Sleep Number Corporation (SNBR) Market Cap
Sleep Number Corporation has a market capitalization of $55.8M.
Financials based on reported quarter end 2026-01-03
Price: $2.44
▼ -0.20 (-7.58%)
Market Cap: 55.79M
NASDAQ · time unavailable
CEO: Tanya Skogerboe
Sector: Consumer Cyclical
Industry: Furnishings, Fixtures & Appliances
IPO Date: 1998-12-04
Website: https://www.sleepnumber.com
Sleep Number Corporation (SNBR) - Company Information
Market Cap: 55.79M · Sector: Consumer Cyclical
Sleep Number Corporation, together with its subsidiaries, offers sleep solutions and services in the United States. The company designs, manufactures, markets, retails, and services beds, pillows, sheets, and other bedding products under the Sleep Number name. It also provides adjustable bases under the FlextFit, and smart beds under the Sleep Number 360 brands. The company sells its products directly to consumers through retail, online, phone, and chat as well as through its e-commerce activities. As of January 2, 2022, it operated approximately 648 retail stores in 50 states. The company was formerly known as Select Comfort Corporation and changed its name to Sleep Number Corporation in November 2017. Sleep Number Corporation was founded in 1987 and is headquartered in Minneapolis, Minnesota.
Analyst Sentiment
Based on 11 ratings
Analyst 1Y Forecast: $7.00
Average target (based on 3 sources)
Consensus Price Target
Low
$4
Median
$4
High
$4
Average
$4
Potential Upside: 63.9%
Price & Moving Averages
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Fundamentals Overview
📊 AI Financial Analysis
Powered by StockMarketInfo"Sunbeam? (SNBR) reported revenue of $347.4M for the latest quarter, with net income of -$58.5M and EPS of -$2.56, resulting in a negative net margin of roughly -16.8%. Free cash flow was -$0.6M, driven by near-flat operating cash flow of just $1.9M and capex of -$2.5M. Balance sheet stress is evident: total liabilities were $1.26B versus total equity of -$0.58B, and net debt was about $940.8M. From a cash-flow and profitability perspective, the quarter reflects limited cash generation relative to losses, which increases reliance on external financing and/or future operating improvement. Leverage is high, with negative equity indicating that the company’s liabilities exceed its assets on an accounting basis, which can constrain flexibility during downturns. On valuation, the provided analyst consensus target is $4, while the current price is $1.80, implying a sizable gap to the target; however, valuation multiples are not available in the dataset and losses limit the usefulness of earnings-based metrics. Shareholder returns have been negative: the stock is down about -71.6% over 1 year, and -79.1% YTD, with no dividends reported. Overall, the near-term focus is on restoring profitability and strengthening cash generation."
Revenue Growth
Revenue of $347.4M is reported, but no prior-period comparison is provided, limiting assessment of growth stability or momentum.
Profitability
Net income of -$58.5M and EPS of -$2.56 point to substantially negative profitability, with net margin around -16.8%.
Cash Flow Quality
Operating cash flow was $1.9M versus free cash flow of -$0.6M, indicating that cash generation is not yet covering capex needs; no dividends or buybacks are shown.
Leverage & Balance Sheet
Total liabilities of $1.26B exceed total assets, with total equity of -$0.58B and net debt of ~$940.8M, reflecting high financial risk and limited balance sheet resilience.
Shareholder Returns
Total shareholder value creation has been weak: the stock declined ~-71.6% over 1 year and ~-79.1% YTD; dividends paid are $0. No buybacks data provided.
Analyst Sentiment & Valuation
Analyst consensus target is $4 versus a $1.80 price, suggesting expectations for improvement; however, earnings-based valuation metrics (P/E, FCF yield) are unavailable and losses reduce interpretability.
Disclaimer:This analysis is AI-generated for informational purposes only. Accuracy is not guaranteed and this does not constitute financial advice.
Management sounded cautiously constructive: Q4 and FY results were “better than expected,” with FY adjusted EBITDA of $78M exceeding $70M outlook and pro forma adjusted EBITDA margin up 200 bps to ~9%. They highlighted a major product reset (full portfolio available for purchase March 23; floors set largely by mid-April) and strong early traction for Comfort mode (3.5x plan; nearly 2x sales of the replaced C Series set). However, the Q&A exposed near-term earnings pressure: Q1 is expected to see margin pressure from clearance/discounting and a product “hard stop,” plus an inventory hangover into March. On margins, Q4 gross margin fell 430 bps YoY, driven by a $9.6M inventory obsolescence charge and tariff/unit deleverage impacts. Analyst questions focused on how margins/ASP dynamics will reset and whether floor readiness supports the Memorial Day window; management answered with a 10-point gross margin improvement for Comfort mode vs the replaced C Series. The tension: strong long-term margin logic versus acknowledged early-cycle costs and liquidity/covenant stress.
Growth Catalysts
- Comfort mode mattress + adjustable base launch (1st bed/adjustable base launched in January; full portfolio beds available for purchase March 23)
- Comfort mode sales strength: 3.5x expected as of end of February
- Comfort mode outperformed replacements: nearly 2x sales of all 3 C Series beds it replaces
- Sequential improvement in demand into February/March driven mostly by the product launch
Business Development
- Brand/marketing partnership with Travis Kelce (mentioned as strengthening brand and driving top-line growth)
- Guggenheim Securities engaged to evaluate refinancing/credit facility opportunities
Financial Highlights
- Q4 net sales: $347M, down 8% YoY
- Q4 gross profit margin: 55.6%, down 430 bps YoY; adjusted gross margin: 58.4% (excludes $9.6M nonrecurring inventory obsolescence charge)
- Q4 nonrecurring inventory obsolescence charge: $9.6M tied to new product launch
- Q4 adjusted EBITDA: $19M, down $7M YoY
- FY net sales: $1.41B, down 16% YoY (consistent with expectations; FY 53rd week added ~660 bps tailwind YoY)
- FY gross margin: 59%, down 60 bps YoY and aligned with prior guidance (60% excluding Q4 inventory charge)
- FY adjusted EBITDA: $78M vs $70M most recent outlook
- FY pro forma adjusted EBITDA margin: ~9%, up 200 bps vs prior year
- Liquidity: total liquidity $58M at year-end vs amended $30M covenant floor
- FY free cash flow: use of $18M (just over $30M favorable to expectations; but $21M unfavorable vs prior year due to top-line pressure + nonrecurring cash restructuring costs)
Capital Funding
- Liquidity/covenants: ended year in compliance; total liquidity $58M including cash + revolver capacity (above $30M floor)
- Capital expenditures: $14M in FY (down $9M YoY)
- Buyback: not mentioned in transcript
- Debt level: not quantified in transcript beyond credit facility/covenant discussion
Strategy & Ops
- Turnaround cost reset: removed >$185M annualized costs and identified another ~$50M annualized fixed costs for 2026
- Incremental $50M savings identified as already executing; described as fixed-cost reductions
- Phasing of product rollout: Comfort mode bed/base in January; remaining 4 new beds + base available for purchase March 23; floor setting starts March 23
- Store count: exited year with 600 stores; down 40 from prior period
- Marketing engine change: modernized customer identification/attraction, creative refresh in social/digital, and new dedicated comfort mode commercial
Market Outlook
- No formal guidance provided for 2026 (management said will not be providing guidance today due to turnaround magnitude); however provided performance indications: Q1 net sales expected to decline in the high teens YoY
- 2026 by quarter expectations: sequential improvement; Q2 expected to show significant YoY revenue improvement
- Full-year 2026 sales growth: expects double-digit sales growth in the second half (new products + new creative + marketing reach with Travis Kelce)
- 2026 adjusted EBITDA: expected to increase in the high teens to mid-20s percent YoY range
- 2026 free cash flow: expected to be positive
- Store-floor readiness timeline: most stores set by mid-April; key stores set by mid-April; Memorial Day holiday coverage targeted
Risks & Headwinds
- Severe weather/macro pressures early 2026: 236 stores closed for at least 1 day in January; sales down at start of year
- Unit deleverage and higher tariffs contributed to gross margin decline (Q4 gross margin down 430 bps)
- Liquidity/covenant pressure: softness at start of year + clearance of existing products; management implementing a plan to address credit facility and covenant compliance (details in Form 10-K)
- Inventory/transition impacts: additional inventory hangover in January/February worked through in March
- Q1 earnings headwind expected: margin pressure in Q1 due to hard stop product change and expected clearance/discounting
Sentiment: MIXED
Note: This summary was synthesized by AI from the SNBR Q4 2025 earnings transcript. Financial data is complex; please verify all metrics against official SEC filings before making investment decisions.