Sleep Number Corp
NASDAQ:SNBR
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.
Disappointing Results: Q3 profits and cash flow were well below expectations due to a 19.6% drop in net sales, largely from aggressive cost and media spend reductions.
Turnaround in Progress: Management described 2025 as a year of aggressive business transformation, with over $115 million in fixed cost reductions and a new bank agreement extending through 2027.
Lowered Full-Year Guidance: Full-year net sales are now expected at approximately $1.4 billion, with adjusted EBITDA of $70 million and negative free cash flow of $50 million.
Investment in Growth for 2026: Cost actions and the amended bank agreement will enable higher, more efficient marketing spend and new product launches to drive a sales recovery in 2026.
Product & Distribution Evolution: Early 2026 will see a simplified, value-focused product lineup and expansion into new channels, including digital and selective partnerships.
Q4 Outlook: Q4 sales trends are expected to improve slightly, with media spend only modestly down year-over-year and the benefit of a 53rd week.
