What changed in this filing

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Item 1. Business

2025-03-14 compared with 2024-03-12 · 387 added, 504 removed, 198 unchanged (82% of the section changed)

Our mission is to help people

feel and live better through innovative comfort solutions.

We began as a digitally-native

vertical brand founded on comfort product innovation with premium offerings, and have since expanded into brick & mortar stores as

a true omni-channel brand.

We offer a variety of innovative, branded and premium comfort products, including mattresses, pillows, cushions,

bases, sheets and more.

Our products are the result of decades of innovation and investment in proprietary and patented comfort technologies

and the development of our own manufacturing processes.

Our proprietary Hyper-Elastic Polymer gel technology underpins many of our comfort

products and provides a range of benefits that differentiate our products from our competitors.

Specially engineered to relieve pressure,

maintain an ideal body temperature, and provide instantly adaptive support, Purple’s patented technology has been tested rigorously

within medical and consumer applications for over 30 years.

Originally designed for use in hospital beds and wheelchairs, we adapted this

unique pressure-relieving material for our mattresses and other cushion products.

We market and sell our products through direct-to-consumer e-commerce

and Purple showrooms (collectively “DTC”) and wholesale partners.

Our mission is to deliver the greatest sleep ever invented.

We began as a digitally-native vertical brand founded on comfort product

innovation with premium offerings, and have since expanded into brick & mortar stores as a true omni-channel brand.

We offer a variety

of innovative, branded and premium comfort products, including mattresses, pillows, cushions, bases, sheets and more.

Our products are

the result of decades of innovation and investment in proprietary and patented comfort technologies and the development of our own manufacturing

Our proprietary Hyper-Elastic Polymer gel technology underpins many of our comfort products and provides a range of benefits

that differentiate our products from our competitors.

Specially engineered to relieve pressure, maintain an ideal body temperature, and

provide instantly adaptive support, Purple’s patented technology has been tested rigorously within medical and consumer applications

for over 30 years.

Originally designed for use in hospital beds and wheelchairs, we adapted this unique pressure-relieving material for

our mattresses, pillows and other cushion products.

We market and sell our products

via our direct-to-consumer channel, which includes Purple.com (our direct-to-consumer e-commerce), Purple showrooms, our customer contact

center and online marketplaces (collectively “DTC”), and our wholesale channel through retail brick-and-mortar and online

wholesale partners.

Our core competencies in design,

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and intellectual property, proprietary and patented manufacturing equipment, production processes and decades of acquired knowledge create

an advantage over our competitors who rely on commoditized materials, such as foam and outsourced manufacturing.

an advantage over our competitors who rely on commoditized materials, such as foam.

In addition to developing

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We have an experienced marketing team, providing efficient customer acquisition and brand demand development.

Our marketing strategy

enables us to market our full product suite to customers, generate frequent interactions online and drive traffic to all channels offering

our products.

Our marketing strategy enables

us to market our full product suite to customers, generate frequent interactions online and drive traffic to all channels offering our

Our knowledge of and engagement with consumers across digital and brick

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We believe our differentiated products (including differences

across price, comfort, benefit, marketing strategies, manufacturing capabilities, branding and technology) position us to continue to

drive our growth.

For the year ended December 31, 2023, our DTC sales, which includes online and Purple showrooms, accounted for 58.1%

of our net revenues, as compared to 57.7% for 2022 and 65.4% for 2021 and wholesale accounted for 41.9% of net revenues for 2023, as compared

to 42.3% for 2022 and 34.6% for 2021.

For the year ended December 31, 2023, sales of sleep products accounted for 97.2% of our net revenues,

as compared to 97.1% for 2022 and 96.5% for 2021, and other products accounted for 2.8%, as compared to 2.9% for 2022 and 3.5% for 2021.

As of December 31, 2023 we operate 60 Company locations across the

United States as compared to 55 Company locations at the end of 2022 and 28 Company locations at the end of 2021.

While we are slowing

the opening of new showrooms in the short term, we anticipate continued expansion of our showrooms in the future.

across price, comfort, benefit, marketing strategies, manufacturing capabilities, branding and technology) position us to drive long-term

For the year ended December 31, 2024, our DTC sales accounted for 58.1% of our net revenues, as compared to 58.1% for 2023 and

57.7% for 2022, and wholesale sales accounted for 41.9% of net revenues, as compared to 41.9% for 2023 and 42.3% for 2022.

As of December 31, 2024 we

operate 58 Purple showrooms across the United States as compared to 60 Purple showrooms at the end of 2023 and 55 Purple showrooms at

the end of 2022.

We continue to strategically open new showrooms and anticipate continued expansion of our showrooms in the future.

Industry and Competition

Our portfolio of products is driven by our commitment to innovating

real comfort solutions that meaningfully help people sleep, feel and live better.

Whether it’s getting a better night’s rest

or elevating every day life, we design and manufacture innovative, differentiated products that put our customers’ comfort first.

portfolio of products is driven by our commitment to innovating real comfort solutions that meaningfully help people sleep, feel and

Whether it’s getting a better night’s rest or elevating everyday life, we design and manufacture innovative,

differentiated products that put our customers’ comfort first.

Sleep Products

The sleep products category encompasses a variety of products including

mattresses, pillows, bases, foundations, sheets, mattress protectors, blankets and duvets.

Meaningful innovation in sleep products has

remained stagnant and limited over the last 150 years.

Coil spring mattresses and memory foam, two of the primary materials underpinning

mattress technology today, were invented in the 1860’s and 1990’s.

Latex, water and air mattresses followed, emerging in the

latter part of the 20 th century.

The sleep product industry has generally remained complacent until the introduction of our

proprietary Hyper-Elastic Polymer material, which we believe represents a meaningful innovation in pressure relief, temperature neutrality,

responsiveness, durability and limited motion transfer.

We believe that our proprietary technology solves problems that regular mattresses

create and has proven that material innovations can have a positive impact on sleep.

The sleep products category

encompasses a variety of products including mattresses, pillows, bases, foundations, sheets, mattress protectors, blankets and duvets.

Meaningful innovation in sleep products has remained stagnant and limited over the last 150 years.

Coil spring mattresses and memory foam,

two of the primary materials underpinning mattress technology today, were invented in the 1860s and 1990s.

Latex, water and air mattresses

followed, emerging in the latter part of the 20 th century.

The sleep product industry has generally remained complacent until

the introduction of our proprietary Hyper-Elastic Polymer material, which we believe represents a meaningful innovation in pressure relief,

temperature neutrality, responsiveness, durability and limited motion transfer.

We believe that our proprietary technology solves problems

that regular mattresses create and has proven that material innovations can have a positive impact on sleep.

Beginning in 2015, the market

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companies) for several years.

Today, the U.S.

sleep product industry has rebalanced to be comprised of vendors that rely on retail distribution

as well as a consolidated number of direct-to-consumer retailers who have tried to expand brick and mortar distribution to capture more

market share in a category still tied to instore product trials.

Recently, the U.S.

sleep product industry has experienced significant consolidation as manufacturers have

acquired both direct-to-consumer companies and brick and mortar retailers to expand profitability through vertical integration and extend

their reach to the consumer to capture more market share.

Amidst this changing category dynamic, Purple’s product differentiation

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share and be a leader in the sleep products category.

In 2022, we acquired Advanced Comfort Technologies, Inc., dba Intellibed

(“Intellibed”), a premium sleep and health wellness company that was a pre-existing licensee of the founders of some

of our technologies.

This acquisition resulted in us owning the sole right to use all of our Hyper-Elastic Polymer technologies in our

In 2022, we acquired Advanced

Comfort Technologies, Inc., dba Intellibed (“Intellibed”), a premium sleep and health wellness company that was a pre-existing

licensee of the founders of some of our technologies.

This acquisition resulted in us owning the sole right to use all of our Hyper-Elastic

Polymer technologies in our beds.

In addition, the acquisition allowed us to immediately expand into the luxury mattress segment.

As a result, Purple launched three

collections in the second quarter of 2023:

Essentials (including the New Day, The Purple Mattress, and The Purple Plus), Premium (including

Restore, RestorePlus, and RestorePremier) and Luxe (including Rejuvenate, RejuvenatePlus and RejuvenatePremier).

In general, direct-to-consumer

mattress companies offer convenience, flexible shipping and returns, and low prices, while leveraging third-party manufacturing and distribution.

Materials used by online mattress retailers include layers of foam cushioning that are assembled, compressed and folded into a box for

distribution.

This market is highly fragmented, commoditized and competitive, with customer purchase decisions based primarily on price.

Prior to Purple, there has been little recent success disrupting the premium market, where the majority of category revenue and profit

Competitors in the premium market include Tempur Sealy and Sleep Number.

While e-commerce home goods

purchases have increased over the past five years, traditional brick-and-mortar retailers command a significant part of the market for

mattress products.

This part of the retail market is also highly fragmented and competitive.

The leading brick-and-mortar specialty mattress

retailer in the United States is Mattress Firm and the leading furniture store is Ashley Furniture These national retailers compete with

both regional and local retailers as well as furniture and department stores.

Purple has also expanded into many of these regional and

local furniture retailers.

result, Purple launched two collections in the second quarter of 2023, giving us three collection offerings:

Essentials (including the

Purple Flex, The Purple Mattress, and The Purple Plus), Restore (including Restore, RestorePlus, and RestorePremier) and Rejuvenate (including

Rejuvenate, RejuvenatePlus and RejuvenatePremier).

We are re-launching the Rejuvenate collection (Rejuvenate 2.0) in the second quarter

of 2025 with a newly innovated grid technology.

In general, direct-to-consumer mattress companies offer convenience,

flexible shipping and returns, and low prices, while leveraging third-party manufacturing and distribution.

Materials used by online mattress

retailers include layers of foam cushioning that are assembled, compressed and folded into a box for distribution.

This market is highly

fragmented, commoditized and competitive, with customer purchase decisions based primarily on price.

Prior to Purple, there has been little

recent success disrupting the premium market, where the majority of category revenue and profit is realized.

Competitors in the premium

market include Tempur Sealy and Sleep Number.

While e-commerce home goods purchases have increased over the past

five years, traditional brick-and-mortar retailers command a significant part of the market for mattress products.

This part of the retail

market is also highly fragmented and competitive.

The leading brick-and-mortar specialty mattress retailer in the United States is Mattress

Firm and the leading furniture store is Ashley Furniture.

These national retailers compete with both regional and local retailers as well

as furniture and department stores.

Purple has also expanded into many of these regional and local furniture retailers.

Across these channels, some

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set of competitive strengths that differentiate and position us for continued success:

of innovation that produced new comfort technology— We are a company built on innovation and licensing, with more than

30 years of expertise in comfort innovation.

Purple is founded upon decades of history-developing innovative comfort solutions,

including the invention of our proprietary and patented Hyper-Elastic Polymer technology.

Our breakthrough mattress represents what

we believe to be the first substantive innovation in the sleep product industry since the introduction of memory foam in 1992.

believe that the unique properties of our technology have resulted in several improvements to existing sleep products that are not

addressed by foam, spring or air mattresses.

Relief— Our Hyper-Elastic Polymer technology is designed around the science of column buckling which enables our

mattresses to be both firm and soft.

This offers support across the body’s larger surface areas, such as the back, while

providing pressure relief at local areas or points of pressure, such as the hips and shoulders.

We believe Purple’s founders

were the first to leverage this technology in mattresses after their success in licensing their proprietary Hyper-Elastic Polymer

technology to medical manufacturers for use in wheelchairs, critical care beds and hospital beds.

The resulting feel is often

described as buoyant and responsive.

Temperature Neutral— The Hyper-Elastic Polymer

material itself is temperature neutral, with the surface comprised mostly of air, made from thousands of open-air channels.

channels allow for high airflow and dissipation of heat and vapor.

This is the opposite of foam beds, which absorb heat from the

body and then radiate the heat back, constantly increasing the temperature.

Our technology allows for continual sleeping without

waking up hot.

Responsive— Unlike memory foam, which compresses,

gets hard and then takes time to recoil, our Hyper-Elastic Polymer technology is instantly responsive to the body as it moves.

will immediately flex to support the sleeper’s position and spring back into place as the sleeper readjusts during the night.

Hyper-Elastic Polymer material is a highly durable gel that we believe is more durable than most foams.

The Hyper-Elastic

Polymer technology also has numerous applications beyond mattress products including seat cushions and pillows.

Hyper-Elastic Polymer technology is only one of numerous innovations we have developed to produce a range of unique and

effective comfort products across the sleep, seat cushion and other categories.

Proprietary technologies and manufacturing expertise provide

a significant competitive advantage— We believe the combination of patent protection, proprietary manufacturing equipment

and decades of accumulated knowledge creates a competitive advantage through barriers to imitation.

We have hundreds of granted or

pending patents and hundreds of patent filings that cover current and future products as well as proprietary manufacturing equipment

we have designed and fabricated.

In addition to intellectual property protection of key products and manufacturing capabilities,

our team has in depth experience and unique insights derived from inventing and refining proprietary comfort technologies, machines

and products.

Our patented and proprietary molding processes and machines allow for large-format injection molding of gels efficiently

and at scale.

a brand with a passionate following— Our brand mirrors our passion for uncompromising

performance, quality and durability, and our dedication to improving lives by delivering

better sleep and better comfort We believe our brand awareness rivals category leaders.

brand has extended beyond awareness of individual products and we have successfully marketed

our full suite of products to customers using our omni-channel strategy.

We believe our customer

satisfaction metrics are amongst the best in the industry, and that our customers’

high satisfaction with our product has continued to drive “word of mouth” recommendations,

one of the most persuasive ways consumers learn about our products.

omni-channel distribution strategy— We have sought opportunities to expand brand awareness in brick-and-mortar

retailers where our beds can be displayed.

Our goal is to support the customer wherever and however they want to learn, try, and

Whether in wholesale, Purple showrooms or our e-commerce channel, we are a leader in the sleep products market.

Our flexible return policies and aggressive expansion into wholesale locations (commonly referred to as “doors”) and our

own showrooms allow for more of our targeted customers to feel and experience our products throughout the purchase process.

wholesale channel, we sell most of our products through select national and regional retailers as well as a variety of independent

retail partners throughout the United States and Canada.

As a result, we believe we will drive accelerated growth in the sleep

products industry.

Vertical integration enables nimble design, development and

execution — We design and develop our products in-house and we have extensive research and development capabilities led

by a team of engineers, industrial designers and marketing specialists.

The ability to develop and test products in this manner

enables us to not only prototype and deploy new ideas, but also design and develop corresponding manufacturing equipment and

In addition, we continuously refine our production methods to improve product quality and enhance efficiency.

resulting real-time feedback cycle is a key differentiator compared to other competitors that outsource many of these functions and

lack an integrated approach.

History of innovation that produced new comfort technology— We are a company built on innovation and licensing, with more than 30 years of expertise in comfort innovation.

Purple is founded upon decades of history-developing innovative comfort solutions, including the invention of our proprietary and patented Hyper-Elastic Polymer technology.

Our breakthrough mattress represents what we believe to be the first substantive innovation in the sleep product industry since the introduction of memory foam in 1992.

We believe that the unique properties of our technology have resulted in several improvements to existing sleep products that are not addressed by foam, spring or air mattresses.

Pressure Relief— Our Hyper-Elastic Polymer technology is designed around the science of column buckling which enables our mattresses to be both firm and soft.

This offers support across the body’s larger surface areas, such as the back, while providing pressure relief at local areas or points of pressure, such as the hips and shoulders.

We believe Purple’s founders were the first to leverage this technology in mattresses after their success in licensing their proprietary Hyper-Elastic Polymer technology to medical manufacturers for use in wheelchairs, critical care beds and hospital beds.

The resulting feel is often described as buoyant and responsive.

Temperature Neutral— The Hyper-Elastic Polymer material itself is temperature neutral, with the surface comprised mostly of air, made from thousands of open-air channels.

The channels allow for high airflow and dissipation of heat and vapor.

This is the opposite of foam beds, which absorb heat from the body and then radiate the heat back, constantly increasing the temperature.

Our technology allows for continual sleeping without waking up hot.

Responsive— Unlike memory foam, which compresses, gets hard and then takes time to recoil, our Hyper-Elastic Polymer technology is instantly responsive to the body as it moves.

It will immediately flex to support the sleeper’s position and spring back into place as the sleeper readjusts during the night.

Durable— Hyper-Elastic Polymer material is a highly durable gel that we believe is more durable than most foams.

The Hyper-Elastic Polymer technology also has numerous applications beyond mattress products including seat cushions and pillows.

Hyper-Elastic Polymer technology is only one of numerous innovations we have developed to produce a range of unique and effective comfort products across the sleep, seat cushion and other categories.

Proprietary technologies and manufacturing expertise provide a significant competitive advantage— We believe the combination of patent protection, proprietary manufacturing equipment and decades of accumulated knowledge creates a competitive advantage through barriers to imitation.

We have hundreds of granted or pending patents and hundreds of patent filings that cover current and future products as well as proprietary manufacturing equipment we have designed and fabricated.

In addition to intellectual property protection of key products and manufacturing capabilities, our team has in depth experience and unique insights derived from inventing and refining proprietary comfort technologies, machines and products.

Our patented and proprietary molding processes and machines allow for large-format injection molding of gels efficiently and at scale.

Growing a brand with a passionate following— Our brand mirrors our passion for uncompromising performance, quality

and durability, and our dedication to improving lives by delivering better sleep and better comfort.

We believe our brand awareness rivals

category leaders.

Our brand has extended beyond awareness of individual products and we have successfully marketed our full suite of products

to customers using our omni-channel strategy.

We believe our customer satisfaction metrics are amongst the best in the industry, and that

our customers’ high satisfaction with our product has continued to drive “word of mouth” recommendations, one of the

most persuasive ways consumers learn about our products.

Balanced, omni-channel

distribution strategy — We have sought opportunities to expand

brand awareness in brick-and-mortar retailers where our beds can be displayed.

Our goal is to support the customer wherever and however

they want to learn, try, and buy.

Whether in wholesale, Purple showrooms or our e-commerce channel, we are a leader in the sleep

products market.

Our flexible return policies and aggressive expansion into wholesale locations (commonly referred to as “doors”)

and our own showrooms allow for more of our targeted customers to feel and experience our products throughout the purchase process.

In our wholesale channel, we sell most of our products through select national and regional retailers as well as a variety of independent

retail partners throughout the United States.

As a result, we believe we will drive accelerated growth in the sleep products industry.

Vertical integration enables

nimble design, development and execution — We design and develop our products in-house

and we have extensive research and development capabilities led by a team of engineers, industrial

designers and marketing specialists.

The ability to develop and test products in this manner enables

us to not only prototype and deploy new ideas, but also design and develop corresponding manufacturing

equipment and processes.

In addition, we continuously refine our production methods to improve product

quality and enhance efficiency.

The resulting real-time feedback cycle is a key differentiator compared

to other competitors that outsource many of these functions and lack an integrated approach.

2023, we opened an innovation center near our headquarters in Utah to support and accelerate our

ongoing research and development.

Growth Strategies

of the Brand to Premium and Luxe Categories— To complement and support our expansion into the higher-priced, higher margin

categories, Purple is evolving its differentiated brand to broaden appeal.

We are investing in brand demand-driving

marketing and advertising to create awareness, engagement and preference for the Purple brand and for our products across all our sales

We developed a reimagined brand associated with life enhancing sleep.

We believe that this strategic focus

and investment will support our growth plans in the wholesale channel, in Purple showrooms, on Purple.com and online marketplaces.

Our Luxe (“Rejuvenate”) offerings are expected to increase average sales prices significantly.

We will also continue to harness

the evangelism of the ever-growing base of Purple owners whose advocacy of our products is one of our brand’s greatest strengths.

direct-to-consumer growth and penetration— We believe that we are well positioned to leverage our brand, leading

product portfolio, vertical integration and strong marketing capabilities to continue to attract new customers via our e-commerce channel.

We have invested in substantial improvements to our website and analytics, enhancing the education, shopping and buying experiences, and

we have expanded our contact center, enabling live voice, chat and messaging with our sales associates.

These actions are intended to

drive higher customer satisfaction, higher average order value and higher conversion.

Continued successful execution on Purple.com

supports our planned e-commerce growth, and also supports further growth in all channels given the importance of the site during the customer

decision journey.

In addition, as of December 31, 2023, we operated 60 Purple showrooms in cities across the United States.

At our showrooms,

consumers can experience our brand, learn about and engage with our technology and purchase our products, assisted by our highly-trained

retail sales associates who are able to both increase door productivity and trade customers up to higher price points.

Our showrooms enable

us to strengthen the relationship with the consumer and develop a more profitable DTC revenue mix.

We anticipate continued

expansion of our showrooms as we optimize the format.

wholesale retail relationships— We continue to work closely with existing retail partners to improve productivity

to increase market share and sales, and we are forming new partnerships to expand our wholesale footprint.

With our new Premium and

Luxe collections, we believe we have an increased opportunity to tap into the large brick-and-mortar category of the sleep products

As a result of our new product launch in 2023, we increased the number of wholesale partner slots (a term commonly used to

describe a section in a wholesale partner’s store to display a particular product).

We believe this trend is a result of the

developing interest in our Premium and Luxe product categories.

This allows retailers to market these products as

alternatives to other premium products to increase sales on high-end mattresses with materially higher margins for the retailer and

Existing product innovation— We have a rich

history of product innovation and have developed core competencies in design, prototyping and manufacturing.

integration, which enables us to continuously refine our existing products and manufacturing processes, combined with our

strengthened research and development disciplines and go-to-market processes allows us to further develop our current product

categories with new offerings, enhance gross margins through improved pricing, and position our business to eventually expand to

additional categories with the potential to attract new customers and drive repeat sales.

product launches— We focus intensively on innovation, to support our long-range growth plan.

We have a pipeline of

future products we are developing.

We are constantly exploring new technologies and ways to expand the benefits of our technologies

through new product offerings.

These efforts include innovations beyond our Hyper-Elastic Polymer technology, including products in

sleep, comfort and similar categories.

International

expansion— We believe there is a substantial opportunity for international expansion.

We entered the Canada market in

2020 and we plan to expand in other foreign markets in the future.

We believe that our differentiated products, multi-channel

distribution strategy, manufacturing capabilities, vertical integration and marketing expertise will help enable us to successfully

enter new markets.

Focus on pioneering new technologies to maintain our competitive advantage.

Our strategy focuses on offering a differentiated product that provides unique benefits and higher customer satisfaction, all fueled by our proprietary flexible gel technology.

Advancements and innovation in our grid technology has led to a new grid technology marking a significant advancement in our product lineup.

Our new DreamLayer grid, stacked with our original grid, creates a unique combination that continues to differentiate us in the market while driving superior comfort and support for an even more premium sleep experience.

This upgrade will result in a refresh of our current Rejuvenate line.

The new Rejuvenate 2.0 collection launches in the second quarter 2025 through our direct-to-consumer channels, followed by a full wholesale roll-out expected to be complete by the third quarter 2025.

In addition, we significantly expanded our distribution of pillows by launching our renowned DreamLayer and Freeform pillows into our wholesale channel.

Drive sales by promoting our product differentiation.

We started as a brand built on differentiation.

In recent years, the category has relied extensively on discount messaging to attract customers, with less focus on product benefits.

Our goal is to refocus our messaging to lead with our product differentiation.

We intend to effectively articulate the unique qualities of sleeping on our gel grid layer to be more effective and reach more consumers.

In our selling channels, we expect refocusing our messaging on promoting our differentiation will drive more and better quality traffic while improving conversion both online and in stores, and increase our share of retailer sales in our wholesale channel.

Prioritize gross margin improvements.

We expect continued gross margin gains to come from driving cost savings through plant consolidation efficiency gains, supplier diversification efforts, and improved scrap and yield results from continuous improvements efforts.

We are also ramping up in-house pillow production, changing vendors for key mattress components like coils and mattress covers and improving our delivery program to drive cost improvements and better deliveries.

These savings will enable us to reinvest in innovation and marketing to drive growth.

Our current product portfolio is as follows:

Mattresses —Our

mattresses utilize the unique benefits of our patented GelFlex Grid

technology creating a one-of-a-kind sleep solution that regulates body temperature, keeping you sleeping cooler and soft enough to cradle

pressure points while also providing support through localized buckling columns.

The columns in our Gelflex Grid mattresses instantly

adapt to your body to cradle your hips and shoulders while supporting your spine’s natural alignment for uniquely buoyant, supportive

Our GelFlex Grid products are manufactured with non-toxic ingredients that are third-party tested and free from carcinogenic

Mattresses— Our mattresses utilize the unique benefits of our patented Gelflex Grid technology creating a one-of-a-kind sleep solution that regulates body temperature, allowing you to sleep cooler through the night and soft enough to cradle pressure points while also providing support through localized buckling columns.

The columns in our Gelflex Grid mattresses instantly adapt to your body to cradle your hips and shoulders while supporting your spine’s natural alignment for uniquely buoyant, supportive comfort.

Our Gelflex Grid products are manufactured with non-toxic ingredients that are third-party tested and free from carcinogenic chemicals.

Our patented Gelflex Grid technology is used in all Purple mattresses.

We back up the quality and durability of our mattress

with a 100-night trial and a 10-year warranty.

With our new premium product launch in 2023, we now have three collections that come in

a variety of feels and price points to appeal to a wide range of consumers with high satisfaction and delivering best sleep.

Pillows — We currently sell eight pillow models with different designs to suit

different needs.

The Purple Harmony™ Pillow, the Purple Freeform™ Pillow, the Purple DreamLayer™ Pillow, the Purple

Harmony Anywhere™ Pillow, the Purple Pillow®, the Purple Twin Cloud® Pillow, the Purple Cloud® Pillow and the Kids Pillow®.

The Purple Harmony Pillow is the world’s first pillow with a full wrap of honeycomb Gelflex® Grid surrounding a soft, responsive

latex core for blissfully cool comfort and responsive airy support.

The newly launched Purple Freeform Pillow features the honeycomb Gelflex

Grid with an all-new MicroFlex™ Moon Foam fill interior for luxurious, moldable comfort.

It is our first fully adjustable

pillow as the MicroFlex Moon Foam and optional neck roll chambers can be adjusted for personalized height, firmness and support.

launched Purple DreamLayer Pillow uses an all-new version of the GelFlex Grid combined with MicroAir Foam for a dreamy, melt-in comfort

that provides contour-hugging support without the heat and delay of a traditional memory foam.

The Purple Harmony Anywhere Pillow has

all of the advantages and feel of the Purple Harmony Pillow in a portable, take-anywhere travel size.

The Purple Pillow is designed entirely

of Gelflex Grid for a firmer, no-fluff, ergonomic support with ultimate cooling and adjustable height layers.

The Purple Twin Cloud Pillow

is a hypoallergenic down-alternative that features our patented cover construction and two chambers of silky, down-like fibers for an

extra fluffy, cloud-like comfort with two optional firmness settings.

The Purple Cloud Pillow features the same fill as the Purple Twin

Cloud Pillow, but a simpler, single chamber design for classic, cloud-like comfort.

The Kids Purple Pillow is made entirely of Gelflex

Grid, similar to the Purple Pillow, but is smaller and softer for smaller sleepers.

We believe our pillows are unique and there is a sleep

solution for every type of sleeper to get the best sleep of their life, with no other products in the market like them in appearance,

design, functionality or comfort.

We back up the quality and durability of our mattress with a 100-night trial and a 10-year warranty.

With our premium mattress collections, the Restore Collection and the Rejuvenate Collection, launched in 2023, we now have three collections that come in a variety of feels and price points to appeal to a wide range of consumers with high satisfaction and delivering best sleep.

Pillows— We currently sell eight pillow models, all designed to deliver various sleep preferences and needs.

The Purple Harmony™ Pillow, the Purple Freeform™ Pillow, the Purple DreamLayer™ Pillow, the Purple Harmony Anywhere™ Pillow, the Purple Pillow®, the Purple Twin Cloud® Pillow, the Purple Cloud® Pillow and the Kids Pillow®.

The Purple Harmony Pillow is the world’s first pillow with a full wrap of honeycomb Gelflex® Grid surrounding a soft, responsive latex core for blissfully cool comfort and responsive airy support.

The newly launched Purple Freeform Pillow features the honeycomb Gelflex Grid with an all-new MicroFlex™ Moon Foam fill interior for luxurious, moldable comfort.

It is our first fully adjustable pillow as the MicroFlex Moon Foam and optional neck roll chambers can be adjusted for personalized height, firmness and support.

The newly launched Purple DreamLayer Pillow uses an all-new version of the Gelflex Grid combined with MicroAir Foam for a dreamy, melt-in comfort that provides contour-hugging support without the heat and delay of a traditional memory foam.

The Purple Harmony Anywhere Pillow has all of the advantages and feel of the Purple Harmony Pillow in a portable, take-anywhere travel size.

The Purple Pillow is designed entirely of Gelflex Grid for a firmer, no-fluff, ergonomic support with ultimate cooling and adjustable height layers.

The Purple Twin Cloud Pillow is a hypoallergenic down-alternative that features our patented cover construction and two chambers of silky, down-like fibers for an extra fluffy, cloud-like comfort with two optional firmness settings.

The Purple Cloud Pillow features the same fill as the Purple Twin Cloud Pillow, but a simpler, single chamber design for classic, cloud-like comfort.

The Kids Purple Pillow is made entirely of Gelflex Grid, similar to the Purple Pillow, but is smaller and softer for smaller sleepers.

We believe our pillows are unique and there is a sleep solution for every type of sleeper to get the best sleep of their life, with no other products in the market like them in appearance, design, functionality or comfort.

We also back up the quality and durability of our pillows with a 100-night trial and a one-year warranty .

We sell two types of sheets and pillowcases:

Softstretch and Complete Comfort.

Made from stretchy and breathable bamboo-based

Viscose, our SoftStretch sheets are designed to maximize the functionality of our mattresses and pillows.

We developed our own

technology to enable customers to experience the full performance potential of our mattress (or any other mattress).

traditional cotton-based Complete Comfort sheets designed to have cushion enhancing two-way stretch.

Our sheet sets include

pillowcases that also maximize the unique functionality of our pillows.

Duvets and Duvet Covers— The Purple TempBalance

Duvet insulates yet breathes to deliver an ideal body temperature, all year long.

The Purple PerfectStay Duvet cover offers

a unique patent-pending lay-and-zip design that solves the problem of inserting the duvet into the cover, and ensures the duvet stays

put within the cover without ties, pins, or bulky attachments.

Protector — Like our sheets, our mattress protector is designed to optimize the functionality of our Gelflex Grid in

our mattress.

Our mattress protector is stretchy and breathable.

Our protector is also stain-resistant and machine-washable, making

it easy to clean.

Our recently added new line of smart adjustable bases have been designed to pair with our new mattresses for the ideal Purple sleep

The Purple Premium and Purple Premium Plus smart bases have a wide range of functions, such as adjustable head and

foot positions, zero-gravity preset for a near weightless feel, a “sitting” preset, under-bed lighting, adjustable legs

and a wireless remote with in-app control.

Our Purple Bed Frame is easy to ship and assemble, with no tools required.

look of a stylish upholstered bed frame.

The supports are made of high-density polyethylene, so they don’t creak or

make noise like wood supports.

Plus, the joints of the Purple Bed Frame are reinforced with nylon buffers to help prevent squeaking.

Our Purple Platform Bed Frame is designed specifically for all current Purple bed sizes and offers a high quality, simpler

alternative to our more premium offerings.

Constructed from lightweight steel, the Purple Platform Bed provides optimal support and

prevents the mattress from sagging.

Cushions — The evolution of our portfolio of seat cushions has resulted from decades of in-house manufacturing

experience including development of proprietary machines and trade secrets, extending the benefits of our GelFlex Grid technology.

Purple currently sells four types of seat cushions and one back cushion, all in varying sizes and shapes to meet the needs of our

Technology is key to our unique position within the sleep products

The introduction of our proprietary Hyper-Elastic Polymer material was the first major innovation in the consumer mattress category

Mattresses from our competitors are typically manufactured using one or more layers of springs, standard polyurethane foam,

memory foam, air chambers or latex foam and are undifferentiated from competitors within their product type.

Sheets— Made from stretchy and breathable bamboo-based Viscose, our Purple SoftStretch sheets are designed to maximize the functionality of our mattresses and pillows.

We developed our own technology to enable customers to experience the full performance potential of our unique Gelflex Grid mattress (or any other mattress).

Our sheet sets include pillowcases that also maximize the unique functionality of our pillows and come in both standard and deep pocket sizes.

Waterproof Mattress Protector— Like our sheets, our new Purple Waterproof Mattress Protector mattress is designed to optimize the functionality of our Gelflex Grid in our mattress.

Our premium mattress protector is stretchy, breathable and waterproof.

It is also stain-resistant and machine-washable, making it easy to clean.

All features help keep your mattress looking and feeling like-new.

Bases— Our full line-up of smart adjustable bases has been designed to pair

with our premium mattresses for the ideal Purple sleep system experience.

The Purple Adjustable Base, the Purple Premium Smart Base, and

the Purple Premium Plus Smart base have a wide range of functions, such as adjustable head and foot positions, zero-gravity preset

for a near weightless feel, a “sitting” preset, under-bed lighting, adjustable legs and a wireless remote with in-app control.

Our platform bed assortment includes the Purple Bed Foundation and the Purple Metal Platform.

The Purple Bed Foundation has the look of

a stylish upholstered bed frame and is easy to ship and assemble, with no tools required.

Our Purple Metal Platform, with its low-profile

design, features a sturdy steel frame and extra slats to ensure silent, shake-free support for the lifetime of your mattress.

Seat Cushions— The evolution of our portfolio of seat cushions has resulted from decades of in-house manufacturing experience including development of proprietary machines and trade secrets, extending the benefits of our Gelflex Grid technology.

Purple currently sells four types of seat cushions and one back cushion, all in varying sizes and shapes to meet the needs of our customers.

Technology is key to our unique

position within the sleep products industry.

The introduction of our proprietary Hyper-Elastic Polymer material was the first major innovation

in the consumer mattress category in decades.

Mattresses from our competitors are typically manufactured using one or more layers of springs,

standard polyurethane foam, memory foam, air chambers or latex foam and are undifferentiated from competitors within their product type.

Proprietary Technologies

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Our Hyper-Elastic Polymer material

is non-toxic and hypoallergenic.

This proprietary material is also durable and will not develop body impressions (compression set)

from use over time.

It is elastic and can stretch up to 15 times its original size and return without losing its shape.

It sleeps and

sits temperature-neutral and has good ventilation to inhibit moisture build-up.

is durable, elastic and can stretch up to 15 times its original size and return without losing its shape.

It sleeps and sits temperature-neutral

and has good ventilation to inhibit moisture build-up.

Our Hyper-Elastic Polymer

material is both soft and supportive.

While the columns in this structure provide support where it is needed, they also buckle where

it is needed to reduce pressure by allowing shoulders and hips to sink into the cushion with reduced force pushing back on those areas

of the body unlike other cushion technologies.

The soft and flexible columns also return to their original position as forces lessen

and are capable of immediately providing support.

While the columns in this structure provide support where it is needed, they also buckle where it

is needed to reduce pressure by allowing shoulders and hips to sink into the cushion with reduced force pushing back on those areas of

the body unlike other cushion technologies.

The soft and flexible columns also return to their original position as forces lessen and

are capable of immediately providing support.

Proprietary Machinery

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machinery is proprietary, patent-protected and complex, requiring specific knowledge and expertise to successfully execute manufacturing.

We have vertically integrated with our own machine shop with mechanics and engineers at each of our factories to maintain our machines

and other equipment.

Furthermore, we have in-house fabrication capabilities enabling us to design, manufacture, install and maintain new

equipment as well as optimize the performance and efficiency of our existing machinery based on real-time insights gained from our vertically

integrated operations.

We have developed a brand that resonates with consumers.

Our marketing

efforts are focused on building awareness of the Purple brand and illustrating the unique way our products deliver better sleep and comfort.

We leverage data-driven marketing across all communication channels to engage, acquire, and retain customers.

We also amplify the voices

of our evangelical product owners, whose word-of-mouth recommendations are one of our most powerful (and ownable) marketing vehicles.

Deep engagement with current customers enables us to increase additional product sales across our portfolio of offerings.

we have achieved through our marketing campaigns has been key to rapidly building our branding and awareness.

We launched our elevated

brand positioning in 2023 with the launch of our new products and we believe our premium brand position will allow us to increase our

market share of the premium mattress category going forward.

We have in-house engineering and fabrication capabilities enabling us to design, manufacture, install and maintain new equipment as well

as optimize the performance and efficiency of our existing machinery based on real-time insights gained from our vertically integrated

We have developed a brand

that resonates with consumers.

Our marketing efforts are focused on building awareness of the Purple brand and illustrating the unique

way our products deliver better sleep and comfort.

We leverage data-driven marketing across all communication channels to engage, acquire,

and retain customers.

We also amplify the voices of our evangelical product owners, whose word-of-mouth recommendations are one of our

most powerful (and ownable) marketing vehicles.

Deep engagement with current customers enables us to increase additional product sales

across our portfolio of offerings.

The success we have achieved through our marketing campaigns has been key to rapidly building our branding

and awareness.

We launched our elevated brand positioning in 2023 with the launch of our new products and we believe our premium

brand position will allow us to increase our market share of the premium mattress category going forward.

Our Sales Channels

We sell our products via our DTC, including Purple.com, online marketplaces

(e.g., Amazon), our customer contact center, our Purple showrooms and through wholesale retailers.

We sell our products via our DTC channel, which includes Purple.com

(our direct-to-consumer e-commerce), Purple showrooms, our customer contact center and online marketplaces, and our wholesale channel

through retail brick-and-mortar and online wholesale partners.

Direct-to-Consumer Channel

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channel is a critical hub for consumer education and consumer engagement, as well as conversion.

We have benefitted from the rapid growth

We have benefited from the rapid growth

of the direct-to-consumer channel in the sleep product industry in addition to our differentiated product offering and unique marketing

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customer testimonials and excellent service provide confidence to consumers buying a mattress.

We operate 60 Purple showrooms across the United States where consumers

can experience our brand, learn and engage with our technology and purchase our products.

Over time, we plan to continue expanding our

showroom footprint across the United States.

We operate 58 Purple showrooms

across the United States where consumers can experience our brand, learn and engage with our technology and purchase our products.

time, we plan to strategically expand our showroom footprint across the United States.

Wholesale Channel

We sell our assortment of

products through brick-and-mortar and online wholesale partners.

We began selling mattresses and other sleep products through our largest

wholesale partner, Mattress Firm, in November 2017 and have continued to expand the number of wholesale partners where our mattresses

and other sleep products are sold.

We now sell mattresses through Ashley Furniture, Big Sandy, City Furniture, Denver Mattress, HOM Furniture,

Living Spaces, Mathis Brothers, Mattress Firm, Mattress Warehouse, Raymour & Flanigan and Rooms To Go, among others.

have four to five mattress models on the floor.

Sales associates have been trained and we believe are effective in educating consumers

regarding our unique benefits as well as shifting the mix upward to our more premium and higher-margin mattresses.

We expect to continue

to grow our placements with wholesale partners to give our customers the opportunity to feel the difference of our Hyper-Elastic Polymer

technology for themselves.

We sell our assortment of products through brick-and-mortar and online

wholesale partners.

We began selling mattresses and other sleep products through our largest wholesale partner, Mattress Firm, in November

2017 and have continued to expand the number of wholesale partners where our mattresses and other sleep products are sold.

mattresses through Ashley Furniture, Big Sandy, City Furniture, Costco, Denver Mattress, HOM Furniture, Living Spaces, Mathis Brothers,

Mattress Firm, Mattress Warehouse and Raymour & Flanigan, among others.

We typically have four to five mattress models on the floor.

Sales associates have been trained and we believe are effective in educating consumers regarding our unique benefits as well as shifting

the mix upward to our more premium and higher-margin mattresses.

We expect to continue to grow our placements with wholesale partners

to give our customers the opportunity to feel the difference of our Hyper-Elastic Polymer technology for themselves.

Factories, Supply Chain and Manufacturing

We operate manufacturing factories in Grantsville, Utah, Salt Lake

City, Utah and McDonough, Georgia.

Our factory in Grantsville has approximately 574,000 square-feet and our factory in McDonough, which

services our customers on the east coast, provides another 844,000 square-feet.

At these factories we manufacture our proprietary Hyper-Elastic

Polymer cushioning used in our mattress, pillow and seat cushion products.

We also assemble, package and ship our products from these

two facilities.

Our facility in Salt Lake City was acquired as part of the Intellibed acquisition and has approximately 67,000 square

This facility manufactures our proprietary Hyper-Elastic Polymer for assembly in our luxury mattresses.

We continually strive to

improve our manufacturing processes and create efficiencies in production through new equipment and process designs and resources.

also manage our production labor and capacity utilization to promote efficient use of our manufacturing facilities.

We believe our factories

provide ample room to accommodate our future growth and expansion plans for the near term.

In August 2024, we initiated

a restructuring plan to strategically realign our operational focus to achieve operations efficiencies that are expected to improve

profitability and provide for reinvesting in technology and marketing initiatives (the “Restructuring Plan”).

The Restructuring

Plan is comprised of the permanent closure of both Utah manufacturing facilities to consolidate mattress production in our Georgia plant.

Closure of the two Utah manufacturing facilities is planned to be completed in the second quarter of 2025.

Our manufacturing facility in McDonough, Georgia

provides 844,000 square feet of manufacturing and distribution space where we manufacture our proprietary Hyper-Elastic Polymer cushioning

used in our mattress, pillow and seat cushion products.

We also have recently opened a 198,000 square foot distribution facility in Salt

Lake City, Utah, that in addition to the McDonough facility, will assemble, package and ship our products.

We continually strive to improve

our manufacturing processes and create efficiencies in production through new equipment and process designs and resources.

We also manage

our production labor and capacity utilization to promote efficient use of our manufacturing facilities.

We believe our McDonough factory

provides ample room to accommodate our future growth and expansion plans for the near term.

We have a number of contract

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Environmental and Governmental Regulation

We are subject to numerous federal, state, local and foreign consumer

protection and other laws and regulations applicable to the sleep product industry.

These laws and regulations vary among the states and

countries in which we do and intend to do business.

For example, in the United States, we are subject to regulations promulgated by the

Environmental Protection Agency, the Occupational Safety and Health Administration and other federal agencies that restrict the generation,

emission, treatment, storage and disposal of materials, substances and waste.

We are also subject to laws such as the Toxic Substances

Control Act, the Resource Conservation and Recovery Act, the Clean Air Act, the Clean Water Act, the Safe Drinking Water Act and the Comprehensive

We are subject to numerous

federal, state, local and foreign consumer protection, retail, environmental, health, safety, import/export, marketing, e-commerce, privacy,

and other laws and regulations applicable to the sleep product industry.

As a manufacturer of mattresses and related products, we handle

regulated substances, which subject us to various environmental laws.

For example, we are subject to the Toxic Substances Control Act,

the Resource Conservation and Recovery Act, the Clean Air Act, the Clean Water Act, the Safe Drinking Water Act and the Comprehensive

Environmental Response, Compensation and Liability Act, and related state and local statutes and regulations.

Our mattress products are

also subject to fire-retardant standards developed by the State of California, U.S.

subject to fire-retardant standards developed by the State of California, U.S.

Consumer Product Safety Commission and other jurisdictions

where we sell these products.

As a retailer of sleep and

cushioning products, we are also subject to laws and regulations applicable to retailers generally, including those regulations governing

the marketing and sale of our products and the operation of our e-commerce activities.

We are also subject to import and export laws

and regulations to the extent our products and their component parts cross international boundaries.

Many of these laws and regulations

are consumer-focused and pertain to safety, truth-in-advertising, promotional offers, privacy, “do not call/mail” requirements,

warranty disclosure, delivery timing requirements and similar requirements.

We have made and will continue to make capital and other expenditures

necessary to help us comply with these laws and regulations.

These expenditures have been immaterial to our financial results.

not suffered a material adverse effect from non-compliance with federal, state, local or foreign legislation, but there can be no assurance

that material costs or liabilities will not be incurred in connection with such legislation in the future.

have made and will continue to make capital and other expenditures necessary to help us comply with these laws and regulations.

expenditures have been immaterial to our financial results.

We have not suffered a material adverse effect from non-compliance with federal,

state, local or foreign legislation, but there can be no assurance that material costs or liabilities will not be incurred in connection

with such legislation in the future.

Research and Development

Our research and development teams are focused primarily on developing

new comfort technologies and products.

In May 2022, we appointed our first ever chief innovation officer.

In 2023, we launched our three

new premium mattress collections including our new line of luxury mattresses.

We have an extensive history of innovation that is core

to our culture and key to our continued success.

Our research and development

teams are focused primarily on developing new comfort technologies and products.

In 2023, we launched our three new premium mattress collections

including our new line of luxury mattresses.

We have an extensive history of innovation that is core to our culture and key to our continued

Our inventions have culminated over years of persistent research and development.

intend to continue to develop and introduce new comfort technologies and products.

Our vertical integration is a key differentiator that

enhances the effectiveness of our research and development capabilities.

By gaining real-time feedback, we can integrate these insights

into our manufacturing process, digital marketing, products and equipment.

In order to facilitate further innovation and development,

we opened a facility in August 2023 that serves as our new innovation center and replaces the older and remote facility we previously

had in Alpine, Utah.

This new facility is located in Draper, Utah, close to our headquarters and comprises approximately 61,000 square

We intend to continue to develop and introduce

new comfort technologies and products.

Our vertical integration is a key differentiator that enhances the effectiveness of our research

and development capabilities.

By gaining real-time feedback, we can integrate these insights into our manufacturing process, digital marketing,

products and equipment.

In order to facilitate further innovation and development, we opened a 61,000 square foot facility in August 2023

located in Draper, Utah that serves as our innovation center.

Intellectual Property

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are expected to expire at various dates up to 2042.

We have several trademarks registered with the U.S.

Patent and Trademark

Office (USPTO).

Applications are pending for registration of additional trademarks and some of these listed trademarks for additional

classes of goods both in the United States and internationally.

Our Purple, No Pressure and Hyper-Elastic Polymer trademarks are also

registered and have applications pending for various classes of goods in numerous foreign jurisdictions, some of which include Australia,

Canada, China, Europe, United Kingdom, Japan and Korea.

We also have several common law trademarks.

We have several trademarks

registered with the U.S.

Patent and Trademark Office (USPTO).

Applications are pending for registration of additional trademarks and some

of these listed trademarks for additional classes of goods both in the United States and internationally.

Our Purple, No Pressure, Gelflex,

the color purple, and Hyper-Elastic Polymer trademarks are also registered and have applications pending for various classes of goods

in numerous foreign jurisdictions, some of which include Australia, Canada, China, Europe, United Kingdom, Japan and Korea.

several common law trademarks.

Many of the common law marks

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Human Capital

At Purple, our primary focus is fostering the professional development

of our employees through collaboration of engaged teams and helping them feel connected to Purple’s success.

We try to achieve this

through maintaining a safe and high-functioning work environment that cultivates an authentic company culture.

Our people initiatives

are strategically crafted to enhance the professional growth and overall satisfaction of our employees, with the overarching goal of making

Purple the best place they’ve ever worked.

As of March 12, 2024, we had approximately 1,700 employees engaged

in manufacturing, research and development, general corporate functions, wholesale, e-commerce, and Purple showrooms.

In 2024, Purple’s human resources team is focusing on four pillars

that drive our people strategy:

(i) acquire, retain, and develop great people;

At Purple, our primary focus

is fostering the professional development of our employees through collaboration of engaged teams and helping them feel connected to Purple’s

We try to achieve this through maintaining a safe and high-functioning work environment that cultivates an authentic

company culture.

Our people initiatives are strategically crafted to enhance the professional growth and overall satisfaction of our employees,

with the overarching goal of making Purple the best place they’ve ever worked.

As of March 7, 2025, we had

approximately 1,200 employees engaged in manufacturing, research and development, general corporate functions, wholesale, e-commerce,

and Purple showrooms.

2025, Purple’s human resources team is focusing on four pillars that drive our people strategy:

(i) acquire, retain, and develop

great people;

(ii) improve organizational performance;

(iii) deliver

competitive and meaningful pay and benefits;

and (iv) celebrate our people.

(iii) deliver competitive and meaningful pay and benefits;

and (iv) celebrate our

Acquire, retain,

and develop great people

We attempt to strategically acquire, keep and cultivate a

talented, motivated, and high-caliber workforce.

We believe will be achieved by selectively recruiting outstanding talent, tailoring development

plans for employees, implementing an accelerated leadership development program for promising individuals, and building cross-functional

attempt to strategically acquire, keep and cultivate a talented, motivated, and high-caliber workforce.

We believe this will

be achieved by selectively recruiting outstanding talent, tailoring development plans for employees, implementing an accelerated leadership

development program for promising individuals, and building cross-functional career maps.

Improve organizational

We attempt to drive efficiency, effectiveness, and business success

through strategic people initiatives.

We will continue to invest in new technology to enhance communication channels and optimize

our human resource information system, enabling self-service functionalities for managers and employees.

In alignment with our core values,

we will place emphasis on creating shared experiences that will facilitate genuine connections and foster strong relationships within

our workforce.

attempt to drive efficiency, effectiveness, and business success through strategic people initiatives.

We will continue to invest

in new technology to enhance communication channels and optimize our human resource information system, enabling self-service functionalities

for managers and employees.

In alignment with our core values, we will place emphasis on creating shared experiences that will facilitate

genuine connections and foster strong relationships within our workforce.

Deliver competitive

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contribute to nurturing employee engagement.

We attempt to continue to focus on maintaining a culture of recognition

where we actively acknowledge and honor the achievements, contributions, and milestones of our people.

Through thoughtful and authentic

celebration, we not only create a culture of gratitude, but we will also foster a sense of belonging and motivation, ultimately strengthening

our team cohesion and morale.

Purple was created by two

brothers that set out to revolutionize the comfort space.

One of the brothers had expertise in manufacturing and design, and the other

brother was an advanced aerospace scientist.

Together, the brothers embarked on a partnership in the early 1990s to put together a team

to develop cushioning solutions for wheelchairs and medical beds.

They later created what we call Hyper-Elastic Polymer —an elastomeric

polymer that can stretch up to 15x its resting size and without losing shape or function.

Our proprietary Hyper-Elastic Polymer technology

has since been used in mattresses, seat cushions and pillows.

Celebrate our people

attempt to continue to focus on maintaining a culture of recognition where we actively acknowledge and honor the achievements, contributions,

and milestones of our people.

Through thoughtful and authentic celebration, we not only create a culture of gratitude, but we will also

foster a sense of belonging and motivation, ultimately strengthening our team cohesion and morale.

Available Information

Our website address is www.purple.com.

We make available, free of charge

on our Investor Relations website, investors.purple.com, all of our reports filed with or furnished to the Securities and Exchange Commission

We make available, free of charge on our Investor Relations website, investors.purple.com, all of our reports filed with or furnished

to the Securities and Exchange Commission (“SEC”).

The SEC also maintains an Internet website that contains reports and other

information regarding issuers that file electronically with the SEC located at http://www.sec.gov.

We also use our Investor Relations

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Chief Financial Officer and Treasurer

McDermott-Spikes

Chief Legal Officer and Secretary

2 unchanged sentences

Chief of Owned Retail Officer

Chief Marketing Officer

Chief People Officer

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degree in Accounting from Arizona State University.

McDermott joined Purple in October 2023 as Chief

Legal Officer.

McDermott is a skilled executive, attorney and business leader who brings more than 20 years of deep expertise

in global licensing, intellectual property and corporate governance in multi-national retail and manufacturing environments.

joining the Company, from February 2021 to October 2023, Ms.

McDermott served as the chief legal & risk officer and secretary at Shoe

McDermott-Spikes joined Purple in October 2023 and serves as Chief Legal Officer and Corporate Secretary responsible for strategic

oversight of the legal organization, corporate governance, compliance intellectual property, licensing, litigation, insurance and government

McDermott-Spikes is a skilled executive, attorney and business leader who brings more than 25 years of expertise in

global retail and manufacturing environments.

Prior to joining the Company, from February 2021 to October 2023, Ms.

McDermott-Spikes served

as the chief legal & risk officer and secretary at Shoe Show, Inc.

Previously, from December 2011 to February 2021, Ms.

McDermott was with Perry Ellis International, Inc., where she served as

general counsel and secretary from November 2017 to February 2021.

McDermott received a Bachelor of Arts degree in English

and a Juris Doctor degree from Rutgers University along with a certificate in Accelerated Management from Yale School of Management.

McDermott-Spikes

was with Perry Ellis International, Inc., where she served in roles of increasing responsibility and last served as general counsel and

secretary from November 2017 to February 2021.

McDermott-Spikes is active in her community, having previously served on the boards

of Teach for America (Miami-Dade), Family Promise of Palm Beach County, the Association of Corporate Counsel (Charlotte), and the U.S.

Patent & Trademark Office, Trademark Public Advisory Committee as an appointee of the U.S.

Secretary of State.

McDermott-Spikes

continues her service on the Board of Trustees of the Blumenthal Performing Arts Center in Charlotte, NC, as chair of the Talent, Development

& Retention Committee and member of the Governance Committee.

McDermott-Spikes received a Bachelor of Arts degree in English

and a Juris Doctor degree from Rutgers University along with a certificate in Accelerated Management from Yale University School of Management.

served as the Chief Operating Officer of the Company since June 2022.

Prior to joining the company, Mr.

Haynor spent most of his career with Ecolab, a supplier of cleaning, sanitizing and maintenance products

and services for the institutional, hospitality, healthcare and industrial markets, in a variety of end-to-end supply chain roles.

August 2019 until he joined the Company in June 2022 he served as senior vice president, industrial supply chain at Ecolab providing strategic

direction for eight industrial business units.

Prior to that, he held the role of vice president, global equipment operations and strategy

from June 2015 to August 2019 at Ecolab.

From August 2009 to June 2015, Mr.

Haynor led Ecolab’s EMEA supply chain operations and

from April 2005 to August 2009 he led Ecolab’s Asia Pacific supply chain operations.

His early career was spent in a variety of

developmental supply chain roles.

Haynor is a graduate of Michigan State University and holds a Bachelor of Science degree in Mechanical

Hutchings has served as the Chief Innovation Officer of the Company since May 2022.

has more than 20 years of experience in strategic business leadership in innovation, new product introduction and quality assurance.

Haynor spent most of his career

with Ecolab, a supplier of cleaning, sanitizing and maintenance products and services for the institutional, hospitality, healthcare and

industrial markets, in a variety of end-to-end supply chain roles.

From August 2019 until he joined the Company in June 2022 he served

as senior vice president, industrial supply chain at Ecolab providing strategic direction for eight industrial business units.

that, he held the role of vice president, global equipment operations and strategy from June 2015 to August 2019 at Ecolab.

2009 to June 2015, Mr.

Haynor led Ecolab’s EMEA supply chain operations and from April 2005 to August 2009 he led Ecolab’s

Asia Pacific supply chain operations.

His early career was spent in a variety of developmental supply chain roles.

Haynor is a graduate

of Michigan State University and holds a Bachelor of Science degree in Mechanical Engineering.

has served as the Chief Innovation Officer of the Company since May 2022.

Hutchings has more than 20 years of experience in strategic

business leadership in innovation, new product introduction and quality assurance.

Prior to joining the Company, Mr.

Hutchings served as chief product officer at Skullcandy Inc., a designer and manufacturer of performance

audio and gaming headphones and other accessory related products, from December 2018 to May 2022 and as vice president of product from

June 2015 to December 2018.

Prior to that from July 2010 to June 2015, Mr.

Hutchings served in various engineering and director roles

at HARMAN International.

Hutchings holds a Bachelor of Science degree in Computer Engineering from the University of Utah.

Hutchings served

as chief product officer at Skullcandy Inc., a designer and manufacturer of performance audio and gaming headphones and other accessory

related products, from December 2018 to May 2022 and as vice president of product from June 2015 to December 2018.

Prior to that from

July 2010 to June 2015, Mr.

Hutchings served in various engineering and director roles at HARMAN International.

Hutchings holds a

Bachelor of Science degree in Computer Engineering from the University of Utah.

served as the Chief of Owned Retail Officer of the Company since January 2023.

Prior to joining the Company, Mr.

Kerby served as vice president, head of stores of Sephora, a retailer of personal care and beauty

products, since May 2019, responsible for leading 86 stores throughout Canada.

From March 2018 to January 2019, he served as the senior

regional director of American Eagle, a specialty retailer of clothing, accessories and personal care products, where he led American Eagle/Aerie

stores in the Midwest United States and Canada with 225 stores.

Kerby served as vice

president, head of stores of Sephora, a retailer of personal care and beauty products, since May 2019, responsible for leading 86 stores

throughout Canada.

From March 2018 to January 2019, he served as the senior regional director of American Eagle, a specialty retailer

of clothing, accessories and personal care products, where he led American Eagle/Aerie stores in the Midwest United States and Canada

with 225 stores.

Prior to joining American Eagle, Mr.

Kerby was with L Brands’ LaSensa,

a Canadian retailer of women’s lingerie and apparel, from February 2017 to March 2018.

Kerby was with L Brands’ LaSensa, a Canadian retailer of women’s lingerie

and apparel, from February 2017 to March 2018.

Prior to that, Mr.

Kerby was the vice president,

head of stores/store operations for L Brands’ Victoria’s Secret International from June 2015 to September 2016.

2008 to June 2015, Mr.

Kerby grew from director to associate vice president, head of stores for Bath and Body Works.

Kerby holds a

Bachelor of Science degree from Washington State University’s School of Communications.

served as Chief Marketing Officer since November 2022.

Prior to joining

the Company, Ms.

Krausz was chief marketing officer of HealthPlanOne, a digital health distribution platform from August 2020 to October

From February 2013 to February 2020, Ms.

Krausz was the executive vice president and chief marketing officer, then president,

of Nutrisystem, a provider of weight management products and services.

Prior to Nutrisystem, she held a progression of leadership

roles in consumer marketing at Time Inc.

and the Reader’s Digest Association, Inc.

She serves on the board of directors of

the BioBuilder Educational Foundation.

Past board of directors roles include Second Nature Brands and the Association of National

Krausz attended Cornell University as an undergraduate and received her Masters of Business Administration degree

from Dartmouth College.

Kerby was the vice president, head of stores/store operations for L

Brands’ Victoria’s Secret International from June 2015 to September 2016.

From October 2008 to June 2015, Mr.

Kerby grew from

director to associate vice president, head of stores for Bath and Body Works.

Kerby holds a Bachelor of Science degree from Washington

State University’s School of Communications.

served as Chief People Officer of the Company since October 2021.

Roddy brings to the Company over 20 years of experience in culture transformation, talent development, organization design and change

Roddy brings to the Company over 20 years of experience in

culture transformation, talent development, organization design and change leadership.

Prior to joining the Company, Mr.

Roddy served as the chief people officer for VASA Fitness, a fitness club operator,

from 2018 to October 2021.

Prior to that he was the chief human resources officer for SeaWorld Parks and Entertainment, a theme park and

entertainment company, from 2016 to 2018.

From 2012 to 2016, Mr.

Roddy was the senior vice president of human resources for Luxottica

Prior to joining Luxottica Group, he was the vice president of human resources for Starbucks Corporation from 2004 to 2012.

Roddy holds a Master’s degree from Columbia University in Organizational Psychology and a Bachelor’s degree in Organizational

Behavior from Brigham Young University – Hawaii.

as the chief people officer for VASA Fitness, a fitness club operator, from 2018 to October 2021.

Prior to that he was the chief human

resources officer for SeaWorld Parks and Entertainment, a theme park and entertainment company, from 2016 to 2018.

From 2012 to 2016,

Roddy was the senior vice president of human resources for Luxottica Group.

Prior to joining Luxottica Group, he was the vice president

of human resources for Starbucks Corporation from 2004 to 2012.

Roddy holds a Master’s degree from Columbia University

in Organizational Psychology and a Bachelor’s degree in Organizational Behavior from Brigham Young University – Hawaii.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business