Sleep Number Q4 Earnings Call Highlights

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Thu, March 12, 2026 astatine 9:48 AM CDT 8 min read

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Full-year results bushed guidance with nett income of $1.41 billion and adjusted EBITDA of $78 million, portion absorption has removed much than $185 million of annualized costs and identified different $50 million to execute successful 2026, cutting currency usage to $18 million for the year.
Management is rolling retired a simplified merchandise lineup (from 12 to 7 SKUs) anchored by the caller ComfortMode (priced nether $1,600), which has sold astir 3.5x expectations and delivered a ~10 percent point gross borderline betterment versus the c‑series it replaces.
Near-term request and liquidity stay pressured—Q1 income are expected to diminution successful the high teens—but the institution has $58 million of full liquidity (above covenants), has hired Guggenheim to research refinancing, and expects improving gross successful H2 with adjusted EBITDA maturation successful the high‑teens to mid‑20s% and affirmative escaped currency travel successful 2026.
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Sleep Number Stock Wakes Up connected Restructuring Plans

Sleep Number (NASDAQ:SNBR) outlined advancement successful its turnaround efforts during its fourth-quarter and full-year 2025 net call, highlighting outgo reductions, an accelerated merchandise overhaul, and steps being taken to code liquidity and the company’s superior structure. The fiscal twelvemonth ended January 3, 2026.

CEO Linda Findley said 2025 was a “pivotal year” arsenic the institution reshaped teams and made “big turnaround changes” crossed retail and firm operations, marketing, and merchandise development. Findley said the institution delivered connected the guidance provided connected the anterior call.

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For the afloat year, Sleep Number reported nett income of $1.41 billion, which Findley said was successful enactment with guidance contempt reduced selling walk and little postulation during the year. Adjusted EBITDA was $78 million, supra the company’s guidance of $70 million. The company’s currency usage for 2025 was $18 million, compared with guidance of $50 million.

CFO Amy O’Keefe, who joined successful mid-December, said the full-year pro forma adjusted EBITDA borderline was astir 9%, representing a astir 200 ground point betterment versus the anterior year. O’Keefe added that operating expenses for the afloat twelvemonth were $824 million, a $136 million simplification from the anterior twelvemonth (excluding restructuring and different non-recurring costs).

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