Sleep Number (SNBR) Company Report

Sleep Number reported disappointing Q3 2025 operating results, with net sales of $343 million (down 19.6% year-over-year) and adjusted EBITDA of $13.3 million.
The company successfully secured an amendment and extension of its bank agreement through 2027, providing financial flexibility for its turnaround initiatives.
Fixed operating expenses were reduced by $115 million year-to-date, exceeding the $130 million cost-out target, though media investments in Q2 and Q3 were down 32% year-over-year, impacting sales.
Full-year 2025 guidance was updated to approximately $1.4 billion in net sales, $70 million in adjusted EBITDA, and negative $50 million in free cash flow.
Looking to 2026, the company aims to stabilize sales and return to growth by revamping product offerings, modernizing marketing, expanding distribution, and continuing fixed cost reductions.

Nov 5, 2025, 1:30 PM

Transcript

Sleep Number Corporation Announces Third Quarter 2025 Results and Revised 2025 Outlook

SNBR

Earnings

Guidance Update

Demand Weakening

Sleep Number Corporation reported net sales of $343 million for the quarter ended September 27, 2025, representing a 19.6% decrease compared to the third quarter of 2024, leading to a net loss of $40 million (or $1.73 per diluted share).
The company's Adjusted EBITDA for Q3 2025 was $13 million, a 52% decline year-over-year, with the Adjusted EBITDA margin decreasing to 3.9%.
Sleep Number successfully amended and extended its bank agreement through 2027, providing greater financial flexibility; its trailing 12-month leverage ratio stood at 5.0x EBITDAR against an amended covenant maximum of 5.25x.
For the full year 2025, the company revised its outlook, expecting net sales of approximately $1.4 billion, a gross profit margin of approximately 60%, adjusted EBITDA of approximately $70 million, and negative free cash flow of approximately $50 million.

Nov 5, 2025, 12:02 PM

8-K

Sleep Number Announces Third Quarter 2025 Results

SNBR

Earnings

Guidance Update

Demand Weakening

Sleep Number reported net sales of $343 million for the third quarter of 2025, a 19.6% decrease compared to the third quarter of 2024, resulting in a net loss of $40 million and Adjusted EBITDA of $13 million.
The company secured an amendment and extension of its bank agreement through 2027, providing financial flexibility to support its ongoing company-wide turnaround efforts.
Operating expenses were reduced by $44.8 million, or 18%, year-over-year before restructuring and other non-recurring costs, and the company is on track to exceed its 2025 cost savings target.
Sleep Number revised its full-year 2025 outlook, now expecting net sales of approximately $1.4 billion, adjusted EBITDA of approximately $70 million, and negative free cash flow of approximately $50 million.

Nov 5, 2025, 12:00 PM

Press Release

Sleep Number Corp Announces Management Change via 8-K

SNBR

CFO Change

Management Change

Joel Laing resigns as Vice President, Treasurer, and Chief Accounting Officer effective June 5, 2025, after nearly 13 years with the company.
Francis Lee, currently the CFO, will assume the role of principal accounting officer effective June 6, 2025.

May 28, 2025, 12:00 AM

8-K

Sleep Number Corp Reports Q1 2025 Results & Strategic Restructuring Updates

SNBR

Earnings

Management Change

Demand Weakening

Q1 2025 Financial Results: Net sales declined by 16% to $393 million, with a gross profit margin of 61.2%, a net loss of $8.6 million, and Adjusted EBITDA of $22 million (down 41% YoY)
Organizational Restructuring: The company implemented a new structure aimed at streamlining decision-making, including a 21% reduction in corporate management roles and planned annual operating expense cuts of $80–$100 million (excluding restructuring costs)
Tariff & Cost Adjustments: Management is addressing external pressures with an estimated $30 million tariff impact (net of a potential $17 million offset) and plans for further cost reductions
Leadership Changes: New executive appointments include a new Chief Marketing Officer; Melissa Barra as EVP, Chief Product and Enterprise Strategy Officer; Chris Krusmark as EVP, Chief Retail and People Officer; Hitesh Patel with expanded technology consolidation duties; and Tanya Skogerboe as Senior VP, Chief Supply Chain and Transformation Officer. Additionally, the role of Chief Innovation Officer was eliminated, with former incumbent Annie Bloomquist transitioning to an advisory role until May 31, 2025

Apr 30, 2025, 9:01 PM

Transcript 8-K 8-K

Sleep Number Q1 2025 Results Announcement

SNBR

Earnings

Filed Form 8-K on April 16, 2025, signaling the upcoming release of Q1 2025 financial results.
Scheduled release on April 30, 2025 after market close, with an earnings conference call at 5 p.m. EDT.

Apr 16, 2025, 12:00 AM

8-K

Sleep Number Corp Restructures Executive Compensation and Leadership

SNBR

CEO Change

Executive Compensation

Restructured long-term incentive grant: The company amended Linda Findley’s offer letter to convert a $10,000,000 incentive into 724,114 shares of common stock with performance and time-vested components, effective with a grant date of April 15, 2025.
Leadership update: Linda Findley has been appointed as President, Chief Executive Officer, and Director, effective April 7, 2025, with her compensation package including a cash sign-on bonus paid in installments.

Mar 31, 2025, 12:00 AM

8-K

Sleep Number Corp Enters Agreement with Largest Shareholder

SNBR

Board Change

Sleep Number announced an agreement with its largest shareholder, Stadium Capital, which results in a significant board refresh and a reduction in board size, including the retirement of five directors.
Under the agreement, Stadium Capital has withdrawn its director nominations, and only Sleep Number’s nominees – including Linda Findley, Deborah L. Kilpatrick, and Hilary A. Schneider – will be considered for election at the 2025 Annual Meeting.

Mar 13, 2025, 12:00 AM

8-K

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