Sleep Number (SNBR)
Market Price (6/18/2026): $0.1688 | Market Cap: $3.9 MilSector: Consumer Discretionary | Industry: Household Appliances
Sleep Number (SNBR)
Market Price (6/18/2026): $0.1688Market Cap: $3.9 MilSector: Consumer DiscretionaryIndustry: Household Appliances
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Valuation becoming less expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is -95% Megatrend and thematic driversMegatrends include Digital Health & Telemedicine, Health & Wellness Trends, and Smart Buildings & Proptech. Themes include Wearable Health Devices, Show more. | Weak multi-year price returns2Y Excs Rtn is -134%, 3Y Excs Rtn is -169% | Penny stockMkt Price is 0.4 Not profitable at operating income levelOp Inc LTMOperating Income, Last Twelve Months is -13 Mil, Op Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is -1.0% Debt is significantNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is 10619% Weak revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is -17%, Rev Chg 3Y AvgRevenue Change % averaged over trailing 3 years is -14%, Rev Chg QQuarterly Revenue Change % is -19% Not cash flow generativeFCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is -1.8% Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -1940% High stock price volatilityVol 12M is 212% Significant short interestShort Interest % of Basic SharesShort Interest % of Basic Shares = (Short Interest Quantity) / (Basic Shares Outstanding). A high fraction of short interest can indicate potential risk of a short squeeze. is 27% Key risksSNBR key risks include [1] high debt levels and financial fragility, Show more. |
| Valuation becoming less expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is -95% |
| Megatrend and thematic driversMegatrends include Digital Health & Telemedicine, Health & Wellness Trends, and Smart Buildings & Proptech. Themes include Wearable Health Devices, Show more. |
| Weak multi-year price returns2Y Excs Rtn is -134%, 3Y Excs Rtn is -169% |
| Penny stockMkt Price is 0.4 |
| Not profitable at operating income levelOp Inc LTMOperating Income, Last Twelve Months is -13 Mil, Op Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is -1.0% |
| Debt is significantNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is 10619% |
| Weak revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is -17%, Rev Chg 3Y AvgRevenue Change % averaged over trailing 3 years is -14%, Rev Chg QQuarterly Revenue Change % is -19% |
| Not cash flow generativeFCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is -1.8% |
| Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -1940% |
| High stock price volatilityVol 12M is 212% |
| Significant short interestShort Interest % of Basic SharesShort Interest % of Basic Shares = (Short Interest Quantity) / (Basic Shares Outstanding). A high fraction of short interest can indicate potential risk of a short squeeze. is 27% |
| Key risksSNBR key risks include [1] high debt levels and financial fragility, Show more. |
Qualitative Assessment
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Sleep Number (SNBR) stock has lost about 95% since 2/28/2026 because of the following key factors:
1. Consecutive Poor Earnings Reports and Suspended Guidance.
Sleep Number, whose fiscal Q4 2025 ended on January 3, 2026, and fiscal Q1 2026 ended on April 4, 2026, reported significantly worse-than-expected financial results for both quarters. For fiscal Q4 2025, announced on March 12, 2026, the company posted a GAAP quarterly loss of -$2.55 per share, substantially missing analyst expectations of -$0.55 per share, and revenue fell 7.8% year-on-year despite beating estimates. This was compounded by a 19% decline in same-store sales for the quarter. The situation worsened with fiscal Q1 2026 results, announced on May 12, 2026, where the company reported an EPS loss of -$2.19 per share, missing consensus estimates of around -$0.40 per share, and revenue of $318.99 million also fell short of expectations. Following the Q1 2026 announcement, shares fell by 22.45% and the company suspended its financial guidance, further eroding investor confidence.
2. Severe Liquidity Crisis and Heavy Debt Load.
The company's precarious financial health was highlighted by a significant debt load of $942.5 million far exceeding its cash reserves of just $1.69 million following fiscal Q4 2025. This severe liquidity crisis prompted Sleep Number to secure approximately $55 million in additional liquidity in April 2026, which included a new $25 million term loan at a high interest rate (one-month term SOFR plus 8%) maturing on June 30, 2026, along with covenant relief from existing lenders. The need for such measures underscored the company's financial distress and its struggle to service its substantial debt.
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Sleep Number (SNBR) stock has lost about 95% since 2/28/2026 because of the following key factors:
1. Consecutive Poor Earnings Reports and Suspended Guidance.
Sleep Number, whose fiscal Q4 2025 ended on January 3, 2026, and fiscal Q1 2026 ended on April 4, 2026, reported significantly worse-than-expected financial results for both quarters. For fiscal Q4 2025, announced on March 12, 2026, the company posted a GAAP quarterly loss of -$2.55 per share, substantially missing analyst expectations of -$0.55 per share, and revenue fell 7.8% year-on-year despite beating estimates. This was compounded by a 19% decline in same-store sales for the quarter. The situation worsened with fiscal Q1 2026 results, announced on May 12, 2026, where the company reported an EPS loss of -$2.19 per share, missing consensus estimates of around -$0.40 per share, and revenue of $318.99 million also fell short of expectations. Following the Q1 2026 announcement, shares fell by 22.45% and the company suspended its financial guidance, further eroding investor confidence.
2. Severe Liquidity Crisis and Heavy Debt Load.
The company's precarious financial health was highlighted by a significant debt load of $942.5 million far exceeding its cash reserves of just $1.69 million following fiscal Q4 2025. This severe liquidity crisis prompted Sleep Number to secure approximately $55 million in additional liquidity in April 2026, which included a new $25 million term loan at a high interest rate (one-month term SOFR plus 8%) maturing on June 30, 2026, along with covenant relief from existing lenders. The need for such measures underscored the company's financial distress and its struggle to service its substantial debt.
3. Chapter 11 Bankruptcy Filing and Merger Announcement.
The culmination of Sleep Number's financial difficulties was the announcement on June 12, 2026, that it had initiated a voluntary Chapter 11 sale process to support a merger with Sleep Country Canada. This strategic move aims to reorganize operations and create a larger North American entity, with Sleep Number expecting to secure up to $260 million in debtor-in-possession financing to aid operations during this transition. The news of impending bankruptcy and restructuring significantly contributed to the drastic decline in stock value.
4. Broader Consumer Discretionary Sector Weakness.
Macroeconomic headwinds significantly impacted Sleep Number, operating within the consumer discretionary sector. Rising crude oil prices surged towards $120 a barrel, intensifying geopolitical conflicts and stoking fears of a new wave of inflation that would squeeze household budgets. This environment led to softer-than-expected consumer demand for non-essential goods like premium bedding, with management noting that consumer demand remained subdued and promotional activity within the sector intensified, creating margin pressure across the industry.
5. Significant Institutional Investor Exits.
A notable factor was the substantial reduction in holdings by large institutional investors. For instance, Millennium Management LLC removed 716,873 shares, valued at an estimated $6,064,745, from their portfolio in fiscal Q4 2025, indicating a loss of confidence in the company's future prospects. This significant selling by major funds likely contributed to the downward pressure on the stock price.
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Stock Movement Drivers
Fundamental Drivers
The -93.7% change in SNBR stock from 2/28/2026 to 6/17/2026 was primarily driven by a -93.2% change in the company's P/S Multiple.| (LTM values as of) | 2282026 | 6172026 | Change |
|---|---|---|---|
| Stock Price ($) | 6.17 | 0.39 | -93.7% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 1,441 | 1,337 | -7.2% |
| P/S Multiple | 0.1 | 0.0 | -93.2% |
| Shares Outstanding (Mil) | 23 | 23 | -0.1% |
| Cumulative Contribution | -93.7% |
Market Drivers
2/28/2026 to 6/17/2026| Return | Correlation | |
|---|---|---|
| SNBR | -93.7% | |
| Market (SPY) | 8.3% | -8.6% |
| Sector (XLY) | -1.0% | -2.5% |
Fundamental Drivers
The -92.4% change in SNBR stock from 11/30/2025 to 6/17/2026 was primarily driven by a -91.8% change in the company's P/S Multiple.| (LTM values as of) | 11302025 | 6172026 | Change |
|---|---|---|---|
| Stock Price ($) | 5.10 | 0.39 | -92.4% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 1,441 | 1,337 | -7.2% |
| P/S Multiple | 0.1 | 0.0 | -91.8% |
| Shares Outstanding (Mil) | 23 | 23 | -0.1% |
| Cumulative Contribution | -92.4% |
Market Drivers
11/30/2025 to 6/17/2026| Return | Correlation | |
|---|---|---|
| SNBR | -92.4% | |
| Market (SPY) | 9.0% | -6.5% |
| Sector (XLY) | -1.9% | -2.2% |
Fundamental Drivers
The -96.4% change in SNBR stock from 5/31/2025 to 6/17/2026 was primarily driven by a -95.6% change in the company's P/S Multiple.| (LTM values as of) | 5312025 | 6172026 | Change |
|---|---|---|---|
| Stock Price ($) | 10.76 | 0.39 | -96.4% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 1,605 | 1,337 | -16.7% |
| P/S Multiple | 0.2 | 0.0 | -95.6% |
| Shares Outstanding (Mil) | 23 | 23 | -1.2% |
| Cumulative Contribution | -96.4% |
Market Drivers
5/31/2025 to 6/17/2026| Return | Correlation | |
|---|---|---|
| SNBR | -96.4% | |
| Market (SPY) | 27.2% | -0.7% |
| Sector (XLY) | 8.9% | 5.3% |
Fundamental Drivers
The -97.9% change in SNBR stock from 5/31/2023 to 6/17/2026 was primarily driven by a -96.5% change in the company's P/S Multiple.| (LTM values as of) | 5312023 | 6172026 | Change |
|---|---|---|---|
| Stock Price ($) | 18.14 | 0.39 | -97.9% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 2,114 | 1,337 | -36.7% |
| P/S Multiple | 0.2 | 0.0 | -96.5% |
| Shares Outstanding (Mil) | 22 | 23 | -3.0% |
| Cumulative Contribution | -97.9% |
Market Drivers
5/31/2023 to 6/17/2026| Return | Correlation | |
|---|---|---|
| SNBR | -97.9% | |
| Market (SPY) | 84.3% | 14.7% |
| Sector (XLY) | 56.1% | 18.2% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| SNBR Return | -6% | -66% | -43% | 3% | -44% | -98% | -100% |
| Peers Return | 4% | -40% | 13% | 11% | -13% | -7% | -36% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 10% | 100% |
Monthly Win Rates [3] | |||||||
| SNBR Win Rate | 33% | 25% | 42% | 58% | 50% | 33% | |
| Peers Win Rate | 50% | 35% | 48% | 42% | 45% | 47% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 50% | |
Max Drawdowns [4] | |||||||
| SNBR Max Drawdown | -49% | -69% | -78% | -49% | -80% | -99% | |
| Peers Max Drawdown | -39% | -49% | -43% | -40% | -48% | -35% | |
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: PRPL, LEG, WSM, RH, LZB. See SNBR Returns vs. Peers.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 6/17/2026 (YTD)
How Low Can It Go
| Event | SNBR | S&P 500 |
|---|---|---|
| 2023 SVB Regional Banking Crisis | ||
| % Loss | -47.4% | -6.7% |
| % Gain to Breakeven | 89.9% | 7.1% |
| Time to Breakeven | 47 days | 31 days |
| 2020 COVID-19 Crash | ||
| % Loss | -72.5% | -33.7% |
| % Gain to Breakeven | 263.5% | 50.9% |
| Time to Breakeven | 192 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -16.2% | -19.2% |
| % Gain to Breakeven | 19.4% | 23.8% |
| Time to Breakeven | 6 days | 105 days |
| 2016-2017 Trump Reflation Bond Selloff | ||
| % Loss | -18.7% | -3.7% |
| % Gain to Breakeven | 23.0% | 3.9% |
| Time to Breakeven | 18 days | 6 days |
| 2015-2016 China Devaluation / Global Growth Scare | ||
| % Loss | -39.6% | -12.2% |
| % Gain to Breakeven | 65.7% | 13.9% |
| Time to Breakeven | 185 days | 62 days |
| 2014-2016 Oil Price Collapse | ||
| % Loss | -17.0% | -6.8% |
| % Gain to Breakeven | 20.5% | 7.3% |
| Time to Breakeven | 101 days | 15 days |
In The Past
Sleep Number's stock fell -3.4% during the 2024 Yen Carry Trade Unwind. Such a loss loss requires a 3.5% gain to breakeven.
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Asset Allocation
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| Event | SNBR | S&P 500 |
|---|---|---|
| 2023 SVB Regional Banking Crisis | ||
| % Loss | -47.4% | -6.7% |
| % Gain to Breakeven | 89.9% | 7.1% |
| Time to Breakeven | 47 days | 31 days |
| 2020 COVID-19 Crash | ||
| % Loss | -72.5% | -33.7% |
| % Gain to Breakeven | 263.5% | 50.9% |
| Time to Breakeven | 192 days | 140 days |
| 2015-2016 China Devaluation / Global Growth Scare | ||
| % Loss | -39.6% | -12.2% |
| % Gain to Breakeven | 65.7% | 13.9% |
| Time to Breakeven | 185 days | 62 days |
| 2013 Taper Tantrum | ||
| % Loss | -24.4% | -0.2% |
| % Gain to Breakeven | 32.4% | 0.2% |
| Time to Breakeven | 146 days | 1 days |
| 2011 US Debt Ceiling Crisis & European Contagion | ||
| % Loss | -32.2% | -17.9% |
| % Gain to Breakeven | 47.5% | 21.8% |
| Time to Breakeven | 73 days | 123 days |
| 2010 Eurozone Sovereign Debt Crisis / Flash Crash | ||
| % Loss | -30.2% | -15.4% |
| % Gain to Breakeven | 43.3% | 18.2% |
| Time to Breakeven | 219 days | 125 days |
| 2008-2009 Global Financial Crisis | ||
| % Loss | -97.5% | -53.4% |
| % Gain to Breakeven | 3864.2% | 114.4% |
| Time to Breakeven | 410 days | 1085 days |
In The Past
Sleep Number's stock fell -3.4% during the 2024 Yen Carry Trade Unwind. Such a loss loss requires a 3.5% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
About Sleep Number (SNBR)
Sleep Number Corporation (SNBR) is a specialty retailer and manufacturer dedicated to providing innovative sleep solutions and services across the United States. The company focuses on enhancing sleep quality for consumers by designing, manufacturing, marketing, retailing, and servicing a comprehensive range of bedding products primarily under the Sleep Number® brand.
Its main product offerings include signature adjustable air beds, pillows, sheets, and other bedding accessories. Key to its portfolio are the advanced Sleep Number 360® smart beds, which incorporate sensor technology for sleep tracking and automatic firmness adjustments, as well as adjustable bases marketed under the FlexFit® brand.
Sleep Number directly serves consumers throughout the United States through a robust multi-channel sales approach. This includes a substantial physical retail presence with approximately 648 stores across all 50 states, alongside strong e-commerce activities, online sales, phone, and chat channels, ensuring broad market reach.
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- Sleep Number Beds: The company's primary offering of adjustable air beds.
- Sleep Number 360 Smart Beds: Advanced beds featuring sensing and adjustability for improved sleep.
- FlexFit Adjustable Bases: Bases designed to allow for customized head and foot positions for their beds.
- Pillows: Complementary accessories offered to enhance the sleep experience.
- Sheets: Bedding textiles provided for use with their beds.
- Other Bedding Products: A range of additional items to complete the sleep system.
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Sleep Number (SNBR) primarily sells its products directly to individuals rather than other companies. Based on its business model, which includes retail stores, online sales, and direct consumer engagement, the company serves the following categories of customers:
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Health-conscious Consumers and Technology Enthusiasts: This category includes individuals who prioritize their well-being, recognize the importance of quality sleep, and are interested in advanced sleep technology. They are drawn to Sleep Number's "smart beds" (e.g., Sleep Number 360) which offer features like sleep tracking, personalized comfort adjustments, and integration with other health and wellness routines, willing to invest in premium solutions for better sleep.
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Couples with Differing Sleep Preferences: A significant portion of Sleep Number's appeal lies in its ability to allow individual comfort settings on each side of the bed. This caters specifically to couples who may have different firmness preferences or sleep needs, enabling both partners to achieve personalized comfort without compromise.
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Individuals Seeking Enhanced Comfort, Support, and Customization: This broad category encompasses consumers looking for superior comfort, ergonomic support, and the ability to customize their sleep experience. This includes those with specific physical needs (e.g., back pain, acid reflux), older adults benefiting from adjustable bases (FlexFit) for ease of mobility or improved circulation, or anyone desiring a highly personalized sleeping surface beyond what traditional mattresses offer.
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Linda Findley joined Sleep Number on April 7, 2025, bringing extensive leadership experience in consumer brands that integrate digital and physical products. She previously served as President, Chief Executive Officer, and Director of Blue Apron Holdings, Inc. from 2019 to 2024, where she led a successful turnaround culminating in its sale in September 2023. Prior to that, she was Chief Operating Officer at Etsy, Inc. from 2016 to 2018, overseeing product, design, marketing, and customer engagement. She also held senior executive roles at Evernote Corp. and led global marketing and business development for Alibaba.com Ltd.
Amy O'Keefe, Executive Vice President and Chief Financial Officer
Amy O'Keefe became Sleep Number's Executive Vice President and Chief Financial Officer on December 8, 2025. She has over 30 years of experience in financial and operational transformations across public and private companies in the consumer products, technology, and wellness sectors. Before Sleep Number, she was Chief Financial and Administrative Officer of Avaya, where she significantly improved free cash flow. Her career also includes nearly half a career at The Black & Decker Corporation and CFO positions at several public and private companies, including Weight Watchers International, Drive DeVilbiss Healthcare, Savant Systems, and D&M Holdings.
Melissa Barra, Executive Vice President and Chief Product and Enterprise Strategy Officer
Melissa Barra oversees Sleep Number's entire product portfolio, from development to distribution. She is responsible for streamlining research and development efforts and ensuring that products, partnerships, and distribution evolve to meet customer needs.
Samuel R. Hellfeld, Executive Vice President and Chief Legal and Risk Officer and Secretary
Samuel R. Hellfeld leads Sleep Number's legal, risk management, and safety and security teams. He joined the company in 2013 and previously served as Vice President, Associate General Counsel from 2015 to 2018. Before joining Sleep Number, he was a Partner at Fox Rothschild LLP, specializing in intellectual property and litigation.
Chris Krusmark, Executive Vice President, Chief Retail and People Officer
Chris Krusmark, formerly Executive Vice President, Chief Human Resources Officer, is now responsible for managing the retail experience, real estate footprint, and the team members supporting them. His focus is on strengthening the connection between customers and team members to enhance conversion.
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The key risks to Sleep Number's business revolve primarily around its financial stability, the challenging consumer spending environment, and intense market competition.
- Financial Health, Liquidity, and Going Concern: Sleep Number faces significant financial challenges, with management explicitly acknowledging "substantial doubt about its ability to continue as a going concern". The company has reported a substantial net loss, negative free cash flow, and poor financial strength indicated by a distressed Z-Score. Elevated leverage and potential breaches of financial covenants in its credit agreement pose a high financing and liquidity risk, potentially leading to a lack of sufficient liquidity without new capital or lender concessions.
- Weak Consumer Demand and Economic Sensitivity: As a provider of high-end smart beds and bedding products, Sleep Number is highly susceptible to shifts in discretionary consumer spending, especially during periods of economic uncertainty and slumping consumer confidence. The company has experienced declining net sales and lower store traffic, reflecting weak industry demand. This challenging macro-environment directly impacts its revenue and profitability.
- Intense Competition and Execution Risk of Turnaround Strategy: The bedding industry is highly competitive, with Sleep Number facing rivals from traditional mattress manufacturers, direct-to-consumer brands, and technology companies entering the wellness space. This competition challenges Sleep Number's market share, particularly as rivals introduce alternative sleep solutions and compete on distribution models. The company is currently undergoing an aggressive "full turnaround" strategy led by a new management team, which includes cost reductions, product resets, and efforts to modernize marketing and distribution. The success of this turnaround hinges on effective execution amidst weak consumer demand and a fiercely competitive landscape.
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- Traditional mattress manufacturers and direct-to-consumer brands incorporating sophisticated adjustable bases, integrated sleep tracking, temperature control, and personalized comfort features into their own product lines, often at competitive price points.
- The proliferation of third-party sleep technology accessories, such as advanced smart rings, wearables, and room-based sensors, which offer detailed sleep insights and personalized recommendations, enabling consumers to achieve many "smart sleep" benefits without purchasing a full Sleep Number system.
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The addressable markets for Sleep Number's main products and services in the U.S. are as follows:
- Smart Beds: The U.S. smart bed market is expected to reach USD 1.40 billion by 2032. The smart bed market in 2026 is estimated at USD 3.37 billion, with projections showing it will reach USD 4.28 billion by 2031 for the overall market (North America accounted for 41.60% of the smart bed market in 2025). Another source estimates the smart bed market size to grow from USD 3.29 billion in 2025 to USD 3.58 billion in 2026, reaching USD 5.04 billion in 2030.
- Adjustable Bases/Adjustable Bed Frames: The U.S. adjustable bed frames market size was estimated at approximately USD 1.2 billion in 2024 and is expected to expand to USD 1.61 billion by 2033. The U.S. adjustable bed frames market is projected to grow from USD 1.2 billion in 2025 to USD 1.7 billion by 2035. The Adjustable Bed & Mattress Manufacturing market in the U.S. was valued at USD 2.0 billion in 2026.
- Bedding Products (including pillows, sheets, and other bedding): The U.S. home bedding market size was estimated at USD 25.7 billion in 2023 and is projected to grow to USD 42.20 billion by 2030. In 2024, the U.S. bedding market is projected to reach a valuation of USD 19,271.6 million and is anticipated to reach USD 32,010.2 million by 2033. The U.S. home bedding market generated a revenue of USD 32,748.9 million in 2024 and is expected to reach USD 71,469.3 million by 2033.
- Bedsheets: The U.S. bedsheets market size was valued at USD 7.75 billion in 2024 and is projected to grow from USD 8.06 billion in 2025 to USD 11.55 billion by 2032.
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Sleep Number Corporation (SNBR) anticipates several key drivers for future revenue growth over the next 2-3 years, stemming from strategic product innovation, enhanced marketing, and an expanded sleep health ecosystem.
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New Product Launches and Portfolio Redesign: Sleep Number is undergoing its most significant product overhaul in nearly a decade, launching a redesigned mattress portfolio with five new beds across three collections: ComfortMode, ComfortNext, and Climate. This initiative simplifies the product lineup from 12 to seven beds, offering innovations in comfort, quality, and adjustability. The ComfortMode mattress, introduced earlier, has already surpassed sales expectations, indicating strong consumer demand for the broader portfolio, which became fully available in March 2026.
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Modernized Marketing and Strategic Partnerships: The company is rebalancing its marketing strategy to drive sustained sales growth. This includes new creative assets, a more evenly distributed marketing spend throughout the year, and increased marketing reach through strategic partnerships, notably with NFL star Travis Kelce. These efforts aim to enhance brand engagement and optimize return on advertising investment.
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Expansion of the Smart-Sleeper Ecosystem and Services: Sleep Number plans to deepen its smart-sleeper ecosystem by expanding into sleep health services, such as SleepIQ insights, and offering elevated financing and protection plans. This strategy focuses on monetizing sleep data, leveraging the advanced sensing capabilities of its 360 smart beds to provide personalized insights, and generating recurring revenue.
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Omnichannel Optimization and Retail Store Productivity: Sleep Number is committed to optimizing its omnichannel sales approach. While the company has recently reduced its store count, it is implementing selective remodels, testing smaller store formats, and rationalizing leases to improve productivity across its approximately 600 retail locations. Additionally, initiatives like virtual consultations and appointment-driven traffic are designed to boost close rates and average basket size.
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Targeting New Demographics and Value-Conscious Consumers: With new beds like the ComfortMode mattress priced under $1,600, Sleep Number is expanding its appeal to a broader customer base. This includes attracting younger demographics and consumers seeking premium features at more accessible price points, thereby widening its market reach.
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Capital Allocation Decisions (2021-2025)
Share Repurchases
- As of December 28, 2019, Sleep Number had a remaining authorization of $475 million under its Board-approved share repurchase program with no expiration date.
- Share repurchases were made in 2021 ($127.33M in Q4), 2022 ($40.57M in Q1, $37.49M in Q2, $16.32M in Q3, $1.15M in Q4), and 2023 ($10.16M in Q1).
- Buybacks were curtailed in 2024 to prioritize liquidity and covenant flexibility, with a cautious resumption only when free cash flow stabilized.
Share Issuance
- As of January 27, 2024, there were 22,239,000 shares of the registrant's Common Stock outstanding.
- The number of shares outstanding increased by 1.10% in one year as of a March 2026 data point.
- Proceeds from the issuance of common stock were reported as zero for Q3 2025 and $428 thousand year-to-date through September 27, 2025.
Inbound Investments
- Sleep Number has engaged Guggenheim Securities to evaluate inbound interest and advise on refinancing its credit facility as of March 2026.
Capital Expenditures
- Expected capital expenditures for 2024 were $30 million.
- Capital expenditures for fiscal year 2025 were $14 million, a decrease of $9 million from the prior year.
- The company makes significant capital expenditures when opening new stores and remodeling or repositioning existing stores.
Latest Trefis Analyses
| Title | |
|---|---|
| ARTICLES |
Research & Analysis
Invest in Strategies
Wealth Management
Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 25.51 |
| Mkt Cap | 1.6 |
| Rev LTM | 2,776 |
| Op Inc LTM | 186 |
| FCF LTM | 167 |
| FCF 3Y Avg | 46 |
| CFO LTM | 240 |
| CFO 3Y Avg | 198 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | -0.8% |
| Rev Chg 3Y Avg | -4.0% |
| Rev Chg Q | -4.9% |
| QoQ Delta Rev Chg LTM | -1.1% |
| Op Inc Chg LTM | 0.4% |
| Op Inc Chg 3Y Avg | -14.9% |
| Op Mgn LTM | 6.3% |
| Op Mgn 3Y Avg | 6.5% |
| QoQ Delta Op Mgn LTM | -0.4% |
| CFO/Rev LTM | 8.3% |
| CFO/Rev 3Y Avg | 7.0% |
| FCF/Rev LTM | 5.6% |
| FCF/Rev 3Y Avg | 2.3% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 1.6 |
| P/S | 0.6 |
| P/Op Inc | 6.8 |
| P/EBIT | 5.6 |
| P/E | 11.3 |
| P/CFO | 5.8 |
| Total Yield | 4.7% |
| Dividend Yield | 0.6% |
| FCF Yield 3Y Avg | 3.3% |
| D/E | 1.3 |
| Net D/E | 1.2 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | 14.2% |
| 3M Rtn | 5.3% |
| 6M Rtn | -12.2% |
| 12M Rtn | -9.6% |
| 3Y Rtn | -56.9% |
| 1M Excs Rtn | 14.0% |
| 3M Excs Rtn | -6.7% |
| 6M Excs Rtn | -20.7% |
| 12M Excs Rtn | -34.1% |
| 3Y Excs Rtn | -126.3% |
Comparison Analyses
Price Behavior
| Market Price | $0.39 | |
| Market Cap ($ Bil) | 0.0 | |
| First Trading Date | 12/04/1998 | |
| Distance from 52W High | -96.8% | |
| 50 Days | 200 Days | |
| DMA Price | $1.77 | $5.70 |
| DMA Trend | down | down |
| Distance from DMA | -77.9% | -93.2% |
| 3M | 1YR | |
| Volatility | 392.7% | 212.9% |
| Downside Capture | -338.16 | 83.12 |
| Upside Capture | -865.93 | -281.27 |
| Correlation (SPY) | -2.3% | 5.8% |
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 3.84 | 10.18 | 5.37 | 3.47 | 2.78 | 2.05 |
| Up Beta | 15.70 | 26.63 | 13.35 | 9.18 | 7.02 | 2.53 |
| Down Beta | -1.47 | -3.38 | 4.22 | 4.31 | 2.57 | 2.12 |
| Up Capture | -522% | -117% | -133% | -79% | -26% | 66% |
| Bmk +ve Days | 13 | 28 | 36 | 67 | 141 | 432 |
| Stock +ve Days | 9 | 18 | 22 | 52 | 100 | 342 |
| Down Capture | 1110% | 243% | 428% | 216% | 188% | 113% |
| Bmk -ve Days | 7 | 13 | 27 | 57 | 109 | 318 |
| Stock -ve Days | 11 | 22 | 40 | 70 | 146 | 404 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with SNBR | |
|---|---|---|---|---|
| SNBR | -95.2% | 212.9% | -0.43 | - |
| Sector ETF (XLY) | 8.8% | 18.5% | 0.32 | 5.0% |
| Equity (SPY) | 24.5% | 12.4% | 1.48 | -1.1% |
| Gold (GLD) | 24.7% | 27.5% | 0.79 | -10.5% |
| Commodities (DBC) | 22.7% | 18.9% | 0.95 | -12.7% |
| Real Estate (VNQ) | 10.6% | 13.8% | 0.49 | 1.7% |
| Bitcoin (BTCUSD) | -38.7% | 42.4% | -1.04 | 3.1% |
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Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with SNBR | |
|---|---|---|---|---|
| SNBR | -68.2% | 119.9% | -0.40 | - |
| Sector ETF (XLY) | 6.9% | 23.8% | 0.25 | 23.9% |
| Equity (SPY) | 13.4% | 17.1% | 0.61 | 20.7% |
| Gold (GLD) | 16.9% | 18.3% | 0.75 | -3.0% |
| Commodities (DBC) | 7.5% | 19.4% | 0.29 | -0.5% |
| Real Estate (VNQ) | 1.9% | 18.9% | 0.00 | 23.0% |
| Bitcoin (BTCUSD) | 12.3% | 54.2% | 0.42 | 9.7% |
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Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with SNBR | |
|---|---|---|---|---|
| SNBR | -33.8% | 93.3% | -0.01 | - |
| Sector ETF (XLY) | 12.4% | 22.1% | 0.52 | 30.0% |
| Equity (SPY) | 15.2% | 18.0% | 0.72 | 27.1% |
| Gold (GLD) | 12.4% | 16.1% | 0.63 | -1.6% |
| Commodities (DBC) | 5.9% | 18.0% | 0.26 | 5.1% |
| Real Estate (VNQ) | 5.3% | 20.7% | 0.22 | 26.9% |
| Bitcoin (BTCUSD) | 60.4% | 66.8% | 1.00 | 7.8% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Returns Analyses
Earnings Returns History
Updated 6/17/2026| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 5/12/2026 | -22.4% | -36.7% | -69.7% |
| 3/12/2026 | -20.0% | -34.6% | -69.3% |
| 7/30/2025 | -14.1% | 11.5% | 30.0% |
| 4/30/2025 | 3.3% | -9.9% | 38.1% |
| 3/5/2025 | -41.9% | -49.6% | -56.5% |
| 10/30/2024 | 3.6% | 13.0% | 13.4% |
| 7/31/2024 | 19.9% | -3.5% | 26.7% |
| 4/24/2024 | 4.9% | -0.4% | -3.8% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 10 | 9 | 8 |
| # Negative | 13 | 14 | 15 |
| Median Positive | 8.1% | 11.5% | 20.9% |
| Median Negative | -14.1% | -17.0% | -18.1% |
| Max Positive | 33.0% | 49.5% | 38.1% |
| Max Negative | -41.9% | -49.6% | -69.7% |
| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 5/12/2026 | -22.4% | -36.7% | -69.7% |
| 3/12/2026 | -20.0% | -34.6% | -69.3% |
| 7/30/2025 | -14.1% | 11.5% | 30.0% |
| 4/30/2025 | 3.3% | -9.9% | 38.1% |
| 3/5/2025 | -41.9% | -49.6% | -56.5% |
| 10/30/2024 | 3.6% | 13.0% | 13.4% |
| 7/31/2024 | 19.9% | -3.5% | 26.7% |
| 4/24/2024 | 4.9% | -0.4% | -3.8% |
| 2/22/2024 | 33.0% | 49.5% | 22.3% |
| 11/7/2023 | -29.1% | -29.3% | -8.8% |
| 7/27/2023 | -29.4% | -25.8% | -42.2% |
| 4/26/2023 | -11.9% | -10.8% | -29.2% |
| 2/22/2023 | 12.9% | 11.5% | -19.7% |
| 10/26/2022 | -22.9% | -31.5% | -17.9% |
| 7/27/2022 | 17.7% | 22.6% | 19.6% |
| 4/20/2022 | -11.6% | -18.8% | -18.1% |
| 2/23/2022 | -1.9% | 0.6% | -7.9% |
| 10/27/2021 | 2.7% | 2.1% | -9.5% |
| 7/20/2021 | -12.9% | -12.9% | -14.6% |
| 4/21/2021 | -11.8% | -9.0% | -18.4% |
| 2/17/2021 | 1.0% | 11.0% | 14.7% |
| 10/14/2020 | 11.3% | 5.9% | 9.2% |
| 7/15/2020 | -9.2% | -15.1% | -14.3% |
| SUMMARY STATS | |||
| # Positive | 10 | 9 | 8 |
| # Negative | 13 | 14 | 15 |
| Median Positive | 8.1% | 11.5% | 20.9% |
| Median Negative | -14.1% | -17.0% | -18.1% |
| Max Positive | 33.0% | 49.5% | 38.1% |
| Max Negative | -41.9% | -49.6% | -69.7% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 03/31/2026 | 05/12/2026 | 10-Q |
| 12/31/2025 | 03/12/2026 | 10-K |
| 09/30/2025 | 11/05/2025 | 10-Q |
| 06/30/2025 | 07/31/2025 | 10-Q |
| 03/31/2025 | 05/06/2025 | 10-Q |
| 12/31/2024 | 03/07/2025 | 10-K |
| 09/30/2024 | 11/05/2024 | 10-Q |
| 06/30/2024 | 08/06/2024 | 10-Q |
| 03/31/2024 | 05/07/2024 | 10-Q |
| 12/31/2023 | 02/23/2024 | 10-K |
| 09/30/2023 | 11/08/2023 | 10-Q |
| 06/30/2023 | 08/08/2023 | 10-Q |
| 03/31/2023 | 05/09/2023 | 10-Q |
| 12/31/2022 | 02/24/2023 | 10-K |
| 09/30/2022 | 11/08/2022 | 10-Q |
| 06/30/2022 | 08/09/2022 | 10-Q |
| Report Date | Filing Date | Filing |
|---|---|---|
| 03/31/2026 | 05/12/2026 | 10-Q |
| 12/31/2025 | 03/12/2026 | 10-K |
| 09/30/2025 | 11/05/2025 | 10-Q |
| 06/30/2025 | 07/31/2025 | 10-Q |
| 03/31/2025 | 05/06/2025 | 10-Q |
| 12/31/2024 | 03/07/2025 | 10-K |
| 09/30/2024 | 11/05/2024 | 10-Q |
| 06/30/2024 | 08/06/2024 | 10-Q |
| 03/31/2024 | 05/07/2024 | 10-Q |
| 12/31/2023 | 02/23/2024 | 10-K |
| 09/30/2023 | 11/08/2023 | 10-Q |
| 06/30/2023 | 08/08/2023 | 10-Q |
| 03/31/2023 | 05/09/2023 | 10-Q |
| 12/31/2022 | 02/24/2023 | 10-K |
| 09/30/2022 | 11/08/2022 | 10-Q |
| 06/30/2022 | 08/09/2022 | 10-Q |
| 03/31/2022 | 04/29/2022 | 10-Q |
| 12/31/2021 | 03/01/2022 | 10-K |
| 09/30/2021 | 11/08/2021 | 10-Q |
| 06/30/2021 | 07/30/2021 | 10-Q |
| 03/31/2021 | 05/07/2021 | 10-Q |
| 12/31/2020 | 03/02/2021 | 10-K |
| 09/30/2020 | 10/23/2020 | 10-Q |
| 06/30/2020 | 07/24/2020 | 10-Q |
| 03/31/2020 | 05/01/2020 | 10-Q |
| 12/31/2019 | 02/25/2020 | 10-K |
| 09/30/2019 | 10/25/2019 | 10-Q |
| 06/30/2019 | 08/06/2019 | 10-Q |
Insider Activity
Updated 6/15/2026| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Stadium, Capital Management Llc | By: Stadium Capital Partners, L.P. | Sell | 6012026 | 1.78 | 330,732 | 588,405 | 3,352,301 | Form | |
| 2 | Stadium, Capital Management Llc | By: Stadium Special Opportunity I, L.P. | Sell | 6012026 | 1.78 | 59,944 | 106,646 | 607,589 | Form | |
| 3 | Ryder, Robert P | Interim CFO | Direct | Buy | 8042025 | 6.81 | 15,000 | 102,160 | 102,160 | Form |
| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Stadium, Capital Management Llc | By: Stadium Capital Partners, L.P. | Sell | 6012026 | 1.78 | 330,732 | 588,405 | 3,352,301 | Form | |
| 2 | Stadium, Capital Management Llc | By: Stadium Special Opportunity I, L.P. | Sell | 6012026 | 1.78 | 59,944 | 106,646 | 607,589 | Form | |
| 3 | Ryder, Robert P | Interim CFO | Direct | Buy | 8042025 | 6.81 | 15,000 | 102,160 | 102,160 | Form |
Industry Resources
| Consumer Discretionary Resources |
| Retail Dive |
| Business of Fashion (BoF) |
| WWD (Women's Wear Daily) |
| National Retail Federation (NRF) |
| McKinsey & Company - Consumer |
| Mintel Consumer Trends |
| Household Appliances Resources |
| Twice |
| Appliance Retailer |
| Consumer Reports - Appliances |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
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