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Sleep Number
(OTC:SNBRQ)
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Rating:38Underperform
Price Target:
$0.05
▼(-98.14% Downside)
Action:Reiterated
Date:06/27/26
The score is driven primarily by severely weakened financial performance (losses, negative equity, and cash burn) and highly bearish technicals (price far below key moving averages with negative momentum). Chapter 11 and Nasdaq delisting risk further pressure the outlook, while the earnings call’s operational improvements provide only limited offset given continued liquidity/capital-structure uncertainty.
Positive Factors
Direct-to-consumer model
Sleep Number’s control of sales via company-owned stores and e-commerce preserves retail margin and the end-to-end customer experience. This durable channel mix supports higher ARU, repeat service revenue and bundled delivery/setup economics, improving unit economics over coming quarters.
Negative Factors
Chapter 11 and sale process
The Chapter 11 filing and court-supervised sale shift decision rights to creditors and bidders, creating high uncertainty for equity, operations, and strategic plans. Restructuring outcomes (asset sales, covenant terms) will materially determine the company’s capital structure and long-term viability over months.
Read all positive and negative factors
Positive Factors
Negative Factors
Direct-to-consumer model
Sleep Number’s control of sales via company-owned stores and e-commerce preserves retail margin and the end-to-end customer experience. This durable channel mix supports higher ARU, repeat service revenue and bundled delivery/setup economics, improving unit economics over coming quarters.
Read all positive factors
Sleep Number (SNBRQ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$541.65K
Dividend YieldN/A
Average Volume (3M)702.55K
Price to Earnings (P/E)―
Beta (1Y)4.42
Revenue Growth-16.69%
EPS Growth-698.31%
CountryUS
Employees3,114
SectorConsumer Cyclical
Sector Strength84
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)-7.57
Shares Outstanding23,049,000
10 Day Avg. Volume1,142,307
30 Day Avg. Volume702,550
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)-0.34
Price to Sales (P/S)0.14
P/FCF Ratio-11.12
Enterprise Value/Market Cap1.77K
Enterprise Value/Revenue0.72
Enterprise Value/Gross Profit1.24
Enterprise Value/Ebitda-29.89
Forecast
1Y Price Target
$2.50Price Target Upside-1.19% Downside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)-1.42
Revenue Forecast (FY)$1.37B
Sleep Number Business Overview & Revenue Model
Company Description
Sleep Number Corporation, together with its subsidiaries, designs, manufactures, markets, distributes, retails, and services sleep solutions in the United States. It offers smart beds and adjustable bases, pillows, sheets, and other bedding produc...
How the Company Makes Money
Sleep Number primarily makes money by selling products directly to consumers, with revenue largely driven by smart bed systems (its core Sleep Number branded beds) and associated components. A meaningful portion of sales also comes from complement...
Sleep Number Financial Statement Overview
Summary
Income Statement
24
Negative
Balance Sheet
18
Very Negative
Cash Flow
22
Negative
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Sleep Number Technical Analysis
Negative
2.53
Price Trends
1.48
Negative
3.23
Negative
5.31
Negative
Market Momentum
-0.45
Negative
29.25
Positive
1.23
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SNBRQ, the sentiment is Negative. The current price of 2.53 is above the 20-day moving average (MA) of 0.37, above the 50-day MA of 1.48, and below the 200-day MA of 5.31, indicating a bearish trend. The MACD of -0.45 indicates Negative momentum. The RSI at 29.25 is Positive, neither overbought nor oversold. The STOCH value of 1.23 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SNBRQ.
Sleep Number Risk Analysis
Sleep Number disclosed 2 risk factors in its most recent earnings report. Sleep Number reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Sleep Number Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $1.60B | 16.20 | 9.83% | 2.39% | 0.83% | 4.17% | |
69 Neutral | $568.47M | 14.12 | 8.46% | 7.86% | -4.79% | -30.21% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | $1.60B | 7.20 | 23.12% | 1.84% | -8.33% | ― | |
56 Neutral | $1.40B | 15.71 | 0.83% | 4.16% | 4.68% | ― | |
41 Neutral | $38.91M | -0.59 | 189.80% | ― | -2.49% | 6.65% | |
38 Underperform | $541.65K | -0.02 | 31.47% | ― | -16.69% | -698.31% |
* Consumer Cyclical Sector Average
SNBRQ
Sleep Number
0.02
-7.02
-99.67%
ETD
Ethan Allen
22.34
-4.90
-18.00%
MLKN
MillerKnoll
20.46
0.64
3.25%
LZB
La-Z-Boy Incorporated
40.12
2.45
6.50%
LEG
Leggett & Platt
11.71
2.26
23.95%
PRPL
Purple Innovation
0.36
-0.38
-51.76%
Sleep Number Corporate Events
Delistings and Listing ChangesLegal Proceedings
Sleep Number Faces Nasdaq Delisting Following Chapter 11 Filing
Negative
Jun 17, 2026
On June 12, 2026, Sleep Number Corporation and its subsidiaries filed voluntary Chapter 11 bankruptcy petitions in the U.S. Bankruptcy Court for the Southern District of New York. On June 16, 2026, the company received notice that Nasdaq would del...
Legal ProceedingsPrivate Placements and Financing
Sleep Number Secures DIP Financing Amid Chapter 11 Process
Negative
Jun 16, 2026
On June 16, 2026, Sleep Number entered a fourteenth amendment to its credit and security agreement, establishing a debtor-in-possession credit facility of up to $260 million while in Chapter 11 proceedings. The package combines up to $65 million i...
Business Operations and StrategyDelistings and Listing ChangesLegal ProceedingsM&A TransactionsPrivate Placements and Financing
Sleep Number Files Chapter 11, Plans Sale Merger
Negative
Jun 12, 2026
On June 12, 2026, Sleep Number and its subsidiaries filed voluntary Chapter 11 petitions in the U.S. Bankruptcy Court for the Southern District of New York, triggering defaults and acceleration on roughly $672.5 million of debt that are now subjec...
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
Sleep Number Adds Independent Director, Strengthens Board Governance
Positive
Jun 10, 2026
On June 4, 2026, Sleep Number expanded its Board of Directors to seven members with the immediate election of attorney Colin M. Adams, bringing the number of independent directors under Nasdaq standards to six. Adams has no special arrangements ti...
Executive/Board Changes
Sleep Number Grants One-Time Retention Awards to Executives
Neutral
Jun 2, 2026
On May 27, 2026, Sleep Number Corporation’s board approved one-time cash retention awards for key leaders, including its named executive officers, following consultation with independent compensation and financial advisors. In conjunction wi...
Executive/Board ChangesShareholder Meetings
Sleep Number Shareholders Back Directors, Governance Changes Stalled
Neutral
May 27, 2026
At Sleep Number’s 2026 annual meeting, shareholders elected directors Phillip Eyler, Julie Howard and Angel Mendez to three-year terms ending in 2029, and approved on an advisory basis both the company’s executive compensation program ...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and FinancingRegulatory Filings and Compliance
Sleep Number Secures New Financing to Support Turnaround
Positive
Apr 28, 2026
On April 27 and 28, 2026, Sleep Number Corporation amended its credit agreement with existing lenders, securing an additional $55 million of liquidity, including a new $25 million term loan maturing June 30, 2026, and gaining temporary relief from...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.