Sleep Number Corp
NASDAQ:SNBR
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Sleep Number Corp
NASDAQ:SNBR
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US |
Sleep Number Corp
Sleep Number Corp. designs, manufactures, markets, and distributes beds, proprietary beds, and other sleep-related accessory products. The company is headquartered in Minneapolis, Minnesota and currently employs 5,515 full-time employees. The firm's Sleep Number bedding collection features a full line of sleep products designed to improve sleep comfort and quality, including a range of pillow sizes and shapes that fit each individual’s preferred sleeping position. Its Sleep Number 360 smart beds provide each sleeper with adjustable, personalized comfort for quality sleep. The company offers a full line of exclusive FlexFit smart adjustable bases that allow customers to raise the head or foot of the bed. The firm offers SleepIQ technology, which is a Sleep Number 360 smart bed’s operating system that detects sleep disturbances, movements, and biometric changes, and then adjusts the bed’s firmness throughout the night to deliver quality sleep. Its SleepIQ technology operating system captures biometric data points every night and offers actionable insights to improve overall sleep health and wellness.
Sleep Number Corp. designs, manufactures, markets, and distributes beds, proprietary beds, and other sleep-related accessory products. The company is headquartered in Minneapolis, Minnesota and currently employs 5,515 full-time employees. The firm's Sleep Number bedding collection features a full line of sleep products designed to improve sleep comfort and quality, including a range of pillow sizes and shapes that fit each individual’s preferred sleeping position. Its Sleep Number 360 smart beds provide each sleeper with adjustable, personalized comfort for quality sleep. The company offers a full line of exclusive FlexFit smart adjustable bases that allow customers to raise the head or foot of the bed. The firm offers SleepIQ technology, which is a Sleep Number 360 smart bed’s operating system that detects sleep disturbances, movements, and biometric changes, and then adjusts the bed’s firmness throughout the night to deliver quality sleep. Its SleepIQ technology operating system captures biometric data points every night and offers actionable insights to improve overall sleep health and wellness.
Sales: Full‑year net sales were $1.41 billion, in line with prior guidance; Q4 net sales were $347 million, down 8% year‑over‑year.
Profitability: 2025 adjusted EBITDA was $78 million, beating the $70 million outlook; pro forma adjusted EBITDA margin was ~9%.
Cash flow: Full‑year free cash flow was a use of $18 million versus a $50 million use guidance, and year‑end liquidity (cash + revolver) was $58 million (above the amended $30 million covenant floor).
Product launch: New product lineup launches March 23 — early ComfortMode sales are 3.5x plan and nearly 2x the combined sales of the 3 C Series beds it replaces; ComfortMode gross margin is ~10 percentage points higher than the prior C Series openings.
Cost cuts: The company removed >$185 million of annualized costs in 2025 and has identified an additional $50 million of annualized fixed cost savings to execute in 2026.
Guidance stance: Management declined to provide formal 2026 guidance today but expects Q1 net sales down in the high teens, a significant Q2 improvement, double‑digit growth in H2, adjusted EBITDA growth of high‑teens to mid‑20s percent vs $78M, and positive free cash flow for the year.
Liquidity actions: Management has engaged Guggenheim Securities to evaluate refinancing and other options to address capital structure and covenant pressures.
Marketing & brand: Marketing spend will be smoothed across 2026 (Q1 down vs prior year, Q2 up); brand consideration among premium shoppers rose 10% in January and new creative and a Travis Kelce partnership are planned to drive demand.
