What changed in this filing

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Item 1. Business

2026-03-31 compared with 2025-03-14 · 231 added, 259 removed, 326 unchanged (60% of the section changed)

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.

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 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,

pillows and other cushion products.

We market and sell our products

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58.1% for 2023, and wholesale sales accounted for 44.2% of net revenues, as compared to 41.9% for 2024 and 41.9% for 2023.

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.

As of December 31, 2025 we operate 55 Purple showrooms across the United

States as compared to 58 Purple showrooms at the end of 2024 and 60 Purple showrooms at the end of 2023.

We continue to strategically

operate showrooms and anticipate continued expansion of our showrooms in the future.

Industry and Competition

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.

Our portfolio of products

is driven by our commitment to innovating real comfort solutions that meaningfully help people sleep, feel and live better.

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.

The sleep products

category encompasses a variety of products including mattresses, pillows, bases, foundations, sheets, mattress protectors, blankets

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.

mattresses and memory foam, two of the primary materials underpinning mattress technology today, were invented in the 1860s and

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

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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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 beds.

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

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.

As a 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 re-launched 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

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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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.

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.

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.

Our innovation center is near our headquarters in Utah to support and accelerate our ongoing research and development.

Growth Strategies

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.

Knowing Our Customer.

the past year, we’ve sharpened our focus on understanding who our customers are, what

matters most to them, and how they make their purchase decisions across the channels.

Less Pain, Better Sleep positioning continues to resonate, providing a consistent,

consumer-led message that translates across ecommerce, retail, and wholesale channels.

we are focused on reaching our customers with the right message, in the right place, at the

right point in their decision journey.

We also saw strong results from the “Sleep Easy”

co-marketing campaign with Mattress Firm which drove sales conversion and improved awareness

Delivering Better Sleep.

remains at the core of Purple’s differentiation, and we believe our Rejuvenate 2.0 collection continues to validate that

Performance exceeded our expectations in 2025, with strong traction across both showrooms and wholesale as retail partners

expanded Rejuvenate 2.0 placement on their floors.

We also continued development work on Purple Royale, a new premium offering

developed in close partnership with Mattress Firm.

We continue to focus on delivering a differentiated end-to-end

customer experience, anchored by compelling in-store presentations across our corporate stores and wholesale

We are also continuing to strengthen white glove delivery services and service execution to ensure

that Purple shows up consistently and credibly wherever the customer chooses to engage.

This focus is strengthening the

brand and improving conversion by reinforcing the value of our technology across channels.

Executing with Financial Discipline.

year, our focus was on right sizing the business so we could operate profitably at the current scale.

increasingly focused on driving growth from a stronger foundation of lower cost structure and improved margins.

retail, we plan to open seven new stores this year following the closure of four underperforming stores last year, reflecting a

disciplined approach to fleet optimization.

Gross margin improvement remains a key focus, and we continue to see the

benefits of the actions we’ve taken to simplify the business and improve efficiency across sourcing, operations, fulfillment,

and quality improvements.

Mix has become an increasingly important tailwind, led by the growth of Rejuvenate 2.0.

The shift toward

higher-ticket products combined with strong attachment rates for adjustable smart bases and pillows, is driving higher average

transaction values and incremental profit dollars.

As a result, the operating discipline we put in place over the past year is now

showing up in our margins and profitability.

Our current product portfolio is as follows:

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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 .

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.

With our Essential, Restore and Rejuvenate collections we offer mattresses in a variety of comfort levels and price points to appeal to a wide range of consumers with high satisfaction and delivering best sleep.

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

The newly launched Purple

GridCloud® pillow, 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 and the Purple Cloud® Pillow.

The Purple GridCloud® Pillow combines premium down-alt fill with a single side of honeycomb grid for plush, down-like softness enhanced with GelFlex Grid support.

The Purple Harmony Pillow is the our first pillow with a

full wrap of honeycomb Gelflex® Grid surrounding a soft, responsive latex core for blissfully cool comfort and responsive airy

The 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 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.

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 .

Sheets— Made from stretchy and breathable

bamboo-based viscose, our Purple SoftStretch sheets are designed to maximize the functionality of our mattresses and pillows.

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 Purple Waterproof Mattress Protector mattress is designed to optimize the functionality of our Gelflex Grid in our mattress.

premium mattress protector is stretchy, breathable and waterproof.

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

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.

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.

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.

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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.

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 believe our elevated

brand positioning with our premium brand will allow us to continue to increase our market share of the premium mattress category going

Our Sales Channels

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.

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

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.

We operate 55 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 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.

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.

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, Costco, Denver Mattress,

HOM Furniture, Living Spaces, Mathis Brothers, Mattress Firm, Mattress Warehouse and Raymour & Flanigan, 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.

Factories, Supply Chain and Manufacturing

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.

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

The Restructuring Plan included the permanent closure of both Utah manufacturing facilities to consolidate mattress

production in our Georgia plant.

Closure of the two Utah manufacturing facilities was completed in the second quarter of 2025.

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.

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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where we sell these products.

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.

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.

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 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.

We intend to continue to develop and introduce

Our research and development teams are focused primarily on developing

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.

In 2023, we launched our three new premium mattress collections including our new line of luxury

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

Our inventions have

culminated over years of persistent research and development.

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 have a dedicated 61,000 square foot facility located in Draper, Utah that

serves as our innovation center.

Intellectual Property

We rely on patent and trademark

protection laws to protect our intellectual property and maintain our competitive position in the marketplace.

We hold various domestic

and foreign patents, patent applications, trademarks and trademark applications regarding certain elements of the design, manufacturing

and function of our products.

We rely on patent and

trademark protection laws to protect our intellectual property and maintain our competitive position in the marketplace.

various domestic and foreign patents, patent applications, trademarks and trademark applications regarding certain elements of the

design, manufacturing and function of our products.

We also maintain protections over proprietary trade secrets.

Our intellectual property portfolio is integral

to our continued success in this industry, particularly with respect to our Hyper-Elastic Polymer material as well as our molding processes

and machines.

We own or have the exclusive right to use hundreds of granted or pending

patents and hundreds of patent filings on inventions and designs pertaining to our machines, processes, mattresses, pillows, seat cushions,

packaging techniques and other related existing and future products.

Our issued United States patents that are significant to our operations

are expected to expire at various dates up to 2042.

Our intellectual

property portfolio is integral to our continued success in this industry, particularly with respect to our Hyper-Elastic Polymer

material as well as our molding processes and machines.

We own or have the exclusive

right to use hundreds of granted or pending patents and hundreds of patent filings on inventions and designs pertaining to our machines,

processes, mattresses, pillows, seat cushions, packaging techniques and other related existing and future products.

Our issued United

States patents that are significant to our operations are expected to expire at various dates up to 2042.

We have several trademarks

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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.

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

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Chief Financial Officer and Treasurer

McDermott-Spikes

Chief Legal Officer and Secretary

Chief Operating Officer

1 unchanged sentence

Chief of Owned Retail Officer

Chief People Officer

Executive Officers

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degree in Accounting from Arizona State University.

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-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.

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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 leadership.

Prior to joining the Company, Mr.

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