Forensic Analysis · Durable Goods, Textiles & Apparel · as of Sep 19, 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
-7.2
Distress distance
Clean
Earnings quality
6
Forensic signals
-3.9%
Revenue growth
The financial-health reading above compares this company's equity at BOOK value, not at what the market currently pays for it — this free snapshot doesn't pull live market data. Treat it as a rough read, not the final word.
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence, going concern, valuation). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Purple Innovation, Inc. earns an F (Poor — capital at risk) forensic quality grade, and its balance-sheet distress test reads -7.2, placing it in the Distress zone (based on book value, not market value, since this free snapshot doesn't pull live market data — treat this zone as a rough read, not the final word). 6 forensic signals were flagged in its latest SEC filings, led by return on invested capital.
What the filings flag
-19.9%
FY2025
Return on invested capital.Return on invested capital is -19.9% in the latest fiscal year, against -4% in FY2021, having run between -32.1% and -4.4% across FY2021–FY2025 with no direction held — well below the ~9% cost of capital we hold this sector to, and it has been across FY2021–FY2025, so reinvested dollars have not been earning their keep. The capital base behind it cannot be compared across FY2021–FY2025: short-term debt is tagged in one of those two fiscal years and not the other, and an untagged line enters this calculation as zero, so any change in the base would be a change in what the filer tagged.
+9.8%/yr
FY2022–FY2025
Share-count dilution.Diluted share count changed +32% over the last 3 years to FY2025 (+9.8%/yr). The count is growing: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. 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)
FY2022
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.
0.4% of rev
FY2025
Stock-based comp load.Stock-based compensation ran 0.4% of revenue in FY2025 — about $0.02 per diluted share. No cash left the business to pay it, which is why operating cash flow adds it back. Net of repurchases the diluted count still rose about 10.4% a year, and the rate is falling. Stock compensation is one source of that issuance; acquisition consideration, equity raises, convertibles and other employee plans also net into the count, and these figures do not separate them.
Key fundamentals
Latest Revenue$468.7M
Revenue Growth YoY-3.9%
Revenue CAGR (3yr)+264.1%
Net Margin-11.0%
Free Cash Flow-$41.9M
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Purple Innovation, Inc.'s actual 10-K/10-Q/8-K filings?
Data from SEC EDGAR public filings · metrics as of Sep 19, 2026. Forensic signals flag probability, not certainty.
$7M
FY2023–FY2023
Goodwill impairments.Took $7M of goodwill writedowns across 1 year (FY2023 ($7M)). Writedowns mean past acquisitions underperformed what was paid for them.
-91%
FY2021→FY2022
Dividend — cut.The payout was CUT ~91% in FY2022 (from FY2021) and hasn't been restored since. It still returns some cash, but it is NOT the dependable, rising dividend an unbroken streak implies. Measured on total dividend dollars rather than per share: the reported share count steps sharply around FY2021, a stock-split seam between filing vintages rather than a change in the payout, and a split leaves the dollars paid untouched.
Purple Innovation, Inc. (PRPL) Stock — Forensic Analysis, Red Flags & Rating | Stockonomy · Stockonomy