Sleep Number (SNBR) AI Stock Analysis

• Market Cap: $228.62M
• Dividend Yield: N/A
• Average Volume (3M): 838.07K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.67
• Revenue Growth: -14.40%
• EPS Growth: -2.14%
• Country: US
• Employees: 3,600
• Sector: Consumer Cyclical
• Sector Strength: 80
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): -1.09
• Shares Outstanding: 22,771,000
• 10 Day Avg. Volume: 580,358
• 30 Day Avg. Volume: 838,066
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 4.75
• Enterprise Value/Revenue: 0.71
• Enterprise Value/Gross Profit: 1.18
• Enterprise Value/Ebitda: 14.63
• 1Y Price Target: $7.75
• Price Target Upside: -20.35% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 46 Neutral
• Price Target: $9.50 ▼(-2.36% Downside)

Sleep Number's overall stock score is primarily impacted by its financial instability, with negative equity and profitability challenges being the most significant factors. While there are positive developments in cost-saving measures and leadership changes, these are overshadowed by the current financial and valuation difficulties. Technical indicators and earnings call sentiment offer some optimism but are not enough to offset the financial risks.

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 generates revenue through multiple key streams, primarily from the sale of its adjustable air mattresses and smart beds, which are marketed directly to consumers through its retail stores and online platforms. The company also earns income from the sale of sleep accessories, including pillows, sheets, and mattress protectors. A significant part of its revenue comes from the direct-to-consumer approach, which allows for higher margins compared to traditional retail models. Furthermore, Sleep Number has developed partnerships with various health and wellness organizations, leveraging data analytics to enhance its product offerings and customer experience. These initiatives, coupled with ongoing investments in technology and innovation, contribute to its overall earnings and customer retention strategies.

Sleep Number Financial Statement Overview

Summary

Sleep Number is facing significant financial challenges, including declining revenues, negative profitability, high leverage, and liquidity issues. The company's financial health is under pressure, with negative equity and insufficient cash flow generation to support operations and investments.

Income Statement

Sleep Number's current TTM revenue has decreased compared to the previous annual report, indicating a declining growth trajectory. Gross Profit Margin is healthy at approximately 60.3%, but the company is currently operating at a net loss, with a negative Net Profit Margin of -2.7%. EBIT and EBITDA margins are also quite low, reflecting challenges in profitability and operational efficiency.

Balance Sheet

The company has a negative stockholder's equity, indicating financial instability. The Debt-to-Equity ratio is not calculable due to negative equity, but the high total debt levels relative to assets signal significant leverage. Return on Equity (ROE) is not meaningful due to negative equity, and the Equity Ratio is negative, underscoring financial risk.

Cash Flow

Operating cash flow is positive, but the Free Cash Flow is negative, indicating insufficient cash generation to cover capital expenditures. The Operating Cash Flow to Net Income ratio is negative due to negative net income, highlighting profitability challenges. Additionally, Free Cash Flow to Net Income is not favorable, stressing liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.52B	1.68B	1.89B	2.11B	2.18B	1.86B
Gross Profit	919.39M	1.00B	1.09B	1.20B	1.32B	1.16B
EBITDA	74.25M	89.22M	95.34M	135.28M	253.93M	246.46M
Net Income	-41.46M	-20.33M	-15.29M	36.61M	153.75M	139.19M
Balance Sheet
Total Assets	804.51M	860.81M	950.88M	953.94M	919.54M	800.14M
Cash, Cash Equivalents and Short-Term Investments	1.35M	1.95M	2.54M	1.79M	2.39M	4.24M
Total Debt	933.69M	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	-480.69M	-451.59M	-441.93M	-438.18M	-424.95M	-223.98M
Cash Flow
Free Cash Flow	-12.66M	3.64M	-66.08M	-33.32M	233.11M	240.59M
Operating Cash Flow	4.82M	27.14M	-9.03M	36.14M	300.01M	279.66M
Investing Cash Flow	-20.61M	-26.29M	-58.35M	-70.61M	-66.64M	-39.02M
Financing Cash Flow	15.11M	-1.44M	68.13M	33.87M	-235.22M	-237.99M

Sleep Number Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 9.73
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 9.73 is below the 20-day moving average (MA) of 10.24, above the 50-day MA of 8.68, and below the 200-day MA of 10.99, indicating a neutral trend. The MACD of 0.38 indicates Positive momentum. The RSI at 49.75 is Neutral, neither overbought nor oversold. The STOCH value of 13.57 is Positive, 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	74 Outperform	$769.36M	14.38	10.69%	6.34%	-4.89%	-19.26%
LOVE	71 Outperform	$264.07M	26.48	6.73%	―	-0.77%	-8.89%
LZB	64 Neutral	$1.48B	16.45	9.09%	2.48%	2.18%	-22.35%
Sector *	61 Neutral	$17.96B	13.14	-5.29%	3.00%	1.25%	-13.95%
MLKN	58 Neutral	$1.41B	45.68	-2.77%	3.54%	1.14%	-149.26%
PRPL	51 Neutral	$118.17M	―	-331.75%	―	-13.19%	20.95%
SNBR	46 Neutral	$228.62M	―	9.10%	―	-14.40%	-2.14%

Sleep Number Corporate Events

Sleep Number Appoints Bob Ryder as Interim CFO

On July 18, 2025, Sleep Number Corporation appointed Bob Ryder as interim CFO, succeeding Francis Lee, effective July 21, 2025. Lee will remain as an advisor until August 15, 2025, to facilitate a smooth transition. Ryder, with over 30 years of finance leadership experience, will focus on the company’s debt structure and work towards long-term success. The leadership change is not due to any financial or operational issues, and the company is on track to exceed its cost reduction goals, positioning itself for future growth with new products and strategies.

Sleep Number Schedules Q2 2025 Earnings Call

On July 22, 2025, Sleep Number Corporation announced its second quarter 2025 earnings conference call scheduled for July 30, 2025. The company will release its fiscal results for the quarter ending June 28, 2025, before the market opens on that day, and will host a conference call to discuss these results. This marks a shift in their communication strategy as they will now rely solely on press releases for announcing future earnings calls.