with entering into a sublease for the Salt Lake City, Utah manufacturing facility that is being closed and related impairment charges associated with certain leasehold improvements of the property. The fair values of the impaired assets were determined by the Company to be Level 3 under the fair value hierarchy (refer to Note 2— Fair Value Measurements for the definition of Level 3 inputs) and were estimated based on internal expertise related to current marketplace conditions and estimated future discounted cash flows. These assets were adjusted to their estimated fair values at the time of impairment. If estimated fair values subsequently decline, the carrying values of the assets will be adjusted accordingly.

Impairment of assets also included the write-off of an $8.5 million indefinite-lived intangible asset. Initiating the Restructuring Plan was determined to be a triggering event for potential impairment of this asset. As a result of the impairment assessment performed, the Company determined this indefinite-lived intangible asset was impaired and recorded an impairment charge to write off the entire $8.5 million balance.

The lease for the Company’s Grantsville, Utah manufacturing facility included a five-year renewal option that was reasonably certain of being exercised and included in the lease term when the ROU asset and lease liability were originally measured. Because of the expected closure of this facility as part of the Restructuring Plan, the renewal option was no longer deemed reasonably certain of being exercised and a reassessment of the lease terms was completed. As a result, the original lease term was shortened and the Company recorded a $10.5 million reduction to the ROU asset and corresponding lease liability in the 2024 consolidated balance sheet, using the applicable discount rate at the effective date of the reassessment.

The following table summarizes 2024 activity associated with employee-related and other costs recorded pursuant to the Restructuring Plan, as presented in the indicated line item of the consolidated statement of operations, that will be settled in cash and are included in accounts payable or accrued compensation on the condensed consolidated balance sheets (in thousands):

Balance at December 31, 2023	$	—
Employee-related costs – cost of revenues		241
Employee-related costs – operating expenses		942
Employee-related costs – restructuring charges		3,098
Other costs – restructuring charges		528
Cash paid		(3,816	)
Balance at December 31, 2024	$	993

The following table summarizes the estimated restructuring and other related charges associated with the Restructuring Plan to be recognized in the future (in thousands):

	Cost of Revenues		Operating Expenses		Restructuring, Impairment and Other Related Charges		Total
Cash charges	$	—	$	—	$	2,926	$	2,926
Non-cash charges		1,592		—		64		1,656
Total estimated charges to be recognized in future ^(a)	$	1,592	$	—	$	2,990	$	4,582

(a)

These charges include certain estimates that are provisional and include management judgments and assumptions that could change materially as the Company completes the execution of the Restructuring Plan. Actual results may differ from these estimates, and the completion of the plan could result in additional restructuring, impairment or other related charges not reflected above.

Revenue from Contracts with Customers

12 Months Ended

Dec. 31, 2024

Revenue from Contracts with Customers [Abstract]

Revenue from Contracts with Customers

6. Revenue from Contracts with Customers

The Company markets and sells its products through direct-to-consumer e-commerce channels, retail brick-and-mortar wholesale partners, Purple showrooms, 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, as described in Note 2 – Summary of Significant Accounting Policies.

Disaggregated Revenue

The Company classifies revenue into two categories: DTC and wholesale. The DTC category is comprised of the e-commerce channel that sells directly to consumers who purchase online and through the contact center, online marketplaces, and the Purple showrooms channel that sells directly to consumers who purchase at a Company 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):

	Years Ended December 31,
Channel	2024		2023		2022
e-commerce	$	206,300	$	223,607	$	267,370
Wholesale		204,214		213,843		242,698
Showrooms		77,363		73,091		63,133
Revenues, net	$	487,877	$	510,541	$	573,201

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 $6.4 million and $5.7 million at December 31, 2024 and 2023, respectively. During 2024, 2023 and 2022, the Company recognized all of the revenue that was deferred in customer prepayments at December 31, 2023, 2022 and 2021, respectively.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-9

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-10

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-15

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-13

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Topic 606
-Publisher FASB
-URI https://asc.fasb.org/606/tableOfContent

+ Details

Inventories

12 Months Ended

Dec. 31, 2024

Inventories [Abstract]

Inventories

7. Inventories

Inventories consisted of the following (in thousands):

	As of December 31,
	2024		2023
Raw materials	$	20,193	$	23,232
Work-in-process		6,602		5,962
Finished goods		30,068		37,684
Inventories	$	56,863	$	66,878

Property and Equipment

12 Months Ended

Dec. 31, 2024

Property and Equipment [Abstract]

Property and Equipment

8. Property and Equipment

Property and equipment consisted of the following (in thousands):

	As of December 31,
	2024			2023
Equipment	$	70,900		$	72,424
Equipment in progress		13,130			15,077
Leasehold improvements		57,936			60,563
Furniture and fixtures		32,699			31,084
Office equipment		1,611			2,737
Total property and equipment		176,276			181,885
Accumulated depreciation		(82,402	)		(53,224	)
Property and equipment, net	$	93,874		$	128,661

Equipment in progress reflects equipment, primarily related to mattress manufacturing, which is being constructed and was not in service at December 31, 2024 or 2023. Interest capitalized on borrowings during the active construction period of major capital projects totaled $1.1 million, $1.5 million and $0.7 million during the years ended December 31, 2024, 2023 and 2022, respectively. Depreciation expense was $31.0 million, $19.7 million and $16.2 million for the years ended December 31, 2024, 2023 and 2022, respectively. Included in depreciation expense for the year ended December 31, 2024 was $11.3 million of accelerated depreciation recorded in conjunction with the Restructuring Plan. Refer to Note 5— Restructuring and Impairment Charges for more information.

Leases

12 Months Ended

Dec. 31, 2024

Leases [Abstarct]

Leases

9. Leases

The Company leases its manufacturing and distribution facilities, corporate offices, Purple showrooms and certain equipment under non-cancelable operating leases with various expiration dates through 2036. The Company’s office and manufacturing leases provide for initial lease terms up to 16 years, while Purple showrooms have initial lease terms of up to 10 years. Certain leases may contain options to extend the term of the original lease. The exercise of lease renewal options is at the Company’s discretion. Any lease renewal options are included in the lease term if exercise is reasonably certain at lease commencement. The Company also leases vehicles and other equipment under both operating and finance leases with initial lease terms of three to five years. The ROU asset for finance leases was $1.0 million and $0.7 million as of December 31, 2024 and 2023, respectively.

The following table presents the Company’s lease costs (in thousands):

	Years Ended December 31,
	2024		2023		2022
Operating lease costs	$	19,460	$	19,466	$	15,743
Variable lease costs		4,338		4,121		2,311
Short-term lease costs		—		—		11
Total lease costs	$	23,798	$	23,587	$	18,065

The table below reconciles the undiscounted cash flows for each of the first five years and total remaining years to the operating lease liabilities recorded on the consolidated balance sheet at December 31, 2024 (in thousands):

Year ended December 31,
2025	$	21,361
2026		20,623
2027		18,012
2028		17,661
2029		14,502
Thereafter		33,215
Total operating lease payments		125,374
Less – lease payments representing interest		(22,641	)
Present value of operating lease payments	$	102,733

As of December 31, 2024 and 2023, the weighted-average remaining term of operating leases was 6.8 years and 8.0 years, respectively, and the weighted-average discount rate was 6.09% and 5.77%, respectively, for operating leases recognized on the consolidated balance sheets.

The following table provides supplemental information related to the Company’s consolidated statement of cash flows (in thousands):

	Years Ended December 31,
	2024		2023		2022
Cash paid for amounts included in present value of operating lease liabilities ^(b)	$	23,033	$	20,817	$	15,109
ROU assets obtained in exchange for operating lease liabilities		8,516		8,435		38,599

(b)	– Operating cash flows paid for operating leases are included within the change in operating leases, net within the Consolidated Statements of Cash Flows offset by non-cash ROU asset amortization and lease liability accretion.

Intangible Assets

12 Months Ended

Dec. 31, 2024

Intangible Assets [Abstract]

Intangible Assets

10. Intangible Assets

The following table provides the components of intangible assets (in thousands, except useful life):

					As of December 31, 2024								As of December 31, 2023
	Useful life		Gross		Accumulated						Net Carrying		Gross		Accumulated			Net Carrying
	(years)		Cost		Amortization			Impairment			Value		Cost		Amortization			Value
Indefinite-lived non-amortizing:
Intellectual property			$	8,456	$	—		$	(8,456	)	$	—	$	8,456	$	—		$	8,456
Trademarks				30		—			—			30		30		—			30
Definite-lived amortizing:
Internet domain		15		900		(430	)		—			470		900		(370	)		530
Customer relationships		10		10,876		(4,492	)		—			6,384		10,876		(2,286	)		8,590
Developed technology		2		644		(644	)		—			—		644		(429	)		215
Internal-use software		3		7,746		(5,740	)		—			2,006		8,423		(4,048	)		4,375
Intangible assets, net			$	28,652	$	(11,306	)	$	(8,456	)	$	8,890	$	29,329	$	(7,133	)	$	22,196

Amortization expense for intangible assets was $4.2 million, $5.3 million and $1.2 million for the years ended December 31, 2024, 2023 and 2022, respectively.

Estimated amortization expense for definite-lived intangible assets is expected to be as follows for the next five years (in thousands):

Year ended December 31,
2025	$	3,035
2026		2,111
2027		1,391
2028		791
2029		570
Thereafter		962
Total future amortization for definite-lived intangible assets	$	8,860

Other Current Liabilities

12 Months Ended

Dec. 31, 2024

Other Current Liabilities [Abstract]

Other Current Liabilities

11. Other Current Liabilities

The Company’s other current liabilities consisted of the following (in thousands):

	As of December 31,
	2024		2023
Accrued sales returns	$	6,515	$	5,404
Accrued sales and use tax		2,994		1,949
Long-term debt and unamortized issuance costs - current portion		—		2,129
Asset retirement obligation		1,440		—
Insurance financing		1,328		1,079
Accrued interest		—		506
Other		473		1,423
Total other current liabilities	$	12,750	$	12,490

Debt

12 Months Ended

Dec. 31, 2024

Debt [Abstract]

Debt

12. Debt

Debt consisted of the following (in thousands):

	As of December 31,
	2024			2023
Related party loan	$	70,679		$	—
Term loan		—			25,000
Revolving line of credit		—			5,000
Less: unamortized debt issuance costs		(15,285	)		(962	)
Total debt		55,394			29,038
Current portion of debt and unamortized issuance costs ^(c)		—			(2,129	)
Debt, net of current portion	$	55,394		$	26,909

(c)	– Amount is included in other current liabilities in the consolidated balance sheets.

2024 Credit Agreement

On January 23, 2024, Purple LLC, Purple Inc. and Intellibed (collectively, the “Loan Parties”) entered into an amended and restated credit agreement (the “Amended and Restated Credit Agreement”), which amended and restated the then existing term loan agreement (“Term Loan Agreement”), with CCP and other lenders (collectively, the “Lenders”) and Delaware Trust Company, as administrative agent. The Lenders agreed to assume the Loan Parties’ obligations under the Term Loan Agreement and refinance their existing obligations. A term loan in the amount of $61.0 million (the “Related Party Loan”) was funded by the Lenders that repaid in full the $25.0 million of term loans outstanding, repaid in full the $5.0 million of asset based lending loans outstanding, paid fees, premiums and expenses incurred in connection with this transaction, and provided net proceeds to the Company (after payments of outstanding debt, unpaid accrued interest and expenses) equal to approximately $27.0 million. Interest on the Related Party Loan is payable each month and the principal outstanding matures and is due on December 31, 2026. The Related Party Loan bears interest at a rate equal to (i) the secured overnight financing rate as administered by the Federal Reserve Bank of New York plus 0.10%, with a floor of 3.5% per annum, plus (ii) 8.25% per annum (or, if Purple LLC elects to pay interest in kind to reduce it cash obligations, 10.25% per annum). Any prepayments of principal on or after August 7, 2024 but before August 7, 2025 are subject to a prepayment penalty of 1.25%, and any prepayments of principal on or after August 7, 2025 are subject to a prepayment penalty of 2.50%. The Loan Parties may request an additional term loan from the Lenders in an aggregate amount not to exceed $19.0 million on terms requested by them to the extent agreed to by the Lenders at their discretion. The Amended and Restated Credit Agreement also removed restrictions and requirements typically associated with an asset-based loan. The Amended and Restated Credit Agreement and agreements ancillary thereto provide for certain remedies to the Lenders in the event of customary events of default. There were no events of default at December 31, 2024 and therefore the debt is classified as long-term in the consolidated balance sheets.

In connection with the Amended and Restated Credit Agreement, the Company issued to the Lenders warrants to purchase 20.0 million shares of the Company’s Class A common stock (Refer to Note 13 – Warrant Liabilities for more information) and incurred fees and expenses of $3.5 million that were recorded as debt issuance costs in the first quarter of 2024. The Company has elected for interest to be capitalized and added to the principal amount of the loan. For the year ended December 31, 2024, interest expense under the Related Party Loan consisted of paid-in-kind interest of $9.7 million and debt issuance cost amortization of $7.2 million. There was no interest expense incurred under the Amended and Restated Credit Agreement in 2023 and 2022.

The Amended and Restated Credit Agreement granted a security interest to the Lenders in substantially all of the assets (subject to certain limited exceptions) of the Loan Parties to secure the Loan Parties’ loans and other obligations under the Amended and Restated Credit Agreement, including a security interest in the intellectual property owned by the Loan Parties.

The Loan Parties (other than Purple LLC) provided an unconditional guaranty of the payment of all obligations and liabilities of Purple LLC under the Amended and Restated Credit Agreement.

The Amended and Restated Credit Agreement also provides for standard indemnification of the Lenders and contains representations, warranties and certain covenants of the Loan Parties. While any amounts are outstanding under the Amended and Restated Credit Agreement, the Loan Parties are subject to a number of affirmative and negative covenants, including covenants regarding dispositions of property, investments, forming or acquiring subsidiaries, business combinations or acquisitions, incurrence of additional indebtedness and transactions with affiliates, among other customary covenants. The Loan Parties are also restricted from paying dividends or making other distributions or payments on their capital stock, subject to limited exceptions. As of December 31, 2024, the Company was in compliance with all covenants under the Amended and Restated Credit Agreement.

2023 Credit Agreements

On August 7, 2023, the Loan Parties entered into the Term Loan Agreement. Also, on August 7, 2023, the Loan parties entered into a separate financing arrangement with a group of financial institutions (collectively the “ABL Lenders”) that provided for a revolving asset-based credit facility (the “ABL Agreement”). Pursuant to entering into these agreements (collectively, the “2023 Credit Agreements”), the Company incurred fees and expenses of $3.1 million that were recorded as debt issuance costs in the third quarter of 2023.

The Term Loan Agreement provided for up to $25.0 million of term loans, with up to $5.0 million of incremental term loans available, subject to certain conditions (collectively, the “Term Loans”). Proceeds from the Term Loans were used for general corporate purposes. The borrowing rates under the Term Loan Agreement were based on SOFR, plus a credit spread adjustment of 0.15% per annum, plus 8.5% per annum, with a SOFR floor of 2.0% per annum. The Term Loans were to be repaid at the earlier of (a) a three-year amortization schedule ending on August 7, 2026 or (b) the payment in full of the ABL Agreement. The Term Loans could be prepaid in whole or in part at any time, but subject to a prepayment premium. There were also potential mandatory prepayment obligations based on certain asset dispositions, casualty events and extraordinary receipts. Once repaid, no portion of the Term Loans could be reborrowed.

The ABL Agreement provided for up to $50.0 million of revolving loans subject to a borrowing base calculation and minimum availability requirements (with sub-facilities for swing line loans and the issuance of letters of credit), with incremental increases available up to $20.0 million (the “ABL Loans”), subject to certain conditions, availability reserves, minimum availability requirements, borrowing base calculations, and restrictive covenants. In October 2023, the ABL Lenders implemented an availability reserve of $5.0 million, which reduced the amount available under the borrowing base. Outstanding principal and accrued interest on the ABL Loans were to be repaid on August 7, 2026.

Term loans totaling $25.0 million were fully drawn at closing and, subsequent to the closing in August 2023, the Company executed $17.0 million in ABL loan draws and then repaid $12.0 million of those borrowings prior to the end of 2023. The outstanding balance of ABL Loans totaled $5.0 million at December 31, 2023. In connection with the Amended and Restated Credit Agreement, all obligations under the 2023 Credit Agreements were paid in full and the agreements were terminated. The termination was accounted for as an extinguishment of debt and $3.4 million of unamortized debt issuance costs related to the 2023 Credit Agreements were recorded as a loss on extinguishment of debt in the first quarter of 2024. Interest expense under the 2023 Credit Agreements was $0.4 million and $2.1 million for the years ended December 31, 2024 and 2023, respectively. There was no interest expense incurred under the 2023 Credit Agreements in 2022.

2020 Credit Agreement

On September 3, 2020, Purple LLC entered into a financing arrangement with a group of financial institutions (the “2020 Credit Agreement”). The 2020 Credit Agreement provided for a $45.0 million term loan and a $55.0 million revolving line of credit. The term loan was to be repaid in accordance with a five-year amortization schedule or prepaid in whole or in part at any time without premium or penalty, subject to reimbursement of certain costs. The revolving credit facility had a term of five years and carried the same interest provisions as the term debt. A commitment fee was due quarterly based on the applicable margin applied to the unused total revolving commitment. In connection with the Company’s execution of the 2023 Credit Agreements, the Company terminated its 2020 Credit Agreement. The Company had no outstanding borrowings under the 2020 Credit Agreement at the time of termination.

On February 17, 2023, the Company entered into a fifth amendment to the 2020 Credit Agreement. The amendment, among other things, revised various covenants associated with the 2020 Credit Agreement. As a condition of entering into the amendment, the Company repaid the $24.7 million outstanding balance on the term loan plus accrued interest. Pursuant to this amendment, the Company incurred fees and expenses of $2.9 million that were recorded as debt issuance costs in the consolidated balance sheets. The amendment was accounted for as an extinguishment of debt and $1.2 million of unamortized debt issuance costs related to the term loan were recorded as loss on extinguishment of debt in the 2023 consolidated statement of operations.

Interest expense under the 2020 Credit Agreement totaled $1.3 million and $4.1 million for the years ended December 31, 2023 and 2022, respectively. There was no interest expense incurred under the 2020 Credit Agreement in 2024.

As of December 31, 2024, the scheduled maturities of debt outstanding for each of the next five years and thereafter are as follows (in thousands):

Year ended December 31,	Total
2025	$	—
2026		70,679
2027		—
2028		—
2029		—
Thereafter		—
Total	$	70,679

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Warrant Liabilities

12 Months Ended

Dec. 31, 2024

Warrant Liabilities [Abstract]

Warrant Liabilities

13. Warrant Liabilities

On January 23, 2024, in connection with the Amended and Restated Credit Agreement, the Company issued to the Lenders warrants to purchase 20.0 million shares of the Company’s Class A common stock (the “Warrants”). Each Warrant entitles the registered holder to purchase one share of the Company’s Class A common stock at a price of $1.50 per share, subject to adjustment. The Warrants will expire on the 10-year anniversary of issuance, or earlier upon redemption. The holders do not have the rights or privileges of holders of Class A common stock or any voting rights until they exercise their Warrants. After the issuance of shares of Class A common stock upon exercise of the Warrants, each holder will be entitled to one vote for each share of Class A common stock held on all matters to be voted on by stockholders generally. A holder of the Warrants will not have the right to exercise its Warrants, to the extent that after giving effect to such exercise, the holder (together with its affiliates) would beneficially own in excess of 49.9% of the shares of Class A common stock outstanding immediately after giving effect to such exercise. The Warrants contain a repurchase provision which, upon the occurrence of a fundamental transaction as defined in the warrant agreement, could give rise to an obligation of the Company to pay cash to the warrant holders. In addition, other provisions may lead to a reduction in the exercise price of the Warrants. The Warrants also include full-ratchet anti-dilution protections, subject to certain conditions, which could result in the Warrants becoming exercisable for a significantly greater number of shares if we engage in a dilutive financing. The Company determined the fundamental transaction provisions require the Warrants to be accounted for as a liability at fair value on the date of the transaction, with changes in fair value recognized in earnings in the period of change. As a result, the liability for these Warrants was recorded at fair value on the date of issuance with the offset included in debt issuance costs. This liability is subsequently re-measured to fair value at each reporting date or exercise date with changes in the fair value included in earnings.

The Company used a Monte Carlo Simulation model to determine the fair value of the liability associated with the Warrants. The model used key assumptions and inputs, such as exercise price, fair market value of common stock, risk free interest rate, warrant life, expected volatility and the probability of a warrant re-price event. The following are the assumptions used in calculating fair value of the Warrants on the date of issuance:

Trading price of common stock on measurement date	$	0.82
Exercise price	$	1.50
Risk free interest rate		4.14	%
Warrant life in years		10.0
Expected volatility		88.62	%
Expected dividend yield		—
Probability of an event causing a warrant re-price		25.0	%

The following are the assumptions used in calculating fair value of the Warrants on December 31, 2024:

Trading price of common stock on measurement date	$	0.78
Exercise price	$	1.50
Risk free interest rate		4.45	%
Warrant life in years		9.1
Expected volatility		88.00	%
Expected dividend yield		—
Probability of an event causing a warrant re-price		25.0	%

The Warrants had a fair value of $16.1 million as of December 31, 2024. The Company recognized a gain of $3.5 million in its consolidated statement of operations for the year ended December 31, 2024 related to a decrease in the fair value of the Warrants outstanding at the end of the period compared to the fair value of the Warrants on the date of issuance.

The Company issued 12.8 million sponsor warrants pursuant to a private placement conducted simultaneously with its initial public offering. Each of these warrants entitled the registered holder to purchase one-half of one share of the Company’s Class A common stock at a price of $5.75 per half share ($11.50 per full share), subject to adjustment pursuant to the terms of the warrant agreement. These sponsor warrants contained certain provisions that did not meet the criteria for equity classification and therefore were recorded as liabilities. The liability for these warrants was recorded at fair value on the date of the Business Combination and subsequently re-measured to fair value at each reporting date or exercise date with changes in the fair value included in earnings.

Unexercised sponsor warrants totaling 1.9 million expired in February 2023 and were cancelled pursuant to the terms of the warrant agreement. These sponsor warrants had no fair value on the date of expiration. The 1.9 million sponsor warrants outstanding at December 31, 2022 had a negligible fair value and no sponsor warrants were exercised in 2022.

The Company determined the fair value of the sponsor warrants on December 31, 2022 using a Black-Scholes model with the following assumptions:

Trading price of common stock on measurement date	$	4.79
Exercise price	$	5.75
Risk free interest rate		4.04	%
Warrant life in years		0.1
Expected volatility		80.59	%
Expected dividend yield		—

During the year ended December 31, 2022, the Company recognized a gain of $4.3 million in its consolidated statement of operations related to a decrease in the fair value of the sponsor warrants that were outstanding at the end of the period.

Other Long-Term Liabilities

12 Months Ended

Dec. 31, 2024

Other Long-Term Liabilities [Abstract]

Other Long-Term Liabilities

14. Other Long-Term Liabilities

Other long-term liabilities consist of the following (in thousands):

	December 31,		December 31,
	2024		2023
Asset retirement obligations	$	1,098	$	2,230
Other		911		5
Total other long-term liabilities	$	2,009	$	2,235

The Company’s asset retirement obligations (“ARO”) relate to two manufacturing facilities that are leased. One of the properties is the Company’s manufacturing facility in Grantsville, Utah which is expected to be closed in the first quarter of 2025 (For further discussion see Note 5— Restructuring, Impairment and Other Related Charges). The ARO liabilities represent future estimated costs associated with the restoration of the facilities to their original state at the end of the respective lease terms. The fair value of a liability for an ARO is recorded in the period in which it is incurred, discounted to its present value using a credit-adjusted-risk-free interest rate, with a corresponding amount capitalized by increasing the carrying amount of the related long-lived asset. These liabilities are accreted each period, and the capitalized cost is depreciated over the useful life of the related asset. Revisions to estimated ARO liabilities result in an adjustment to the related capitalized asset and corresponding liability. Because the Company utilizes unobservable inputs in the estimation of its ARO liabilities, the fair values were determined to be Level 3 under the fair value hierarchy (For further discussion regarding the definition of Level 3 inputs see Note 2— Fair Value Measurements).

The Company had the following activity for its ARO liabilities (in thousands):

	Years Ended December 31,
	2024			2023
Balance at beginning of period	$	2,230		$	2,099
Revisions in estimated retirement obligations		277			—
Accretion expense		133			131
Payments		(102	)		—
Balance at end of period		2,538			2,230
ARO liability classified as other current liabilities		(1,440	)		—
ARO liability classified as other long-term liabilities	$	1,098		$	2,230

Commitments and Contingencies

12 Months Ended

Dec. 31, 2024

Commitments and Contingencies [Abstract]

Commitments and Contingencies

15. Commitments and Contingencies

Chief Executive Officer Cash Bonus Award

On January 26, 2024, the Board approved an amendment to the Chief Executive Officer’s employment agreement. Under the amendment, the Company agreed that, among other things, the Chief Executive Officer will be eligible to earn a cash payment of up to $5.0 million, less tax and other required withholdings, based on the volume weighted average price per share of the Company’s Class A common stock on NASDAQ during the period from March 16, 2026 through June 30, 2026 subject to his continued employment with the Company. The amount earned will be payable in quarterly installments commencing with the first payroll period following June 30, 2026. The Company determined the provisions surrounding the future bonus payment require it to be accounted for as a liability at fair value on the date of the transaction, with changes in fair value recognized in earnings in the period of change. The Company recorded a de minimis amount of compensation expense in its 2024 consolidated statement of operations related to the fair value of the future bonus payment.

Senior Leadership Team Special Recognition Bonus

On January 26, 2024, the Board unanimously approved a special recognition bonus payment to certain members of the Company’s senior leadership team. The bonus was awarded to incentivize retention and continued engagement with the Company during these challenging times in the bedding industry. Each participant is eligible to earn a special recognition bonus payment equal to 15 months of their regular salary. The special recognition bonus payment is paid as follows, subject to the employee’s continued employment with the Company: 10% was paid in August 2024, 20% is to be paid in February 2025, and the remaining 70% is to be paid in August 2025. The Company recorded compensation expense of $3.1 million in its 2024 consolidated statement of operations related to this special recognition bonus.

Performance Cash Long-Term Incentive Award

On June 20, 2024, the Board unanimously approved a performance cash long-term incentive award to those employees eligible to participate in the Company’s Long-Term Incentive Plan. The incentive award payment is based on a performance goal of the volume weighted average price per share of the Company’s Class A common stock on NASDAQ on March 31, 2027. The Company determined the provisions surrounding the performance cash long-term incentive award require it to be accounted for as a liability at fair value at each reporting period, with changes in fair value recognized in earnings in the period of change. The Company recorded a de minimis amount of compensation expense in the 2024 consolidated statement of operations related to this future award payment.

Settlement of Insurance Claim

In 2024, the Company received two payments totaling $11.6 million for full settlement of a previously filed business interruption claim which was recorded as other income, net in the 2024 consolidated statement of operations.

Rights of Securities Holders

On January 23, 2024, in connection with the issuance of the 2024 Warrants, the Company entered into an amended and restated registration rights agreement with holders of the Warrants (the “Holders”), providing for the registration under the Securities Act of 1933, as amended, of the 2024 Warrants, the shares issuable upon the exercise of the 2024 Warrants and Class A common stock held by the Holders as of such date, subject to customary terms and conditions. On March 12, 2025 in connection with the issuance of the 2025 Warrants, the Company entered into a Second Amended and Restated Registration Rights Agreement (the “Registration Rights Agreement”) with the Holders, providing for the registration of the Warrants, the shares of Common Stock issuable upon the exercise of the Warrants, and the Class A Common Stock held by the Holders as of such date (the “Registrable Securities”). The Registration Rights agreement entitles the Holders to demand registration of the Registrable Securities and to piggyback on the registration of securities by the Company and other Company securityholders. The Company will be responsible for the payment of the Holders’ expenses in connection with any offering or sale of Registrable Securities by the Holders, including underwriting discounts or selling commissions, placement agent or broker fees or similar discounts, commissions or fees relating to the sale of certain Registrable Securities.

NOL Rights Plan

On June 27, 2024, the Board adopted and the Company entered into a limited-duration stockholder rights agreement (the “NOL Rights Plan”) with a stated expiration date of June 30, 2025. The Board adopted the NOL Rights Plan to protect stockholder value by attempting to safeguard the Company’s ability to use its June 30, 2024 estimated $238 million of net operating losses (the “Current NOLs”) to reduce potential future federal income tax obligations from becoming substantially limited by future ownership changes in the Company’s common stock under Code Section 382. On October 15, 2024, at a special meeting of stockholders (the “Special Meeting”), the Company’s stockholders ratified the NOL Rights Plan. Refer to Note 17 – Stockholders’ Equity – NOL Rights Plan for more information.

NOL Protective Charter Amendment

To further safeguard the Company’s ability to use its Current NOLs, on July 27, 2024, the Board adopted and recommended that the Company’s stockholders approve an amendment to the Company’s Certificate of Incorporation (the “NOL Protective Charter Amendment”) that adds an additional layer of protection of the Current NOLs until June 30, 2025 by voiding certain transfers of common stock that could result in an ownership change under Code Section 382. At the Special Meeting, the Company’s stockholders approved the NOL Protective Charter Amendment. Refer to Note 17 – Stockholders’ Equity – NOL Protective Charter Amendment for more information.

Non-Income Related Taxes

The U.S. Supreme Court ruling in South Dakota v. Wayfair, Inc., No.17-494, reversed a longstanding precedent that remote sellers are not required to collect state and local sales taxes. The Company cannot predict the effect of these and other attempts to impose sales, income or other taxes on e-commerce. The Company currently collects and reports on sales tax in all states in which it does business. However, the application of existing, new or revised taxes on the Company’s business, in particular, sales taxes, value-added tax and similar taxes would likely increase the cost of doing business online and decrease the attractiveness of selling products over the internet. The application of these taxes on the Company’s business could also create significant increases in internal costs necessary to capture data and collect and remit taxes. There have been, and will continue to be, substantial ongoing costs associated with complying with the various indirect tax requirements in the numerous markets in which the Company conducts or will conduct business.

Legal Proceedings

On December 16, 2022, Purple’s founders filed a complaint against Purple Inc. in the Fourth Judicial District Court in the State of Utah. In that suit, the plaintiffs alleged that they each entered into employment agreements with Purple LLC in February 2018. The plaintiffs contended that certain corporate transactions reduced their “ownership interest and voting power in Purple” and that, as a result, they should have continued to be paid a salary when they retired from Purple LLC. The plaintiffs calculated that they were each owed “no less than $500,000” in unpaid salary. In October 2023, the Court granted Purple Inc.’s motion and ordered that the claims brought by the plaintiffs be dismissed in full, with prejudice. The Court entered a final judgment dismissing the case in January 2024. The plaintiffs have filed an appeal to the Utah Court of Appeals. The parties argued before the Utah Court of Appeals on January 23, 2025. The Court’s decision is anticipated in the second quarter of 2025. The Company maintains insurance to cover the costs of defending against claims of this nature and intends to continue to vigorously defend against these claims in the course of the plaintiffs’ appeal.

On April 3, 2023, Purple’s founders filed a complaint against Purple LLC in the Delaware Court of Chancery. The complaint alleges that Purple LLC breached the limited liability company agreement of Purple LLC by failing to pay the full amount of tax distributions owed under the agreement. The plaintiffs seek damages of approximately $3.0 million in allegedly unpaid tax distributions as well as legal fees and expenses incurred in connection with the litigation. On June 13, 2023, Purple LLC filed an answer to the complaint denying the plaintiffs’ allegations, setting forth its affirmative defenses, and requesting dismissal of all claims and entry of judgment in Purple LLC’s favor. The outcome of the litigation cannot be predicted at this early stage in the proceedings. Purple LLC denies all allegations and intends to vigorously defend against these claims.

On January 17, 2024, two customers filed a punitive class action lawsuit (the “Class Action Lawsuit”) against Purple LLC in California Superior Court in the County of San Francisco alleging unlawful marketing and pricing practices, fraud and unjust enrichment. The suit sought damages and other relief on behalf of all persons who purchased Purple LLC products during the applicable statutory periods in California. On July 15, 2024, the Company entered into a settlement agreement (the “Settlement Agreement”) with the plaintiffs in connection with the Class Action Lawsuit. On August 16, 2024 the United States District Court for the Northern District of California dismissed the Class Action Lawsuit and approved the Settlement Agreement. Upon receipt of the executed release of all claims by the plaintiffs, the Company made a cash payment pursuant to the Settlement Agreement.

On April 16, 2024, Purple’s founders, in their capacity as a former landlord of Purple LLC, brought a lawsuit against Purple LLC, as lessee, for amounts allegedly owed under a real estate lease which the parties terminated effective September 30, 2023. In the suit, the plaintiffs allege approximately $2.5 million in damages, based primarily on a dispute regarding whether Purple LLC left the premises in the condition required by the lease. The plaintiffs further claim approximately $0.8 million in holdover rent, as well as unspecified amounts in interest, late fees, liquidated damages, attorney fees and costs. Purple LLC denies all allegations and intends to vigorously defend against these claims.

On July 24, 2024, a former part-time employee filed a class action lawsuit against Purple LLC in California Superior Court in the County of Alameda alleging failure to pay all wages, failure to pay overtime pay rate, failure to provide all meal periods, and other employment-related causes of action. The suit seeks damages, interest, attorneys’ fees, costs and other relief on behalf of all non-exempt California employees of Purple LLC during the applicable statutory periods. On September 30, 2024, the plaintiffs filed an amended complaint adding a claim for penalties under California’s Private Attorneys General Act. Subsequent to this, Purple LLC and the plaintiffs agreed to mediate the claims and to stay formal discovery pending mediation, which is currently scheduled to take place on May 8, 2025. Purple LLC denies all allegations and intends to vigorously defend against these claims.

The Company is from time to time involved in various other claims, legal proceedings and complaints arising in the ordinary course of business. The Company does not believe that adverse decisions in any such pending or threatened proceedings, or any amount that the Company might be required to pay by reason thereof, would have a material adverse effect on the financial condition or future results of the Company.

Related-Party Transactions

12 Months Ended

Dec. 31, 2024

Related-Party Transactions

16. Related-Party Transactions

The Company has engaged in various transactions with entities or individuals which are considered related parties.

Coliseum Capital Management LLC

Immediately following the Business Combination, Adam Gray was appointed to the Board. Mr. Gray is a manager of Coliseum Capital, LLC, which is the general partner of CCP and Coliseum Co-Invest Debt Fund, L.P. (“CDF”), and he is also a managing partner of Coliseum Capital Management, LLC (“CCM”), which is the investment manager of Blackwell and also manages investment funds and accounts. Mr. Gray has voting and dispositive control over securities held by CCP, CDF and Blackwell. In April 2023, Adam Gray was appointed Chairman of the Board of the Company as part of an agreement to resolve litigation that had been brought by Coliseum against the Company. Refer to Note 12— Debt—2024 Credit Agreement for more information on the Related Party Loan.

Purple Founder Entities

Purple LLC began leasing its Alpine facility from entities controlled by the Purple Founders in 2010. On September 3, 2021, in accordance with the terms of that original lease, Purple LLC gave notice that it intended to exercise its right to an early termination of the lease to occur on September 30, 2022. On July 20, 2022, the Company entered into an amendment to its Alpine facility lease agreement that rescinded the Company’s previous notice of termination and extended the lease term to remain in effect until September 30, 2023. The Company vacated the Alpine facility and returned the property back to its owner on September 30, 2023, in accordance with the terms of the lease agreement and notice of termination. In conjunction with leasing the Alpine facility, Purple LLC incurred rent expense of $0.8 million and $1.0 million for the years ended December 31, 2023 and 2022, respectively. Refer to Note 15—Commitments and Contingencies—Legal Proceedings for information regarding a complaint filed by Purple’s founders regarding this matter.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480990/946-20-50-2

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 5
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-URI https://asc.fasb.org/1943274/2147480990/946-20-50-5

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Stockholders’ Equity

12 Months Ended

Dec. 31, 2024

Stockholders’ Equity [Abstract]

Stockholders’ Equity

17. Stockholders’ Equity

Class A Common Stock

The Company has 210.0 million shares of Class A common stock authorized. Holders of the Company’s Class A common stock are entitled to one vote for each share held on all matters to be voted on by the stockholders. Holders of Class A common stock and holders of Class B common stock voting together as a single class have the exclusive right to vote for the election of directors and on all other matters properly submitted to a vote of the stockholders. At December 31, 2024, 107.5 million shares of Class A common stock were outstanding.

Class B Common Stock

The Company has 90.0 million shares of Class B common stock authorized. Holders of the Company’s Class B common stock will vote together as a single class with holders of the Company’s Class A common stock on all matters properly submitted to a vote of the stockholders. Shares of Class B common stock may be issued only to InnoHold, their respective successors and assigns, as well as any permitted transferees of InnoHold. A holder may transfer their shares of Class B common stock to any transferee (other than the Company) only if such holder also simultaneously transfers an equal number of such holder’s shares of Class B common stock to such transferee. The Class B common stock is not entitled to receive dividends, if declared by the Board, or to receive any portion of any such assets in respect of their shares upon liquidation, dissolution, distribution of assets or winding-up of the Company in excess of the par value of such stock. At December 31, 2024, 0.2 million shares of Class B common stock were outstanding.

Preferred Stock

The Company has 5.0 million shares of preferred stock authorized. The preferred stock may be issued from time to time in one or more series. The Board is expressly authorized to provide for the issuance of shares of the preferred stock in one or more series and to establish from time to time the number of shares to be included in each such series and to fix the voting rights, designations and other special rights or restrictions. At December 31, 2024, there were no shares of preferred stock outstanding. On June 27, 2024, 0.3 million shares of the Company’s authorized shares of preferred stock were designated as Series C Junior Participating Preferred Stock, par value $0.0001 per share (“Series C Preferred Shares”).

NOL Rights Plan

On June 27, 2024, the Board adopted and the Company entered into the NOL Rights Plan, which is designed to preserve approximately $238 million of the Company’s Current NOLs under Section 382 of the of the Internal Revenue Code of 1986, as amended (“Code Section 382”). At the Special Meeting, the Company’s stockholders ratified the NOL Rights Plan. The Company’s ability to use the Current NOLs to offset future taxable income may be significantly limited if the Company experiences an “ownership change” under Code Section 382, which occurs if one or more stockholders or groups of stockholders that is deemed to own at least 5% of the Company’s common stock increases their aggregate ownership by more than 50 percentage points over its lowest ownership percentage within a rolling three-year period. The NOL Rights Plan is intended to prevent an ownership change by acting as a deterrent to any Person (as such term is defined in the NOL Rights Plan) acquiring 4.9% or more of the outstanding common stock of the Company (or, in the case of a Grandfathered Person (as such term is defined in the NOL Rights Plan), an additional one-half of one percentage point of the outstanding common Stock of the Company above their current ownership percentage). Any Person that acquires shares of the Company’s common Stock in violation of the limitations of the NOL Rights Plan is known as an “Acquiring Person.” For purposes of the NOL Rights Plan, “common stock” includes (i) the Class A common stock; (ii) the Class B common stock; and (iii) any interest that would be treated as “stock” of the Company pursuant to Treasury Regulation § 1.382-2T(f)(18). Notwithstanding the foregoing, the NOL Rights Plan allows for the exercise of currently outstanding conversion rights, exchange rights, warrants or options, or otherwise, without triggering the NOL Rights Plan. Refer to Note 13 – Warrant Liabilities for further discussion of the Company’s outstanding warrants.

The NOL Rights Plan provided for the issuance of a dividend of one preferred share purchase right (a “Right”) for each share of common stock outstanding on July 26, 2024. Each Right entitles the holder to purchase from the Company one one-thousandth of a share of Series C Preferred Share for a purchase price of $2.75, subject to adjustment as provided in the NOL Rights Plan. Each Series C Preferred Share is designed to be the economic equivalent of one share of common stock.

Unless the Board determines to effect an exchange (as discussed below), each Right will become exercisable on the “Distribution Time”, which is the earlier to occur of (i) the tenth day following a public announcement, or the public disclosure of facts indicating, that a Person has become an Acquiring Person or (ii) the tenth business day (or such later date as may be determined by action of the Board prior to such time as any Person becomes an Acquiring Person) following the commencement of a tender offer or exchange offer the consummation of which would result in a Person becoming an Acquiring Person. After the Distribution Time, any Rights held by an Acquiring Person will be void and will not be exercisable. As a result, any Acquiring Person will be subject to significant dilution upon the occurrence of the Distribution Time. At any time after a Person becomes an Acquiring Person, but before such Acquiring Person holds more than 50% of the common stock, the Board, in its sole discretion, may instead extinguish the Rights by exchanging one share of Class A common stock for each Right, other than Rights held by the Acquiring Person.

The Rights will expire on the earliest to occur of (i) the close of business on June 30, 2025; (ii) the time at which the Rights are redeemed (as discussed below) or exchanged by the Company; (iii) the repeal of Code Section 382, if the Board determines that the NOL Rights Plan is no longer necessary for the preservation of the Current NOLs; or (v) the beginning of a taxable year of the Company to which the Board determines that no Current NOLs may be carried forward. At any time prior to the expiration of the NOL Rights Plan, the Company may redeem the Rights in whole, but not in part, at a price of $0.0001 per Right (subject to adjustment and payable in cash, Class A common stock or other consideration deemed appropriate by the Board). Immediately upon the action of the Board authorizing any redemption or at a later time as the Board may establish for the effectiveness of the redemption, the Rights will terminate and the only right of the holders of Rights will be to receive the redemption price.

The initial issuance of the Rights as a dividend had no tax, financial accounting or reporting impact. The fair value of the Rights is nominal, since the Rights were not exercisable when issued and no value is attributable to them. Additionally, the Rights do not meet the definition of a liability under GAAP and therefore are not being accounted for as a long-term obligation. Accordingly, unless the Rights become exercisable upon the occurrence of the Distribution Time as discussed above, the NOL Rights Plan and the Rights issued thereunder have no impact on the Company’s consolidated financial statements.

NOL Protective Charter Amendment

On June 27, 2024, concurrently with the adoption of NOL Rights Plan, the Board adopted, and recommended that the Company’s stockholders approve at the Special Meeting, the NOL Protective Charter Amendment that adds an additional layer of protection of the Current NOLs until June 30, 2025 by voiding any transfer of common stock that results in any Person holding 4.9% or more of the outstanding common stock of the Company (or, in the case of a Person already holding more than 4.9% of the outstanding common stock of the Company as of the date of the NOL Protective Charter Amendment, one-half of one percentage point of the outstanding common stock of the Company above their current ownership percentage). At the Special Meeting, the Company’s stockholders approved the NOL Protective Charter Amendment.

Any acquisition of common stock in violation of the NOL Protective Charter Amendment will be void as of the date it is attempted. Upon the Company’s written demand, the purported acquiring stockholder must transfer the excess acquired common stock to the Company’s transfer agent (along with any dividends or other distributions paid with respect to such excess acquired common stock). The Company’s transfer agent is then required to sell such excess acquired common stock in an arm’s-length transaction (or series of transactions) that would not constitute a violation under the NOL Protective Charter Amendment. The net proceeds of the sale together with any other distributions with respect to such excess acquired common stock received by the Company’s transfer agent, after deduction of all costs incurred by the transfer agent, will be transferred first to the purported transferee in an amount, if any, up to the cost (or in the case of gift, inheritance or similar transfer, the fair market value of the excess securities on the date of the prohibited transfer) incurred by the purported transferee to acquire such excess securities, and the balance of the proceeds, if any, will be transferred to a charitable beneficiary. Further, the Company may hold any stockholder liable, to the fullest extent of the law, for any intentional violation of the NOL Protective Charter Amendment.

Warrants

In connection with the Amended and Restated Credit Agreement, the Company issued to the Lenders Warrants to purchase 20.0 million shares of the Company’s Class A common stock. Each Warrant entitles the registered holder to purchase one share of the Company’s Class A common stock at a price of $1.50 per share, subject to adjustment. While the Warrants are exercisable, the Company may call the Warrants for redemption in whole and not in part at any time at a price of $0.01 per share of Class A common stock issuable upon exercise of the Warrants upon not less than 45 days’ prior written notice of redemption to each holder, provided that this redemption right is only available if the reported last sale price of the Class A common stock equals or exceeds $24.00 per share on each of 20 trading days within a 30-trading day period ending three business days before the Company sends the notice of redemption to the holders. A holder of the Warrants will not have the right to exercise its Warrants, to the extent that after giving effect to such exercise, the holder (together with its affiliates) would beneficially own in excess of 49.9% of the shares of Class A common stock outstanding immediately after giving effect to such exercise.

Sponsor Warrants

There were 12.8 million sponsor warrants issued pursuant to a private placement simultaneously with the Company’s initial public offering. Unexercised sponsor warrants totaling 1.9 million expired in February 2023 and were cancelled pursuant to the terms of the warrant agreement. These sponsor warrants had no fair value on the date of expiration.

Noncontrolling Interest

Noncontrolling interest (“NCI”) is the membership interest in Purple LLC held by holders other than the Company. At both December 31, 2024 and 2023, the combined NCI percentage in Purple LLC was 0.2%. The Company has consolidated the financial position and results of operations of Purple LLC and reflected the proportionate interest held by all such Purple LLC Class B Unit holders as NCI.

- Definition

The entire disclosure for equity.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Net Loss Per Common Share

12 Months Ended

Dec. 31, 2024

Net Loss Per Common Share [Abstract]

Net Loss Per Common Share

18. Net Loss Per Common Share

The following table sets forth the calculation of basic and diluted weighted average shares outstanding and loss per share for the periods presented (in thousands, except per share amounts):

	Years Ended December 31,
	2024			2023			2022
Numerator:
Net loss attributable to Purple Innovation, Inc. – basic	$	(97,897	)	$	(120,757	)	$	(92,470	)
Less: Net loss attributable to noncontrolling interest		(201	)		(458	)		—
Net loss attributable to Purple Innovation, Inc. – diluted	$	(98,098	)	$	(121,215	)	$	(92,470	)
Denominator
Weighted average shares – basic		107,139			103,602			81,779
Add: Dilutive effect of Class B shares		185			334			—
Weighted average shares – diluted		107,324			103,936			81,779
Net loss per common share:
Basic	$	(0.91	)	$	(1.17	)	$	(1.13	)
Diluted	$	(0.91	)	$	(1.17	)	$	(1.13	)

The Company excludes from the diluted net loss per common share computation potentially dilutive securities related to warrants, equity awards and convertible shares of Class B common stock when their exercise or performance vesting price is greater than the average market price of the Company’s common stock or they are otherwise anti-dilutive. Potentially dilutive securities that have been excluded from the calculation of diluted net loss per common share are as follows (in thousands):

	Years Ended December 31,
	2024		2023		2022
Warrants		20,000		—		—
Sponsor warrants		—		928		928
Restricted stock units		2,006		1,423		679
Stock options		529		863		819
Class B common stock		—		—		448

Equity Compensation Plans

12 Months Ended

Dec. 31, 2024

Equity Compensation Plans [Abstract]

Equity Compensation Plans

19. Equity Compensation Plans

2017 Equity Incentive Plan

The 2017 Equity Incentive Plan provides for grants of stock options, stock appreciation rights, restricted stock and other stock-based awards. Directors, officers and other employees and subsidiaries and affiliates, as well as others performing consulting or advisory services for the Company and its subsidiaries, will be eligible for grants under the 2017 Equity Incentive Plan. The aggregate number of shares of common stock which may be issued or used for reference purposes under the 2017 Equity Incentive Plan or with respect to which awards may be granted may not exceed 7.9 million shares. As of December 31, 2024, 2.4 million shares remain available for issuance under the 2017 Equity Incentive Plan. During the years ended December 31, 2024, 2023 and 2022, stock-based compensation associated with equity awards issued under the 2017 Equity Incentive Plan totaled $2.8 million, $4.9 million and $3.4 million, respectively, while the related tax benefits recognized on these awards were $0.9 million, $1.5 million and $0.9 million, respectively.

Class A Common Stock Awards

There were no stock awards granted in 2024.

In June 2023, the Company granted stock awards under the 2017 Equity Incentive Plan to non-executive directors on the Board. The stock awards vested immediately and the Company issued 0.2 million shares of Class A common stock and recognized $0.6 million in expense during the year ended December 31, 2023, which represented the fair value of the stock awards on the grant date.

In May 2022, the Company granted stock awards under the 2017 Equity Incentive Plan to independent directors on the Board. The stock awards vested immediately and the Company issued 0.1 million shares of Class A common stock and recognized $0.6 million in expense during the year ended December 31, 2022, which represented the fair value of the stock awards on the grant date.

Amended and Restated Grant Agreements

On March 15, 2023, in accordance with the 2017 Equity Incentive Plan, the Company entered into amended and restated grant agreements relating to stock options and restricted stock unit awards previously granted to the Company’s chief executive officer in March 2022 and June 2022. The amended agreements revised the vesting schedule of the awards included in each grant. Pursuant to these agreements, 0.3 million of restricted stock units and stock options fully vested on March 25, 2023, another 0.3 million of restricted stock units and stock options, which included conditionally granted awards that were approved by shareholders at the 2023 Annual Meeting, vested on March 25, 2024, and the remaining 0.3 million of conditionally granted awards approved by shareholders at the 2023 Annual Meeting will vest in full on March 25, 2025. These amendments resulted in the acceleration of $0.8 million of stock-based compensation expense into fiscal 2023 compared to the expense that would have been recorded based on vesting under the original agreements.

Employee Stock Options

There were no employee stock options granted in 2024.

In June 2023, the 0.3 million of conditionally granted stock options to the Company’s chief executive officer were approved by shareholders. These stock options have an exercise price of $6.82 per option, expire in four years and vest over a two-year period. The fair value of this award, which was determined to be $0.1 million on the effective date, is being expensed over the vesting period on a straight-line basis.

In March and June 2022, the Company granted 0.5 million and 0.1 million stock options, respectively, under the 2017 Equity Incentive Plan to its chief executive officer at an exercise price of $6.82 per option. The stock options expire in five years and were to vest over a three-year period. In April 2022, with the chief executive officer’s consent, the Company rescinded and cancelled 0.4 million of the stock options granted in March 2022 because of annual limits set forth in the 2017 Equity Incentive Plan. The Company determined the fair value of the net award of 0.2 million stock options to be $0.4 million which was expensed on a straight-line basis over the vesting period.

The following are the weighted average assumptions used in calculating the fair value of the total stock options granted in 2023 and 2022 using the Black-Scholes method:

	Year Ended December 31,
	2023			2022
Weighted average grant date value	$	0.22		$	2.02
Risk free rate		4.48	%		2.67	%
Dividend yield		—			—
Expected volatility		44.98	%		54.22	%
Expected term in years		2.58			3.45

The following table summarizes the Company’s total stock option activity for the year ended December 31, 2024:

	Options (in thousands)			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term in Years		Intrinsic Value $ (in thousands)
Options outstanding as of December 31, 2023		863		$	8.13		2.2	$	—
Granted		—			—		—		—
Forfeited		—			—		—		—
Expired		(334	)		9.67		—		—
Options outstanding as of December 31, 2024		529			7.17		2.2		—

Outstanding and exercisable stock options as of December 31, 2024 are as follows:

		Options Outstanding			Options Exercisable
Exercise Prices		Number of Options Outstanding (in thousands)		Weighted Average Remaining Life (Years)	Number of Options Exercisable (in thousands)		Weighted Average Remaining Life (Years)	Intrinsic Value (in thousands)
$	6.82		500	2.3		333	2.3	$	—
	13.12		29	0.4		29	0.4		—
			529	2.2		362	2.1	$	—

The following table summarizes the Company’s unvested stock option activity for the year ended December 31, 2024:

	Options (in thousands)			Weighted Average Grant Date Fair Value
Nonvested options as of December 31, 2023		337		$	0.41
Granted		—			—
Vested		(170	)		0.59
Forfeited		—			—
Nonvested options as of December 31, 2024		167			0.22

The Company recognized $0.5 million and $0.7 million in stock-based compensation expense related to stock options during the years ended December 31, 2023 and 2022, respectively. For the year ended December 31, 2024, stock-based compensation expense related to stock options was de minimis.

For stock options outstanding as of December 31, 2024, there was a de minimis amount of unrecognized stock compensation cost with a remaining recognition period of 0.3 years.

Cash received and the total intrinsic value from the exercise of stock options in 2022 was $0.2 million and $0.1 million, respectively. There were no stock options exercised in 2024 and 2023. The tax benefit associated with the exercise of these stock options in 2022 was $0.4 million. There were no stock options exercised in 2024 and 2023. The fair value of stock options vested in 2024, 2023 and 2022 totaled $0.1 million, $0.6 million and $0.7 million, respectively.

Employee Restricted Stock Units

In 2024, 2023 and 2022, the Company granted 1.8 million, 2.4 million and 1.1 million, respectively, of restricted stock units under the 2017 Equity Incentive Plan to certain members of the Company’s management team. Of the restricted stock units granted in those years, 0.4 million, 1.2 million and 0.6 million, respectively, included a market vesting condition. The restricted stock awards granted in 2024, 2023 and 2022 that did not have a market vesting condition had weighted average grant date fair values of $1.00, $2.75 and $5.53 per share, respectively. The estimated fair value of these awards is recognized on a straight-line basis over the vesting period.

The restricted stock awards granted in 2024, 2023 and 2022 that did have a market vesting condition had weighted average grant date fair values of $1.13, $1.92 and $3.71 per share, respectively. For these awards, the estimated fair value was measured on the grant date and incorporated the probability of vesting occurring. The estimated fair value is recognized over the derived service period (as determined by the valuation model), with such recognition occurring regardless of whether the market condition is met. The Company determined the weighted average grant date fair value of these awards using a Monte Carlo Simulation of a Geometric Brownian Motion stock path model with the following weighted average assumptions:

	Year Ended December 31,
	2024			2023			2022
Trading price of common stock on measurement date	$	1.50		$	2.72		$	5.33
Risk free interest rate		4.46	%		4.29	%		2.89	%
Expected life in years		3.0			2.7			2.9
Expected volatility		97.1	%		89.9	%		85.1	%
Expected dividend yield		—			—			—

In March and June 2022, the Company granted 0.5 million and 0.1 million restricted stock units, respectively, under the 2017 Equity Incentive Plan to the Company’s chief executive officer. These restricted stock awards had a grant date fair value of $6.32 and $4.81 per share, respectively. In April 2022, with the chief executive officer’s consent, the Company rescinded and cancelled 0.4 million of the restricted stock units granted in March 2022 because of annual limits set forth in the 2017 Equity Incentive Plan. The Company determined the fair value of the net award of 0.2 million restricted stock units to be $1.2 million which is being expensed on a straight-line basis over the vesting period.

The following table summarizes the Company’s restricted stock unit activity for the year ended December 31, 2024:

	Options (in thousands)			Weighted Average Grant Date Fair Value
Nonvested restricted stock units as of December 31, 2023		3,057		$	2.97
Granted		1,828			1.03
Vested		(571	)		3.57
Forfeited		(506	)		3.31
Nonvested restricted stock units as of December 31, 2024		3,808			1.91

The Company recorded restricted stock unit expense of $2.8 million, $3.7 million and $2.1 million during the years ended December 31, 2024, 2023 and 2022, respectively.

For restricted stock units outstanding as of December 31, 2024, there was $3.3 million of total unrecognized stock compensation cost with a remaining recognition period of 1.6 years.

Aggregate Non-Cash Stock Compensation

The Company has accounted for all stock-based compensation under the provisions of ASC 718 Compensation—Stock Compensation. This standard requires the Company to record a non-cash expense associated with the fair value of stock-based compensation over the requisite service period. The table below summarizes the aggregate non-cash stock compensation recognized in the statement of operations for stock awards, employee stock options and employee restricted stock units (in thousands).

	Years Ended December 31,
	2024		2023		2022
Cost of revenues	$	398	$	285	$	305
Marketing and sales		489		616		863
General and administrative		1,621		3,730		2,033
Research and development		307		244		165
Total non-cash stock compensation	$	2,815	$	4,875	$	3,366

Employee Retirement Plan

12 Months Ended

Dec. 31, 2024

Employee Retirement Plan [Abstract]

Employee Retirement Plan

20. Employee Retirement Plan

In 2018, the Company established a 401(k) plan that qualifies as a deferred compensation arrangement under Section 401 of the IRS Code. All eligible employees over the age of 18 and with 4 months’ service are eligible to participate in the plan. The plan provides for the Company to match employee contributions up to 5% of eligible earnings. Company contributions immediately vest. The Company matching contribution expense was $3.9 million, $3.8 million and $3.6 million for the years ended December 31, 2024, 2023 and 2022, respectively.

- Definition

The entire disclosure for retirement benefits.

+ References

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+ Details

Segment Information and Concentrations

12 Months Ended

Dec. 31, 2024

Segment Information and Concentrations [Abstract]

Segment Information and Concentrations

21. 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 income (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 income (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):

	Year Ended December 31,
	2024			2023			2022

Revenues, net	$	487,877		$	510,541		$	573,201
Reductions (additions):
Cost of revenues		291,303			338,716			365,110
Cost of revenues – restructuring related charges		15,442			—			—
Advertising expense		65,198			72,372			66,645
Marketing sales expense		33,778			36,741			39,388
Wholesale marketing and sales expense		20,081			23,016			21,340
Showroom marketing and sales expense		52,206			50,184			38,015
General and administrative expense		69,117			84,446			76,702
Research and development expense		12,962			11,898			8,755
Restructuring, impairment and other related charges		19,973			—			—
Loss on impairment of goodwill		—			6,879			—
Other segment items, net ^(d)		5,852			7,496			(1,230	)
Tax receivable agreement income		—			—			(161,970	)
Income tax expense		63			8			213,169
Net loss attributable to noncontrolling interest		(201	)		(458	)		(253	)
Segment net loss	$	(97,897	)	$	(120,757	)	$	(92,470	)

(d)	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 2024, 2023 and 2022, sales of other products accounted for less than 3% of net revenues.

The Company defines international revenues as sales to customers located outside of the United States. In 2024, 2023 and 2022, international customers accounted for less than 2% of net revenues.

The Company had one individual customer that accounted for approximately 29% and 23% of accounts receivable at December 31, 2024 and 2023, respectively, and approximately 13%, 10% and 15% of net revenue during the years ended December 31, 2024, 2023 and 2022, 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.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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+ Details

Income Taxes

12 Months Ended

Dec. 31, 2024

Income Taxes [Abstract]

Income Taxes

22. Income Taxes

The Company’s (loss) income before income taxes of $(98.0) million, $(121.2) million and $120.4 million during the years ended December 31, 2024, 2023 and 2022, respectively, consisted entirely of income earned in the United States.

Income tax expense for the years ended December 31, 2024, 2023 and 2022 consist of the following (in thousands):

	Year ended December 31,
	2024			2023			2022
Current:
Federal	$	(114	)	$	(167	)	$	(1,030	)
State		177			217			344
Total current		63			50			(686	)
Deferred:
Federal		—			(42	)		169,180
State		—			—			44,675
Total deferred		—			(42	)		213,855
Income tax expense	$	63		$	8		$	213,169

Income tax expense differs from the amount computed at the federal statutory corporate income tax rate as follows (in thousands):

	Year ended December 31,
	2024			2023			2022
Tax (provision) benefit at Federal statutory rate	$	(20,587	)	$	(25,454	)	$	25,293
State income tax provision (benefit), net of federal benefit		(5,238	)		(6,235	)		292
Noncontrolling interest		44			96			59
Tax receivable agreement liability		—			—			(34,014	)
Change in fair value – warrant liabilities		(736	)		—			(912	)
Change in valuation allowance		26,963			35,592			189,870
Remeasurement due to rate change		(586	)		(31	)		2,530
Research and development tax credits		(482	)		(1,113	)		(1,763	)
Remeasurement of investment in Purple LLC		—			(4,028	)		29,822
Nondeductible compensation		315			281			—
Stock-based compensation		699			605			2,303
Other		(329	)		295			(311	)
Income tax expense	$	63		$	8		$	213,169

Deferred income taxes at December 31, 2024 and 2023 consisted of the following (in thousands):

	2024			2023
Basis difference in Purple LLC investment	$	153,872		$	156,521
Tax over book basis in capital contributions		79,400			78,158
Start-up costs		361			405
Stock-based compensation		635			999
Interest carryforwards		6,503			2,314
Research and development tax credits		3,590			2,712
Charitable contribution carryforwards		159			121
Net operating losses		82,137			62,550
Total net deferred income tax asset		326,657			303,780
Less: Valuation allowance		(326,657	)		(303,780	)
Net deferred income tax asset	$	—		$	—

The Company’s sole material asset is Purple LLC, which is treated as a partnership for U.S. federal income tax purposes and for purposes of certain state and local income taxes. Purple LLC’s net taxable income and any related tax credits are passed through to its members and included in the members’ tax returns, even though such net taxable income or tax credits may not have actually been distributed. While the Company consolidates Purple LLC for financial reporting purposes, the Company will be taxed on its share of earnings of Purple LLC not attributed to the noncontrolling interest holders, which will continue to bear their share of income tax on its allocable earnings of Purple LLC. The primary factors impacting expected tax are tax exempt income from the tax receivable agreement, remeasurement of the deferred taxes associated with the investment in Purple LLC, and the impact of recording a valuation allowance.

During 2022, the Company entered into a three-year cumulative loss position and determined that it would not be able to generate sufficient taxable income to utilize its deferred tax assets. Based on this and other negative evidence, the Company concluded it was more likely than not that its deferred tax assets would not be realized and that a full valuation allowance for its deferred tax assets was required. At both December 31, 2024 and 2023, the Company continued to maintain a full valuation allowance on its deferred tax assets based on its three-year cumulative loss position.

In connection with the Business Combination, the Company entered into a tax receivable agreement with InnoHold, which provides for the payment by the Company to InnoHold of 80% of the net cash savings, if any, in U.S. federal, state and local income tax that the Company actually realizes (or is deemed to realize in certain circumstances) in periods after the Closing as a result of (i) any tax basis increases in the assets of Purple LLC resulting from the distribution to InnoHold of the cash consideration, (ii) the tax basis increases in the assets of Purple LLC resulting from the redemption by Purple LLC or the exchange by the Company, as applicable, of Class B Paired Securities or cash, as applicable, and (iii) imputed interest deemed to be paid by the Company as a result of, and additional tax basis arising from, payments it makes under the agreement.

As noncontrolling interest holders exercise their right to exchange or cause Purple LLC to redeem all or a portion of their Class B Units, a liability may be recorded based on 80% of the estimated future cash tax savings that the Company may realize as a result of increases in the basis of the assets of Purple LLC attributed to the Company as a result of such exchange or redemption. The amount of the increase in asset basis, the related estimated cash tax savings and the attendant liability to be recorded will depend on the price of the Company’s Class A common stock at the time of the relevant redemption or exchange.

During 2022, the Company concluded that the tax receivable agreement liability was not probable and correspondingly reduced its tax receivable agreement liability to zero. As a result, the Company recognized tax receivable agreement income of $162.0 million in the Company’s consolidated statement of operations for the year ended December 31, 2022. There was no tax receivable agreement liability recorded during 2024 or 2023.

As of December 31, 2024, the Company estimates it will have approximately $65.2 million of tax-affected U.S. net operating loss carryforwards (“NOLs”), of which $64.7 million do not have an expiration date and $0.5 million expire in 2037. The Company also had approximately $16.9 million of tax-affected NOL carryforwards to reduce future state taxable income at December 31, 2024, which have various carryforward periods and begin to expire in 2026, if unused. Under Section 382 and related provisions of the Internal Revenue Code of 1986, as amended (the “Code”), if a corporation undergoes an “ownership change”, the corporation’s ability to use its pre-change net operating loss carryforwards and other pre-change tax attributes to offset its post-change income may be limited. Generally, an ownership change is defined as a change in its equity ownership by certain stockholders over a three-year period of greater than 50 percentage points (by value). If finalized, Treasury Regulations currently proposed under Section 382 of the Code may further limit our ability to utilize our pre-change NOLs or other tax attributes if we undergo a future ownership change. Thus, our ability to utilize carryforwards of our net operating losses, including net operating losses acquired from the Intellibed acquisition, and other tax attributes to reduce future tax liabilities may be substantially restricted. As of December 31, 2024, we completed a study to assess whether an ownership change has occurred, as defined by IRC Section 382, or whether there have been ownership changes since the Company’s formation. The results of this study indicate that we experienced one ownership change on December 31, 2021. We may also experience ownership changes in the future as a result of subsequent shifts in our stock ownership. As a result, if we generate taxable income, our ability to use our pre-change NOL and tax credits carryforwards to reduce U.S. federal and state taxable income may be subject to further limitations, which could result in increased future tax liabilities to us. Moreover, our federal NOLs from years prior to 2018 can be carried forward for a maximum of 20 years from the year in which the NOL was incurred, and our state NOLs are subject to carryforward limitations that vary from state to state; as a result, all or a portion of those carryforwards could expire before being available to reduce future income tax liabilities. Refer to Note 17 – Stockholders’ Equity – NOL Rights Plan for information on plan adopted by the Board to preserve Current NOLs.

The Company estimates federal research and development (“R&D”) tax credit carryforwards will be approximately $2.6 million as of December 31, 2024, which begin to expire in 2042, if unused. The Company also had approximately $1.8 million of state tax credit carryforwards to reduce future state tax liability at December 31, 2024, which have various carryforward periods and begin to expire in 2030, if unused.

The effects of uncertain tax positions are recognized in the consolidated financial statements if these positions meet a “more-likely-than-not” threshold. For those uncertain tax positions that are recognized in the consolidated financial statements, liabilities are established to reflect the portion of those positions it cannot conclude “more-likely-than-not” to be realized upon ultimate settlement. The Company’s policy is to recognize interest and penalties related to unrecognized tax benefits on the income tax expense line in the accompanying consolidated statement of operations. Accrued interest and penalties would be included on the related tax liability line in the consolidated balance sheets.

The following table summarizes the Company’s unrecognized tax benefits for the years ended December 31, 2024, 2023 and 2022 (in thousands):

	Unrecognized Tax Benefits
Unrecognized tax benefits as of December 31, 2021	$	—
Increase due to current year tax positions		177
Increase due to prior year tax positions		264
Increase due to acquisition		152
Unrecognized tax benefits as of December 31, 2022		593
Increase due to current year tax positions		215
Increase due to prior year tax positions		291
Decrease due to lapse of statute of limitations		(153	)
Unrecognized tax benefits as of December 31, 2023		946
Increase due to current year tax positions		111
Increase due to prior year tax positions		109
Decrease due to lapse of statute of limitations		(114	)
Unrecognized tax benefits as of December 31, 2024	$	1,052

The Company remains subject to income tax examinations for its U.S. federal income taxes for 2018 through 2024. The Company also remains subject to income tax examinations for U.S. state and local income taxes generally for 2018 through 2024.

- Definition

The entire disclosure for income tax.

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+ Details

Subsequent Events

12 Months Ended

Dec. 31, 2024

Subsequent Events [Abstract]

Subsequent Events

23. Subsequent Events

New Lease Agreement

In January 2025, the Company entered into a new lease agreement for a distribution and fulfilment center located in West Valley City, Utah. The lease term commenced in January 2025 and will expire in May 2030. Using the applicable discount rate, the new lease resulted in an ROU asset of $6.3 million and an increase to operating lease liabilities of $6.8 million. The landlord provided the Company with a tenant improvement allowance of $0.6 million in connection with the new lease agreement, for which the related expenditures to be paid by the Company will be reimbursed by the landlord.

NASDAQ Listing Qualification Notice

On February 4, 2025, the Company received written notice from the Listing Qualifications Department of The NASDAQ Stock Market LLC (“Nasdaq”) that it had regained compliance with Listing Rule 5550(a)(2) (“Bid Price Rule”) since the closing bid price of the Company’s common stock was at or above the $1.00 minimum price per share for a period of ten consecutive business days, from January 21, 2025, to February 3, 2025.

As previously reported, the Company was notified on November 11, 2024, that it had fallen out of compliance with the Bid Price Rule, because its common stock failed to maintain the required minimum bid price of $1.00 per share for a period of 30 consecutive business days.

Class Action Lawsuits

On February 10, 2025, a shareholder of the Company filed a class action lawsuit in the Court of Chancery of the State of Delaware against Purple Inc. and the individual members of the Board alleging that Section 29 of the NOL Rights Plan violates Delaware General Corporate Law Sections 102(b)(7) and 141(a). The suit seeks declaratory relief, attorneys’ fees, costs, and other relief on behalf of the class. The Company denies all allegations and intends to vigorously defend against these claims.

On February 26, 2025, a consumer filed a class action lawsuit in the U.S. District Court, Eastern District of New York, against Purple LLC alleging website accessibility violations under the ADA and state law. The lawsuit seeks declaratory relief, class certification, attorneys’ fees, costs, and other relief on behalf of the class. The Company denies all allegations and intends to vigorously defend against these claims.

Amendment to Amended and Restated Credit Agreement

On March 12, 2025, the Loan Parties entered into an Amendment to Amended and Restated Credit Agreement (the “Amendment”) with the 2025 Term Loan Lenders (as defined in the Amendment), which amends the Amended and Restated Credit Agreement. The Amendment, among other things, provides for an increase in the initial principal amount of the senior secured term loan facility by $19.0 million (the “Incremental Loan”) from an aggregate principal amount of up to $61.0 million (the “Initial Loan”) to an initial aggregate principal amount of up to $80.0 million (the “Loan”), and allows the Loan Parties to request one or more additional term loans from the Lenders in an initial aggregate principal amount not to exceed $20.0 million on terms to be agreed to by the parties and subject to the approval of the Required Lenders (as defined in the Amended and Restated Credit Agreement). The Incremental Loan will bear interest at the same rate as the Initial Loan, which may be paid in cash or in kind at the Company’s option.

The Amendment also provides that (i) the Incremental Loan shall be senior in right of repayment to the Initial Term Loan and (ii) in any voluntary or mandatory prepayment in part or in full of the Incremental Loan for any reason, the Company will be required to pay an amount equal to the greater of (i) the Make-Whole Premium (as defined below) and (ii) 2.50% of the aggregate principal amount of the Incremental Loan so prepaid, replaced or assigned. The “Make-Whole Premium” is determined as follows: on the date of prepayment, the excess of (A) (x) 100% of the principal amount of such Incremental Loan, plus (y) the present value at such date of all remaining scheduled interest payments due on such Incremental Loan from the prepayment date through the Maturity Date, assuming that all such interest accrues at the Make-Whole Premium Rate (as defined in the Amendment), computed using a discount rate equal to the Treasury Rate as of such prepayment date plus 50 basis points, over (B) the principal amount of such Incremental Loan on such prepayment date.

In addition, the Company also paid fees of (i) 2% of the outstanding principal and accrued and unpaid interest under the Initial Loan held by the 2025 Term Loan Lenders, paid in kind and (ii) 2% of the initial aggregate principal amount of the Incremental Loan paid to the 2025 Term Loan Lenders, deducted from the proceeds at closing.

In connection with the Amendment, the Company issued to the 2025 Term Loan Lenders warrants (the “Warrants”) to purchase 6,229,508 shares of the Company’s Class A Stock at a price of $1.50 per share, subject to certain adjustments. The warrants include full-ratchet anti-dilution protections, subject to a floor of $0.6979 with respect to adjustments to the exercise price. The Warrants expire on March 12, 2035. The foregoing summary of the Warrants does not purport to be complete and is subject to, and qualified in its entirety by, the full text of the Warrants, a form of which is attached as Exhibit 10.42 to this report and is incorporated by reference herein.

In connection with the issuance of the Warrants, on March 12, 2025, the Company entered into a Second Amended and Restated Registration Rights Agreement (the “Registration Rights Agreement”) with CCP, Blackwell, and Coliseum Capital Co-Invest III, L.P., (the “Holders”), providing for the registration under the Securities Act of 1933, as amended (the “Securities Act”) of the Warrants, the shares issuable upon the exercise of the Warrants, other warrants held by the Holders (and shares issuable upon exercise thereof) and the Class A Stock held by the Holders as of such date (the “Registrable Securities”), subject to customary terms and conditions. The Registration Rights Agreement entitles the Holders to demand registration of the Registrable Securities and also to piggyback on the registration of Company securities by the Company and other Company securityholders. The Company will be responsible for the payment of the Holders’ expenses in connection with any offering or sale of Registrable Securities by the Holders, including underwriting discounts or selling commissions, placement agent or broker fees or similar discounts, commissions or fees relating to the sale of certain Registrable Securities.

The Registration Rights Agreement provides that on or prior to April 10, 2025, or May 25, 2025 if Form S-3 is not then available to the Company, the Company will be required to prepare and file with the SEC pursuant to Rule 415 of the Securities Act a registration statement to register the resale of the Registrable Securities.

Special Incentive Bonus Equity Grants

On March 12, 2025, the Board unanimously approved special incentive bonus equity grants to certain members of the Company’s senior leadership team, including, among others, Todd Vogensen, Chief Financial Officer, John J. Roddy, Chief Human Resources Officer, and Eric S. Haynor, Chief Operating Officer. Mr. Vogensen, Mr. Roddy, and Mr. Haynor will receive grants of 450,000, 175,000, and 350,000 restricted stock units, respectively, pursuant to the terms of restricted stock unit grant agreements and the Company’s 2017 Equity Incentive Plan. Such restricted stock units will vest at the sooner of (a) a change in control, as defined in the award agreements, or (b) March 12, 2028, provided that if the recipient’s employment with the Company is involuntarily terminated other than for cause, a pro rata number of restricted stock units will vest as of such termination date.

Amendment to Senior Leadership Team Special Recognition Bonus

On January 26, 2024, the Board unanimously approved a special recognition bonus payment to certain members of the Company’s senior leadership team, including, among others, Todd Vogensen, Chief Financial Officer, John J. Roddy, Chief People Officer, and Eric S. Haynor, Chief Operating Officer. Each participant is eligible to earn a special recognition bonus payment equal to 15 months of their regular salary. The special recognition bonus payment is payable, subject to the employee’s continued employment with the Company, 10% on August 1, 2024, 20% on February 1, 2025, and 70% on August 1, 2025.

On March 12, 2025, the Board amended the special recognition bonus payments and entered into letter agreements (the “Letter Agreements”) with the participants to provide that if a change in control occurs prior to August 1, 2025 and the participant remains employed with the Company until the consummation of the change in control, then 100% of the remaining special recognition bonus payment for such participant shall vest and become payable upon the consummation of such change in control.

Amendment to Chief Executive Officer Special Recognition Bonus

On January 26, 2024, the Board unanimously approved an amendment to the amended and restated employment agreement of Robert T. DeMartini, the Company’s Chief Executive Officer (the “2024 CEO Amendment”). Under the 2024 CEO Amendment, the Company agreed that, among other things, Mr. DeMartini will be eligible to earn an incremental aggregate cash bonus equal to $850,000 that will vest 10% on August 1, 2024, 20% on February 1, 2025, and 70% on August 1, 2025, provided he continues to be employed by the Company and subject to Mr. DeMartini’s obligation to repay any such bonus actually received in the event his employment is terminated other than by the Company without cause prior to June 30, 2026, subject to certain conditions.

On March 12, 2025, the Board adopted an amendment (the “2025 CEO Amendment”) to Mr. DeMartini’s amended and restated employment agreement, as amended by the 2024 CEO Amendment (the “Amended and Restated Employment Agreement”), to provide that if a change in control occurs prior to August 1, 2025 and Mr. DeMartini remains employed by the Company until the consummation of the change in control, then 100% of the unpaid cash bonus payment for Mr. DeMartini shall vest and become payable upon the consummation of such change in control and the bonus repayment condition tied to his employment with the Company until June 30, 2026 shall no longer be applicable. Other than the changes provided by the 2025 CEO Amendment, no other changes were made to Mr. DeMartini’s Amended and Restated Employment Agreement.

Pay vs Performance Disclosure - USD ($) $ in Thousands	12 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Pay vs Performance Disclosure
Net Income (Loss)	$ (97,897)	$ (120,757)	$ (92,470)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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-Section S99
-Paragraph 1B
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-Paragraph 1
-Subparagraph (SX 210.9-04(22))
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-URI https://asc.fasb.org/1943274/2147478524/942-220-S99-1

+ Details

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Dec. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Rule 10b5-1 Arrangement Modified	false
Non-Rule 10b5-1 Arrangement Modified	false

Cybersecurity Risk Management and Strategy Disclosure	12 Months Ended
Cybersecurity Risk Management and Strategy Disclosure	Dec. 31, 2024
Cybersecurity Risk Management, Strategy, and Governance [Line Items]
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]	In the ordinary course of our business, we receive, process, use, store and share digitally large amounts of data, including user data as well as confidential, sensitive, proprietary and personal information. We depend largely upon our information technology systems in the conduct of all aspects of our operations. Maintaining the integrity and availability of our information technology systems and this information, as well as appropriate limitations on access and confidentiality of such information, is important to our operations and business strategy. To this end, we have implemented processes and systems designed to assess, identify, and manage risks from potential unauthorized occurrences on or through our information technology systems to prevent adverse effects on the confidentiality, integrity, and availability of these systems and the data residing in them.

Material Cybersecurity Incident Disclosure	12 Months Ended
Material Cybersecurity Incident Disclosure	Dec. 31, 2024
Material Cybersecurity Incident [Line Items]
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Text Block]	In 2024, we did not identify any cybersecurity breaches that materially affected, or are reasonably likely to materially affect, our business strategy, results of operations, or financial condition.
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag]	false

Accounting Policies, by Policy (Policies)

12 Months Ended

Dec. 31, 2024

Summary of Significant Accounting Policies [Abstract]

Basis of Presentation and Principles of Consolidation

Basis of Presentation and Principles of Consolidation

The consolidated financial statements include the accounts of Purple Inc., its controlled subsidiary Purple LLC, and Intellibed, Purple LLC’s wholly owned subsidiary, from the date of acquisition. All intercompany balances and transactions have been eliminated in consolidation. As of December 31, 2024, Purple Inc. held 99.8% of the common units of Purple LLC and other Purple LLC Class B Unit holders held 0.2% of the common units in Purple LLC. The Company’s consolidated financial statements did not include consolidated statements of comprehensive income since it had no items of other comprehensive income in any of the periods presented.

Liquidity

Liquidity

The accompanying financial statements have been prepared on a going concern basis of accounting, which contemplates continuity of operations, realization of assets and liabilities and commitments in the normal course of business. In connection with the preparation of the consolidated financial statements for the year ended December 31, 2024, the Company conducted an evaluation as to whether there were conditions and events, considered in the aggregate, which raised substantial doubt as to its ability to continue as a going concern within one year after the date of the issuance of such financial statements. The Company had cash and cash equivalents of approximately $29.0 million and an accumulated deficit of $573.9 million at December 31, 2024, and a net loss of $97.9 million and net cash used in operating and investing activities of $25.4 million for the year ended December 31, 2024. The Company entered into an Amendment to the Amended and Restated Credit Agreement (the “2025 Amendment”), pursuant to which it received $19.0 million on March 12, 2025 in additional term loan proceeds from the 2025 Term Loan Lenders pursuant to the 2025 Amendment (see Note 23— Subsequent Events).

The Company has also taken a number of other actions to increase cash flow. In August 2024, the Company implemented the Restructuring Plan to consolidate manufacturing operations to create efficiencies and cost savings. The Company has realized and plans to continue to realize direct material cost savings through supply chain initiatives and supplier diversification efforts. The Company has taken additional cost-saving initiatives in 2025 to maintain liquidity to support our operations and strategies.

Accordingly, the Company has concluded that it will have sufficient liquidity to fund its operations for at least one year from the date these consolidated financial statements are issued.

Although the Company currently expects its sources of capital to be sufficient to meet its near-term liquidity needs, there can be no assurance that such sources will be sufficient to satisfy its liquidity requirements in the future. If the Company cannot generate or obtain needed funds, it might be forced to make substantial reductions in its operating and capital expenses or pursue restructuring plans, which could adversely affect its business operations and ability to execute its current business strategy.

Variable Interest Entities

Variable Interest Entities

Purple LLC is a variable interest entity. The Company determined that it is the primary beneficiary of Purple LLC as it is the sole managing member and has the power to direct the activities most significant to Purple LLC’s economic performance as well as the obligation to absorb losses and receive benefits that are potentially significant. At December 31, 2024, Purple Inc. had a 99.8% economic interest in Purple LLC and consolidated 100% of Purple LLC’s assets, liabilities and results of operations in the Company’s consolidated financial statements contained herein. The holders of Class B Units held 0.2% of the economic interest in Purple LLC as of December 31, 2024. Refer to Note 17—Stockholders’ Equity for more information.

Reclassification

Reclassification

Certain prior year amounts in the consolidated financial statements have been reclassified to conform to the current year presentation with no effect on previously reported net loss, cash flows or stockholders’ equity. Accrued compensation, previously included in the consolidated balance sheets within other current liabilities, is now presented separately. Also, the change in accrued compensation, previously reflected in the consolidated statement of cash flows within the change in other accrued liabilities, is now presented separately.

Use of Estimates

Use of Estimates

The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) and reflect the financial position, results of operations and cash flows of the Company. The preparation of consolidated financial statements in conformity with GAAP requires the Company to establish accounting policies and to make estimates and judgments that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates on historical experience and on various other assumptions believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. The Company regularly makes estimates and assumptions including, but not limited to, estimates that affect revenue recognition, accounts receivable and the allowance for credit losses, valuation of inventories, sales returns, warranty returns, fair value of assets acquired and liabilities assumed in a business combination, impairment reviews of long-lived assets and definite-lived intangible assets, warrant liabilities, stock based compensation, the recognition and measurement of loss contingencies, the recognition and measurement of restructuring and related charges, estimates of current and deferred income taxes, deferred income tax valuation allowances, and amounts associated with the Company’s tax receivable agreement with InnoHold, LLC (“InnoHold”). Predicting future events is inherently an imprecise activity and, as such, requires the use of judgment. Actual results could differ materially from those estimates.

Restructuring

Restructuring

Restructuring actions may result in various costs, including employee-related costs, accelerated depreciation expense, write-downs of long-lived assets and inventory, impairment of long-lived and indefinite-lived assets, contract termination costs and other associated costs. Employee-related costs represent one-time termination benefits for severance and other post-employment costs that are recognized as incurred upon communication of the plan to the identified employees. If the employee must provide future service beyond a minimum retention period, the benefits are expensed ratably over the future service period. Accelerated depreciation expense represents additional expense resulting from shortening the useful lives of production and other assets to coincide with the end of production and other activities under an approved restructuring plan. Write-downs of long-lived assets represent losses on assets expected to be disposed of or equipment in progress that will not be put in service. Costs to terminate contracts are recognized upon entering a termination agreement with the provider. Other associated restructuring costs are expensed as incurred. Any impairment or write-down of assets resulting from restructuring activities are recognized immediately in the period the related plan is approved. Refer to Note 5–Restructuring, Impairment and Other Related Charges for more information.

Business Combinations

Business Combinations

The Company accounts for business combinations using the acquisition method of accounting, in accordance with ASC 805, Business Combinations. The Company records an acquisition based on the fair value of the consideration transferred and then allocates the purchase price to the identifiable assets acquired and liabilities assumed based on their respective preliminary estimated fair values as of the acquisition date. Goodwill on the acquisition date is measured as the excess of the fair value of consideration transferred over the net of the acquisition date fair values of the assets acquired and the liabilities assumed. While best estimates and assumptions are used to accurately value assets acquired and liabilities assumed at the acquisition date as well as contingent consideration, where applicable, the Company’s estimates are inherently uncertain and subject to refinement. If the Company obtains new information within the measurement period (up to one year from the acquisition date) about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date, the Company records adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are reflected in the consolidated statement of operations.

In the event an acquisition involves an entity with which the Company has a preexisting relationship, the Company will generally recognize a gain or loss within the consolidated statement of operations to settle that relationship as of the acquisition date. Transaction costs associated with business combinations are expensed as incurred.

Cash and Cash Equivalents

Cash and Cash Equivalents

The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. The carrying value of cash and cash equivalents approximates fair value because of the short-term maturity of those instruments.

Accounts Receivable and Allowance for Credit Losses

Accounts Receivable and Allowance for Credit Losses

Accounts receivable are recorded net of an allowance for expected losses and consist primarily of receivables from wholesale customers and receivables from third-party consumer financing partners and credit card processors. The allowance is recognized in an amount equal to anticipated future write-offs over the expected life of the receivables. Management estimates the allowance for credit losses based on historical experience, customer payment practices and current economic trends. Actual credit losses could differ from those estimates. Account balances are charged-off against the allowance when management believes it is probable the receivable will not be recovered.

The Company had the following activity in its allowance for credit losses (in thousands):

	Years Ended December 31,
	2024			2023		2022
Balance at beginning of period	$	26		$	1	$	20
Additions charged to expense		1,075			25		—
Reductions to allowance, net		(1	)		—		(19	)
Balance at end of period	$	1,100		$	26	$	1

Inventories

Inventories

Inventories are comprised of raw materials, work-in-process and finished goods and are stated at the lower of cost or net realizable value. Manufactured inventory consists of raw material, direct labor and manufacturing overhead costs. Inventory cost is calculated using a method that approximates average cost. The Company reviews the components of its inventory on a regular basis for excess and obsolete inventory and makes appropriate adjustments when necessary. Once established, the original cost of the inventory less the related inventory reserves represents the new cost basis of such products.

Property and Equipment

Property and Equipment

Property and equipment are stated at cost, net of depreciation. Property and equipment are depreciated using the straight-line method over the estimated useful lives of the respective assets, ranging from 1 to 17 years, as follows:

		Years
Equipment		5 - 10
Furniture and fixtures		2 - 7
Office equipment		3 - 5
Leasehold improvements		1 - 17

Major renewals and betterments that increase value or extend useful life are capitalized. The Company records depreciation and amortization in cost of sales for long-lived assets used in the manufacturing process, and within each line item of operating expenses for all other long-lived assets. Leasehold improvements are amortized over the shorter of the useful life of the leasehold improvements or the contractual term of the lease, with consideration of lease renewal options if exercise is reasonably certain. The cost and related accumulated depreciation of assets sold or retired is removed from the accounts with any resulting gain or loss included in the consolidated statement of operations. Estimated useful lives of property and equipment are periodically reviewed and, when appropriate, changes are made and accounted for prospectively. When certain events or changes in operating conditions occur, asset lives may be adjusted and an impairment assessment may be performed on the recoverability of the carrying amounts.

As a result of initiating closure of its two Utah manufacturing facilities in August 2024, the Company shortened the estimated useful lives of the production equipment at these two facilities to reflect the remaining period these assets will remain in service. Closure of these two facilities is expected to be completed during the first quarter of 2025. Reducing the estimated useful lives of these assets increased both depreciation expense and the Company’s net loss in 2024 by $11.2 million. Refer to Note 5–Restructuring, Impairment and Other Related Charges for more information.

The Company capitalizes interest on borrowings during the active construction period of major capital projects. Interest capitalization ceases once a project is substantially complete or no longer undergoing construction activities to prepare it for its intended use. Capitalized interest is added to the cost of the underlying assets and is amortized over the useful lives of the assets. When no debt is specifically identified as being incurred in connection with a construction project, the Company capitalizes interest on amounts expended on the project using the weighted average cost of the Company’s outstanding borrowings.

Leases

Leases

The Company determines if an agreement contains a lease at the inception of a contract. For leases with an initial term greater than 12 months, a related lease liability is recorded on the balance sheets at the present value of future payments discounted at the estimated fully collateralized incremental borrowing rate (discount rate) corresponding with the lease term. In addition, a right-of-use (“ROU”) asset is recorded as the initial amount of the lease liability, plus any lease payments made to the lessor before or at the lease commencement date and any initial direct costs incurred, less any tenant improvement allowance incentives received. The Company elected not to separate lease and non-lease components for all real estate leases.

The Company calculates the present value of future payments using its incremental borrowing rate when the discount rate implicit in the lease is not known. The incremental borrowing rate is the rate of interest that a lessee would have to pay to borrow on a collateralized basis over a similar term at an amount equal to the lease payments in a similar economic environment. The Company determines the applicable incremental borrowing rate at the lease commencement date based on the rates of its secured borrowings, which is then adjusted for the appropriate lease term and risk premium. In determining the Company’s ROU assets and corresponding lease liabilities, the Company applies these incremental borrowing rates to the minimum lease payments within each lease agreement.

Lease expense is recognized on a straight-line basis over the lease term. Tenant incentive allowances received from the lessor are amortized through the ROU asset as a reduction of rent expense over the lease term. Any variable lease costs are expensed as incurred. Leases with an initial term of 12 months or less (short-term leases) are not recorded as ROU assets and corresponding lease liabilities. Short-term lease expense is recognized on a straight-line basis over the lease term. ROU assets are assessed for impairment as part of long-lived assets, which is performed whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable.

Goodwill

Goodwill

The Company accounts for goodwill in a business combination as the excess of the cost over the fair value of net assets acquired and is assigned to the reporting unit in which the acquired business will operate. The Company does not amortize goodwill but tests it for impairment each fiscal year or whenever events or changes in circumstances indicate the carrying amount may not be recoverable.

The recoverability of goodwill is measured at the reporting unit level by comparing the reporting unit’s carrying amount, including goodwill, to the fair value of the reporting unit. The Company may elect to perform a qualitative assessment to determine whether it is more likely than not that a reporting unit is impaired. If the qualitative assessment is not performed or if the Company determines that it is not more likely than not that the fair value of the reporting unit exceeds the carrying value, the Company determines the fair value of its reporting units based on an average weighting of both projected discounted future results and the use of comparative market multiples. If the carrying amount of the reporting unit exceeds its fair value, goodwill is considered impaired and a loss recognized in the amount equal to that excess. During the year ended December 31, 2023, the Company determined goodwill was impaired and recorded an impairment charge to write off the entire $6.9 million balance of goodwill. Refer to Note 4—Acquisition for more information.

Intangible Assets

Intangible Assets

Intangible assets include a customer relationship intangible associated with the Intellibed acquisition, developed technologies by Purple and Intellibed, trade names and trademarks, internal-use software, domain name costs, intellectual property and other patent and trademark related costs. Definite-lived intangible assets are being amortized using the straight-line method over their estimated lives, ranging from two to 15 years.

For software developed or obtained for internal use, the Company capitalizes direct external costs associated with developing or obtaining internal-use software. In addition, the Company capitalizes certain payroll and payroll-related costs for employees who are directly involved with the development of such applications. Capitalized costs related to internal-use software under development are treated as construction-in-progress until the program, feature or functionality is ready for its intended use, at which time amortization commences. Capitalized software costs are amortized on a straight-line basis over three years.

Asset Impairment Charges

Asset Impairment Charges

Long-Lived Assets and Definite-lived Intangible Assets – The Company reviews its long-lived assets and definite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When evaluating long-lived assets and definite-lived intangible assets for potential impairment, the Company first determines if there are any indicators of impairment and if the carrying amount of the long-lived assets and definite-lived intangible assets might not be recoverable. If there are indicators of impairment, then the Company performs a recoverability test by comparing the carrying value of the assets to the estimated future cash flows (undiscounted and without interest charges - plus proceeds expected from disposition, if any). If the estimated undiscounted cash flows are less than the carrying value of the assets, the Company calculates an impairment loss. The impairment loss calculation compares the carrying value of its assets to the assets’ estimated fair value. When the Company recognizes an impairment loss, the carrying amount of the impaired assets are reduced to estimated fair value based on discounted cash flows, quoted market prices or other valuation techniques. Assets to be disposed of are reported at the lower of the carrying amount of the asset or fair value less costs to sell. If the Company recognizes an impairment loss for a depreciable long-lived asset, the adjusted carrying amount of the asset becomes its new cost basis and will be depreciated (amortized) over the remaining useful life of that asset. The Company concluded there were indicators of impairment that existed at December 31, 2024 and a recoverability test was required. Based on the results of this recoverability test, the Company determined its long-lived and definite-lived assets were not impaired as of December 31, 2024 and no resultant impairment charges were recorded. There were no impairment charges realized on long-lived assets and definite-lived intangible assets during the years ended December 31, 2023 and 2022.

In conjunction with a restructuring action initiated in August 2024, the Company recorded impairment charges of $2.5 million on various long-lived assets associated with entering into a sublease on one of the Utah manufacturing facilities that is expected to close during the first quarter of 2025. Refer to Note 5–Restructuring, Impairment and Other Related Charges for more information.

Indefinite-lived Intangible Assets – Intangible assets that have indefinite lives are not amortized but are reviewed for impairment annually or when events or changes in circumstances indicate the carrying value of these assets might exceed their current fair values. Impairment testing is based upon the best information available including estimates of fair value which incorporate assumptions marketplace participants would use in making their estimates of fair value. Accounting guidance provides for the performance of either a quantitative assessment or a qualitative assessment before calculating the fair value of an asset. If events or market conditions affect the estimated fair value to the extent that an indefinite-lived intangible asset is impaired, the Company will adjust the carrying value of these assets in the period in which impairment occurs.

The restructuring action initiated by the Company in August 2024 was determined to be a triggering event for potential impairment of intellectual property that was being accounted for as an indefinite-lived intangible asset. The resultant impairment assessment performed by the Company determined this asset no longer had any supportable value and an $8.5 million impairment charge to write off the entire balance of the asset was recorded in 2024.

Revenue Recognition

Revenue Recognition

The Company markets and sells its products through the DTC channel, which includes Purple.com (direct-to-consumer e-commerce), Purple showrooms, their customer contact center and online marketplaces, and the wholesale channel through retail brick-and-mortar and online wholesale partners. Revenue is recognized when the Company satisfies its performance obligations under the contract which involves transferring the promised products to the customer. This principle is achieved in the following steps:

Identify the contract with the customer. A contract exists when (i) the Company enters into an enforceable contract with a customer that defines each party’s rights regarding the goods to be transferred and identifies the payment terms related to these goods, (ii) the contract has commercial substance and, (iii) the Company determines that collection of substantially all consideration for the goods that are transferred is probable based on the customer’s intent and ability to pay the promised consideration. The Company does not have significant costs to obtain contracts with customers.

Identify the performance obligations in the contract. The Company’s contracts with customers do not include multiple performance obligations to be completed over a period of time. The performance obligations generally relate to delivering products to a customer, subject to the shipping terms of the contract. The Company has made an accounting policy election to account for shipping and handling activities performed after a customer obtains control of the goods, including “white glove” delivery services, as activities to fulfill the promise to transfer the goods. The Company does not offer extended warranty or service plans. The Company does not provide an option to its customers to purchase future products at a discount and therefore there are no material option rights.

Determine the transaction price. Payment for sale of products through the direct-to-consumer e-commerce channel and Purple showrooms is collected at point of sale in advance of shipping the products. Amounts received for unshipped products are recorded as customer prepayments. Payment by traditional wholesale customers is due under customary fixed payment terms. None of the Company’s contracts contain a significant financing component. Revenue is recorded at the net sales price, which includes estimates of variable consideration such as product returns, volume rebates, wholesale warranty returns, and other adjustments. The estimates of variable consideration are based on historical return experience, historical and projected sales data, and current contract terms. Variable consideration is included in revenue only to the extent that it is probable that a significant reversal of the revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Taxes collected from customers relating to product sales and remitted to governmental authorities are excluded from revenues.

Allocate the transaction price to performance obligations in the contract. The Company’s contracts with customers do not include multiple performance obligations. Therefore, the Company recognizes revenue upon transfer of the product to the customer’s control at contractually stated pricing.

Recognize revenue when or as we satisfy a performance obligation. The Company satisfies performance obligations at a point in time upon either shipment or delivery of goods, in accordance with the terms of each contract with the customer. With the exception of third-party “white glove” delivery and certain wholesale partners, revenue generated from product sales is recognized at shipping point, the point in time the customer obtains control of the products. Revenue generated from sales through third-party “white glove” delivery is recognized at the point in time when the product is delivered to the customer. Revenue generated from certain wholesale partners is recognized at a point in time when the product is shipped or when it is delivered to the wholesale partner’s warehouse. The Company does not have service revenue.

Sales Returns

Sales Returns

The Company’s policy provides customers up to 100-days to return a mattress, pet bed or pillow and up to 30-days to return all other products (except power bases) for a full refund. Estimated sales returns, which are recorded as a reduction of revenue at the time of sale and recorded in other current liabilities on the consolidated balance sheets, are based on historical trends and product return rates and are adjusted for any current or expected trends as appropriate. Actual sales returns could differ from these estimates. The Company regularly assesses and adjusts the estimate of accrued sales returns by updating the return rates for actual trends and projected costs. The Company classifies the estimated sales returns as a current liability as they are expected to be paid out in less than one year.

The Company had the following activity for accrued sales returns (in thousands):

	Years Ended December 31,
	2024			2023			2022
Balance at beginning of period	$	5,404		$	5,107		$	7,116
Additions that reduced net revenue		38,913			34,090			35,479
Deduction from reserves for current year returns		(37,802	)		(33,793	)		(37,488	)
Balance at end of period	$	6,515		$	5,404		$	5,107

Accrued Warranty Liabilities

Accrued Warranty Liabilities

The Company provides a limited warranty on most of the products it sells. The estimated warranty costs associated with products sold through DTC channels are expensed at the time of sale and included in cost of revenues. The estimated warranty return costs associated with products sold through the wholesale channel are recorded at the time of sale and included as an offset to net revenues. Estimates for warranty costs are based on the results of historical trends and warranty claim rates incurred, and are adjusted for any current or expected trends as appropriate. Actual warranty claim costs could differ from these estimates. The Company regularly assesses and adjusts the estimate of accrued warranty claims by updating claims rates for actual trends and projected claim costs. The Company expects the estimated warranty liability to continue to increase as the Company has not reached a full 10 years of history on its 10-year mattress warranty. The Company classifies estimated warranty costs expected to be paid beyond a year as a long-term liability.

The Company had the following activity for accrued warranty liabilities (in thousands):

	Years Ended December 31,
	2024			2023			2022
Balance at beginning of period	$	35,591		$	24,463		$	16,241
Additions charged to cost of sales		3,291			5,866			9,856
Additions that reduced net revenue		6,288			11,996			3,453
Deduction from reserves for current year claims		(12,965	)		(6,734	)		(5,087	)
Balance at end of period	$	32,205		$	35,591		$	24,463

Cost of Revenues

Cost of Revenues

Costs associated with net revenues are recorded as cost of revenues in the same period in which related sales have been recorded. Cost of revenues includes the costs of receiving, producing, inspecting, warehousing, insuring, and shipping goods during the period, as well as depreciation and amortization of long-lived assets used in these processes. Cost of sales also includes shipping and handling costs associated with the delivery of goods to customers.

In conjunction with a restructuring action initiated in August 2024, the Company recorded restructuring charges of $15.4 million in cost of revenues for accelerated depreciation of production equipment and inventory write-downs. Refer to Note 5–Restructuring, Impairment and Other Related Charges for more information.

Cooperative Advertising, Rebate and Other Promotion Programs

Cooperative Advertising, Rebate and Other Promotion Programs

The Company enters into programs with certain wholesale partners to provide funds for advertising and promotions as well as volume and other rebate programs. When sales are made to these customers, the Company records liabilities pursuant to these programs. The Company periodically assesses these liabilities based on actual sales to determine whether all the cooperative advertising earned will be used by the customer or whether the customer will meet the requirements to receive rebate funds. Estimates are required at any point in time regarding the ultimate reimbursement to be claimed by the customers. Subsequent revisions to the estimates are recorded and charged to earnings in the period in which they are identified. Rebates and certain cooperative advertising amounts are classified as a reduction of revenue and presented within net revenues in the accompanying consolidated statements of operations. Cooperative advertising expenses that can be identified as a distinct good or service and for which fair value can be reasonably estimated are recorded, when incurred, as components of marketing and sales expense in the accompanying consolidated statements of operations. Marketing and sales expense in 2024, 2023 and 2022 included $2.3 million, $2.0 million and $4.1 million, respectively, related to shared advertising costs that the Company incurred under its cooperative advertising programs.

Advertising Costs

Advertising Costs

The Company incurs advertising costs associated with print, digital and broadcast advertisements. Advertising costs are expensed when the advertisements are run for the first time and included in marketing and selling expenses in the accompanying consolidated statements of operations. Advertising expense was $65.2 million, $72.4 million and $66.6 million for the years ended December 31, 2024, 2023 and 2022, respectively.

Debt Issuance Costs and Discounts

Debt Issuance Costs and Discounts

Debt issuance costs and discounts that relate to borrowings are presented in the consolidated balance sheets as a direct reduction from the carrying amount of the related debt liability and are amortized into interest expense using an effective interest rate over the duration of the debt. Debt issuance costs that relate to revolving lines of credit are carried as an asset in the consolidated balance sheets and amortized to interest expense on a straight-line basis over the term of the related line of credit facility. Refer to Note 12– Debt for more information.

Warrant Liabilities

Warrant Liabilities

The Company issued warrants to purchase 20.0 million shares of the Company’s Class A common stock to the lenders associated with a related party credit agreement entered into in January 2024. These warrants contain a repurchase provision which, upon the occurrence of a fundamental transaction as defined in the warrant agreement, could give rise to an obligation of the Company to pay cash to the warrant holders. In addition, other provisions may lead to a reduction in the exercise price of the warrants. The fundamental transaction provisions of the warrants resulted in them being recorded as a liability at fair value on their issue date, with the corresponding offset included in debt issuance costs. The initial liability is subsequently re-measured to fair value at each reporting date or exercise date with changes in the fair value included in earnings. The Company uses a Monte Carlo Simulation model to determine the fair value of the liability associated with these warrants. The model uses various key assumptions and inputs, including exercise price of the warrants, fair market value of the Company’s common stock, risk free interest rate, warrant life, expected volatility and the probability of a warrant re-price event. Refer to Note 12– Debt and Note 13– Warrant Liabilities for more information.

The Company issued 12.8 million sponsor warrants pursuant to a private placement conducted simultaneously with its initial public offering. The Company recorded its sponsor warrants as liabilities since they did not meet the criteria for equity classification. Because the sponsor warrants met the definition of a derivative, these warrants were measured at fair value at inception and at each reporting date thereafter with changes in fair value recognized in earnings in the period of change. The Company used the Black-Scholes model to determine the fair value of the liability associated with the sponsor warrants. The model used key assumptions and inputs such as exercise price, fair market value of common stock, risk free interest rate, warrant life and expected volatility. Unexercised sponsor warrants totaling 1.9 million expired in February 2023 and were cancelled pursuant to the terms of the warrant agreement. These sponsor warrants had no fair value on the date of expiration.

Fair Value Measurements

Fair Value Measurements

The Company uses the fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, essentially an exit price, based on the highest and best use of the asset or liability. The levels of the fair value hierarchy are:

Level 1—Quoted market prices in active markets for identical assets or liabilities;

Level 2—Significant other observable inputs (e.g., quoted prices for similar items in active markets, quoted prices for identical or similar items in markets that are not active, inputs other than quoted prices that are observable, such as interest rate and yield curves, and market-corroborated inputs); and

Level 3—Unobservable inputs in which there is little or no market data, which require the reporting unit to develop its own assumptions.

The classification of fair value measurements within the established three-level hierarchy is based upon the lowest level of input that is significant to the measurements. Financial instruments, although not recorded at fair value on a recurring basis include cash, cash equivalents and restricted cash, receivables, accounts payable, and the Company’s debt obligations. The carrying amounts of cash, cash equivalents and restricted cash, accounts receivable and accounts payable approximate fair value because of the short-term nature of these accounts.

The estimated fair value of the Company’s debt arrangements are based on Level 2 inputs, which include observable inputs estimated using discounted cash flows and market-based expectations for interest rates, credit risk and the contractual terms of debt instruments is shown in the table below (in thousands):

		December 31,
	Level	2024		2023
2023 Credit Agreement	2	$	—	$	30,000
2024 Credit Agreement	2		56,617		—

The warrants issued in 2024 and the sponsor warrants (refer to Note 12– Warrant Liabilities for more information.) are Level 3 instruments and use internal models to estimate fair value based on certain significant unobservable inputs which require determination of relevant inputs and assumptions. Accordingly, changes in these unobservable inputs may have a significant impact on fair value. Such inputs include risk free interest rate, expected average life, expected dividend yield, and expected volatility. These Level 3 liabilities generally decrease (increase) in value based upon an increase (decrease) in risk free interest rate and expected dividend yield. Conversely, the fair value of these Level 3 liabilities generally increase (decrease) in value if the expected average life or expected volatility increases (decreases).

The following table presents information about the Company’s liabilities that are measured at fair value on a recurring basis and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value (in thousands):

			December 31,
	Level		2024
Warrants		3	$	16,067

Unexercised sponsor warrants totaling 1.9 million expired in February 2023 and were cancelled pursuant to the terms of the warrant agreement. These sponsor warrants had no fair value on the date of expiration.

The following table summarizes the Company’s total Level 3 liability activity for the years ended December 31, 2024, 2023 and 2022 (in thousands):

	Sponsor Warrants			Warrants			Total Level 3 Liabilities
Fair value as of December 31, 2021	$	4,343		$	—		$	4,343
Change in valuation inputs⁽¹⁾		(4,343	)		—			(4,343	)
Fair value as of December 31, 2022	$	—		$	—		$	—
Change in valuation inputs⁽¹⁾		—			—			—
Fair value as of December 31, 2023	$	—		$	—		$	—
Initial measurement at time of issuance		—			19,571			19,571
Change in valuation inputs⁽¹⁾		—			(3,504	)		(3,504	)
Fair value as of December 31, 2024	$	—		$	16,067		$	16,067

(1)	Changes in valuation inputs are recognized as the change in fair value – warrant liabilities in the consolidated statement of operations.

Stock Based Compensation

Stock Based Compensation

The Company accounts for stock-based compensation under the provisions of ASC 718, Compensation—Stock Compensation. This standard requires the Company to record an expense associated with the fair value of stock-based compensation over the requisite service period.

During 2023 and 2022, the Company granted stock options under the Company’s 2017 Equity Incentive Plan (the “2017 Equity Incentive Plan”) to certain officers, executives and employees of the Company. The fair value for these awards was determined using the Black-Scholes option valuation model at the date of grant. Stock based compensation on these awards is expensed on a straight-line basis over the vesting period. Option pricing models require the input of subjective assumptions including the expected term of the stock option, the expected price volatility of the Company’s common stock over the period equal to the expected term of the grant, and the expected risk-free rate. Changes in these assumptions can materially affect the fair value estimate. The Company recognizes forfeitures of stock option awards as they occur. There were no stock options granted in 2024.

During 2023 and 2022, the Company granted stock awards under the 2017 Equity Incentive Plan to independent directors on the Company’s board of directors (the “Board”) for services performed. Since all of these awards vested immediately, stock-based compensation was recorded on the grant date using the publicly quoted closing price of the Company’s common stock on that date as fair value. There were no stock awards granted to independent directors in 2024.

During 2024, 2023 and 2022, the Company granted restricted stock units under the Company’s 2017 Equity Incentive Plan to certain employees of the Company. A portion of the restricted stock units granted included a market vesting condition. The estimated fair value of the restricted stock units that do not have the market vesting condition is recognized on a straight-line basis over the vesting period. The estimated fair value of the stock units that included a market vesting condition was measured on the grant date using a Monte Carlo Simulation of a Geometric Brownian Motion stock path model and incorporated the probability of vesting occurring. The estimated fair value of these awards is recognized over the derived service period (as determined by the valuation model), with such recognition occurring regardless of whether the market condition is met.

Income Taxes

Income Taxes

Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. In assessing the realizability of deferred tax assets, management considers whether it is more-likely-than-not that the deferred tax assets will be realized. Deferred tax assets and liabilities are calculated by applying existing tax laws and the rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the year of the enacted rate change. The Company’s effective tax rate is primarily impacted by changes in its valuation allowance.

The Company accounts for uncertainty in income taxes using a recognition and measurement threshold for tax positions taken or expected to be taken in a tax return, which are subject to examination by federal and state taxing authorities. The tax benefit from an uncertain tax position is recognized when it is more likely than not that the position will be sustained upon examination by taxing authorities based on technical merits of the position. The amount of the tax benefit recognized is the largest amount of the benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The effective tax rate and the tax basis of assets and liabilities reflect management’s estimates of the ultimate outcome of various tax uncertainties. The Company recognizes penalties and interest related to uncertain tax positions within the provision (benefit) for income taxes line in the accompanying consolidated statements of operations.

The Company files U.S. federal and certain state income tax returns. The income tax returns of the Company are subject to examination by U.S. federal and state taxing authorities for various time periods, depending on those jurisdictions’ rules, generally after the income tax returns are filed.

Tax Receivable Agreement

Tax Receivable Agreement

In connection with the Business Combination, the Company entered into a tax receivable agreement with InnoHold, which provides for the payment by the Company to InnoHold of 80% of the net cash savings, if any, in U.S. federal, state and local income tax that the Company actually realizes (or is deemed to realize in certain circumstances) in periods after the Closing as a result of (i) any tax basis increases in the assets of Purple LLC resulting from the distribution to InnoHold of the cash consideration, (ii) the tax basis increases in the assets of Purple LLC resulting from the redemption by Purple LLC or the exchange by the Company, as applicable, of Class B Paired Securities or cash, as applicable, and (iii) imputed interest deemed to be paid by the Company as a result of, and additional tax basis arising from, payments it makes under the agreement.

As noncontrolling interest holders exercise their right to exchange or cause Purple LLC to redeem all or a portion of its Class B Units, a liability under the tax receivable agreement may be recorded based on 80% of the estimated future cash tax savings that the Company may realize as a result of increases in the basis of the assets of Purple LLC attributed to the Company as a result of such exchange or redemption. The amount of the increase in asset basis, the related estimated cash tax savings and the attendant liability to be recorded will depend on the price of the Company’s Class A common stock at the time of the relevant redemption or exchange. The estimation of liability under the agreement is imprecise and subject to significant assumptions regarding the amount and timing of future taxable income.

Segment Information

Segment Information

Operating segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the chief operating decision maker (“CODM”). The role of the CODM is to make decisions about allocating resources and assessing performance. The Company’s operations are based on an omni-channel distribution strategy that allows the Company to offer a seamless shopping experience to its customers across multiple sales channels. The Company concluded its business operates in one operating segment as all the Company’s sales channels are complementary and analyzed in the same manner. Also, the CODM reviews financial information presented on a consolidated basis for the purpose of allocating resources and evaluating financial performance as the Company does not accumulate discrete financial information with respect to separate divisions and does not have distinct operating or reportable segments. Since the Company operates in one operating segment, most of the required financial segment information can be found throughout the consolidated financial statements. The Company’s chief executive officer has been identified as its CODM. Refer to Note 21– Segment Information and Concentrations for more information.

Net Loss Per Share

Net Loss Per Share

Basic net loss per common share is calculated by dividing net loss attributable to common stockholders by the weighted average number of shares of Class A common stock outstanding during each period. Diluted net loss per share reflects the weighted-average number of common shares outstanding during the period used in the basic net loss computation plus the effect of common stock equivalents that are dilutive. The Company uses the “if-converted” method to determine the potential dilutive effect of conversions of its outstanding Class B common stock, and the treasury stock method to determine the potential dilutive effect of its outstanding warrants and share-based payment awards.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

Disclosure Improvements

In October 2023, the Financial Accounting Standards Board (the “FASB”) issued ASU 2023-06 Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative. This ASU amends the disclosure or presentation requirements related to various subtopics in the FASB Accounting Standards Codification. For SEC registrants, the effective date for each amendment will be the date on which the SEC’s removal of that related disclosure requirement from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited. The Company will monitor the removal of various requirements from the current regulations in order to determine when to adopt the related amendments but does not anticipate the adoption of the new guidance will have a material impact on the Company’s Consolidated Financial Statements. The Company will continue to evaluate the impact of this guidance on its consolidated financial statements.

Enhanced Segment Disclosures

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires public entities, including those that have a single reportable segment, to provide enhanced disclosures about significant expenses. The ASU requires disclosure to include significant segment expenses that are regularly provided to the CODM, a description of other segment items by reportable segment, and any additional measures of a segment’s profit or loss used by the CODM when deciding how to allocate resources. The ASU also requires all annual disclosures currently required by Topic 280 to be included in interim periods. The update is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted and requires retrospective application to all prior periods presented in the financial statements. This standard was adopted by the Company beginning with its 2024 consolidated financial statements. The adoption of this standard resulted in the addition of required segment disclosures for 2024 and all prior periods included in these consolidated financial statements.

Improvements to Income Tax Disclosures

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The ASU amends existing income tax disclosure guidance, primarily requiring more detailed disclosures for income taxes paid and the effective tax rate reconciliation. This ASU is effective for fiscal years beginning after December 15, 2024, may be applied prospectively or retrospectively, and allows for early adoption. The Company is currently evaluating the impact this update will have on the income tax disclosures in its consolidated financial statements.

Expense Disaggregation Disclosures

In November 2024, the FASB issued ASU No. 2024-03, Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires disclosure of certain costs and expenses on an interim and annual basis in the notes to the consolidated financial statements. The prescribed cost and expense categories requiring disaggregated disclosures include purchases of inventory, employee compensation, depreciation and intangible asset amortization, along with certain other expense disclosures already required by GAAP that would need to be integrated within the new tabular disaggregated expense disclosures. Additionally, the amendments also require the disclosure of total selling expenses and an entity’s definition of those expenses. The guidance is effective for annual reporting periods beginning after December 15, 2026 and interim periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The guidance is to be applied either (1) prospectively to financial statements issued for reporting periods after the effective date or (2) retrospectively to any or all prior periods presented in the financial statements. The Company is currently evaluating the potential impact this update will have on its expense disclosures in the notes to the consolidated financial statements.

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2024

Summary of Significant Accounting Policies [Abstract]

Schedule of Allowance for Credit Losses

The Company had the following activity in its allowance for credit losses (in thousands):

	Years Ended December 31,
	2024			2023		2022
Balance at beginning of period	$	26		$	1	$	20
Additions charged to expense		1,075			25		—
Reductions to allowance, net		(1	)		—		(19	)
Balance at end of period	$	1,100		$	26	$	1

Schedule of Estimated Useful Lives

Property and equipment are depreciated using the straight-line method over the estimated useful lives of the respective assets, ranging from 1 to 17 years, as follows:

		Years
Equipment		5 - 10
Furniture and fixtures		2 - 7
Office equipment		3 - 5
Leasehold improvements		1 - 17

Schedule of Accrued Sales Returns

The Company had the following activity for accrued sales returns (in thousands):

	Years Ended December 31,
	2024			2023			2022
Balance at beginning of period	$	5,404		$	5,107		$	7,116
Additions that reduced net revenue		38,913			34,090			35,479
Deduction from reserves for current year returns		(37,802	)		(33,793	)		(37,488	)
Balance at end of period	$	6,515		$	5,404		$	5,107

Schedule of Accrued Warranty Liabilities

The Company had the following activity for accrued warranty liabilities (in thousands):

	Years Ended December 31,
	2024			2023			2022
Balance at beginning of period	$	35,591		$	24,463		$	16,241
Additions charged to cost of sales		3,291			5,866			9,856
Additions that reduced net revenue		6,288			11,996			3,453
Deduction from reserves for current year claims		(12,965	)		(6,734	)		(5,087	)
Balance at end of period	$	32,205		$	35,591		$	24,463

Schedule of Estimated Fair Value of Company’s Debt Arrangements

The estimated fair value of the Company’s debt arrangements are based on Level 2 inputs, which include observable inputs estimated using discounted cash flows and market-based expectations for interest rates, credit risk and the contractual terms of debt instruments is shown in the table below (in thousands):

		December 31,
	Level	2024		2023
2023 Credit Agreement	2	$	—	$	30,000
2024 Credit Agreement	2		56,617		—

Schedule of Fair Value Hierarchy of the Valuation Inputs

The following table presents information about the Company’s liabilities that are measured at fair value on a recurring basis and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value (in thousands):

			December 31,
	Level		2024
Warrants		3	$	16,067

Schedule of Level 3 Liability Activity

The following table summarizes the Company’s total Level 3 liability activity for the years ended December 31, 2024, 2023 and 2022 (in thousands):

	Sponsor Warrants			Warrants			Total Level 3 Liabilities
Fair value as of December 31, 2021	$	4,343		$	—		$	4,343
Change in valuation inputs⁽¹⁾		(4,343	)		—			(4,343	)
Fair value as of December 31, 2022	$	—		$	—		$	—
Change in valuation inputs⁽¹⁾		—			—			—
Fair value as of December 31, 2023	$	—		$	—		$	—
Initial measurement at time of issuance		—			19,571			19,571
Change in valuation inputs⁽¹⁾		—			(3,504	)		(3,504	)
Fair value as of December 31, 2024	$	—		$	16,067		$	16,067

(1)	Changes in valuation inputs are recognized as the change in fair value – warrant liabilities in the consolidated statement of operations.

Acquisition (Tables)

12 Months Ended

Dec. 31, 2024

Acquisition [Abstract]

Schedule of Acquisition Date Fair Value of the Consideration

The acquisition date fair value of the consideration transferred for Intellibed was $28.2 million, which consisted of the following (in thousands):

Fair value of Class A common stock issued at closing	$	23,069
Fair value of Class A common stock held in escrow		1,349
Fair value of contingent consideration		1,471
Fair value of effective settlement of preexisting relationships		1,672
Transaction expenses paid on behalf of Intellibed		546
Due to seller		75
Fair value of total purchase consideration	$	28,182

Schedule of Fair Value of the Assets Acquired and Liabilities

The following table summarizes the preliminary fair value of the assets acquired and liabilities assumed as of the date of acquisition, the final measurement period adjustments and the final adjusted balances (in thousands):

Net tangible assets (liabilities):	At Date of Acquisition			Measurement Period Adjustments			Final Adjusted Balances
Cash, cash equivalents and restricted cash	$	4,194		$	(418	)	$	3,776
Accounts receivable		5,051			(443	)		4,608
Inventory		4,182			(1,135	)		3,047
Other current assets		126			200			326
Property and equipment		7,000			—			7,000
Operating lease right-of-use assets		5,491			—			5,491
Other long-term assets		68			—			68
Accounts payable		(2,285	)		(460	)		(2,745	)
Other current liabilities		(2,818	)		(313	)		(3,131	)
Operating lease obligations		(4,373	)		—			(4,373	)
Deferred tax liabilities		(3,868	)		(416	)		(4,284	)
Net tangible assets (liabilities)		12,768			(2,985	)		9,783
Goodwill		6,441			438			6,879
Customer relationships		8,476			2,400			10,876
Developed technology		615			29			644
Net assets acquired and liabilities assumed	$	28,300		$	(118	)	$	28,182

Schedule of Future Results of Operations

Accordingly, the following pro forma amounts for the year ended December 31, 2022 are not necessarily indicative of the results to be expected had the acquisition been completed on the date indicated, nor is it indicative of the future results of operations of the combined company (in thousands):

Net revenues		$	603,739
Net (loss) income			(86,119	)

Restructuring, Impairment and Other Related Charges (Tables)

12 Months Ended

Dec. 31, 2024

Restructuring, Impairment and Other Related Charges [Abstract]

Schedule of Restructuring, Impairment and other Related Charges

The following table summarizes the restructuring, impairment and other related charges the Company recognized in the 2024 consolidated statement of operations (in thousands):

	Cost of Revenues		Operating Expenses		Restructuring, Impairment and Other Related Charges		Total
Cash charges:
Employee-related costs	$	241	$	942	$	3,098	$	4,281
Other costs		—		—		528		528
Total cash charges		241		942		3,626		4,809
Non-cash charges:
Accelerated depreciation		11,175		—		135		11,310
Inventory write-downs		4,026		—		—		4,026
Write-down of long-lived assets		—		—		5,245		5,245
Impairment of assets		—		—		10,967		10,967
Total non-cash charges		15,201		—		16,347		31,548
Total restructuring, impairment and other related charges	$	15,442	$	942	$	19,973	$	36,357

The following table summarizes the estimated restructuring and other related charges associated with the Restructuring Plan to be recognized in the future (in thousands):

	Cost of Revenues		Operating Expenses		Restructuring, Impairment and Other Related Charges		Total
Cash charges	$	—	$	—	$	2,926	$	2,926
Non-cash charges		1,592		—		64		1,656
Total estimated charges to be recognized in future ^(a)	$	1,592	$	—	$	2,990	$	4,582

(a)

These charges include certain estimates that are provisional and include management judgments and assumptions that could change materially as the Company completes the execution of the Restructuring Plan. Actual results may differ from these estimates, and the completion of the plan could result in additional restructuring, impairment or other related charges not reflected above.

Schedule of Accounts Payable or Accrued Compensation

The following table summarizes 2024 activity associated with employee-related and other costs recorded pursuant to the Restructuring Plan, as presented in the indicated line item of the consolidated statement of operations, that will be settled in cash and are included in accounts payable or accrued compensation on the condensed consolidated balance sheets (in thousands):

Balance at December 31, 2023	$	—
Employee-related costs – cost of revenues		241
Employee-related costs – operating expenses		942
Employee-related costs – restructuring charges		3,098
Other costs – restructuring charges		528
Cash paid		(3,816	)
Balance at December 31, 2024	$	993

Revenue from Contracts with Customers (Tables)

12 Months Ended

Dec. 31, 2024

Revenue from Contracts with Customers [Abstract]

Schedule of Revenue Disaggregated by Sales Channel

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

	Years Ended December 31,
Channel	2024		2023		2022
e-commerce	$	206,300	$	223,607	$	267,370
Wholesale		204,214		213,843		242,698
Showrooms		77,363		73,091		63,133
Revenues, net	$	487,877	$	510,541	$	573,201

Inventories (Tables)

12 Months Ended

Dec. 31, 2024

Inventories [Abstract]

Schedule of Inventories

Inventories consisted of the following (in thousands):

	As of December 31,
	2024		2023
Raw materials	$	20,193	$	23,232
Work-in-process		6,602		5,962
Finished goods		30,068		37,684
Inventories	$	56,863	$	66,878

Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2024

Property and Equipment [Abstract]

Schedule of Property and Equipment

Property and equipment consisted of the following (in thousands):

	As of December 31,
	2024			2023
Equipment	$	70,900		$	72,424
Equipment in progress		13,130			15,077
Leasehold improvements		57,936			60,563
Furniture and fixtures		32,699			31,084
Office equipment		1,611			2,737
Total property and equipment		176,276			181,885
Accumulated depreciation		(82,402	)		(53,224	)
Property and equipment, net	$	93,874		$	128,661

Leases (Tables)

12 Months Ended

Dec. 31, 2024

Leases [Abstarct]

Schedule of Lease Costs

The following table presents the Company’s lease costs (in thousands):

	Years Ended December 31,
	2024		2023		2022
Operating lease costs	$	19,460	$	19,466	$	15,743
Variable lease costs		4,338		4,121		2,311
Short-term lease costs		—		—		11
Total lease costs	$	23,798	$	23,587	$	18,065

Schedule of Operating Lease Liabilities

The table below reconciles the undiscounted cash flows for each of the first five years and total remaining years to the operating lease liabilities recorded on the consolidated balance sheet at December 31, 2024 (in thousands):

Year ended December 31,
2025	$	21,361
2026		20,623
2027		18,012
2028		17,661
2029		14,502
Thereafter		33,215
Total operating lease payments		125,374
Less – lease payments representing interest		(22,641	)
Present value of operating lease payments	$	102,733

Schedule of Supplemental Information Related to the Company’s Consolidated Statement of Cash Flows

The following table provides supplemental information related to the Company’s consolidated statement of cash flows (in thousands):

	Years Ended December 31,
	2024		2023		2022
Cash paid for amounts included in present value of operating lease liabilities ^(b)	$	23,033	$	20,817	$	15,109
ROU assets obtained in exchange for operating lease liabilities		8,516		8,435		38,599

(b)	– Operating cash flows paid for operating leases are included within the change in operating leases, net within the Consolidated Statements of Cash Flows offset by non-cash ROU asset amortization and lease liability accretion.

Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2024

Intangible Assets [Abstract]

Schedule of Components of Intangible Assets

The following table provides the components of intangible assets (in thousands, except useful life):

					As of December 31, 2024								As of December 31, 2023
	Useful life		Gross		Accumulated						Net Carrying		Gross		Accumulated			Net Carrying
	(years)		Cost		Amortization			Impairment			Value		Cost		Amortization			Value
Indefinite-lived non-amortizing:
Intellectual property			$	8,456	$	—		$	(8,456	)	$	—	$	8,456	$	—		$	8,456
Trademarks				30		—			—			30		30		—			30
Definite-lived amortizing:
Internet domain		15		900		(430	)		—			470		900		(370	)		530
Customer relationships		10		10,876		(4,492	)		—			6,384		10,876		(2,286	)		8,590
Developed technology		2		644		(644	)		—			—		644		(429	)		215
Internal-use software		3		7,746		(5,740	)		—			2,006		8,423		(4,048	)		4,375
Intangible assets, net			$	28,652	$	(11,306	)	$	(8,456	)	$	8,890	$	29,329	$	(7,133	)	$	22,196

Schedule of Amortization Expense for Definite-Lived Intangible Assets

Estimated amortization expense for definite-lived intangible assets is expected to be as follows for the next five years (in thousands):

Year ended December 31,
2025	$	3,035
2026		2,111
2027		1,391
2028		791
2029		570
Thereafter		962
Total future amortization for definite-lived intangible assets	$	8,860

Other Current Liabilities (Tables)

12 Months Ended

Dec. 31, 2024

Other Current Liabilities [Abstract]

Schedule of Other Current Liabilities

other current liabilities consisted of the following (in thousands):

	As of December 31,
	2024		2023
Accrued sales returns	$	6,515	$	5,404
Accrued sales and use tax		2,994		1,949
Long-term debt and unamortized issuance costs - current portion		—		2,129
Asset retirement obligation		1,440		—
Insurance financing		1,328		1,079
Accrued interest		—		506
Other		473		1,423
Total other current liabilities	$	12,750	$	12,490

Debt (Tables)

12 Months Ended

Dec. 31, 2024

Debt [Abstract]

Schedule of Debt

Debt consisted of the following (in thousands):

	As of December 31,
	2024			2023
Related party loan	$	70,679		$	—
Term loan		—			25,000
Revolving line of credit		—			5,000
Less: unamortized debt issuance costs		(15,285	)		(962	)
Total debt		55,394			29,038
Current portion of debt and unamortized issuance costs ^(c)		—			(2,129	)
Debt, net of current portion	$	55,394		$	26,909

(c)	– Amount is included in other current liabilities in the consolidated balance sheets.

Schedule of Maturities of Debt Outstanding

As of December 31, 2024, the scheduled maturities of debt outstanding for each of the next five years and thereafter are as follows (in thousands):

Year ended December 31,	Total
2025	$	—
2026		70,679
2027		—
2028		—
2029		—
Thereafter		—
Total	$	70,679

Warrant Liabilities (Tables)

12 Months Ended

Dec. 31, 2024

Warrant Liabilities [Abstract]

Schedule of Fair Value of the Warrants

The following are the assumptions used in calculating fair value of the Warrants on the date of issuance:

Trading price of common stock on measurement date	$	0.82
Exercise price	$	1.50
Risk free interest rate		4.14	%
Warrant life in years		10.0
Expected volatility		88.62	%
Expected dividend yield		—
Probability of an event causing a warrant re-price		25.0	%

The following are the assumptions used in calculating fair value of the Warrants on December 31, 2024:

Trading price of common stock on measurement date	$	0.78
Exercise price	$	1.50
Risk free interest rate		4.45	%
Warrant life in years		9.1
Expected volatility		88.00	%
Expected dividend yield		—
Probability of an event causing a warrant re-price		25.0	%

The Company determined the fair value of the sponsor warrants on December 31, 2022 using a Black-Scholes model with the following assumptions:

Trading price of common stock on measurement date	$	4.79
Exercise price	$	5.75
Risk free interest rate		4.04	%
Warrant life in years		0.1
Expected volatility		80.59	%
Expected dividend yield		—

Other Long-Term Liabilities (Tables)

12 Months Ended

Dec. 31, 2024

Other Long-Term Liabilities [Abstract]

Schedule of Other Long-Term Liabilities

Other long-term liabilities consist of the following (in thousands):

	December 31,		December 31,
	2024		2023
Asset retirement obligations	$	1,098	$	2,230
Other		911		5
Total other long-term liabilities	$	2,009	$	2,235

Schedule of ARO Liabilities

The Company had the following activity for its ARO liabilities (in thousands):

	Years Ended December 31,
	2024			2023
Balance at beginning of period	$	2,230		$	2,099
Revisions in estimated retirement obligations		277			—
Accretion expense		133			131
Payments		(102	)		—
Balance at end of period		2,538			2,230
ARO liability classified as other current liabilities		(1,440	)		—
ARO liability classified as other long-term liabilities	$	1,098		$	2,230

Net Loss Per Common Share (Tables)

12 Months Ended

Dec. 31, 2024

Net Loss Per Common Share [Abstract]

Schedule of Basic and Diluted Weighted Average Shares Outstanding and Loss Per Share

The following table sets forth the calculation of basic and diluted weighted average shares outstanding and loss per share for the periods presented (in thousands, except per share amounts):

	Years Ended December 31,
	2024			2023			2022
Numerator:
Net loss attributable to Purple Innovation, Inc. – basic	$	(97,897	)	$	(120,757	)	$	(92,470	)
Less: Net loss attributable to noncontrolling interest		(201	)		(458	)		—
Net loss attributable to Purple Innovation, Inc. – diluted	$	(98,098	)	$	(121,215	)	$	(92,470	)
Denominator
Weighted average shares – basic		107,139			103,602			81,779
Add: Dilutive effect of Class B shares		185			334			—
Weighted average shares – diluted		107,324			103,936			81,779
Net loss per common share:
Basic	$	(0.91	)	$	(1.17	)	$	(1.13	)
Diluted	$	(0.91	)	$	(1.17	)	$	(1.13	)

Schedule of Diluted Net Loss Per Common Share

Potentially dilutive securities that have been excluded from the calculation of diluted net loss per common share are as follows (in thousands):

	Years Ended December 31,
	2024		2023		2022
Warrants		20,000		—		—
Sponsor warrants		—		928		928
Restricted stock units		2,006		1,423		679
Stock options		529		863		819
Class B common stock		—		—		448

Equity Compensation Plans (Tables)

12 Months Ended

Dec. 31, 2024

Equity Compensation Plans [Abstract]

Schedule of Fair Value of the Stock Options Granted using the Black Scholes Method

The following are the weighted average assumptions used in calculating the fair value of the total stock options granted in 2023 and 2022 using the Black-Scholes method:

	Year Ended December 31,
	2023			2022
Weighted average grant date value	$	0.22		$	2.02
Risk free rate		4.48	%		2.67	%
Dividend yield		—			—
Expected volatility		44.98	%		54.22	%
Expected term in years		2.58			3.45

Schedule of Total Stock Option Activity

The following table summarizes the Company’s total stock option activity for the year ended December 31, 2024:

	Options (in thousands)			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term in Years		Intrinsic Value $ (in thousands)
Options outstanding as of December 31, 2023		863		$	8.13		2.2	$	—
Granted		—			—		—		—
Forfeited		—			—		—		—
Expired		(334	)		9.67		—		—
Options outstanding as of December 31, 2024		529			7.17		2.2		—

Schedule of Outstanding and Exercisable Stock Options

Outstanding and exercisable stock options as of December 31, 2024 are as follows:

		Options Outstanding			Options Exercisable
Exercise Prices		Number of Options Outstanding (in thousands)		Weighted Average Remaining Life (Years)	Number of Options Exercisable (in thousands)		Weighted Average Remaining Life (Years)	Intrinsic Value (in thousands)
$	6.82		500	2.3		333	2.3	$	—
	13.12		29	0.4		29	0.4		—
			529	2.2		362	2.1	$	—

Schedule of Unvested Stock Option Activity

The following table summarizes the Company’s unvested stock option activity for the year ended December 31, 2024:

	Options (in thousands)			Weighted Average Grant Date Fair Value
Nonvested options as of December 31, 2023		337		$	0.41
Granted		—			—
Vested		(170	)		0.59
Forfeited		—			—
Nonvested options as of December 31, 2024		167			0.22

Schedule of Weighted Average Grant Date Fair Value

The Company determined the weighted average grant date fair value of these awards using a Monte Carlo Simulation of a Geometric Brownian Motion stock path model with the following weighted average assumptions:

	Year Ended December 31,
	2024			2023			2022
Trading price of common stock on measurement date	$	1.50		$	2.72		$	5.33
Risk free interest rate		4.46	%		4.29	%		2.89	%
Expected life in years		3.0			2.7			2.9
Expected volatility		97.1	%		89.9	%		85.1	%
Expected dividend yield		—			—			—

Schedule of Restricted Stock Unit Activity

The following table summarizes the Company’s restricted stock unit activity for the year ended December 31, 2024:

	Options (in thousands)			Weighted Average Grant Date Fair Value
Nonvested restricted stock units as of December 31, 2023		3,057		$	2.97
Granted		1,828			1.03
Vested		(571	)		3.57
Forfeited		(506	)		3.31
Nonvested restricted stock units as of December 31, 2024		3,808			1.91

Schedule of Non-Cash Stock Compensation Recognized in the Statement of Operations

The table below summarizes the aggregate non-cash stock compensation recognized in the statement of operations for stock awards, employee stock options and employee restricted stock units (in thousands).

	Years Ended December 31,
	2024		2023		2022
Cost of revenues	$	398	$	285	$	305
Marketing and sales		489		616		863
General and administrative		1,621		3,730		2,033
Research and development		307		244		165
Total non-cash stock compensation	$	2,815	$	4,875	$	3,366

Segment Information and Concentrations (Tables)

12 Months Ended

Dec. 31, 2024

Segment Information and Concentrations [Abstract]

Schedule of Summarizes Segment Revenue, Significant Segment Expenses

The following table summarizes segment revenue, significant segment expenses, other segment items and segment profit or loss (in thousands):

	Year Ended December 31,
	2024			2023			2022

Revenues, net	$	487,877		$	510,541		$	573,201
Reductions (additions):
Cost of revenues		291,303			338,716			365,110
Cost of revenues – restructuring related charges		15,442			—			—
Advertising expense		65,198			72,372			66,645
Marketing sales expense		33,778			36,741			39,388
Wholesale marketing and sales expense		20,081			23,016			21,340
Showroom marketing and sales expense		52,206			50,184			38,015
General and administrative expense		69,117			84,446			76,702
Research and development expense		12,962			11,898			8,755
Restructuring, impairment and other related charges		19,973			—			—
Loss on impairment of goodwill		—			6,879			—
Other segment items, net ^(d)		5,852			7,496			(1,230	)
Tax receivable agreement income		—			—			(161,970	)
Income tax expense		63			8			213,169
Net loss attributable to noncontrolling interest		(201	)		(458	)		(253	)
Segment net loss	$	(97,897	)	$	(120,757	)	$	(92,470	)

(d)	Other segment items, net include interest expense, other (income) expense, net, loss on extinguishment of debt, and change in fair value of warrant liabilities.

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Income Taxes [Abstract]

Schedule of Income Tax Expense

Income tax expense for the years ended December 31, 2024, 2023 and 2022 consist of the following (in thousands):

	Year ended December 31,
	2024			2023			2022
Current:
Federal	$	(114	)	$	(167	)	$	(1,030	)
State		177			217			344
Total current		63			50			(686	)
Deferred:
Federal		—			(42	)		169,180
State		—			—			44,675
Total deferred		—			(42	)		213,855
Income tax expense	$	63		$	8		$	213,169

Schedule of Income Tax Expense Amount Computed at the Federal Statutory Corporate

Income tax expense differs from the amount computed at the federal statutory corporate income tax rate as follows (in thousands):

	Year ended December 31,
	2024			2023			2022
Tax (provision) benefit at Federal statutory rate	$	(20,587	)	$	(25,454	)	$	25,293
State income tax provision (benefit), net of federal benefit		(5,238	)		(6,235	)		292
Noncontrolling interest		44			96			59
Tax receivable agreement liability		—			—			(34,014	)
Change in fair value – warrant liabilities		(736	)		—			(912	)
Change in valuation allowance		26,963			35,592			189,870
Remeasurement due to rate change		(586	)		(31	)		2,530
Research and development tax credits		(482	)		(1,113	)		(1,763	)
Remeasurement of investment in Purple LLC		—			(4,028	)		29,822
Nondeductible compensation		315			281			—
Stock-based compensation		699			605			2,303
Other		(329	)		295			(311	)
Income tax expense	$	63		$	8		$	213,169

Schedule of Deferred Income Taxes

Deferred income taxes at December 31, 2024 and 2023 consisted of the following (in thousands):

	2024			2023
Basis difference in Purple LLC investment	$	153,872		$	156,521
Tax over book basis in capital contributions		79,400			78,158
Start-up costs		361			405
Stock-based compensation		635			999
Interest carryforwards		6,503			2,314
Research and development tax credits		3,590			2,712
Charitable contribution carryforwards		159			121
Net operating losses		82,137			62,550
Total net deferred income tax asset		326,657			303,780
Less: Valuation allowance		(326,657	)		(303,780	)
Net deferred income tax asset	$	—		$	—

Schedule of Unrecognized Tax Benefits

The following table summarizes the Company’s unrecognized tax benefits for the years ended December 31, 2024, 2023 and 2022 (in thousands):

	Unrecognized Tax Benefits
Unrecognized tax benefits as of December 31, 2021	$	—
Increase due to current year tax positions		177
Increase due to prior year tax positions		264
Increase due to acquisition		152
Unrecognized tax benefits as of December 31, 2022		593
Increase due to current year tax positions		215
Increase due to prior year tax positions		291
Decrease due to lapse of statute of limitations		(153	)
Unrecognized tax benefits as of December 31, 2023		946
Increase due to current year tax positions		111
Increase due to prior year tax positions		109
Decrease due to lapse of statute of limitations		(114	)
Unrecognized tax benefits as of December 31, 2024	$	1,052

Organization (Details)	Dec. 31, 2024	Dec. 31, 2023	Oct. 03, 2022
Purple LLC [Member]
Organization [Line Items]
Ownership percentage	0.20%	0.20%	100.00%

Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands, shares in Millions	1 Months Ended	12 Months Ended
	Aug. 31, 2024	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022	Mar. 10, 2025	Jan. 23, 2024
Summary of Significant Accounting Policies [Line Items]
Common units percentage		99.80%
Cash and cash equivalents		$ 29,011	$ 26,857
Accumulated deficit		(573,866)	(475,969)
Net loss		(97,897)	(120,757)	$ (92,470)
Net cash used in operating and investing activities		$ 25,400
Economic interest		99.80%
Asset liabilities percentage		100.00%
Reducing estimated useful lives of these assets increased both depreciation expense		$ (11,200)
Impairment charge to write off			6,879
Estimated useful lives		3 years
Impairment charges to write off		$ 20,238
Definite lived intangible assets
Impairment charges	$ 2,500	8,500
Restructuring charges		15,400
Marketing and sales expense		171,263	182,313	165,388
Advertising expense		$ 65,200	72,400	66,600
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in Shares)		20.0
Warrant issued (in Shares)		20.0
Unexercised sponsor warrants totaling		$ 1,900
Net cash saving		80.00%
Percentage of estimated future cash tax savings		80.00%
Operating segment		1
Intellectual Property [Member]
Summary of Significant Accounting Policies [Line Items]
Impairment charges to write off		$ 8,500
Sponsor Warrants [Member]
Summary of Significant Accounting Policies [Line Items]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in Shares)		12.8
Warrant issued (in Shares)		12.8
Warrant [Member]
Summary of Significant Accounting Policies [Line Items]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in Shares)		20.0				20.0
Unexercised sponsor warrants totaling		$ 1,900
Minimum [Member]
Summary of Significant Accounting Policies [Line Items]
Estimated useful lives		1 year
Estimated useful lives		2 years
Maximum [Member]
Summary of Significant Accounting Policies [Line Items]
Estimated useful lives		17 years
Estimated useful lives		15 years
Goodwill [Member]
Summary of Significant Accounting Policies [Line Items]
Impairment charge to write off			6,900
Advertising [Member]
Summary of Significant Accounting Policies [Line Items]
Marketing and sales expense		$ 2,300	$ 2,000	$ 4,100
Purple LLC [Member]
Summary of Significant Accounting Policies [Line Items]
Common units percentage		0.20%
Economic interest		0.20%
Forecast [Member] \| 2025 Amendment [Member]
Summary of Significant Accounting Policies [Line Items]
Additional term loan proceeds					$ 19,000

Summary of Significant Accounting Policies - Schedule of Allowance for Credit Losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Schedule of Allowance for Credit Losses [Abstract]
Balance at beginning of period	$ 26	$ 1	$ 20
Additions charged to expense	1,075	25
Reductions to allowance, net	(1)		(19)
Balance at end of period	$ 1,100	$ 26	$ 1

Summary of Significant Accounting Policies - Schedule of Estimated Useful Lives (Details)	Dec. 31, 2024
Minimum [Member] \| Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment estimated useful lives	5 years
Minimum [Member] \| Furniture and fixtures [Member]
Property, Plant and Equipment [Line Items]
Property and equipment estimated useful lives	2 years
Minimum [Member] \| Office equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment estimated useful lives	3 years
Minimum [Member] \| Leasehold improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment estimated useful lives	1 year
Maximum [Member] \| Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment estimated useful lives	10 years
Maximum [Member] \| Furniture and fixtures [Member]
Property, Plant and Equipment [Line Items]
Property and equipment estimated useful lives	7 years
Maximum [Member] \| Office equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment estimated useful lives	5 years
Maximum [Member] \| Leasehold improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment estimated useful lives	17 years

Summary of Significant Accounting Policies - Schedule of Accrued Sales Returns (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Schedule of Accrued Sales Returns [Abstract]
Balance at beginning of period	$ 5,404	$ 5,107	$ 7,116
Additions that reduced net revenue	38,913	34,090	35,479
Deduction from reserves for current year returns	(37,802)	(33,793)	(37,488)
Balance at end of period	$ 6,515	$ 5,404	$ 5,107

Summary of Significant Accounting Policies - Schedule of Accrued Warranty Liabilities (Details) - Accrued Warranty Liabilities [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Schedule of Accrued Warranty Liabilities[Line Items]
Balance at beginning of period	$ 35,591	$ 24,463	$ 16,241
Additions charged to cost of sales	3,291	5,866	9,856
Additions that reduced net revenue	6,288	11,996	3,453
Deduction from reserves for current year claims	(12,965)	(6,734)	(5,087)
Balance at end of period	$ 32,205	$ 35,591	$ 24,463

Summary of Significant Accounting Policies - Schedule of Estimated Fair Value of Company’s Debt Arrangements (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
2023 Credit Agreement [Member]
Summary of Significant Accounting Policies - Schedule of Estimated Fair Value of Company’s Debt Arrangements (Details) [Line Items]
Credit Agreement		$ 30,000
20234 Credit Agreement [Member]
Summary of Significant Accounting Policies - Schedule of Estimated Fair Value of Company’s Debt Arrangements (Details) [Line Items]
Credit Agreement	$ 56,617

Summary of Significant Accounting Policies - Schedule of Fair Value Hierarchy of the Valuation Inputs (Details) $ in Thousands	Dec. 31, 2024 USD ($)
Level 3 [Member]
Schedule of Fair Value Hierarchy of the Valuation Inputs [Line Items]
Warrants	$ 16,067

Summary of Significant Accounting Policies - Schedule of Level 3 Liability Activity (Details) - Fair Value, Inputs, Level 3 [Member] - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2024

Dec. 31, 2023

Dec. 31, 2022

Schedule of Level 3 Liability Activity [Line Items]

Fair value, Beginning

$ 4,343

Change in valuation inputs

^[1]

(3,504)

(4,343)

Initial measurement at time of issuance

19,571

Fair value, Ending

16,067

Sponsor Warrants [Member]

Schedule of Level 3 Liability Activity [Line Items]

Fair value, Beginning

4,343

Change in valuation inputs

^[1]

(4,343)

Initial measurement at time of issuance

Fair value, Ending

Warrants [Member]

Schedule of Level 3 Liability Activity [Line Items]

Fair value, Beginning

Change in valuation inputs

^[1]

(3,504)

Initial measurement at time of issuance

19,571

Fair value, Ending

$ 16,067

[1]	Changes in valuation inputs are recognized as the change in fair value – warrant liabilities in the consolidated statement of operations.

Underwritten Offerings of Class A Common Stock (Details) - Class A Common Stock [Member] - USD ($) $ / shares in Units, shares in Millions, $ in Millions	1 Months Ended		12 Months Ended
	Feb. 28, 2023	Mar. 31, 2022	Dec. 31, 2024
Underwritten Offerings of Class A Common Stock [Line Items]
Shares issued			8.1
Offering fees and expenses	$ 3.3
Deducting offering fees and expenses	$ 57.0
Underwritten Offering [Member]
Underwritten Offerings of Class A Common Stock [Line Items]
Shares issued	13.4	16.1
Share issued, price per share	$ 4.5	$ 5.65
Offering fees and expenses		$ 5.3
Deducting offering fees and expenses		$ 92.9
Common stock shares percentage		29.81%
Purchase of price per share		$ 6.1
Over-Allotment Option [Member]
Underwritten Offerings of Class A Common Stock [Line Items]
Share issued, price per share		$ 2,100,000

Acquisition (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands				1 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2022	Aug. 31, 2022	Mar. 31, 2024	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022	Aug. 31, 2023
Acquisition [Line Items]
Consideration transferred					$ 28,200
Shares issued (in Shares)					500
Relationship fair value					$ 1,400
Fair value acquisition amount					300
Other income (expense), net	$ 238,000						$ 1,400
Royalty liability					300
Fair value of net assets								$ 100
Goodwill					$ 6,900
Estimated useful life					3 years
Cash equivalents and restricted cash					$ 1,700
Escrow account					900	$ 800
Pre-tax income		$ 1,600	$ 9,700
General and administrative expense					69,117	$ 84,446	76,702
Decrease of operating expenses					$ 4,400
Customer Relationships [Member]
Acquisition [Line Items]
Estimated useful life					10 years
Maximum [Member]
Acquisition [Line Items]
Estimated useful life					15 years
Maximum [Member] \| Customer Relationships [Member]
Acquisition [Line Items]
Estimated useful life					10 years
Minimum [Member]
Acquisition [Line Items]
Estimated useful life					2 years
Minimum [Member] \| Customer Relationships [Member]
Acquisition [Line Items]
Estimated useful life					2 years
Property, Plant and Equipment [Member]
Acquisition [Line Items]
Decrease of operating expenses					$ 2,200
Eliminate Costs [Member]
Acquisition [Line Items]
Decrease of operating expenses					$ 1,500
Intellibed Security Holders [Member]
Acquisition [Line Items]
General and administrative expense							$ 3,900
Intellibed Security Holders [Member] \| Common Stock [Member]
Acquisition [Line Items]
Shares issued (in Shares)				1,500
Class A Common Stock [Member]
Acquisition [Line Items]
Shares issued (in Shares)					8,100
Common stock, par value (in Dollars per share)					$ 0.0001	$ 0.0001
Class A Common Stock [Member] \| Common Stock [Member]
Acquisition [Line Items]
Shares issued (in Shares)					1,500	13,400	16,100
Common stock, par value (in Dollars per share)					$ 2.86

Acquisition - Schedule of Acquisition Date Fair Value of the Consideration (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Schedule of Acquisition Date Fair Value of the Consideration [Abstract]
Fair value of Class A common stock issued at closing	$ 23,069
Fair value of Class A common stock held in escrow	1,349
Fair value of contingent consideration	1,471
Fair value of effective settlement of preexisting relationships	1,672
Transaction expenses paid on behalf of Intellibed	546
Due to seller	75
Fair value of total purchase consideration	$ 28,182

Acquisition - Schedule of Fair Value of the Assets Acquired and Liabilities (Details) $ in Thousands	Dec. 31, 2023 USD ($)
At Date of Acquisition [Member]
Acquisition - Schedule of Fair Value of the Assets Acquired and Liabilities (Details) [Line Items]
Cash, cash equivalents and restricted cash	$ 4,194
Accounts receivable	5,051
Inventory	4,182
Other current assets	126
Property and equipment	7,000
Operating lease right-of-use assets	5,491
Other long-term assets	68
Accounts payable	(2,285)
Other current liabilities	(2,818)
Operating lease obligations	(4,373)
Deferred tax liabilities	(3,868)
Net tangible assets (liabilities)	12,768
Goodwill	6,441
Customer relationships	8,476
Developed technology	615
Net assets acquired and liabilities assumed	28,300
Measurement Period Adjustments [Member]
Acquisition - Schedule of Fair Value of the Assets Acquired and Liabilities (Details) [Line Items]
Cash, cash equivalents and restricted cash	(418)
Accounts receivable	(443)
Inventory	(1,135)
Other current assets	200
Property and equipment
Operating lease right-of-use assets
Other long-term assets
Accounts payable	(460)
Other current liabilities	(313)
Operating lease obligations
Deferred tax liabilities	(416)
Net tangible assets (liabilities)	(2,985)
Goodwill	438
Customer relationships	2,400
Developed technology	29
Net assets acquired and liabilities assumed	(118)
Final Adjusted Balances [Member]
Acquisition - Schedule of Fair Value of the Assets Acquired and Liabilities (Details) [Line Items]
Cash, cash equivalents and restricted cash	3,776
Accounts receivable	4,608
Inventory	3,047
Other current assets	326
Property and equipment	7,000
Operating lease right-of-use assets	5,491
Other long-term assets	68
Accounts payable	(2,745)
Other current liabilities	(3,131)
Operating lease obligations	(4,373)
Deferred tax liabilities	(4,284)
Net tangible assets (liabilities)	9,783
Goodwill	6,879
Customer relationships	10,876
Developed technology	644
Net assets acquired and liabilities assumed	$ 28,182

Acquisition - Schedule of Future Results of Operations (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($)
Schedule of Future Results of Operations [Abstract]
Net revenues	$ 603,739
Net (loss) income	$ (86,119)

Restructuring, Impairment and Other Related Charges (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Aug. 31, 2024	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Restructuring and Impairment Charges [Line Items]
Accelerated depreciation		$ 11,200
Salvage value of property and equipment		5,200
Impairment of assets	$ 2,500	8,500
Impairment charge		20,238
Reduction of ROU asset		10,500
Leasehold Improvements [Member]
Restructuring and Impairment Charges [Line Items]
Impairment of assets		2,500
Indefinite-Lived Intangible Asset [Member]
Restructuring and Impairment Charges [Line Items]
Impairment charge		$ 8,500

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

Restructuring, Impairment and Other Related Charges - Schedule of Restructuring, Impairment and other Related Charges (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2024

Dec. 31, 2023

Dec. 31, 2022

Cash charges:

Operating Expenses, Cash charges

$ 273,315

$ 285,536

$ 250,845

Restructuring, Impairment and Other Related Charges, Cash charges

15,400

Non-cash charges:

Cost of Revenues, Total restructuring, impairment and other related charges

19,973

Cash charges [Member]

Cash charges:

Cost of Revenues, Cash charges

241

Operating Expenses, Cash charges

942

Restructuring, Impairment and Other Related Charges, Cash charges

3,626

Total, Cash charges

4,809

Cash charges [Member] | Employee-related costs [Member]

Cash charges:

Cost of Revenues, Cash charges

241

Operating Expenses, Cash charges

942

Restructuring, Impairment and Other Related Charges, Cash charges

3,098

Total, Cash charges

4,281

Cash charges [Member] | Other costs [Member]

Cash charges:

Cost of Revenues, Cash charges

Operating Expenses, Cash charges

Restructuring, Impairment and Other Related Charges, Cash charges

528

Total, Cash charges

528

Non-cash charges [Member]

Non-cash charges:

Cost of Revenues, Non-cash charges

15,201

Operating Expenses, Non-cash charges

Restructuring, Impairment and Other Related Charges, Non-cash charges

16,347

Total, Non-cash charges

31,548

Non-cash charges [Member] | Accelerated depreciation [Member]

Non-cash charges:

Cost of Revenues, Non-cash charges

11,175

Operating Expenses, Non-cash charges

Restructuring, Impairment and Other Related Charges, Non-cash charges

135

Total, Non-cash charges

11,310

Non-cash charges [Member] | Inventory write-downs [Member]

Non-cash charges:

Cost of Revenues, Non-cash charges

4,026

Operating Expenses, Non-cash charges

Restructuring, Impairment and Other Related Charges, Non-cash charges

Total, Non-cash charges

4,026

Non-cash charges [Member] | Write-down of long-lived assets [Member]

Non-cash charges:

Cost of Revenues, Non-cash charges

Operating Expenses, Non-cash charges

Restructuring, Impairment and Other Related Charges, Non-cash charges

5,245

Total, Non-cash charges

5,245

Non-cash charges [Member] | Impairment of assets [Member]

Non-cash charges:

Cost of Revenues, Non-cash charges

Operating Expenses, Non-cash charges

Restructuring, Impairment and Other Related Charges, Non-cash charges

10,967

Total, Non-cash charges

10,967

Total restructuring, impairment and other related charges [Member]

Non-cash charges:

Cost of Revenues, Total restructuring, impairment and other related charges

15,442

Operating Expenses, Total restructuring, impairment and other related charges

942

Restructuring, Impairment and Other Related Charges, Total restructuring, impairment and other related charges

19,973

Total, Total restructuring, impairment and other related charges

36,357

Restructuring Plan [Member]

Cash charges:

Cost of Revenues, Cash charges

Operating Expenses, Cash charges

Restructuring, Impairment and Other Related Charges, Cash charges

2,926

Total, Cash charges

2,926

Non-cash charges:

Cost of Revenues, Non-cash charges

1,592

Operating Expenses, Non-cash charges

Restructuring, Impairment and Other Related Charges, Non-cash charges

64

Total, Non-cash charges

1,656

Cost of Revenues, Total restructuring, impairment and other related charges

^[1]

1,592

Operating Expenses, Total restructuring, impairment and other related charges

^[1]

Restructuring, Impairment and Other Related Charges, Total restructuring, impairment and other related charges

^[1]

2,990

Total, Total restructuring, impairment and other related charges

^[1]

$ 4,582

[1]

These charges include certain estimates that are provisional and include management judgments and assumptions that could change materially as the Company completes the execution of the Restructuring Plan. Actual results may differ from these estimates, and the completion of the plan could result in additional restructuring, impairment or other related charges not reflected above.

Restructuring, Impairment and Other Related Charges - Schedule of Accounts Payable or Accrued Compensation (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2024 USD ($)
Schedule of Accounts Payable or a Accrued Compensation [Line Items]
Balance at beginning
Cost for restructuring	15,400
Cash paid	(3,816)
Balance at ending	993
Employee-related costs – cost of revenues [Member]
Schedule of Accounts Payable or a Accrued Compensation [Line Items]
Cost for restructuring	241
Employee-related costs – operating expenses [Member]
Schedule of Accounts Payable or a Accrued Compensation [Line Items]
Cost for restructuring	942
Employee-related costs – restructuring charges [Member]
Schedule of Accounts Payable or a Accrued Compensation [Line Items]
Cost for restructuring	3,098
Other costs – restructuring charges [Member]
Schedule of Accounts Payable or a Accrued Compensation [Line Items]
Cost for restructuring	$ 528

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Revenue from Contracts with Customers [Abstract]
Customer prepayments	$ 6,411	$ 5,718

Revenue from Contracts with Customers - Schedule of Revenue Disaggregated by Sales Channel (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Schedule of Revenue Disaggregated by Sales Channel and Product [Line Items]
Revenues, net	$ 487,877	$ 510,541	$ 573,201
e-commerce [Member] \| Sales Channel [Member]
Schedule of Revenue Disaggregated by Sales Channel and Product [Line Items]
Revenues, net	206,300	223,607	267,370
Wholesale [Member] \| Sales Channel [Member]
Schedule of Revenue Disaggregated by Sales Channel and Product [Line Items]
Revenues, net	204,214	213,843	242,698
Showrooms [Member] \| Sales Channel [Member]
Schedule of Revenue Disaggregated by Sales Channel and Product [Line Items]
Revenues, net	$ 77,363	$ 73,091	$ 63,133

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

- Definition

Amount of revenue recognized from goods sold, services rendered, insurance premiums, or other activities that constitute an earning process. Includes, but is not limited to, investment and interest income before deduction of interest expense when recognized as a component of revenue, and sales and trading gain (loss).

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 48
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482785/280-10-55-48

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 11: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 24: http://www.xbrl.org/2003/role/disclosureRef
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-Publisher FASB
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+ Details

Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Schedule of Inventories [Abstract]
Raw materials	$ 20,193	$ 23,232
Work-in-process	6,602	5,962
Finished goods	30,068	37,684
Inventories	$ 56,863	$ 66,878

Property and Equipment (Details) - USD ($) $ in Millions	12 Months Ended
Property and Equipment (Details) - USD ($) $ in Millions	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Property and Equipment [Abstract]
Interest capitalized borrowings	$ 1.1	$ 1.5	$ 0.7
Depreciation expense	31.0	$ 19.7	$ 16.2
Accelerated depreciation	$ 11.3

Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Schedule of Property and Equipment [Line Items]
Property and equipment, gross	$ 176,276	$ 181,885
Accumulated depreciation	(82,402)	(53,224)
Property and equipment, net	93,874	128,661
Equipment [Member]
Schedule of Property and Equipment [Line Items]
Property and equipment, gross	70,900	72,424
Equipment in progress [Member]
Schedule of Property and Equipment [Line Items]
Property and equipment, gross	13,130	15,077
Leasehold improvements [Member]
Schedule of Property and Equipment [Line Items]
Property and equipment, gross	57,936	60,563
Furniture and fixtures [Member]
Schedule of Property and Equipment [Line Items]
Property and equipment, gross	32,699	31,084
Office equipment [Member]
Schedule of Property and Equipment [Line Items]
Property and equipment, gross	$ 1,611	$ 2,737

Leases (Details) - USD ($) $ in Millions	12 Months Ended
Leases (Details) - USD ($) $ in Millions	Dec. 31, 2024	Dec. 31, 2023
Leases [Line Items]
Initial lease term	16 years
Finance lease ROU asset (in Dollars)	$ 1.0	$ 0.7
Remaining years	5 years
Weighted-average remaining term of operating leases	6 years 9 months 18 days	8 years
Weighted-average discount rate percentage	6.09%	5.77%
Purple Showrooms [Member]
Leases [Line Items]
Initial lease term	10 years
Minimum [Member]
Leases [Line Items]
Operating and finance leases with initial lease terms	3 years
Maximum [Member]
Leases [Line Items]
Operating and finance leases with initial lease terms	5 years

Leases - Schedule of Lease Costs (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Schedule of Lease Costs [Abstract]
Operating lease costs	$ 19,460	$ 19,466	$ 15,743
Variable lease costs	4,338	4,121	2,311
Short-term lease costs			11
Total lease costs	$ 23,798	$ 23,587	$ 18,065

Leases - Schedule of Operating Lease Liabilities (Details) $ in Thousands	Dec. 31, 2024 USD ($)
Schedule of Operating Lease Liabilities [Abstract]
2025	$ 21,361
2026	20,623
2027	18,012
2028	17,661
2029	14,502
Thereafter	33,215
Total operating lease payments	125,374
Less – lease payments representing interest	(22,641)
Present value of operating lease payments	$ 102,733

Leases - Schedule of Supplemental Information Related to the Company’s Consolidated Statement of Cash Flows (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2024

Dec. 31, 2023

Dec. 31, 2022

Schedule of Supplemental Information Related to the Company’s Consolidated Statement of Cash Flows [Abstract]

Cash paid for amounts included in present value of operating lease liabilities

^[1]

$ 23,033

$ 20,817

$ 15,109

ROU assets obtained in exchange for operating lease liabilities

$ 8,516

$ 8,435

$ 38,599

[1]	Operating cash flows paid for operating leases are included within the change in operating leases, net within the Consolidated Statements of Cash Flows offset by non-cash ROU asset amortization and lease liability accretion.

Intangible Assets (Details) - USD ($) $ in Millions	12 Months Ended
Intangible Assets (Details) - USD ($) $ in Millions	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Intangible Assets [Abstract]
Amortization expense for intangible assets	$ 4.2	$ 5.3	$ 1.2

Intangible Assets - Schedule of Components of Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Definite-lived amortizing:
Definite-lived amortizing, Useful life	3 years
Definite-lived amortizing, Net Carrying Value
Intangible assets, Gross Cost	28,652	29,329
Intangible assets, Accumulated Amortization	(11,306)	(7,133)
Intangible assets, Impairment	(8,456)
Intangible assets, Net Carrying Value	$ 8,890	22,196
Internet domain [Member]
Definite-lived amortizing:
Definite-lived amortizing, Useful life	15 years
Definite-lived amortizing, Gross Cost	$ 900	900
Definite-lived amortizing, Accumulated Amortization	(430)	(370)
Definite-lived amortizing, Impairment
Definite-lived amortizing, Net Carrying Value	$ 470	530
Customer relationships [Member]
Definite-lived amortizing:
Definite-lived amortizing, Useful life	10 years
Definite-lived amortizing, Gross Cost	$ 10,876	10,876
Definite-lived amortizing, Accumulated Amortization	(4,492)	(2,286)
Definite-lived amortizing, Impairment
Definite-lived amortizing, Net Carrying Value	$ 6,384	8,590
Developed technology [Member]
Definite-lived amortizing:
Definite-lived amortizing, Useful life	2 years
Definite-lived amortizing, Gross Cost	$ 644	644
Definite-lived amortizing, Accumulated Amortization	(644)	(429)
Definite-lived amortizing, Impairment
Definite-lived amortizing, Net Carrying Value		215
Internal-use software [Member]
Definite-lived amortizing:
Definite-lived amortizing, Useful life	3 years
Definite-lived amortizing, Gross Cost	$ 7,746	8,423
Definite-lived amortizing, Accumulated Amortization	(5,740)	(4,048)
Definite-lived amortizing, Impairment
Definite-lived amortizing, Net Carrying Value	2,006	4,375
Intellectual property [Member]
Indefinite-lived non-amortizing:
Indefinite-lived non-amortizing, Gross Cost	8,456	8,456
Indefinite-lived non-amortizing, Accumulated Amortization
Indefinite-lived non-amortizing, Impairment	(8,456)
Indefinite-lived non-amortizing, Net Carrying Value		8,456
Trademarks [Member]
Indefinite-lived non-amortizing:
Indefinite-lived non-amortizing, Gross Cost	30	30
Indefinite-lived non-amortizing, Accumulated Amortization
Indefinite-lived non-amortizing, Impairment
Indefinite-lived non-amortizing, Net Carrying Value	$ 30	$ 30

Intangible Assets - Schedule of Amortization Expense for Definite-Lived Intangible Assets (Details) $ in Thousands	Dec. 31, 2024 USD ($)
Schedule of Amortization Expense for Definite-Lived Intangible Assets [Abstract]
2025	$ 3,035
2026	2,111
2027	1,391
2028	791
2029	570
Thereafter	962
Total future amortization for definite-lived intangible assets	$ 8,860

Other Current Liabilities - Schedule of Other Current Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Schedule of Other Current Liabilities [Abstract]
Accrued sales returns	$ 6,515	$ 5,404	$ 5,107	$ 7,116
Accrued sales and use tax	2,994	1,949
Long-term debt and unamortized issuance costs - current portion		2,129
Asset retirement obligation	1,440
Insurance financing	1,328	1,079
Accrued interest		506
Other	473	1,423
Total other current liabilities	$ 12,750	$ 12,490

- Definition

Amount of unamortized debt discount (premium) and debt issuance costs.

+ References + Details

Debt (Details) - USD ($) $ in Thousands, shares in Millions				12 Months Ended
Debt (Details) - USD ($) $ in Thousands, shares in Millions	Jan. 23, 2024	Aug. 31, 2023	Feb. 17, 2023	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022	Aug. 07, 2024	Mar. 31, 2024	Oct. 31, 2023	Sep. 30, 2023	Sep. 03, 2020
Debt [Line Items]
Term loan				$ 70,679
Outstanding balance			$ 24,700
Net proceeds	$ 27,000				$ 25,000
Financing rate, percentage	3.50%
Prepayment penalty rate							2.50%
Warrants issued (in Shares)				20.0
Debt issuance costs			1,200
Interest expense credit agreement					1,300	$ 4,100
Debt issuance cost amortization				$ 7,200
Incremental term loans available				$ 5,000
Borrowing rates				8.50%
Revolving loans				$ 50,000
Incremental increases available to loans				20,000
Lenders reserve									$ 5,000
Unamortized debt issuance costs					(2,129)
Debt issuance fees and expenses			$ 2,900
Purple LLC [Member]
Debt [Line Items]
Financing rate, percentage	8.25%
Pay interest rate	10.25%
Federal Reserve Bank of New York [Member]
Debt [Line Items]
Financing rate, percentage	0.10%
SOFR [Member]
Debt [Line Items]
Borrowing rates				2.00%
ABL Loans [Member]
Debt [Line Items]
Executed loan amount		$ 17,000
Borrowings repaid		12,000
Outstanding balance of loans					5,000
2024 Credit Agreement [Member]
Debt [Line Items]
Prepayment penalty rate							1.25%
Aggregate amount	$ 19,000
Debt issuance costs								$ 3,500
2023 Credit Agreement [Member]
Debt [Line Items]
Term loan		$ 25,000		$ 25,000
Debt issuance costs										$ 3,100
Interest expense credit agreement				$ 400	$ 2,100
Unamortized debt issuance costs								$ 3,400
Term Loan Agreement [Member]
Debt [Line Items]
Borrowing rates				0.15%
2020 Credit Agreement [Member]
Debt [Line Items]
Term loan											$ 45,000
Amount of revolving line of credit											$ 55,000
Related Party Loan [Member]
Debt [Line Items]
Term loan	61,000
Related Party Loan [Member] \| 2024 Credit Agreement [Member]
Debt [Line Items]
Interest expense credit agreement				$ 9,700
Term Loans [Member]
Debt [Line Items]
Outstanding balance	25,000
Asset Based Lending Loans [Member]
Debt [Line Items]
Outstanding balance	$ 5,000

Debt - Schedule of Debt (Details) - USD ($)
$ in Thousands

Dec. 31, 2024

Dec. 31, 2023

Schedule of Debt [Abstract]

Related party loan

$ 70,679

Term loan

25,000

Revolving line of credit

5,000

Less: unamortized debt issuance costs

(15,285)

(962)

Total debt

55,394

29,038

Current portion of debt and unamortized issuance costs

^[1]

(2,129)

Debt, net of current portion

$ 55,394

$ 26,909

[1]	– Amount is included in other current liabilities in the consolidated balance sheet

- Definition

The carrying value as of the balance sheet date of the noncurrent portion of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement.

+ References + Details

Debt - Schedule of Maturities of Debt Outstanding (Details) $ in Thousands	Dec. 31, 2024 USD ($)
Schedule of Maturities of Debt Outstanding [Abstract]
2025
2026	70,679
2027
2028
2029
Thereafter
Total	$ 70,679

- Definition

Amount, after deduction of unamortized premium (discount) and debt issuance cost, of long-term debt. Excludes lease obligation.

+ References + Details

Warrant Liabilities (Details) - USD ($) $ / shares in Units, $ in Thousands		12 Months Ended
	Jan. 23, 2024	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022	Feb. 28, 2023
Warrant Liabilities [Line Items]
Warrant issued		20,000,000
Purchase of each warrants	1	1
Warrants term	10 years
Warrant fair value		$ (3,504)		$ (4,343)
Recognized gain (loss)		3,500
Warrants outstanding		$ 16,067
Warrant [Member]
Warrant Liabilities [Line Items]
Warrant issued	20,000,000	20,000,000
Warrant price		$ 0.01
Warrant fair value		$ 16,100
Sponsor warrants [Member]
Warrant Liabilities [Line Items]
Warrant issued		12,800,000
Warrant fair value
Recognized gain (loss)				4,300
Unexercised warrants expired					1,900,000
Warrants outstanding				$ 1,900
Class A Common Stock [Member]
Warrant Liabilities [Line Items]
Warrant price		$ 1.5
Outstanding shares percentage	49.90%
Class A Common Stock [Member] \| Warrant [Member]
Warrant Liabilities [Line Items]
Warrant price	$ 1.5	24
Class A Common Stock [Member] \| Minimum [Member] \| Sponsor warrants [Member]
Warrant Liabilities [Line Items]
Warrant price		5.75
Class A Common Stock [Member] \| Maximum [Member] \| Sponsor warrants [Member]
Warrant Liabilities [Line Items]
Warrant price		$ 11.5

Warrant Liabilities - Schedule of Fair Value of the Warrants (Details)	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Trading price of common stock on measurement date [Member] \| Monte Carlo Simulation model [Member]
Schedule of Fair Value of the Warrants [Line Items]
Fair Value of Warrants	0.78	0.82
Trading price of common stock on measurement date [Member] \| Black-Scholes Model [Member]
Schedule of Fair Value of the Warrants [Line Items]
Fair Value of Warrants			4.79
Exercise price [Member] \| Monte Carlo Simulation model [Member]
Schedule of Fair Value of the Warrants [Line Items]
Fair Value of Warrants	1.5	1.5
Exercise price [Member] \| Black-Scholes Model [Member]
Schedule of Fair Value of the Warrants [Line Items]
Fair Value of Warrants			5.75
Risk free interest rate [Member] \| Monte Carlo Simulation model [Member]
Schedule of Fair Value of the Warrants [Line Items]
Fair Value of Warrants	4.45	4.14
Risk free interest rate [Member] \| Black-Scholes Model [Member]
Schedule of Fair Value of the Warrants [Line Items]
Fair Value of Warrants			4.04
Warrant life in years [Member] \| Monte Carlo Simulation model [Member]
Schedule of Fair Value of the Warrants [Line Items]
Fair Value of Warrants	9.1	10
Warrant life in years [Member] \| Black-Scholes Model [Member]
Schedule of Fair Value of the Warrants [Line Items]
Fair Value of Warrants			0.1
Expected volatility [Member] \| Monte Carlo Simulation model [Member]
Schedule of Fair Value of the Warrants [Line Items]
Fair Value of Warrants	88	88.62
Expected volatility [Member] \| Black-Scholes Model [Member]
Schedule of Fair Value of the Warrants [Line Items]
Fair Value of Warrants			80.59
Expected dividend yield [Member] \| Monte Carlo Simulation model [Member]
Schedule of Fair Value of the Warrants [Line Items]
Fair Value of Warrants
Expected dividend yield [Member] \| Black-Scholes Model [Member]
Schedule of Fair Value of the Warrants [Line Items]
Fair Value of Warrants
Probability of an event causing a warrant re-price [Member] \| Monte Carlo Simulation model [Member]
Schedule of Fair Value of the Warrants [Line Items]
Fair Value of Warrants	25	25

Other Long-Term Liabilities - Schedule of Other Long-Term Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Schedule of Other Long-Term Liabilities [Abstract]
Asset retirement obligations	$ 1,098	$ 2,230
Other	911	5
Total other long-term liabilities	$ 2,009	$ 2,235

Other Long-Term Liabilities - Schedule of ARO Liabilities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Schedule of ARO Liabilities [Abstract]
Balance at beginning of period	$ 2,230	$ 2,099
Revisions in estimated retirement obligations	277
Accretion expense	133	131
Payments	(102)
Balance at end of period	2,538	2,230
ARO liability classified as other current liabilities	(1,440)
ARO liability classified as other long-term liabilities	$ 1,098	$ 2,230

Commitments and Contingencies (Details) - USD ($) $ in Thousands						1 Months Ended			12 Months Ended
	Jun. 30, 2024	Apr. 16, 2024	Jan. 26, 2024	Apr. 03, 2023	Dec. 16, 2022	Aug. 31, 2025	Feb. 28, 2025	Aug. 31, 2024	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Commitments and Contingencies [Line Items]
Percentage of special recognition bonus payment								10.00%
Compensation expense									$ 2,815	$ 4,875	$ 3,366
Received for full settlement									11,600
Net operating losses	$ 238,000										$ 1,400
Unpaid salary					$ 500,000
Plaintiffs seek damages value		$ 2,500
Rent		$ 800
InnoHold, LLC [Member]
Commitments and Contingencies [Line Items]
Plaintiffs seek damages value				$ 3,000
Senior Leadership Team Special Recognition Bonus [Member]
Commitments and Contingencies [Line Items]
Compensation expense									$ 3,100
Chief Executive Officer [Member]
Commitments and Contingencies [Line Items]
Cash payment			$ 5,000
Forecast [Member]
Commitments and Contingencies [Line Items]
Percentage of special recognition bonus payment						70.00%	20.00%

Related-Party Transactions (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Purple LLC [Member]
Related-Party Transactions [Line Items]
Rent expense	$ 0.8	$ 1.0

Stockholders’ Equity (Details) - USD ($) $ / shares in Units, $ in Millions		12 Months Ended
	Jun. 27, 2024	Dec. 31, 2024	Jan. 23, 2024	Dec. 31, 2023	Feb. 28, 2023	Oct. 03, 2022
Stockholders’ Equity [Line Items]
Current NOL (in Dollars)	$ 238.0	$ 64.7
Percentage of outstanding common stock	4.90%	50.00%
Number of exchanging shares (in Shares)		1
Warrants issued (in Shares)		20,000,000
Number of shares.		1
Exercise warrants percentage		49.90%
Warrant [Member]
Stockholders’ Equity [Line Items]
Warrants issued (in Shares)		20,000,000	20,000,000
Warrants exercisable price per share (in Dollars per share)		$ 0.01
Sponsor Warrants [Member]
Stockholders’ Equity [Line Items]
Warrants issued (in Shares)		12,800,000
Unexercised warrants expired (in Shares)					1,900,000
NOL Rights Plan [Member]
Stockholders’ Equity [Line Items]
Noncontrolling interest percentage	50.00%
Purple LLC [Member]
Stockholders’ Equity [Line Items]
Noncontrolling interest percentage		0.20%		0.20%		100.00%
Minimum [Member]
Stockholders’ Equity [Line Items]
Trading days		20
Maximum [Member]
Stockholders’ Equity [Line Items]
Trading days		30
NOL Protective Charter Amendment [Member]
Stockholders’ Equity [Line Items]
Percentage of outstanding common stock	4.90%
Preferred Stock [Member]
Stockholders’ Equity [Line Items]
Preferred stock authorized (in Shares)		5,000,000
NOL Rights Plan [Member]
Stockholders’ Equity [Line Items]
Aggregate common stock percentage	5.00%
Class A common stock [Member]
Stockholders’ Equity [Line Items]
Common stock authorized (in Shares)		210,000,000		210,000,000
Vote for each share		one
Common stock, shares outstanding (in Shares)		107,545,000		105,507,000
Price per share (in Dollars per share)		$ 0.0001		$ 0.0001
Warrants exercisable price per share (in Dollars per share)		1.5
Class A common stock [Member] \| Warrant [Member]
Stockholders’ Equity [Line Items]
Warrants exercisable price per share (in Dollars per share)		24	$ 1.5
Class A common stock [Member] \| Minimum [Member] \| Sponsor Warrants [Member]
Stockholders’ Equity [Line Items]
Warrants exercisable price per share (in Dollars per share)		5.75
Class A common stock [Member] \| Maximum [Member] \| Sponsor Warrants [Member]
Stockholders’ Equity [Line Items]
Warrants exercisable price per share (in Dollars per share)		$ 11.5
Class B Common Stock [Member]
Stockholders’ Equity [Line Items]
Common stock authorized (in Shares)		90,000,000		90,000,000
Common stock, shares outstanding (in Shares)		165,000		205,000
Price per share (in Dollars per share)		$ 0.0001		$ 0.0001
Series C Preferred Shares [Member]
Stockholders’ Equity [Line Items]
Preferred stock authorized (in Shares)	300,000
Per share (in Dollars per share)	$ 0.0001
Purchase price per share (in Dollars per share)		2.75
Common Stock [Member]
Stockholders’ Equity [Line Items]
Percentage of outstanding common stock	4.90%
IPO [Member] \| Sponsor Warrants [Member]
Stockholders’ Equity [Line Items]
Warrants exercisable price per share (in Dollars per share)		$ 12,800,000

Net Loss Per Common Share - Schedule of Basic and Diluted Weighted Average Shares Outstanding and Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Numerator:
Net loss attributable to Purple Innovation, Inc. – basic	$ (97,897)	$ (120,757)	$ (92,470)
Less: Net loss attributable to noncontrolling interest	(201)	(458)
Net loss attributable to Purple Innovation, Inc. – diluted	$ (98,098)	$ (121,215)	$ (92,470)
Denominator
Weighted average shares – basic	107,139	103,602	81,779
Add: Dilutive effect of Class B shares	185	334
Weighted average shares – diluted	107,324	103,936	81,779
Net loss per common share:
Basic	$ (0.91)	$ (1.17)	$ (1.13)
Diluted	$ (0.91)	$ (1.17)	$ (1.13)

Net Loss Per Common Share - Schedule of Diluted Net Loss Per Common Share (Details) - shares	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Diluted net loss per common share	20,000
Sponsor Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Diluted net loss per common share		928	928
Restricted Stock Units (RSUs) [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Diluted net loss per common share	2,006	1,423	679
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Diluted net loss per common share	529	863	819
Class B Common Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Diluted net loss per common share			448

Equity Compensation Plans (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions								12 Months Ended
	Mar. 25, 2024	Jun. 30, 2023	Mar. 25, 2023	Dec. 31, 2022	Jun. 30, 2022	Apr. 30, 2022	Mar. 31, 2022	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Equity Compensation Plans [Line Items]
Total non-cash stock-based compensation (in Dollars)								$ 2,815	$ 4,875	$ 3,366
Options, granted
Rescinded and cancelled
Proceeds from exercise of stock options (in Dollars)				$ 100						166
Fair value of stock options vested (in Dollars)								$ 100	$ 600	$ 700
Restricted stock options granted									1.2	0.6
2017 Equity Incentive Plan [Member]
Equity Compensation Plans [Line Items]
Stock-based compensation tax benefits recognized								7.9
Shares available for issuance								2.4
Total non-cash stock-based compensation (in Dollars)								$ 2,800	$ 4,900	$ 3,400
Stock-based compensation tax benefits recognized (in Dollars)								$ 900	1,500	$ 900
Rescinded and cancelled						0.4
Restricted stock options granted								0.4
2017 Equity Incentive Plan [Member] \| Amended and Restated Grant Agreements [Member]
Equity Compensation Plans [Line Items]
Total non-cash stock-based compensation (in Dollars)									$ 800
Amended and Restated Grant Agreements [Member] \| 2017 Equity Incentive Plan [Member]
Equity Compensation Plans [Line Items]
Stock options and restricted stock unit awards, description								the Company entered into amended and restated grant agreements relating to stock options and restricted stock unit awards previously granted to the Company’s chief executive officer in March 2022 and June 2022
Restricted stock units and stock options vest	0.3		0.3
Employee Stock [Member]
Equity Compensation Plans [Line Items]
Options, granted		0.3
Weighted average exercise price, forfeited (in Dollars per share)		$ 6.82
Restricted Stock Units (RSUs) [Member]
Equity Compensation Plans [Line Items]
Shares issued							1.2
Weighted average grant date fair value per share (in Dollars per share)								$ 1.03
Weighted average grant date fair value (in Dollars per share)								3.57
Weighted average grant date fair value per share (in Dollars per share)				$ 3.71				$ 1.13	$ 1.92	$ 3.71
Stock option expense (in Dollars)								$ 2,800	$ 3,700	$ 2,100
Restricted Stock Units (RSUs) [Member] \| 2017 Equity Incentive Plan [Member]
Equity Compensation Plans [Line Items]
Shares issued							0.2
Restricted stock options granted					0.1		0.5	1.8	2.4	1.1
Weighted average grant date fair value per share (in Dollars per share)								$ 1
Weighted average grant date fair value (in Dollars per share)									$ 2.75	$ 5.53
Restricted stock grant date fair value per share (in Dollars per share)					$ 4.81		$ 6.32
Unrecognized stock compensation (in Dollars)								$ 3,300
Unrecognized stock compensation period								1 year 7 months 6 days
2017 Equity Incentive Plan [Member]
Equity Compensation Plans [Line Items]
Stock-based compensation tax benefits recognized			0.3
Class A Common Stock [Member] \| 2017 Equity Incentive Plan [Member]
Equity Compensation Plans [Line Items]
Total non-cash stock-based compensation (in Dollars)									$ 600	$ 600
Options, granted
Shares issued									0.2	0.1
Employee Stock [Member]
Equity Compensation Plans [Line Items]
Total non-cash stock-based compensation (in Dollars)									$ 500	$ 700
Fair value of stock options vested (in Dollars)		$ 100
Remaining recognition period								3 months 18 days
Proceeds from exercise of stock options (in Dollars)										$ 200
Tax benefit exercise stock option (in Dollars)				$ 400
Employee Stock [Member] \| 2017 Equity Incentive Plan [Member]
Equity Compensation Plans [Line Items]
Options, granted					0.1		0.5
Shares issued								0.2
Weighted average exercise price, forfeited (in Dollars per share)					$ 6.82
Rescinded and cancelled						0.4
Employee Stock [Member] \| 2017 Equity Incentive Plan [Member]
Equity Compensation Plans [Line Items]
Fair value of stock options vested (in Dollars)								$ 400

Equity Compensation Plans - Schedule of Fair Value of the Stock Options Granted using the Black Scholes Method (Details) - Black-Scholes method [Member] - $ / shares	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Equity Compensation Plans - Schedule of Fair Value of the Stock Options Granted using the Black Scholes Method (Details) [Line Items]
Weighted average grant date value (in Dollars per share)	$ 0.22	$ 2.02
Risk free rate	4.48%	2.67%
Dividend yield
Expected volatility	44.98%	54.22%
Expected term in years	2 years 6 months 29 days	3 years 5 months 12 days

Equity Compensation Plans - Schedule of Total Stock Option Activity (Details) - Stock Option [Member] - USD ($)		12 Months Ended
	Dec. 31, 2023	Dec. 31, 2024
Schedule of Total Stock Option Activity [Line Items]
Options, outstanding beginning	863,000
Weighted Average Exercise Price, Options outstanding beginning	$ 8.13
Weighted Average Remaining Contractual Term in Years, Options outstanding beginning	2 years 2 months 12 days	2 years 2 months 12 days
Intrinsic Value, Options outstanding beginning
Options, Granted
Weighted Average Exercise Price, Granted
Weighted Average Remaining Contractual Term in Years, Granted
Intrinsic Value, Granted
Options, Forfeited
Weighted Average Exercise Price, Forfeited
Weighted Average Remaining Contractual Term in Years, Forfeited
Intrinsic Value, Forfeited
Options, Expired		(334,000)
Weighted Average Exercise Price, Expired		$ 9.67
Weighted Average Remaining Contractual Term in Years, Expired
Intrinsic Value, Expired
Options, outstanding ending		529,000
Weighted Average Exercise Price, Options outstanding ending		$ 7.17
Weighted Average Remaining Contractual Term in Years, Options outstanding ending	2 years 2 months 12 days	2 years 2 months 12 days
Intrinsic Value, Options outstanding ending

Equity Compensation Plans - Schedule of Outstanding and Exercisable Stock Options (Details) shares in Thousands	12 Months Ended
	Dec. 31, 2024 USD ($) $ / shares shares
Schedule of Outstanding and Exercisable Stock Options [Line Items]
Options Outstanding Number of Options Outstanding	529
Options Outstanding Weighted Average Remaining Life (Years)	2 years 2 months 12 days
Options Exercisable, Number of Options Exercisable	362
Options Exercisable, Weighted Average Remaining Life (Years)	2 years 1 month 6 days
Options Exercisable, Intrinsic Value \| $
6.82 [Member]
Schedule of Outstanding and Exercisable Stock Options [Line Items]
Options Outstanding, Exercise Prices \| $ / shares	$ 6.82
Options Outstanding Number of Options Outstanding	500
Options Outstanding Weighted Average Remaining Life (Years)	2 years 3 months 18 days
Options Exercisable, Number of Options Exercisable	333
Options Exercisable, Weighted Average Remaining Life (Years)	2 years 3 months 18 days
Options Exercisable, Intrinsic Value \| $
13.12 [Member]
Schedule of Outstanding and Exercisable Stock Options [Line Items]
Options Outstanding, Exercise Prices \| $ / shares	$ 13.12
Options Outstanding Number of Options Outstanding	29
Options Outstanding Weighted Average Remaining Life (Years)	4 months 24 days
Options Exercisable, Number of Options Exercisable	29
Options Exercisable, Weighted Average Remaining Life (Years)	4 months 24 days
Options Exercisable, Intrinsic Value \| $

Equity Compensation Plans - Schedule of Unvested Stock Option Activity (Details)	12 Months Ended
	Dec. 31, 2024 $ / shares shares
Schedule of Unvested Stock Option Activity [Line Items]
Options, Nonvested options beginning \| shares	337,000
Weighted Average Grant Date Fair Value, Nonvested options beginning \| $ / shares	$ 0.41
Options, Granted \| shares
Weighted Average Grant Date Fair Value, Granted \| $ / shares
Options, Vested \| shares	(170,000)
Weighted Average Grant Date Fair Value, Vested \| $ / shares	$ 0.59
Options, Forfeited \| shares
Weighted Average Grant Date Fair Value, Forfeited \| $ / shares
Options, Nonvested options ending \| shares	167,000
Weighted Average Grant Date Fair Value, Nonvested options ending \| $ / shares	$ 0.22

Equity Compensation Plans - Schedule of Weighted Average Grant Date Fair Value (Details) - Employee Restricted Stock Units [Member] - $ / shares	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Equity Compensation Plans - Schedule of Weighted Average Grant Date Fair Value (Details) [Line Items]
Trading price of common stock on measurement date (in Dollars per share)	$ 1.5	$ 2.72	$ 5.33
Risk free interest rate	4.46%	4.29%	2.89%
Expected life in years	3 years	2 years 8 months 12 days	2 years 10 months 24 days
Expected volatility	97.10%	89.90%	85.10%
Expected dividend yield

Equity Compensation Plans - Schedule of Restricted Stock Unit Activity (Details) - Restricted Stock Unit [Member]	12 Months Ended
	Dec. 31, 2024 $ / shares shares
Schedule of Restricted Stock Unit Activity [Line Items]
Options at beginning \| shares	3,057,000
Weighted Average Grant Date Fair Value, Nonvested restricted stock units as of beginning \| $ / shares	$ 2.97
Options, Granted \| shares	1,828,000
Weighted Average Grant Date Fair Value, Granted \| $ / shares	$ 1.03
Options, Vested \| shares	(571,000)
Weighted Average Grant Date Fair Value, Vested \| $ / shares	$ 3.57
Options, Forfeited \| shares	(506,000)
Weighted Average Grant Date Fair Value, Forfeited \| $ / shares	$ 3.31
Options at ending \| shares	3,808,000
Weighted Average Grant Date Fair Value, Nonvested restricted stock units as of ending \| $ / shares	$ 1.91

Equity Compensation Plans - Schedule of Non-Cash Stock Compensation Recognized in the Statement of Operations (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Schedule of Non-Cash Stock Compensation and Statement of Operations [Line Items]
Total non-cash stock-based compensation	$ 2,815	$ 4,875	$ 3,366
Cost of revenues [Member]
Schedule of Non-Cash Stock Compensation and Statement of Operations [Line Items]
Total non-cash stock-based compensation	398	285	305
Marketing and sales [Member]
Schedule of Non-Cash Stock Compensation and Statement of Operations [Line Items]
Total non-cash stock-based compensation	489	616	863
General and administrative [Member]
Schedule of Non-Cash Stock Compensation and Statement of Operations [Line Items]
Total non-cash stock-based compensation	1,621	3,730	2,033
Research and development [Member]
Schedule of Non-Cash Stock Compensation and Statement of Operations [Line Items]
Total non-cash stock-based compensation	$ 307	$ 244	$ 165

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 35
-Paragraph 1D
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480483/718-10-35-1D

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 35
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480483/718-10-35-3

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)(1)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)(2)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)(3)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(i)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(ii)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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Reference 27: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
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Reference 28: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
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-Section 50
-Paragraph 2
-Subparagraph (f)(2)(v)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

+ Details

Employee Retirement Plan (Details) - Supplemental Employee Retirement Plan [Member] - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Employee Retirement Plan [Line Items]
Employee contributions percentage	5.00%
Contribution expense	$ 3.9	$ 3.8	$ 3.6

Segment Information and Concentrations (Details)	12 Months Ended
Segment Information and Concentrations (Details)	Dec. 31, 2024 USD ($)	Dec. 31, 2023	Dec. 31, 2022
Segment Information and Concentrations [Line Items]
Net revenues percentage	3.00%	3.00%	3.00%
Insured by the federal deposit insurance corporation (in Dollars)	$ 250,000
Customers [Member]
Segment Information and Concentrations [Line Items]
Net revenues percentage	2.00%	2.00%	2.00%
Customer Concentration Risk [Member] \| Customer One [Member] \| Accounts Receivable [Member]
Segment Information and Concentrations [Line Items]
Concentration risk percentage	29.00%	23.00%
Customer Concentration Risk [Member] \| Customer One [Member] \| Revenue Benchmark [Member]
Segment Information and Concentrations [Line Items]
Concentration risk percentage	13.00%	10.00%	15.00%
Omni-Channel [Member]
Segment Information and Concentrations [Line Items]
Reportable segment	1
E-Commerce Online Channels [Member]
Segment Information and Concentrations [Line Items]
Reportable segment	1

Segment Information and Concentrations - Schedule of Summarizes Segment Revenue, Significant Segment Expenses (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2024

Dec. 31, 2023

Dec. 31, 2022

Schedule of Summarizes Segment Revenue, Significant Segment Expenses [Line Items]

Revenues, net

$ 487,877

$ 510,541

$ 573,201

Reductions (additions):

Cost of revenues

306,745

338,716

365,110

Advertising expense

65,198

72,372

66,645

Marketing sales expense

33,778

36,741

39,388

Wholesale marketing and sales expense

20,081

23,016

21,340

Showroom marketing and sales expense

52,206

50,184

38,015

General and administrative expense

69,117

84,446

76,702

Research and development expense

12,962

11,898

8,755

Restructuring, impairment and other related charges

19,973

Loss on impairment of goodwill

6,879

Other segment items, net

^[1]

5,852

7,496

(1,230)

Tax receivable agreement income

(161,970)

Income tax expense

63

8

213,169

Net loss attributable to noncontrolling interest

(201)

(458)

(253)

Segment net loss

(97,897)

(120,757)

(92,470)

Cost of revenues [Member]

Reductions (additions):

Cost of revenues

291,303

338,716

365,110

restructuring related charges [Member]

Reductions (additions):

Cost of revenues

$ 15,442

[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.

Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022	Jun. 27, 2024
Income Taxes [Line Items]
Income (loss) before income taxes	$ (98,035)	$ (121,207)	$ 120,446
Cash tax savings percentage	80.00%
Estimated future cash tax, percentage	80.00%
Income tax receivable			0
Recognized tax			$ 162,000
Net operating loss	$ 65,200
Carryforwards	64,700			$ 238,000
Net operating loss expire	500
State taxable income	16,900
Tax credit carryforwards	2,600
State tax credit	$ 1,800
Revenue [Member]
Income Taxes [Line Items]
Ownership percentage	50.00%

Income Taxes - Schedule of Income Tax Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Current:
Federal	$ (114)	$ (167)	$ (1,030)
State	177	217	344
Total current	63	50	(686)
Deferred:
Federal		(42)	169,180
State			44,675
Total deferred		(42)	213,855
Income tax expense	$ 63	$ 8	$ 213,169

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 270
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482964/270-10-50-1

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (ee)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-32

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12

Reference 4: http://www.xbrl.org/2003/role/exampleRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 231
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482663/740-10-55-231

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483443/250-10-50-9

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 6.I.7)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479360/740-10-S99-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 8
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483443/250-10-50-8

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-10

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-22

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 944
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(9))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477250/944-220-S99-1

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Section 45
-Paragraph 2
-Subparagraph (a)
-SubTopic 20
-Topic 740
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482659/740-20-45-2

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h))
-SubTopic 10
-Topic 235
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1

+ Details

Income Taxes - Schedule of Income Tax Expense Amount Computed at the Federal Statutory Corporate (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Schedule of Income Tax Expense Amount Computed at the Federal Statutory Corporate [Abstract]
Tax (provision) benefit at Federal statutory rate	$ (20,587)	$ (25,454)	$ 25,293
State income tax provision (benefit), net of federal benefit	(5,238)	(6,235)	292
Noncontrolling interest	44	96	59
Tax receivable agreement liability			(34,014)
Change in fair value – warrant liabilities	(736)		(912)
Change in valuation allowance	26,963	35,592	189,870
Remeasurement due to rate change	(586)	(31)	2,530
Research and development tax credits	(482)	(1,113)	(1,763)
Remeasurement of investment in Purple LLC		(4,028)	29,822
Nondeductible compensation	315	281
Stock-based compensation	699	605	2,303
Other	(329)	295	(311)
Income tax expense	$ 63	$ 8	$ 213,169

Income Taxes - Schedule of Deferred Income Taxes (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Schedule of Deferred Income Taxes [Abstract]
Basis difference in Purple LLC investment	$ 153,872	$ 156,521
Tax over book basis in capital contributions	79,400	78,158
Start-up costs	361	405
Stock-based compensation	635	999
Interest carryforwards	6,503	2,314
Research and development tax credits	3,590	2,712
Charitable contribution carryforwards	159	121
Net operating losses	82,137	62,550
Total net deferred income tax asset	326,657	303,780
Less: Valuation allowance	(326,657)	(303,780)
Net deferred income tax asset

Income Taxes - Schedule of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Schedule of Unrecognized Tax Benefits [Abstract]
Unrecognized tax benefits, beginning balance	$ 946	$ 593
Increase due to current year tax positions	111	215	177
Decrease due to lapse of statute of limitations	(114)	(153)
Increase due to prior year tax positions	109	291	264
Increase due to acquisition			152
Unrecognized tax benefits, ending balance	$ 1,052	$ 946	$ 593

Subsequent Events (Details)							1 Months Ended			12 Months Ended
Subsequent Events (Details)	Mar. 12, 2025 USD ($)	Mar. 11, 2025 USD ($)	Mar. 07, 2025 shares	Feb. 03, 2025	Jan. 31, 2025 USD ($)	Nov. 04, 2024 $ / shares	Aug. 31, 2025	Feb. 28, 2025	Aug. 31, 2024	Dec. 31, 2024 USD ($) $ / shares	Aug. 01, 2025	Mar. 04, 2025 $ / shares	Feb. 01, 2025	Aug. 01, 2024	Jan. 26, 2024 USD ($)	Dec. 31, 2023 USD ($)
Subsequent Events [Line Items]
ROU asse (in Dollars)										$ 75,516,000						$ 95,767,000
Operating lease liabilities (in Dollars)										$ 102,733,000
Improvement allowance (in Dollars)					$ 600,000
Price per share (in Dollars per share) \| $ / shares						$ 1
Business days						30
Percentage of aggregate principal amount										2.50%
Percentage of principal amount										100.00%
Percentage of outstanding principal										2.00%
Warrants (in Dollars)										$ 16,067,000
warrant expire										Mar. 12, 2035
Bonus payment regular salary															15 months
Percentage of bonus payment.														10.00%
Percentage of recognition bonus payment									10.00%
Aggregate cash bonus (in Dollars)															$ 850,000
Percentage of aggregate cash bonus														10.00%
2025 Term Loan Lenders Warrants [Member]
Subsequent Events [Line Items]
Warrants (in Dollars)										$ 6,229,508
Warrant Per share (in Dollars per share) \| $ / shares										$ 0.6979
New Lease Agreement [Member]
Subsequent Events [Line Items]
ROU asse (in Dollars)					6,300,000
Operating lease liabilities (in Dollars)					$ 6,800,000
Mr. Vogensen [Member]
Subsequent Events [Line Items]
Restricted stock (in Shares) \| shares			450,000
Mr. Roddy [Member]
Subsequent Events [Line Items]
Restricted stock (in Shares) \| shares			175,000
Mr. Haynor [Member]
Subsequent Events [Line Items]
Restricted stock (in Shares) \| shares			350,000
Mr. DeMartini [Member]
Subsequent Events [Line Items]
Percentage of unpaid cash bonus payment										100.00%
Incremental Loan [Member]
Subsequent Events [Line Items]
Percentage of aggregate principal amount										2.00%
Subsequent Event [Member]
Subsequent Events [Line Items]
Price per share (in Dollars per share) \| $ / shares												$ 1
Business days				10
Aggregate principal amount (in Dollars)	$ 80,000,000
Percentage of bonus payment.													20.00%
Percentage of recognition bonus payment	100.00%
Percentage of aggregate cash bonus													20.00%
Subsequent Event [Member] \| Incremental Loan [Member]
Subsequent Events [Line Items]
Secured term loan (in Dollars)	$ 19,000,000
Subsequent Event [Member] \| Initial Loan [Member]
Subsequent Events [Line Items]
Aggregate principal amount (in Dollars)	$ 61,000,000
Class A Common Stock [Member]
Subsequent Events [Line Items]
Warrant price per share (in Dollars per share) \| $ / shares										$ 1.5
Warrant Per share (in Dollars per share) \| $ / shares										$ 1.5
Forecast [Member]
Subsequent Events [Line Items]
Percentage of bonus payment.											70.00%
Percentage of recognition bonus payment							70.00%	20.00%
Percentage of aggregate cash bonus											70.00%
Forecast [Member] \| Restated Credit Agreement [Member]
Subsequent Events [Line Items]
Additional term loan (in Dollars)		$ 20,000,000