v3.26.1
Equity Compensation Plans
6 Months Ended
Jun. 30, 2026
Equity Compensation Plans [Abstract]  
Equity Compensation Plans

18. Equity Compensation Plans

 

2017 Equity Incentive Plan

 

The Purple Innovation, Inc. 2017 Equity Incentive Plan (the “2017 Plan”) provides for grants of stock options, stock appreciation rights, restricted stock units and other stock-based awards. Directors, officers and other employees, as well as others performing consulting or advisory services for the Company and its subsidiaries, are eligible for grants under the 2017 Plan. As of June 30, 2026, an aggregate of 0.1 million shares remain available for issuance or use under the 2017 Plan.

 

Employee Stock Options

 

The following table summarizes the Company’s total stock option activity for the six months ended June 30, 2026:

 

    Options
(in thousands)
    Weighted
Average
Exercise
Price
    Weighted
Average
Remaining
Contractual
Term in
Years
    Intrinsic
Value
(in thousands)
 
Options outstanding as of January 1, 2026     20     $ 170.50       1.3     $  
Granted                        
Exercised                        
Forfeited                        
Options outstanding as of June 30, 2026     20     $ 170.50       0.8     $  

 

The estimated fair value of Company stock options is amortized over the options vesting period on a straight-line basis. All outstanding stock options were vested as of January 1, 2026 and there was no remaining unrecognized stock compensation cost. There was no stock option expense for the three and six months ended June 30, 2026 and was de minimis for the three and six months ended June 30, 2025.

 

Employee Restricted Stock Units

 

The following table summarizes the Company’s restricted stock unit activity for the six months ended June 30, 2026:

 

    Number
Outstanding
(in thousands)
    Weighted
Average
Grant Date
Fair Value
 
Nonvested restricted stock units as of January 1, 2026     126     $ 31.25  
Granted            
Vested     (28 )     34.75  
Forfeited     (84 )     32.00  
Nonvested restricted stock units as of June 30, 2026     14     $ 19.50  

 

The Company recorded restricted stock unit expense recapture benefit of $0.4 million and $0.2 million during the three and six months ended June 30, 2026, respectively, and a restricted stock unit expense of $0.4 million and $0.8 million during the three and six months ended June 30, 2025, respectively.

 

For restricted stock units outstanding as of June 30, 2026, there were $0.2 million of total unrecognized stock compensation costs with a remaining recognition period of 1.1 years.

 

Aggregate Non-Cash Stock-Based Compensation

 

The Company has accounted for all stock-based compensation under the provisions of ASC 718 Compensation—Stock Compensation. This standard requires the Company to record a non-cash expense associated with the fair value of stock-based compensation over the requisite service period.

 

The following table summarizes the aggregate non-cash stock-based compensation recognized in the statement of operations for stock awards, employee stock options and employee restricted stock units (in thousands):

 

    Three Months Ended
June 30,
    Six Months Ended
June 30,
 
    2026     2025     2026     2025  
Cost of revenues   $ (78 )   $ 100     $ (95 )   $ 203  
Marketing and sales     7       66       15       (109 )
General and administrative     (322 )     246       (159 )     608  
Research and development     16       65       18       143  
Total non-cash stock-based compensation   $ (377 )   $ 477     $ (221 )   $ 845