Sleep Number (SNBR) AI Stock Analysis

• Market Cap: $168.59M
• Dividend Yield: N/A
• Average Volume (3M): 539.42K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.36
• Revenue Growth: -12.36%
• EPS Growth: 37.69%
• Country: US
• Employees: 3,600
• Sector: Consumer Cyclical
• Sector Strength: 56
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): -0.38
• Shares Outstanding: 22,660,357
• 10 Day Avg. Volume: 476,104
• 30 Day Avg. Volume: 539,416
• PEG Ratio: -0.21
• Price to Book (P/B): -1.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -17.46
• Enterprise Value/Market Cap: 8.76
• Enterprise Value/Revenue: 0.22
• Enterprise Value/Gross Profit: 1.52
• Enterprise Value/Ebitda: 4.26
• 1Y Price Target: $7.00
• Price Target Upside: -5.91% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 43 Neutral
• Price Target: $7.00 ▼(-5.91%Downside)

Sleep Number's overall financial instability, combined with bearish technical indicators and negative valuation metrics, leads to a low stock score. Strategic efforts in cost reduction and leadership changes provide some optimism but are overshadowed by significant financial and operational challenges.

Sleep Number Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

Sleep Number Corporation generates revenue primarily through the sale of its Sleep Number 360® smart beds and related bedding products. The company’s revenue model is based on direct-to-consumer sales, leveraging its network of over 600 retail stores across the United States and its online e-commerce platform. Key revenue streams include the sale of mattresses, smart beds, adjustable bases, and bedding accessories. Sleep Number also offers sleep health solutions and related technology services that contribute to its earnings. The company benefits from proprietary technology and a strong brand presence, enabling it to maintain a loyal customer base and command premium pricing. Partnerships with health and wellness organizations further enhance its product offerings and market reach. Additionally, Sleep Number invests in marketing and customer service initiatives to drive brand awareness and customer satisfaction, thereby supporting its revenue growth.

Sleep Number Financial Statement Overview

Summary

Sleep Number is facing severe financial challenges, with declining revenues, negative net income, and liquidity issues. The balance sheet shows financial instability due to high leverage and negative equity. Cash flows are negative, indicating liquidity constraints.

Income Statement

The income statement shows declining revenues with a negative net income for the TTM period, indicating profitability challenges. Gross profit margin remains relatively stable at 60.4% for TTM, but the net profit margin is negative due to the net loss. The revenue growth rate is negative, reflecting a decrease compared to previous periods, suggesting possible market or operational issues.

Balance Sheet

The balance sheet highlights financial instability with negative stockholders' equity, indicating more liabilities than assets. The debt-to-equity ratio is negative due to negative equity, pointing to high leverage. This poses a risk to financial stability and solvency, although the equity ratio is not applicable due to negative equity.

Cash Flow

Cash flow analysis reveals negative operating and free cash flows for the TTM, indicating liquidity issues. The operating cash flow to net income ratio is negative, which is concerning for cash generation from operations. The free cash flow growth rate is also negative, emphasizing declining cash reserves and potential liquidity constraints.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.61B	1.68B	1.89B	2.11B	2.18B	1.86B
Gross Profit	972.56M	1.00B	1.09B	1.20B	1.32B	1.16B
EBITDA	84.02M	88.07M	95.34M	135.28M	253.93M	246.46M
Net Income	-21.50M	-20.33M	-15.29M	36.61M	153.75M	139.19M
Balance Sheet
Total Assets	836.79M	860.81M	950.88M	953.94M	919.54M	800.14M
Cash, Cash Equivalents and Short-Term Investments	1.69M	1.95M	2.54M	1.79M	2.39M	4.24M
Total Debt	934.61M	936.11M	972.65M	896.01M	791.05M	589.36M
Total Liabilities	1.29B	1.31B	1.39B	1.39B	1.34B	1.02B
Stockholders Equity	-456.84M	-451.59M	-441.93M	-438.18M	-424.95M	-223.98M
Cash Flow
Free Cash Flow	-28.02M	3.64M	-66.08M	-33.32M	233.11M	240.59M
Operating Cash Flow	-9.23M	27.14M	-9.03M	36.14M	300.01M	279.66M
Investing Cash Flow	-18.64M	-26.29M	-58.35M	-70.61M	-66.64M	-39.02M
Financing Cash Flow	27.49M	-1.44M	68.13M	33.87M	-235.22M	-237.99M

Sleep Number Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 7.44
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SNBR, the sentiment is Neutral. The current price of 7.44 is below the 20-day moving average (MA) of 7.81, below the 50-day MA of 8.23, and below the 200-day MA of 12.49, indicating a bearish trend. The MACD of -0.51 indicates Positive momentum. The RSI at 45.89 is Neutral, neither overbought nor oversold. The STOCH value of 51.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SNBR.

Sleep Number Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ETD	71 Outperform	$769.00M	13.41	12.09%	5.16%	-6.32%	-18.35%
LZB	68 Neutral	$1.61B	16.77	9.84%	2.23%	3.04%	-16.49%
LOVE	65 Neutral	$271.63M	27.66	6.73%	―	-0.77%	-8.89%
MLKN	63 Neutral	$1.43B	49.61	2.28%	3.56%	-2.68%	-56.16%
Sector *	62 Neutral	$16.76B	11.38	-7.38%	2.96%	1.59%	-23.30%
PRPL	49 Neutral	$82.86M	―	-199.78%	―	-10.41%	53.85%
SNBR	43 Neutral	$168.59M	―	9.10%	―	-12.36%	37.69%

Sleep Number Corporate Events

Sleep Number Shareholders Reject Key Board Amendments

At Sleep Number‘s 2025 Annual Meeting, shareholders voted on several proposals, including the election of directors and amendments to the company’s articles and bylaws. While the election of directors and some proposals, such as the ratification of Deloitte & Touche LLP as the independent registered public accounting firm, were approved, key amendments to declassify the board and eliminate supermajority voting requirements did not pass. The board expressed disappointment at the failure to secure the necessary two-thirds majority for these amendments and plans to resubmit them at the 2026 Annual Meeting, aiming to declassify the board by 2027 contingent on shareholder approval.

The most recent analyst rating on (SNBR) stock is a Hold with a $16.00 price target. To see the full list of analyst forecasts on Sleep Number stock, see the SNBR Stock Forecast page.

Sleep Number Announces Executive Resignation and Transition

On May 23, 2025, Sleep Number Corporation announced that Joel Laing, Vice President, Treasurer, and Chief Accounting Officer, will resign effective June 5, 2025. His departure is amicable and not due to any disagreements with the company. Francis Lee, the Chief Financial Officer, will assume the role of principal accounting officer starting June 6, 2025.

The most recent analyst rating on (SNBR) stock is a Hold with a $16.00 price target. To see the full list of analyst forecasts on Sleep Number stock, see the SNBR Stock Forecast page.

Sleep Number Restructures Leadership, Eliminates Key Role

On April 25, 2025, Sleep Number Corporation eliminated the role of Executive Vice President and Chief Innovation Officer, previously held by Annie Bloomquist, as part of a broader organizational redesign. Bloomquist will serve in an advisory role until May 31, 2025, to aid in the transition. The company announced changes to its Executive Leadership Team to enhance efficiency and accountability, with new roles and responsibilities aimed at strengthening company performance and improving customer engagement. These changes are intended to streamline decision-making and better position the company to respond to industry and macroeconomic shifts.

Sleep Number to Announce Q1 2025 Results Soon

On April 16, 2025, Sleep Number Corporation announced it will release its fiscal first quarter results for 2025 on April 30, 2025, after market close. The company will host a conference call to discuss these results, providing stakeholders with insights into its financial performance and strategic direction.