v3.25.2
Revenue from Contracts with Customers
 6 Months Ended
Jun. 30, 2025
Revenue from Contracts with Customers [Abstract]  
Revenue from Contracts with Customers

5. Revenue from Contracts with Customers

 

The Company markets and sells its products through direct-to-consumer e-commerce channels, Purple showrooms, retail brick-and-mortar wholesale partners, and third-party online retailers. Revenue is recognized when the Company satisfies its performance obligations under the contract which involves transferring the promised products to the customer, subject to shipping terms. 

 

Disaggregated Revenue

 

The Company classifies revenue as either direct-to-consumer (“DTC”) or wholesale revenue. DTC revenues include the e-commerce channel which sells directly to consumers who purchase online, through the contact center, and through online marketplaces and the showrooms channel that sells directly to consumers who purchase at a Purple showroom location. The wholesale channel includes all product sales to the Company’s retail brick and mortar and online wholesale partners where consumers make purchases at their retail locations or through their online channels.

 

The following tables present the Company’s revenue disaggregated by sales channel (in thousands):

 

   Three Months Ended
June 30,		   Six Months Ended
June 30,		 
Sales Category  2025   2024   2025   2024 
e-commerce  $43,084   $48,666   $88,481   $98,140 
Showrooms   15,769    18,197    33,755    34,938 
Wholesale   46,247    53,408    87,035    107,226 
Revenues, net  $105,100   $120,271   $209,271   $240,304 

 

Contract Balances

 

Payments for the sale of products through the direct-to-consumer e-commerce channel, Purple showrooms and our contact center are collected at point of sale in advance of shipping the products. The amounts received for unshipped products are recorded as customer prepayments. Customer prepayments totaled $8.5 million and $6.4 million at June 30, 2025, and December 31, 2024, respectively. During the six months ended June 30, 2025, the Company recognized all of the revenue that was deferred in customer prepayments at December 31, 2024.