Purple Innovation, Inc.

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

Shareholders and Board of Directors

Purple Innovation, Inc.

Lehi, Utah

Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated balance sheets of Purple Innovation, Inc. (the “Company”) as of December 31, 2025 and 2024, the related consolidated statements of operations, stockholders’ equity (deficit), and cash flows for each of the three years in the period ended December 31, 2025, and the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025**,** in conformity with accounting principles generally accepted in the United States of America.

Going Concern Uncertainty

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the consolidated financial statements, the Company has a history of recurring net losses and cash used in operations, an accumulated deficit, and access to additional capital is currently outside of the Company’s control, which raises substantial doubt about its ability to continue as a going concern. Management’s plans in regard to this matter are also described in Note 2. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Basis for Opinion

These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Accrued Warranty Liabilities

As described in Note 2 to the consolidated financial statements, the Company’s accrued warranty liabilities balance was $26.7 million as of December 31, 2025. The Company provides a limited warranty on the majority of its products sold. Estimates for direct to consumer (“DTC”) warranty costs are based primarily on historical warranty claims, estimated warranty costs and the estimated warranty claim rate, and estimates for wholesale warranty costs are based primarily on the historical warranty claim amounts and the estimated warranty claim rate, which both may be adjusted for expected trends. Estimated warranty costs for the Company’s DTC customers are recognized at the time of sale as cost of revenues and estimated warranty costs for the Company’s wholesale customers are recognized at the time of sale as an offset to net revenues.

We identified the estimate of accrued warranty liabilities as a critical audit matter because of certain assumptions and inputs used to estimate warranty costs at the time of sale require judgment or significant effort by management, specifically, the historical warranty claims, estimated warranty costs, and estimated warranty claim rate for the DTC estimated warranty costs, and the historical warranty claims amounts and estimated warranty claim rate for the wholesale estimated warranty costs. Auditing these assumptions involved especially challenging and subjective auditor judgment due to the nature and extent of audit evidence and an increased extent of audit effort required to address this matter.

The primary procedures we performed to address this critical audit matter included:

/s/BDO USA, P.C.

We have served as the Company's auditor since 2017.

Salt Lake City, Utah

March 31, 2026