Sleep Number Reports Q4 Revenue of $347.39M, Net Loss of $59M
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 12 2026
0mins
Should l Buy SNBR?
Reports Q4 revenue $347.39M, consensus $328.67M. Net loss of $59M compared with a net loss of $5M for the same period last year, driven primarily by lower net sales and recognition of a $47.9M deferred tax valuation adjustment during the fourth quarter of 2025. Linda Findley, president and CEO, commented, "Sleep Number exceeded 2025 guidance provided on our last earnings call. We are still in full turnaround mode and made significant progress against our new product and marketing strategies while continuing to reduce costs. For the full year 2025, pro-forma adjusted EBITDA margin was approximately 9% and anticipate double-digit adjusted EBITDA growth in 2026 as we continue to execute on our strategy."
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Analyst Views on SNBR
Wall Street analysts forecast SNBR stock price to rise
2 Analyst Rating
0 Buy
2 Hold
0 Sell
Hold
Current: 2.850
Low
5.00
Averages
5.50
High
6.00
Current: 2.850
Low
5.00
Averages
5.50
High
6.00
About SNBR
Sleep Number Corporation is a wellness technology company. The Company is engaged in designing, manufacturing, marketing, and distribution of sleep solutions. Its wellness technology platform helps solve sleep problems, whether it’s providing individualized temperature control for each sleeper through its Climate360 smart bed or applying its 24 billion hours of longitudinal sleep data and expertise to research with global institutions. The Company’s smart beds provide unmatched features, benefits and comfort that can lead to improved sleep health and wellness for both sleepers. Its active temperature balancing technology supports the ideal climate for both sleepers and solves a prevalent sleep challenge. The Company’s smart bed ecosystem includes a full line of FlexFit smart adjustable bases that seamlessly integrate with Sleep Number smart beds for an individualized sleep experience that is proven to deliver more restful sleep per night.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Sleep Number Q4 Revenue Beats Expectations Amid Challenges
- Revenue Beat: Sleep Number reported Q4 revenue of $347.4 million, exceeding analyst expectations of $328.7 million despite a 7.8% year-over-year decline, indicating strong market acceptance of the new product line.
- Significant EPS Improvement: The adjusted EPS came in at $0.14, far surpassing the analyst estimate of -$0.48, reflecting the successful rollout of the Comfort mode mattress and effective cost reduction strategies.
- Enhanced Operational Efficiency: With $185 million in annualized cost reductions, adjusted EBITDA reached $19.4 million, exceeding the expected $9.75 million, although operating margin fell to -2.3%, highlighting the need for continued focus on efficiency.
- Same-Store Sales Recovery: Same-store sales rose by 7% year-over-year, a notable improvement from last year's -2%, suggesting signs of recovery in market competitiveness, with future attention on the sales mix of the new mattress portfolio.
See More
Sleep Number Reports Strong Q4 Earnings, 2026 Growth Expected
- Earnings Beat: Sleep Number reported Q4 earnings that exceeded market expectations, demonstrating the company's resilience and adaptability in a competitive mattress market.
- 2025 Guidance Surpassed: The CEO indicated that the company has surpassed its 2025 performance guidance, reflecting strong strategic execution and robust market demand, signaling potential for sustained growth ahead.
- 2026 Growth Outlook: The company anticipates further growth in 2026, showcasing management's confidence in the future market environment, which may attract increased investor interest.
- Stock Price Decline: Despite the strong earnings report, the stock fell by 6%, possibly reflecting market uncertainty regarding the overall economic landscape and investor concerns about short-term performance.
See More
Sleep Number Corporation Q4 2025 Earnings Call Insights
- New CFO Appointment: Linda Findley introduced Amy O'Keefe as the new CFO, whose extensive experience in operational and financial transformations is expected to streamline business operations and strengthen the capital structure to support the company's turnaround strategy.
- Sales and Profit Performance: Full-year net sales reached $1.41 billion with adjusted EBITDA of $78 million exceeding expectations, while over $185 million in annualized costs were removed, demonstrating significant effectiveness in cost control.
- Successful Product Launch: The ComfortMode mattress achieved sales 3.5 times higher than expected, nearly doubling the total sales of the C Series beds it replaces, indicating strong market appeal and an expanded customer base among younger demographics.
- Cautious Future Outlook: While management anticipates a decline in Q1 2026 sales, significant improvements are expected in Q2 due to the full impact of new product launches and increased media spending, with double-digit sales growth projected for the second half of the year.
See More
Sleep Number Unveils Largest Product Reset in Nearly a Decade
- Product Line Overhaul: Sleep Number announced its largest product reset in nearly a decade, set to launch on March 23, featuring a simplified lineup of seven tech-enabled beds at more accessible prices to accelerate the company's turnaround.
- Positive Market Reception: The new lineup is divided into three collections: ComfortMode, ComfortNext, and Climate, with ComfortMode sales exceeding expectations by 3.5 times, indicating strong consumer demand for the brand's adjustable air technology, starting at $1,599.
- Innovative Design Introduction: The ComfortNext collection introduces Sleep Number's first Tri-Brid design, combining micro coils, foam, and air chambers to enhance pressure relief for joints and lower back, while adding app-controlled smart features, with prices ranging from $2,999 to $4,499.
- Declining Financial Performance: Despite the new product launch, Sleep Number reported a 7.9% year-over-year revenue decline to $347 million in Q4, primarily driven by ongoing industry demand pressures and reduced store traffic.
See More
Sleep Number Unveils New Mattress Lineup
- Product Reset: Sleep Number announces its largest product reset in nearly a decade with the launch of five new mattresses designed to deliver a luxury experience at a more approachable price point, set to be available on March 23, 2026, both online and in stores.
- Market Response: The initial ComfortMode mattress has exceeded sales expectations by 3.5 times, indicating strong consumer demand for the new offerings, which sets a positive precedent for the rest of the portfolio and enhances the company's competitive position in the market.
- Innovative Design: The new lineup features three distinct collections—ComfortMode, ComfortNext, and Climate—each providing unique comfort and temperature management benefits tailored to diverse consumer sleep needs, further driving market share growth for the company.
- Strategic Goals: By simplifying its product range from 12 to 7 models, Sleep Number not only enhances customer choice but also increases product value through innovative technologies and materials, supporting the company's goals of margin expansion and business transformation.
See More
Sleep Number Reports Q4 Earnings with Significant Losses
- Financial Performance Decline: Sleep Number's Q4 GAAP EPS stands at -$2.55 with revenue of $347 million, reflecting a 7.9% year-over-year decline, indicating ongoing pressure from weak industry demand and reduced store traffic.
- Widening Net Loss: The company reported a net loss of $59 million compared to a net loss of $5 million in the same period last year, primarily driven by lower net sales and the recognition of a $47.9 million deferred tax valuation adjustment in Q4 2025.
- Adjusted EBITDA Decline: Adjusted EBITDA reached $19 million, down 26%, which, although partially offset by lower operating expenses, still highlights a significant drop in sales performance.
- Margin Compression: The adjusted EBITDA margin fell to 5.6%, down 140 basis points from the previous year, indicating increased profitability pressure in the current market environment.
See More
Sleep Number Q4 Revenue Beats Expectations Amid Challenges
- Revenue Beat: Sleep Number reported Q4 revenue of $347.4 million, exceeding analyst expectations of $328.7 million despite a 7.8% year-over-year decline, indicating strong market acceptance of the new product line.
- Significant EPS Improvement: The adjusted EPS came in at $0.14, far surpassing the analyst estimate of -$0.48, reflecting the successful rollout of the Comfort mode mattress and effective cost reduction strategies.
- Enhanced Operational Efficiency: With $185 million in annualized cost reductions, adjusted EBITDA reached $19.4 million, exceeding the expected $9.75 million, although operating margin fell to -2.3%, highlighting the need for continued focus on efficiency.
- Same-Store Sales Recovery: Same-store sales rose by 7% year-over-year, a notable improvement from last year's -2%, suggesting signs of recovery in market competitiveness, with future attention on the sales mix of the new mattress portfolio.
See More
Sleep Number Reports Strong Q4 Earnings, 2026 Growth Expected
- Earnings Beat: Sleep Number reported Q4 earnings that exceeded market expectations, demonstrating the company's resilience and adaptability in a competitive mattress market.
- 2025 Guidance Surpassed: The CEO indicated that the company has surpassed its 2025 performance guidance, reflecting strong strategic execution and robust market demand, signaling potential for sustained growth ahead.
- 2026 Growth Outlook: The company anticipates further growth in 2026, showcasing management's confidence in the future market environment, which may attract increased investor interest.
- Stock Price Decline: Despite the strong earnings report, the stock fell by 6%, possibly reflecting market uncertainty regarding the overall economic landscape and investor concerns about short-term performance.
See More
Sleep Number Corporation Q4 2025 Earnings Call Insights
- New CFO Appointment: Linda Findley introduced Amy O'Keefe as the new CFO, whose extensive experience in operational and financial transformations is expected to streamline business operations and strengthen the capital structure to support the company's turnaround strategy.
- Sales and Profit Performance: Full-year net sales reached $1.41 billion with adjusted EBITDA of $78 million exceeding expectations, while over $185 million in annualized costs were removed, demonstrating significant effectiveness in cost control.
- Successful Product Launch: The ComfortMode mattress achieved sales 3.5 times higher than expected, nearly doubling the total sales of the C Series beds it replaces, indicating strong market appeal and an expanded customer base among younger demographics.
- Cautious Future Outlook: While management anticipates a decline in Q1 2026 sales, significant improvements are expected in Q2 due to the full impact of new product launches and increased media spending, with double-digit sales growth projected for the second half of the year.
See More
Sleep Number Unveils Largest Product Reset in Nearly a Decade
- Product Line Overhaul: Sleep Number announced its largest product reset in nearly a decade, set to launch on March 23, featuring a simplified lineup of seven tech-enabled beds at more accessible prices to accelerate the company's turnaround.
- Positive Market Reception: The new lineup is divided into three collections: ComfortMode, ComfortNext, and Climate, with ComfortMode sales exceeding expectations by 3.5 times, indicating strong consumer demand for the brand's adjustable air technology, starting at $1,599.
- Innovative Design Introduction: The ComfortNext collection introduces Sleep Number's first Tri-Brid design, combining micro coils, foam, and air chambers to enhance pressure relief for joints and lower back, while adding app-controlled smart features, with prices ranging from $2,999 to $4,499.
- Declining Financial Performance: Despite the new product launch, Sleep Number reported a 7.9% year-over-year revenue decline to $347 million in Q4, primarily driven by ongoing industry demand pressures and reduced store traffic.
See More
Sleep Number Unveils New Mattress Lineup
- Product Reset: Sleep Number announces its largest product reset in nearly a decade with the launch of five new mattresses designed to deliver a luxury experience at a more approachable price point, set to be available on March 23, 2026, both online and in stores.
- Market Response: The initial ComfortMode mattress has exceeded sales expectations by 3.5 times, indicating strong consumer demand for the new offerings, which sets a positive precedent for the rest of the portfolio and enhances the company's competitive position in the market.
- Innovative Design: The new lineup features three distinct collections—ComfortMode, ComfortNext, and Climate—each providing unique comfort and temperature management benefits tailored to diverse consumer sleep needs, further driving market share growth for the company.
- Strategic Goals: By simplifying its product range from 12 to 7 models, Sleep Number not only enhances customer choice but also increases product value through innovative technologies and materials, supporting the company's goals of margin expansion and business transformation.
See More
Sleep Number Reports Q4 Earnings with Significant Losses
- Financial Performance Decline: Sleep Number's Q4 GAAP EPS stands at -$2.55 with revenue of $347 million, reflecting a 7.9% year-over-year decline, indicating ongoing pressure from weak industry demand and reduced store traffic.
- Widening Net Loss: The company reported a net loss of $59 million compared to a net loss of $5 million in the same period last year, primarily driven by lower net sales and the recognition of a $47.9 million deferred tax valuation adjustment in Q4 2025.
- Adjusted EBITDA Decline: Adjusted EBITDA reached $19 million, down 26%, which, although partially offset by lower operating expenses, still highlights a significant drop in sales performance.
- Margin Compression: The adjusted EBITDA margin fell to 5.6%, down 140 basis points from the previous year, indicating increased profitability pressure in the current market environment.
See More
