NASDAQ: PRPL

In addition to developing
differentiated products and technologies, we have built a brand that we believe has high customer engagement and avid brand advocates.
We have an experienced marketing team, providing efficient customer acquisition and brand demand development. Our marketing strategy enables
us to market our full product suite to customers, generate frequent interactions online and drive traffic to all channels offering our
products.

Our knowledge of and engagement with consumers across digital and brick
and mortar retail channels is advantageous and increasing. To complement our DTC efforts, we have developed multiple wholesale relationships
with best-in-class retailers in the furniture, mattress specialty, and home décor spaces. Our goal is to provide opportunities
for each customer to learn, shop, and buy in the way that works for them. We believe our differentiated products (including differences
across price, comfort, benefit, marketing strategies, manufacturing capabilities, branding and technology) position us to drive long-term
growth. For the year ended December 31, 2025, our DTC sales accounted for 55.8% of our net revenues, as compared to 58.1% for 2024 and
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, 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.

1

Industry and Competition

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

Sleep Products

The sleep products
category encompasses a variety of products including mattresses, pillows, bases, foundations, sheets, mattress protectors, blankets
and duvets. 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 20th 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.

Beginning in 2015, the market
for sleep products underwent a fundamental transformation with the rise of e-commerce-based brands and direct-to-consumer distribution.
This market change disrupted the traditional category dynamics and drove the majority of category growth (versus traditional mattress
companies) for several years. Recently, the U.S. sleep product industry has experienced significant consolidation as manufacturers have
acquired both direct-to-consumer companies and brick and mortar retailers to expand profitability through vertical integration and extend
their reach to the consumer to capture more market share. Amidst this changing category dynamic, Purple’s product differentiation
and manufacturing capabilities paired with our strategic mix of showrooms, e-commerce and third-party retailers, has allowed us to gain
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 addition, the acquisition allowed us to immediately expand into the luxury mattress segment. 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
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.

Across these channels, some
key factors that impact competition in our industry are comfort feel, product features, reliable logistics and manufacturing capabilities,
marketing efficacy and efficiency, brand differentiation, expertise of sales associates, customer care, pace of innovation and product
roadmap, price of products and services, financial stability and ability to invest in innovation.

2

What Makes Purple Different?

We believe we have a particular
set of competitive strengths that differentiate and position us for continued success:

●
History of innovation that produced new comfort technology— We are a company built on innovation and licensing, with more than 30 years of expertise in comfort innovation. Purple is founded upon decades of history-developing innovative comfort solutions, including the invention of our proprietary and patented Hyper-Elastic Polymer technology. Our breakthrough mattress represents what we believe to be the first substantive innovation in the sleep product industry since the introduction of memory foam in 1992. We believe that the unique properties of our technology have resulted in several improvements to existing sleep products that are not addressed by foam, spring or air mattresses.

●
Pressure Relief— Our Hyper-Elastic Polymer technology is designed around the science of column buckling which enables our mattresses to be both firm and soft. This offers support across the body’s larger surface areas, such as the back, while providing pressure relief at local areas or points of pressure, such as the hips and shoulders. We believe Purple’s founders were the first to leverage this technology in mattresses after their success in licensing their proprietary Hyper-Elastic Polymer technology to medical manufacturers for use in wheelchairs, critical care beds and hospital beds. The resulting feel is often described as buoyant and responsive.

●
Temperature Neutral— The Hyper-Elastic Polymer material itself is temperature neutral, with the surface comprised mostly of air, made from thousands of open-air channels. The channels allow for high airflow and dissipation of heat and vapor. This is the opposite of foam beds, which absorb heat from the body and then radiate the heat back, constantly increasing the temperature. Our technology allows for continual sleeping without waking up hot.

●
Responsive— Unlike memory foam, which compresses, gets hard and then takes time to recoil, our Hyper-Elastic Polymer technology is instantly responsive to the body as it moves. It will immediately flex to support the sleeper’s position and spring back into place as the sleeper readjusts during the night.

●
Durable— Hyper-Elastic Polymer material is a highly durable gel that we believe is more durable than most foams. The Hyper-Elastic Polymer technology also has numerous applications beyond mattress products including seat cushions and pillows. Hyper-Elastic Polymer technology is only one of numerous innovations we have developed to produce a range of unique and effective comfort products across the sleep, seat cushion and other categories.

●
Proprietary technologies and manufacturing expertise provide a significant competitive advantage—We believe the combination of patent protection, proprietary manufacturing equipment and decades of accumulated knowledge creates a competitive advantage through barriers to imitation. We have hundreds of granted or pending patents and hundreds of patent filings that cover current and future products as well as proprietary manufacturing equipment we have designed and fabricated. In addition to intellectual property protection of key products and manufacturing capabilities, our team has in depth experience and unique insights derived from inventing and refining proprietary comfort technologies, machines and products. 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.

3

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

Growth Strategies

●

Knowing Our Customer. Over
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. Our
Less Pain, Better Sleep positioning continues to resonate, providing a consistent,
consumer-led message that translates across ecommerce, retail, and wholesale channels. Importantly,
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
scores.

●

Delivering Better Sleep. Innovation
remains at the core of Purple’s differentiation, and we believe our Rejuvenate 2.0 collection continues to validate that
approach. 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
partners. 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. Last
year, our focus was on right sizing the business so we could operate profitably at the current scale. We are
increasingly focused on driving growth from a stronger foundation of lower cost structure and improved margins. In owned
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.

4

Our Products

Our current product portfolio is as follows:

●
Mattresses— Our mattresses utilize the unique benefits of our patented Gelflex Grid technology creating a one-of-a-kind sleep solution that regulates body temperature, allowing you to sleep cooler through the night and soft enough to cradle pressure points while also providing support through localized buckling columns. The columns in our Gelflex Grid mattresses instantly adapt to your body to cradle your hips and shoulders while supporting your spine’s natural alignment for uniquely buoyant, supportive comfort. Our Gelflex Grid products are manufactured with non-toxic ingredients that are third-party tested and free from carcinogenic chemicals. Our patented Gelflex Grid technology is used in all Purple mattresses. We back up the quality and durability of our mattress with a 100-night trial and a 10-year warranty. 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.

●
Pillows— We
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
support. 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. 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 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. 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. 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.

●
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. Purple currently sells four types of seat cushions and one back cushion, all in varying sizes and shapes to meet the needs of our customers.

5

Technology

Technology is key to our unique
position within the sleep products industry. The introduction of our proprietary Hyper-Elastic Polymer material was the first major innovation
in the consumer mattress category in decades. Mattresses from our competitors are typically manufactured using one or more layers of springs,
standard polyurethane foam, memory foam, air chambers or latex foam and are undifferentiated from competitors within their product type.

Proprietary Technologies

The Purple innovation team,
through their scientific journey to get to the root causes of pressure sores, designed the Hyper-Elastic Polymer material and other
patented and proprietary comfort technologies in order to improve the lives of “every body.” Each different cushioning product
line requires unique molding techniques.

Our Hyper-Elastic Polymer material
is durable, elastic and can stretch up to 15 times its original size and return without losing its shape. It sleeps and sits temperature-neutral
and has good ventilation to inhibit moisture build-up.

Our Hyper-Elastic Polymer
material is both soft and supportive. While the columns in this structure provide support where it is needed, they also buckle where it
is needed to reduce pressure by allowing shoulders and hips to sink into the cushion with reduced force pushing back on those areas of
the body unlike other cushion technologies. The soft and flexible columns also return to their original position as forces lessen and
are capable of immediately providing support.

Proprietary Machinery

Internally designed, developed
and built, our patented and proprietary molding machines are able to mold our Hyper-Elastic Polymer material into large-format king-sized
mattresses at scale. We have modified other molding machines to manufacture additional products containing Hyper-Elastic Polymer material.
We also acquired in the Intellibed acquisition the patented manufacturing machine and process that had been licensed by our founders,
preventing others from obtaining access to that technology. The process of molding our Hyper-Elastic Polymer material using our molding
machinery is proprietary, patent-protected and complex, requiring specific knowledge and expertise to successfully execute manufacturing.
We have in-house engineering and fabrication capabilities enabling us to design, manufacture, install and maintain new equipment as well
as optimize the performance and efficiency of our existing machinery based on real-time insights gained from our vertically integrated
operations.

Marketing

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 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
forward.

6

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.

Direct-to-Consumer Channel

Our e-commerce distribution
channel is a critical hub for consumer education and consumer engagement, as well as conversion. We have benefited from the rapid growth
of the direct-to-consumer channel in the sleep product industry in addition to our differentiated product offering and unique marketing
campaigns. We sell directly to consumers through our website, our customer contact center and online marketplaces. With our website and
customer contact center, we help customers easily engage in relevant content, research our solutions, transact online or via our customer
contact center, or find the nearest retailer. We believe our online experience expands our brand and connections with consumers, enabling
deeper awareness, engagement and brand loyalty. We believe our 100-night trial, 10-year warranty, attractive financing options, strong
customer testimonials and excellent service provide confidence to consumers buying a mattress.

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. 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. 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.

Operations

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 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. 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
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
manufacturers who assemble mattresses and have established a network of third-party logistics providers to help with order fulfillment
across the United States. These arrangements help to minimize delivery times and provide white glove service in addition to parcel services.

We outsource and resell other
products, including adjustable bases, platform bases, sheets, mattress protectors, blankets and duvets. These products unique to Purple
are either designed in-house or in partnership.

We have relationships with
multiple suppliers for our outsourced products and components. These suppliers may be interchanged in order to maintain quality, cost
and delivery expectations.

7

Environmental and Governmental Regulation

We are subject to numerous
federal, state, local and foreign consumer protection, retail, environmental, health, safety, import/export, marketing, e-commerce, privacy,
and other laws and regulations applicable to the sleep product industry. As a manufacturer of mattresses and related products, we handle
regulated substances, which subject us to various environmental laws. For example, we are subject to the Toxic Substances Control Act,
the Resource Conservation and Recovery Act, the Clean Air Act, the Clean Water Act, the Safe Drinking Water Act and the Comprehensive
Environmental Response, Compensation and Liability Act, and related state and local statutes and regulations. Our mattress products are
subject to fire-retardant standards developed by the State of California, U.S. Consumer Product Safety Commission and other jurisdictions
where we sell these products.

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 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 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.

8

We have several trademarks
registered with the U.S. Patent and Trademark Office (USPTO). Applications are pending for registration of additional trademarks and some
of these listed trademarks for additional classes of goods both in the United States and internationally. Our Purple, No Pressure, Gelflex,
the color purple, and Hyper-Elastic Polymer trademarks are also registered and have applications pending for various classes of goods
in numerous foreign jurisdictions, some of which include Australia, Canada, China, Europe, United Kingdom, Japan and Korea. We also have
several common law trademarks.

Many of the common law marks
have registrations pending with the USPTO and other international jurisdictions. Solely for convenience, we may refer to our trademarks
in this Annual Report without the ™ or ® symbol, but such references are not intended
to indicate that we will not assert, to the fullest extent under applicable law, our rights to our trademarks.

In addition, we maintain copyrights,
many registered, to past and present versions of purple.com, onpurple.com, equapressure.com, wondergel.com, marketing content, blogs,
logos, graphics, videos and other marketing and promotional materials promoting our products.

While we may own or have the
exclusive rights in this intellectual property it is our responsibility to maintain that exclusivity through intellectual property enforcement
efforts when an infringement occurs. We continue to enforce those intellectual property rights and will continue to do so to maintain
our success in this industry.

We protect and enforce our
intellectual property rights, including through litigation as necessary.

Human Capital

At Purple, our primary focus
is fostering the professional development of our employees through collaboration of engaged teams and helping them feel connected to Purple’s
success. We try to achieve this through maintaining a safe and high-functioning work environment that cultivates an authentic
company culture. Our people initiatives are strategically crafted to enhance the professional growth and overall satisfaction of our employees,
with the overarching goal of making Purple the best place they’ve ever worked.

As of March 30, 2026, we had
approximately 1,100 employees engaged in manufacturing, research and development, general corporate functions, wholesale, e-commerce,
and Purple showrooms.

In
2026, Purple’s human resources team is focusing on four pillars that drive our people strategy: (i) acquire, retain, and develop
great people; (ii) improve organizational performance; (iii) deliver competitive and meaningful pay and benefits; and (iv) celebrate our
people.

Acquire, retain,
and develop great people

We
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.

9

Improve organizational
performance

We
attempt to drive efficiency, effectiveness, and business success through strategic people initiatives. We will continue to invest
in new technology to enhance communication channels and optimize our human resource information system, enabling self-service functionalities
for managers and employees. In alignment with our core values, we will place emphasis on creating shared experiences that will facilitate
genuine connections and foster strong relationships within our workforce.

Deliver competitive
and meaningful pay and benefits

We
attempt to provide compensation packages that are both competitive and meaningful, encompassing salary and benefits that align to market
standards. We will continue to provide relevant employee perks that connect our employees with our Company’s mission and actively
contribute to nurturing employee engagement.

Celebrate our people

We
attempt to continue to focus on maintaining a culture of recognition where we actively acknowledge and honor the achievements, contributions,
and milestones of our people. Through thoughtful and authentic celebration, we not only create a culture of gratitude, but we will also
foster a sense of belonging and motivation, ultimately strengthening our team cohesion and morale.

Available Information

Our website address is www.purple.com.
We make available, free of charge on our Investor Relations website, investors.purple.com, all of our reports filed with or furnished
to the Securities and Exchange Commission (“SEC”). The SEC also maintains an Internet website that contains reports and other
information regarding issuers that file electronically with the SEC located at http://www.sec.gov.

We also use our Investor Relations
website, investors.purple.com, as a channel of distribution of additional Purple information that may be deemed material. Accordingly,
investors should monitor this channel, in addition to following our press releases, SEC filings and public conference calls and webcasts.
The contents of our website shall not be deemed to be incorporated herein by reference.

Information About Our Executive Officers

As of the date of this report,
our executive officers are as follows:

Name

Age

Title

Robert T. DeMartini

64

Director, Chief Executive Officer

Todd E. Vogensen

57

Chief Financial Officer and Treasurer

Eric S. Haynor

62

Chief Operating Officer

Jeffrey L. Hutchings

59

Chief Innovation Officer

Jeffery S. Kerby

57

Chief of Owned Retail Officer

10

Executive Officers

Robert T. DeMartini has
served as Chief Executive Officer since January 2022. Prior to joining the Company, Mr. DeMartini, served as president and chief
executive officer of USA Cycling, Inc., the official U.S. Olympic & Paralympic Committee governing body for all disciplines of competitive
cycling in the United States, from 2019 until 2021. He previously served as president and chief executive officer of New Balance Athletic
Shoes (U.K.) Ltd., from 2018 to 2019 and as president and chief executive officer of New Balance Athletics, Inc. from 2007 to 2018, each
a business unit of New Balance, Inc. a leading manufacturer and retailer of athletic footwear, apparel and accessories. From 1982 through
2007, Mr. DeMartini held various leadership positions with Procter & Gamble, The Gillette Company, and Tyson Foods, Inc. He also currently
serves on the board of directors of Welch’s Foods and Q30 Innovations/Q30 Sports Canada, and formerly served on the board of directors
of Advanced Functional Fabrics of America, The American Apparel & Footwear Association, and Aloha. Mr. DeMartini received a Bachelor
of Science degree in Finance from San Diego State University.

Todd
E. Vogensen has served as Chief Financial Officer since October 2023. Prior to joining the Company, Mr. Vogensen served as executive
vice president and chief financial officer of Party City Holdings Inc. from February 2020 to August 2023. In January 2013, Party
City Holdings Inc. filed a voluntary petition for reorganization relief pursuant to Chapter 11 of the U.S. Bankruptcy Code. Previously, Mr. Vogensen
served as executive vice president—chief financial officer at Chico’s FAS, Inc. from June 2015 to January 2020. He joined
Chico’s FAS in October 2009, and served in roles of increasing responsibility, including senior vice president – finance,
and vice president – investor relations. Previously, Mr. Vogensen served in executive finance roles at Michaels
Stores, Inc., Gap, Inc., Hewlett Packard Company and PricewaterhouseCoopers LLP. Mr. Vogensen received a Bachelor of Science
degree in Accounting from Arizona State University.

Eric S. Haynor has
served as the Chief Operating Officer of the Company since June 2022. Prior to joining the Company, Mr. Haynor spent most of his career
with Ecolab, a supplier of cleaning, sanitizing and maintenance products and services for the institutional, hospitality, healthcare and
industrial markets, in a variety of end-to-end supply chain roles. From August 2019 until he joined the Company in June 2022, he served
as senior vice president, industrial supply chain at Ecolab providing strategic direction for eight industrial business units. Prior to
that, he held the role of vice president, global equipment operations and strategy from June 2015 to August 2019 at Ecolab. From August
2009 to June 2015, Mr. Haynor led Ecolab’s EMEA supply chain operations and from April 2005 to August 2009, he led Ecolab’s
Asia Pacific supply chain operations. His early career was spent in a variety of developmental supply chain roles. Mr. Haynor is a graduate
of Michigan State University and holds a Bachelor of Science degree in Mechanical Engineering.

Jeffrey L. Hutchings
has served as the Chief Innovation Officer of the Company since May 2022. Mr. Hutchings has more than 20 years of experience in strategic
business leadership in innovation, new product introduction and quality assurance. Prior to joining the Company, Mr. Hutchings served
as chief product officer at Skullcandy Inc., a designer and manufacturer of performance audio and gaming headphones and other accessory
related products, from December 2018 to May 2022 and as vice president of product from June 2015 to December 2018. Prior to that, from
July 2010 to June 2015, Mr. Hutchings served in various engineering and director roles at HARMAN International. Mr. Hutchings holds a
Bachelor of Science degree in Computer Engineering from the University of Utah.

Jeffery S. Kerby has
served as the Chief of Owned Retail Officer of the Company since January 2023. Prior to joining the Company, Mr. Kerby served as vice
president, head of stores of Sephora, a retailer of personal care and beauty products, since May 2019, responsible for leading 86 stores
throughout Canada. From March 2018 to January 2019, he served as the senior regional director of American Eagle, a specialty retailer
of clothing, accessories and personal care products, where he led American Eagle/Aerie stores in the Midwest United States and Canada
with 225 stores. Prior to joining American Eagle, Mr. Kerby was with L Brands’ LaSensa, a Canadian retailer of women’s lingerie
and apparel, from February 2017 to March 2018. Prior to that, Mr. Kerby was the vice president, head of stores/store operations for L
Brands’ Victoria’s Secret International from June 2015 to September 2016. From October 2008 to June 2015, Mr. Kerby grew from
director to associate vice president, head of stores for Bath and Body Works. Mr. Kerby holds a Bachelor of Science degree from Washington
State University’s School of Communications.

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