Purple Innovation regains Nasdaq compliance with bid price rule

Purple Innovation, Inc. (NASDAQ:PRPL), a company specializing in household furniture with a market capitalization of $111 million, has announced on Monday that it has regained compliance with the Nasdaq’s minimum bid price requirement. The Nasdaq Listing Qualifications Department confirmed that the company’s common stock had maintained a closing bid price of at least $1.00 per share over ten consecutive business days, from January 21 to February 3, 2025. According to InvestingPro data, the stock has shown strong volatility, with a beta of 2.16.

The compliance notice, received today, follows a previous notification dated November 11, 2024, when Purple Innovation was informed that it had fallen out of compliance with the Bid Price Rule due to its stock trading below the $1.00 minimum threshold for 30 consecutive business days. While the stock has recently recovered, InvestingPro analysis indicates the company faces significant challenges, with 12 key investment tips available to subscribers.

The company’s return to compliance means that its stock will continue to be listed on the Nasdaq Stock Market, ensuring continued access for investors. This development is a positive sign for Purple Innovation, which is incorporated in Delaware and headquartered in Lehi, Utah.

As per standard procedure, the company has filed an 8-K form with the Securities and Exchange Commission to report this other event. The 8-K form is a current report companies must file to announce major events that shareholders should know about. The Chief Financial Officer of Purple Innovation, Todd Vogensen, signed off on the report.

The information in this article is based on a press release statement.

In other recent news, Purple Innovation, Inc. has been notified by The Nasdaq Stock Market about a potential delisting risk due to its common stock falling below the $1.00 threshold for 30 consecutive business days. The company has until May 12, 2025, to regain compliance by maintaining a closing bid price at or above $1.00 for at least ten consecutive business days. In the event of non-compliance, Purple Innovation may face delisting but can appeal such a decision.

On the financial front, Purple Innovation reported a 15% year-over-year decline in third-quarter sales, totaling $118.6 million, as revealed in their recent earnings call. Despite this, the company highlighted a 340 basis point improvement in adjusted gross margin. The company’s CEO, Rob DeMartini, has projected annual EBITDA savings of $15 million to $20 million starting in 2025, aiming for EBITDA and cash flow positivity by the fourth quarter of 2024.

These recent developments indicate a challenging period for Purple Innovation, with the company facing both stock price and revenue issues. Nonetheless, the company’s focus on operational efficiencies and strategic initiatives positions it for potential future profitability.

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