Sleep Number (SNBR) AI Stock Analysis

• Market Cap: $95.95M
• Dividend Yield: N/A
• Average Volume (3M): 702.55K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.93
• Revenue Growth: -16.95%
• EPS Growth: -88.00%
• Country: US
• Employees: 3,600
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): -1.73
• Shares Outstanding: 22,790,000
• 10 Day Avg. Volume: 1,142,307
• 30 Day Avg. Volume: 702,550
• PEG Ratio: -0.52
• Price to Book (P/B): -0.76
• Price to Sales (P/S): 0.20
• P/FCF Ratio: 94.43
• Enterprise Value/Market Cap: 11.52
• Enterprise Value/Revenue: 0.77
• Enterprise Value/Gross Profit: 1.28
• Enterprise Value/Ebitda: 48.41
• 1Y Price Target: $6.00
• Price Target Upside: -5.81% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 39 Underperform
• Price Target: $4.00 ▼(-37.21% Downside)

Sleep Number's overall stock score is primarily impacted by its poor financial performance and challenging valuation metrics. The technical analysis also indicates bearish trends. While strategic initiatives are underway, the current financial health and market conditions present significant risks.

Positive Factors

Cost Reduction Achievements

Significant cost reductions enhance operational efficiency and can improve profitability, providing a stronger financial foundation for future growth.

Bank Agreement Extension

The extended bank agreement provides financial flexibility, allowing the company to focus on strategic initiatives and long-term growth.

Marketing Efficiency Improvements

Improved marketing efficiency can lead to increased customer acquisition and revenue growth, strengthening market position.

Negative Factors

Declining Revenue

A significant decline in revenue indicates challenges in maintaining market share and could impact long-term financial stability.

Negative Profitability

Negative profitability reflects operational inefficiencies and financial strain, potentially hindering investment in growth opportunities.

High Leverage

High leverage increases financial risk and limits the company's ability to invest in strategic initiatives, affecting long-term growth prospects.

Sleep Number Business Overview & Revenue Model

Company Description

Sleep Number Corporation (SNBR) is a leading retailer of sleep solutions, specializing in innovative adjustable air mattresses and sleep-related products. Founded in 1987, the company operates predominantly in the home furnishings sector, offering a diverse range of products that include mattresses, bases, bedding accessories, and sleep tracking technology. Sleep Number is recognized for its commitment to enhancing sleep quality through personalized sleep experiences, leveraging advanced technology in their products to cater to individual preferences and needs.

How the Company Makes Money

Sleep Number generates revenue primarily through the sale of its customizable mattresses and related sleep products. The company's revenue model is centered around direct-to-consumer sales through its extensive network of retail stores and its e-commerce platform. Key revenue streams include the sale of mattresses, adjustable bases, bedding accessories, and smart sleep technology systems. Additionally, Sleep Number benefits from recurring revenue through the sale of replacement parts and accessories for their products. The company has also established partnerships with various health and wellness organizations to promote the importance of sleep health, which can drive brand awareness and customer loyalty, further contributing to its earnings.

Sleep Number Financial Statement Overview

Summary

Sleep Number faces significant financial challenges, including declining revenues, negative profitability, high financial leverage, and cash flow difficulties. The income statement, balance sheet, and cash flow analysis all indicate a need for strategic improvements to stabilize operations.

Income Statement

Sleep Number's income statement reveals a challenging period with declining revenue and profitability. The TTM data shows a negative net profit margin of -2.66% and a gross profit margin of 60.05%, indicating pressure on profitability. Revenue has decreased by 5.49% compared to the previous period, reflecting a downward trend. The EBIT and EBITDA margins are also negative, highlighting operational challenges. Overall, the income statement reflects a need for strategic improvements to reverse the declining trend.

Balance Sheet

The balance sheet shows significant financial leverage with a negative stockholders' equity, resulting in a concerning debt-to-equity ratio. The TTM data indicates a debt-to-equity ratio of -0.69, suggesting high financial risk. Return on equity is positive at 8.03%, but the negative equity position poses a risk to financial stability. The equity ratio is not calculable due to negative equity, underscoring the need for capital restructuring.

Cash Flow

Cash flow analysis reveals substantial challenges with negative operating and free cash flows in the TTM period. The free cash flow growth rate is positive at 268.83%, but this is from a negative base, indicating volatility. The operating cash flow to net income ratio is negative, reflecting cash flow difficulties. The free cash flow to net income ratio is 1.63, suggesting some ability to cover net losses with free cash flow, but overall cash flow stability is a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.44B	1.68B	1.89B	2.11B	2.18B	1.86B
Gross Profit	865.25M	1.00B	1.09B	1.20B	1.32B	1.16B
EBITDA	22.84M	89.22M	95.34M	135.28M	253.93M	246.46M
Net Income	-78.11M	-20.33M	-15.29M	36.61M	153.75M	139.19M
Balance Sheet
Total Assets	749.39M	860.81M	950.88M	953.94M	919.54M	800.14M
Cash, Cash Equivalents and Short-Term Investments	1.26M	1.95M	2.54M	1.79M	2.39M	4.24M
Total Debt	940.71M	936.11M	972.65M	896.01M	791.05M	589.36M
Total Liabilities	1.27B	1.31B	1.39B	1.39B	1.34B	1.02B
Stockholders Equity	-521.34M	-451.59M	-441.93M	-438.18M	-424.95M	-223.98M
Cash Flow
Free Cash Flow	-49.98M	3.64M	-66.08M	-33.32M	233.11M	240.59M
Operating Cash Flow	-28.52M	27.14M	-9.03M	36.14M	300.01M	279.66M
Investing Cash Flow	-21.45M	-26.29M	-58.35M	-70.61M	-66.64M	-39.02M
Financing Cash Flow	49.65M	-1.44M	68.13M	33.87M	-235.22M	-237.99M

Sleep Number Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 6.37
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 6.37 is above the 20-day moving average (MA) of 4.48, above the 50-day MA of 5.88, and below the 200-day MA of 8.04, indicating a neutral trend. The MACD of -0.53 indicates Negative momentum. The RSI at 47.36 is Neutral, neither overbought nor oversold. The STOCH value of 74.69 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
LZB	69 Neutral	$1.63B	18.23	8.82%	2.97%	1.78%	-25.36%
ETD	66 Neutral	$614.02M	13.07	9.96%	7.65%	-4.61%	-25.66%
LEG	66 Neutral	$1.21B	5.55	26.20%	2.29%	-6.03%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MLKN	55 Neutral	$1.09B	―	-1.18%	4.74%	5.37%	-127.27%
PRPL	48 Neutral	$87.51M	-1.03	-9999.00%	―	-9.47%	48.11%
SNBR	39 Underperform	$95.95M	―	―	―	-16.95%	-88.00%

Sleep Number Corporate Events

Sleep Number Secures Credit Agreement Extension

Sleep Number Corporation announced on November 5, 2025, that it has secured an amendment and extension of its credit agreement through 2027, which aligns with its planned turnaround strategy. This updated agreement, reflecting increased covenant levels and expanded addbacks, demonstrates lender confidence and provides financial flexibility, supporting the company’s expectation to comply with new covenants and generate meaningful free cash flow in 2026.

The most recent analyst rating on (SNBR) stock is a Sell with a $5.00 price target. To see the full list of analyst forecasts on Sleep Number stock, see the SNBR Stock Forecast page.

Sleep Number Amends Credit Agreement, Extends Maturity Date

On November 4, 2025, Sleep Number Corporation executed a Twelfth Amendment to its Credit and Security Agreement, extending the maturity date to December 3, 2027, and adjusting various financial covenants and credit facilities. This amendment signifies a strategic financial restructuring for the company, ensuring compliance with all covenants and facilitating the retirement of Board member Stephen L. Gulis, Jr., who stepped down following the amendment’s qualification as a debt refinancing.

The most recent analyst rating on (SNBR) stock is a Sell with a $5.00 price target. To see the full list of analyst forecasts on Sleep Number stock, see the SNBR Stock Forecast page.