Sleep Number Financials
Financial Health Signals
Based on FY2024 annual data. Scores normalized against common benchmarks. How we calculate these scores
Sleep Number has an operating margin of 1.4%, meaning the company retains $1 of operating profit per $100 of revenue. This below-average margin results in a low score of 7/100, suggesting thin profitability after operating expenses. This is up from 1.2% the prior year.
Sleep Number's revenue declined 10.9% year-over-year, from $1.9B to $1.7B. This contraction results in a growth score of 0/100.
Sleep Number's current ratio of 0.20 means current assets barely cover short-term liabilities. This tight liquidity results in a low score of 0/100, which could limit financial flexibility.
While Sleep Number generated $27.1M in operating cash flow, capex of $23.5M consumed most of it, leaving $3.6M in free cash flow. This results in a low score of 1/100, reflecting heavy capital investment rather than weak cash generation.
Sleep Number scores 0.35, below the 1.81 distress threshold. This indicates elevated financial distress risk and warrants close attention to liquidity and debt levels.
Sleep Number passes 3 of 9 financial strength tests. 2 of 4 profitability signals pass, no leverage/liquidity signals pass (rising debt, declining liquidity, or share dilution), 1 of 2 efficiency signals pass.
For every $1 of reported earnings, Sleep Number generates $-1.33 in operating cash flow ($27.1M OCF vs -$20.3M net income). This mixed ratio suggests some earnings may rely on non-cash accounting items.
Sleep Number earns $0.5 in operating income for every $1 of interest expense ($22.9M vs $48.4M). This narrow margin raises concern about the company's ability to service its debt if operating income declines.
This page shows Sleep Number (SNBR) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 13 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Key Financial Metrics
Sleep Number generated $1.7B in revenue in fiscal year 2024. This represents a decrease of 10.9% from the prior year.
Sleep Number's EBITDA was $89.2M in fiscal year 2024, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 8.0% from the prior year.
Sleep Number generated $3.6M in free cash flow in fiscal year 2024, representing cash available after capex. This represents an increase of 105.5% from the prior year.
Sleep Number reported -$20.3M in net income in fiscal year 2024. This represents a decrease of 33.0% from the prior year.
Sleep Number earned $-0.90 per diluted share (EPS) in fiscal year 2024. This represents a decrease of 32.4% from the prior year.
Sleep Number held $1.9M in cash against $0 in long-term debt as of fiscal year 2024.
Sleep Number had 22M shares outstanding in fiscal year 2024. This represents an increase of 0.7% from the prior year.
Sleep Number's gross margin was 59.6% in fiscal year 2024, indicating the percentage of revenue retained after direct costs. This is up 1.9 percentage points from the prior year.
Sleep Number's operating margin was 1.4% in fiscal year 2024, reflecting core business profitability. This is up 0.1 percentage points from the prior year.
Sleep Number's net profit margin was -1.2% in fiscal year 2024, showing the share of revenue converted to profit. This is down 0.4 percentage points from the prior year.
Sleep Number invested $45.3M in research and development in fiscal year 2024. This represents a decrease of 18.9% from the prior year.
Sleep Number spent $768K on share buybacks in fiscal year 2024, returning capital to shareholders by reducing shares outstanding. This represents a decrease of 79.5% from the prior year.
Sleep Number invested $23.5M in capex in fiscal year 2024, funding long-term assets and infrastructure. This represents a decrease of 58.8% from the prior year.
SNBR Income Statement
| Metric | Q3'25 | Q2'25 | Q1'25 | Q3'24 | Q2'24 | Q1'24 | Q4'23 | Q3'23 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $342.9M+4.6% | $327.9M-16.6% | $393.3M+4.4% | $376.8M-7.7% | $408.4M-13.2% | $470.4M+9.5% | $429.5M-9.1% | $472.6M |
| Cost of Revenue | $137.5M+2.5% | $134.2M-12.1% | $152.7M+1.0% | $151.2M-9.4% | $166.9M-14.1% | $194.3M+4.1% | $186.6M-7.4% | $201.5M |
| Gross Profit | $205.4M+6.0% | $193.7M-19.5% | $240.5M+6.6% | $225.6M-6.6% | $241.5M-12.6% | $276.2M+13.7% | $242.9M-10.4% | $271.1M |
| R&D Expenses | $7.3M-22.2% | $9.4M-13.6% | $10.9M+2.3% | $10.7M-8.0% | $11.6M-6.9% | $12.4M-6.3% | $13.3M+5.1% | $12.6M |
| SG&A Expenses | $31.8M+7.4% | $29.6M-23.3% | $38.6M+1.0% | $38.2M-3.4% | $39.6M+1.3% | $39.1M+10.2% | $35.5M+11.0% | $31.9M |
| Operating Income | -$40.3M-53653.3% | -$75K-104.1% | $1.9M-33.4% | $2.8M-54.6% | $6.1M+10.4% | $5.5M+128.3% | -$19.6M-463.9% | $5.4M |
| Interest Expense | $12.7M+8.1% | $11.7M+5.9% | $11.1M-5.6% | $11.7M-4.3% | $12.3M-0.2% | $12.3M-60.2% | $30.9M+181.9% | $11.0M |
| Income Tax | -$13.2M-200.1% | $13.2M+2356.9% | -$585K+86.4% | -$4.3M-291.2% | -$1.1M-251.6% | $725K+110.2% | -$7.1M-118.4% | -$3.3M |
| Net Income | -$39.8M-59.1% | -$25.0M-189.3% | -$8.6M-85.3% | -$4.7M+7.6% | -$5.1M+32.5% | -$7.5M+70.3% | -$25.2M-986.6% | -$2.3M |
| EPS (Diluted) | $-1.73-58.7% | $-1.09-186.8% | $-0.38-81.0% | $-0.21+4.5% | $-0.22+33.3% | $-0.33+70.5% | $-1.12-1020.0% | $-0.10 |
SNBR Balance Sheet
| Metric | Q3'25 | Q2'25 | Q1'25 | Q3'24 | Q2'24 | Q1'24 | Q4'23 | Q3'23 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $749.4M-6.9% | $804.5M-3.9% | $836.8M-2.8% | $860.8M-2.6% | $883.6M-2.7% | $908.5M-4.5% | $950.9M-1.1% | $961.0M |
| Current Assets | $169.8M-3.3% | $175.5M+0.1% | $175.4M-3.3% | $181.3M+2.2% | $177.4M-2.0% | $181.0M-12.2% | $206.1M+4.1% | $198.1M |
| Cash & Equivalents | $1.3M-6.3% | $1.3M-20.2% | $1.7M-13.3% | $1.9M-3.5% | $2.0M-2.3% | $2.1M-18.6% | $2.5M+180.2% | $906K |
| Inventory | $89.8M-9.7% | $99.5M-4.3% | $103.9M+0.7% | $103.2M+7.6% | $95.8M-5.0% | $100.9M-12.6% | $115.4M-0.7% | $116.2M |
| Accounts Receivable | $13.9M-13.2% | $16.0M+12.6% | $14.2M-18.8% | $17.5M-13.6% | $20.3M-7.1% | $21.8M-18.7% | $26.9M+44.2% | $18.6M |
| Goodwill | $64.0M0.0% | $64.0M0.0% | $64.0M0.0% | $64.0M0.0% | $64.0M0.0% | $64.0M0.0% | $64.0M0.0% | $64.0M |
| Total Liabilities | $1.3B-1.1% | $1.3B-0.7% | $1.3B-1.4% | $1.3B-1.4% | $1.3B-1.8% | $1.4B-2.8% | $1.4B+0.8% | $1.4B |
| Current Liabilities | $898.8M-0.5% | $903.2M-0.1% | $904.4M-0.4% | $908.0M+0.8% | $900.6M-0.6% | $906.2M-3.2% | $936.1M+1.8% | $919.3M |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Equity | -$521.3M-8.5% | -$480.7M-5.2% | -$456.8M-1.2% | -$451.6M-1.0% | -$447.0M-0.2% | -$445.9M-0.9% | -$441.9M-5.0% | -$420.7M |
| Retained Earnings | -$552.6M-7.8% | -$512.9M-5.1% | -$487.8M-1.8% | -$479.2M-1.7% | -$471.4M-1.1% | -$466.3M-1.6% | -$458.9M-5.8% | -$433.7M |
SNBR Cash Flow Statement
| Metric | Q3'25 | Q2'25 | Q1'25 | Q3'24 | Q2'24 | Q1'24 | Q4'23 | Q3'23 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -$6.4M-266.3% | $3.8M+245.5% | -$2.6M+88.9% | -$23.7M-131.6% | -$10.2M-130.3% | $33.7M+182.6% | -$40.8M-411.9% | $13.1M |
| Capital Expenditures | $3.8M+11.1% | $3.5M-24.9% | $4.6M-26.8% | $6.3M+31.9% | $4.8M-48.8% | $9.3M+3.0% | $9.0M-50.2% | $18.1M |
| Free Cash Flow | -$10.2M-2861.8% | $369K+105.1% | -$7.2M+75.9% | -$30.0M-99.9% | -$15.0M-161.4% | $24.4M+149.0% | -$49.9M-892.2% | -$5.0M |
| Investing Cash Flow | -$3.8M+43.0% | -$6.7M-46.4% | -$4.6M+26.8% | -$6.3M-31.9% | -$4.8M+61.1% | -$12.3M-35.8% | -$9.0M+52.5% | -$19.0M |
| Financing Cash Flow | $10.1M+293.4% | $2.6M-63.1% | $7.0M-77.0% | $30.3M+102.9% | $14.9M+168.0% | -$22.0M-142.7% | $51.5M+928.6% | $5.0M |
| Dividends Paid | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | $75K-80.3% | $381K-32.3% | $563K+1307.5% | $40K-4.8% | $42K-92.6% | $570K+1483.3% | $36K-82.9% | $210K |
SNBR Financial Ratios
| Metric | Q3'25 | Q2'25 | Q1'25 | Q3'24 | Q2'24 | Q1'24 | Q4'23 | Q3'23 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 59.9%+0.8pp | 59.1%-2.1pp | 61.2%+1.3pp | 59.9%+0.7pp | 59.1%+0.4pp | 58.7%+2.1pp | 56.5%-0.8pp | 57.4% |
| Operating Margin | -11.8%-11.7pp | -0.0%-0.5pp | 0.5%-0.3pp | 0.7%-0.8pp | 1.5%+0.3pp | 1.2%+5.7pp | -4.6%-5.7pp | 1.1% |
| Net Margin | -11.6%-4.0pp | -7.6%-5.4pp | -2.2%-1.0pp | -1.2%0.0pp | -1.2%+0.4pp | -1.6%+4.3pp | -5.9%-5.4pp | -0.5% |
| Return on Equity | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Return on Assets | -5.3%-2.2pp | -3.1%-2.1pp | -1.0%-0.5pp | -0.5%+0.0pp | -0.6%+0.3pp | -0.8%+1.8pp | -2.6%-2.4pp | -0.2% |
| Current Ratio | 0.190.0 | 0.190.0 | 0.190.0 | 0.200.0 | 0.200.0 | 0.20-0.0 | 0.220.0 | 0.22 |
| Debt-to-Equity | -2.44+0.2 | -2.67+0.2 | -2.83+0.1 | -2.91+0.1 | -2.98+0.1 | -3.04+0.1 | -3.15+0.1 | -3.28 |
| FCF Margin | -3.0%-3.1pp | 0.1%+1.9pp | -1.8%+6.1pp | -8.0%-4.3pp | -3.7%-8.9pp | 5.2%+16.8pp | -11.6%-10.5pp | -1.1% |
Note: Shareholder equity is negative (-$451.6M), which causes debt-to-equity and return on equity ratios to appear negative or not meaningful. This can occur from accumulated losses or large share buyback programs.
Note: The current ratio is below 1.0 (0.20), indicating current liabilities exceed current assets, which may suggest potential short-term liquidity concerns.
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Frequently Asked Questions
What is Sleep Number's annual revenue?
Sleep Number (SNBR) reported $1.7B in total revenue for fiscal year 2024. This represents a -10.9% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Sleep Number's revenue growing?
Sleep Number (SNBR) revenue declined by 10.9% year-over-year, from $1.9B to $1.7B in fiscal year 2024.
Is Sleep Number profitable?
No, Sleep Number (SNBR) reported a net income of -$20.3M in fiscal year 2024, with a net profit margin of -1.2%.
What is Sleep Number's earnings per share (EPS)?
Sleep Number (SNBR) reported diluted earnings per share of $-0.90 for fiscal year 2024. This represents a -32.4% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.
What is Sleep Number's EBITDA?
Sleep Number (SNBR) had EBITDA of $89.2M in fiscal year 2024, measuring earnings before interest, taxes, depreciation, and amortization.
What is Sleep Number's gross margin?
Sleep Number (SNBR) had a gross margin of 59.6% in fiscal year 2024, indicating the percentage of revenue retained after direct costs of goods sold.
What is Sleep Number's operating margin?
Sleep Number (SNBR) had an operating margin of 1.4% in fiscal year 2024, reflecting the profitability of core business operations before interest and taxes.
What is Sleep Number's net profit margin?
Sleep Number (SNBR) had a net profit margin of -1.2% in fiscal year 2024, representing the share of revenue converted into profit after all expenses.
What is Sleep Number's free cash flow?
Sleep Number (SNBR) generated $3.6M in free cash flow during fiscal year 2024. This represents a 105.5% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Sleep Number's operating cash flow?
Sleep Number (SNBR) generated $27.1M in operating cash flow during fiscal year 2024, representing cash generated from core business activities.
What are Sleep Number's total assets?
Sleep Number (SNBR) had $860.8M in total assets as of fiscal year 2024, including both current and long-term assets.
What are Sleep Number's capital expenditures?
Sleep Number (SNBR) invested $23.5M in capital expenditures during fiscal year 2024, funding long-term assets and infrastructure.
How much does Sleep Number spend on research and development?
Sleep Number (SNBR) invested $45.3M in research and development during fiscal year 2024.
Does Sleep Number buy back shares?
Yes, Sleep Number (SNBR) spent $768K on share buybacks during fiscal year 2024, returning capital to shareholders by reducing shares outstanding.
How many shares does Sleep Number have outstanding?
Sleep Number (SNBR) had 22M shares outstanding as of fiscal year 2024.
What is Sleep Number's current ratio?
Sleep Number (SNBR) had a current ratio of 0.20 as of fiscal year 2024, which is below 1.0, which may suggest potential liquidity concerns.
What is Sleep Number's debt-to-equity ratio?
Sleep Number (SNBR) had a debt-to-equity ratio of -2.91 as of fiscal year 2024, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Sleep Number's return on assets (ROA)?
Sleep Number (SNBR) had a return on assets of -2.4% for fiscal year 2024, measuring how efficiently the company uses its assets to generate profit.
Why is Sleep Number's debt-to-equity ratio negative or unusual?
Sleep Number (SNBR) has negative shareholder equity of -$451.6M as of fiscal year 2024, which causes the debt-to-equity ratio to appear negative or not meaningful. This can occur when accumulated losses exceed invested capital, or after large share buyback programs. Other solvency metrics like the current ratio or interest coverage may be more informative.
What is Sleep Number's Altman Z-Score?
Sleep Number (SNBR) has an Altman Z-Score of 0.35, placing it in the Distress Zone (elevated bankruptcy risk). The Z-Score combines five financial ratios—working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets—to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Sleep Number's Piotroski F-Score?
Sleep Number (SNBR) has a Piotroski F-Score of 3 out of 9, indicating weak financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7–9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Sleep Number's earnings high quality?
Sleep Number (SNBR) has an earnings quality ratio of -1.33x, considered mixed quality. This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Sleep Number cover its interest payments?
Sleep Number (SNBR) has an interest coverage ratio of 0.5x, meaning it can struggle to cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Sleep Number?
Sleep Number (SNBR) scores 2 out of 100 on our Financial Profile, indicating weak overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.