MeritValue

Purple Innovation, Inc.

PRPLdata completeness 100%10 fiscal years on file
The thesis, from the filings

Purple Innovation, Inc. earns about -23% on invested capital, but has diluted owners by 61% over 5 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$725M1$573.2M2$510.5M3$487.9M3$468.7M3
Net income$3.11M4−$92.5M5−$120.8M6−$97.9M6−$51.4M6
Operating cash flow−$30.9M7−$28.8M8−$54.7M9−$17.9M9−$33.8M9
Capital expenditure$53.9M10$35.4M11$14.4M12$7.24M12$8.08M12
Free cash flow (derived)−$84.8M7−$64.1M8−$69.1M9−$25.1M9−$41.9M9
Total debt$286.9M13$72M14$112.9M15$181.5M16$126.7M17
Cash & equivalents$91.6M18$41.8M18$26.9M19$29M20$24.3M20
Diluted shares67.3M81.8M103.9M107.3M108.2M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
−$2.74
your share of equity
Profit it earned you last year
−$4.75
Free cash flow it threw off
−$3.87
Debt you’d be carrying
$11.7

10 shares is a claim on −$2.74 of net worth that earned you −$4.75 and generated −$3.87 of cash last year, against $11.7 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
-23% avg · 5y
FY21 1%FY22 30%FY23 -47%FY24 -45%FY25 -56%

It earned an average -23% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+61% shares · 5y

Share count is up 61% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has fallen 56% — deleveraging.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
book value / share count missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001213900-24-021861 (Revenues)
  2. 10-K · period ending 2022-12-31 · accession 0001213900-25-023815 (Revenues)
  3. 10-K · period ending 2023-12-31 · accession 0001213900-26-036974 (Revenues)
  4. 10-K · period ending 2021-12-31 · accession 0001213900-24-021861 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0001213900-25-023815 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001213900-26-036974 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0001213900-24-021861 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0001213900-25-023815 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0001213900-26-036974 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0001213900-24-021861 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2022-12-31 · accession 0001213900-25-023815 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2023-12-31 · accession 0001213900-26-036974 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2021-12-31 · accession 0001213900-22-010057 (LongTermDebtNoncurrent)
  14. 10-K · period ending 2022-12-31 · accession 0001213900-24-021861 (LongTermDebtNoncurrent)
  15. 10-K · period ending 2023-12-31 · accession 0001213900-25-023815 (LongTermDebtNoncurrent)
  16. 10-K · period ending 2024-12-31 · accession 0001213900-25-023815 (LongTermDebtCurrent)
  17. 10-K · period ending 2025-12-31 · accession 0001213900-26-036974 (LongTermDebt)
  18. 10-K · period ending 2021-12-31 · accession 0001213900-23-021852 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2023-12-31 · accession 0001213900-25-023815 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2024-12-31 · accession 0001213900-26-036974 (CashAndCashEquivalentsAtCarryingValue)