Purple Revenue Growth Strategy

21 We've developed a detailed strategic plan prioritizing three "big moves" to drive profitable growth 1. Elevate product offering Gain market share in premium mattress core with value-added high-end innovation Grow non-mattress revenue via mattress customer attachment and stand-alone sales initiatives Today ~$1,900 Mattress ASP¹ 4 Mattress families ~$140M in non-mattress revenue purple 3-5 years ~$2,400 Mattress ASP¹ 6+ Mattress families $400-500M in non-mattress revenue Accelerate owned showroom buildout 13 owned showrooms 2. Expand distribution ecosystem Scale wholesale with high- performing, premium partners ~2,300 3. Increase Margins +200 owned showrooms ~3,500 wholesale doors wholesale doors Optimize pricing and promotions, and drive 10.7% adj. EBITDA margin² 14-15% adj. EBITDA margin efficiencies in manufacturing and distribution, enabling growth and capturing benefits of scale 1. Represents average price paid by the consumer across all channels 2. Average of 2019 and 2020 adjusted EBITDA Margins which were 7.8% and 13.6%, respectively. COVID-related benefits contributed to an increase in adjusted EBITDA margin in 2020.

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