Sleep Number (NASDAQ:SNBR) Issues Earnings Results

by · The Markets Daily

Sleep Number (NASDAQ:SNBR – Get Free Report) announced its quarterly earnings results on Thursday. The company reported ($2.55) EPS for the quarter, missing the consensus estimate of ($0.56) by ($1.99), FiscalAI reports. The business had revenue of $347.39 million during the quarter, compared to the consensus estimate of $328.67 million. During the same period in the previous year, the company earned ($0.21) EPS. Sleep Number’s revenue was down 7.8% compared to the same quarter last year.

Here are the key takeaways from Sleep Number’s conference call:

  • The new product line is off to a strong start — the January-launched ComfortMode is selling at ~3.5x plan and about twice the sales of the three c‑series beds it replaces, and four new beds plus a base will be available for purchase starting March 23, broadening the brand’s premium entry point.
  • Management has aggressively cut costs — >$185M of annualized savings realized with an identified incremental $50M to execute — and 2025 adjusted EBITDA of $78M exceeded guidance, with pro forma adjusted EBITDA margin ~9% (up ~200 bps year-over-year).
  • Liquidity and capital structure remain a key risk: year-end total liquidity was $58M, the company faces near-term pressure from weak early‑2026 demand and inventory clearance, and has engaged Guggenheim to evaluate refinancing and inbound interest to address covenant and balance‑sheet stress.
  • Near-term outlook is mixed — Q1 net sales are expected to decline in the high‑teens% due to the slow start and clearance activity, but management anticipates a material sequential recovery in Q2 and double‑digit growth in H2, with full‑year adjusted EBITDA growth targeted in the high‑teens to mid‑20s% and positive free cash flow expected.

Sleep Number Stock Performance

Shares of SNBR stock traded up $0.05 during trading hours on Thursday, reaching $4.64. The company had a trading volume of 1,053,828 shares, compared to its average volume of 743,985. Sleep Number has a twelve month low of $3.49 and a twelve month high of $13.94. The company has a market capitalization of $105.77 million, a P/E ratio of -1.37 and a beta of 1.93. The stock’s fifty day simple moving average is $9.01 and its 200 day simple moving average is $7.79.

Analyst Upgrades and Downgrades

Several research analysts recently commented on the stock. Piper Sandler raised their price target on shares of Sleep Number from $5.00 to $12.00 and gave the company a “neutral” rating in a report on Friday, January 16th. UBS Group reiterated a “neutral” rating and set a $10.00 price objective on shares of Sleep Number in a research note on Thursday, February 12th. Finally, Weiss Ratings reissued a “sell (e+)” rating on shares of Sleep Number in a research report on Friday, January 9th. Two analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Reduce” and an average target price of $11.00.

View Our Latest Report on SNBR

Institutional Trading of Sleep Number

Several large investors have recently bought and sold shares of SNBR. Russell Investments Group Ltd. lifted its position in shares of Sleep Number by 3.6% during the fourth quarter. Russell Investments Group Ltd. now owns 37,660 shares of the company’s stock worth $319,000 after purchasing an additional 1,320 shares in the last quarter. Public Employees Retirement System of Ohio boosted its stake in shares of Sleep Number by 3.1% in the fourth quarter. Public Employees Retirement System of Ohio now owns 44,798 shares of the company’s stock valued at $379,000 after purchasing an additional 1,326 shares during the period. State Street Corp grew its holdings in Sleep Number by 0.4% during the 4th quarter. State Street Corp now owns 456,627 shares of the company’s stock valued at $3,863,000 after purchasing an additional 1,994 shares in the last quarter. Quadrature Capital Ltd grew its holdings in Sleep Number by 48.3% during the 4th quarter. Quadrature Capital Ltd now owns 15,305 shares of the company’s stock valued at $129,000 after purchasing an additional 4,987 shares in the last quarter. Finally, Bridgeway Capital Management LLC increased its stake in Sleep Number by 15.9% during the 2nd quarter. Bridgeway Capital Management LLC now owns 40,100 shares of the company’s stock worth $271,000 after buying an additional 5,500 shares during the period. Institutional investors and hedge funds own 85.67% of the company’s stock.

About Sleep Number

(Get Free Report)

Sleep Number Corporation (NASDAQ: SNBR) is a Minneapolis‐based company specializing in the design, manufacture and retail of adjustable air mattresses and bedding products. The company’s flagship Sleep Number® bed features dual air chambers that allow each side of the mattress to be tailored to an individual’s preferred firmness, supported by integrated SleepIQ® technology. This proprietary monitoring system tracks biometric data such as heart rate, breathing and motion, delivering personalized sleep insights through a connected app.

Founded in 1987 as Select Comfort, the business pioneered adjustable air mattress technology and has since grown into a direct-to-consumer retailer.

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