Forensic Analysis · Durable Goods, Textiles & Apparel · as of Jul 21, 2026
Purple Innovation, Inc. (PRPL)
A forensic read on Purple Innovation, Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
F · Poor — capital at risk
Forensic grade
Distress
Financial health
-4.9
Altman Z-score
Clean
Earnings quality
6
Forensic signals
-230.6%
ROE
$667M
Market cap
-3.9%
Revenue growth
Purple Innovation, Inc. earns a F (Poor — capital at risk) forensic quality grade, and its Altman Z-score is -4.9, placing it in the Distress zone. 6 forensic signals were flagged in its latest SEC filings, led by return on invested capital.
What the filings flag
-19.9%Return on invested capital.Return on invested capital is -19.9% in the latest fiscal year and slipping from -9% — well below its ~9% cost of capital, so reinvested dollars may be destroying value, not building it.
+9.8%/yrShare-count dilution.Diluted share count changed +32% over the last 3 years to FY2025 (+9.8%/yr). The count is GROWING — existing holders are being diluted. That's ~9.8% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2022 has been diluted ~24%.
FCF ($64M)Shareholder returns.Returned $100,000 to shareholders (buybacks + dividends) in FY2022, but free cash flow was ($64M) after capex — there was no free cash flow to fund the payout from at all, and operating cash flow itself was negative or zero that year too. The entire return is coming from debt or cash reserves, not cash the business itself generated — a harder case than returns merely running ahead of free cash flow, since here there was none to run ahead of.
29d DSOReceivables vs revenue.Days sales outstanding moved from 25 to 29 days FY2024→FY2025 (receivables +25% vs revenue -4%). Receivables are creeping up relative to sales — watch the trend.
76dInventory days.Days inventory outstanding moved from 68 to 76 FY2024→FY2025 (against cost of goods sold; inventory +5% vs -9% in cost of sales). Inventory is building a little faster than sales — watch for markdowns.
$7MGoodwill impairments.Took $7M of goodwill writedowns across 1 year (FY2023 ($7M)). Writedowns mean past acquisitions underperformed what was paid for them — worth weighing on capital-allocation skill.
Key fundamentals
Latest Revenue$468.7M
Revenue Growth YoY-3.9%
Revenue CAGR (3yr)-6.5%
Net Margin-11.0%
Free Cash Flow$-15.2M
Go deeper — free with an account
The forensic grade and screens above are free — no account needed. An account adds the full interactive deep-dive on Purple Innovation, Inc.:
🔒The written investment read — what the numbers mean, in plain English
🔒Ask anything about PRPL's filings — AI Q&A across the 10-K, 10-Qs & 8-Ks
🔒Interactive valuation — reverse-DCF sliders, Monte Carlo & scenario stress
🔒Calibrated 12-month price forecast, with the math shown