Sleep Number Financials
Sleep Number (SNBR) reported $1.3B in revenue over the twelve months to Apr 4, 2026, down 16.7% from the prior twelve months. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 15 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).
Falling demand has exposed a thin operating model, while liability-heavy financing leaves little short-term balance-sheet flexibility.
By FY2026, revenue had fallen to$1.4B while operating margin reached-3.3% , indicating the cost structure no longer flexed down with volume. Interest expense reached$49.4M while operating income was-$46.6M , so financing costs materially deepen the gap between operating performance and net earnings.
Gross margin was still
Balance-sheet flexibility is limited: negative equity stood at
Financial Health Signals
Scored against operating companies for FY2026. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Sleep Number's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Sleep Number has an operating margin of -3.3%, meaning the company loses $3 on every $100 of revenue. This results in a profitability score of 31/100. This is down from 1.4% the prior year.
Sleep Number's revenue declined 16.1% year-over-year, from $1.7B to $1.4B. This contraction results in a growth score of 8/100.
Not available for Sleep Number, and counted as zero in the overall score.
Sleep Number's current ratio of 0.15 is below the typical benchmark, resulting in a score of 1/100. This tight liquidity could limit financial flexibility if cash inflows slow.
Sleep Number's operations used $3.3M of cash, and capex of $14.4M added to the outflow, for a free cash flow shortfall of $17.7M. This results in a cash flow score of 26/100.
Sleep Number scores -0.96, below the 1.81 distress threshold. The score is driven primarily by a large market capitalization ($2.9M) relative to total liabilities ($1.3B). This indicates elevated financial distress risk and warrants close attention to liquidity and debt levels.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Sleep Number passes 2 of 8 computable financial strength tests (1 of the nine could not be computed from available data). 1 of 4 profitability signals pass, no leverage/liquidity signals pass (rising debt, declining liquidity, or share dilution), 1 of 2 efficiency signals pass.
Sleep Number reported a net loss of $132.0M while operations used $3.3M of cash. With neither figure positive, the ratio between the two carries no quality signal.
Sleep Number reported an operating loss of $46.6M against $49.4M in interest expense. There is no operating profit to cover interest, so interest must be met from cash reserves or from financing rather than from operations.
Key Financial Metrics
Earnings & Revenue
Sleep Number generated $1.4B in revenue in fiscal year 2026.
Sleep Number's EBITDA was $9.0M in fiscal year 2026, measuring earnings before interest, taxes, depreciation, and amortization.
Sleep Number reported -$132.0M in net income in fiscal year 2026.
Cash & Balance Sheet
Sleep Number recorded an outflow of $17.7M in free cash flow in fiscal year 2026, representing a cash shortfall after capex.
Sleep Number held $1.5M in cash as of fiscal year 2026; long-term debt is not reported for that period.
Not reported for fiscal year 2026.
Margins & Returns
Sleep Number's gross margin was 59.0% in fiscal year 2026, indicating the percentage of revenue retained after direct costs.
Sleep Number's operating margin was -3.3% in fiscal year 2026, reflecting core business profitability.
Sleep Number's net profit margin was -9.3% in fiscal year 2026, showing the share of revenue converted to profit.
Not reported for fiscal year 2026.
Capital Allocation
Sleep Number invested $33.9M in research and development in fiscal year 2026.
Sleep Number spent $1.2M on share buybacks in fiscal year 2026, returning capital to shareholders by reducing shares outstanding.
Sleep Number invested $14.4M in capex in fiscal year 2026, funding long-term assets and infrastructure.
SNBR Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | Q1'27 | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $319.0M-8.2% | $347.4M+1.3% | $342.9M+4.6% | $327.9M-16.6% | $393.3M+4.4% | $376.8M-11.7% | $426.6M+4.5% | $408.4M |
| Cost of Revenue | $134.4M-12.8% | $154.1M+12.1% | $137.5M+2.5% | $134.2M-12.1% | $152.7M+1.0% | $151.2M-9.5% | $167.1M+0.1% | $166.9M |
| Gross Profit | $184.6M-4.5% | $193.3M-5.9% | $205.4M+6.0% | $193.7M-19.5% | $240.5M+6.6% | $225.6M-13.1% | $259.5M+7.5% | $241.5M |
| R&D Expenses | $5.3M-15.0% | $6.3M-14.2% | $7.3M-22.2% | $9.4M-13.6% | $10.9M+2.3% | $10.7M+0.7% | $10.6M-8.6% | $11.6M |
| SG&A Expenses | $33.6M+9.6% | $30.7M-3.6% | $31.8M+7.4% | $29.6M-23.3% | $38.6M+1.0% | $38.2M+15.6% | $33.1M-16.4% | $39.6M |
| Operating Income | -$36.9M-357.7% | -$8.1M+80.0% | -$40.3M-53653.3% | -$75K-104.1% | $1.9M-33.4% | $2.8M-67.1% | $8.4M+37.8% | $6.1M |
| Interest Expense | $13.1M-5.6% | $13.9M+9.4% | $12.7M+8.1% | $11.7M+5.9% | $11.1M-5.6% | $11.7M-2.6% | $12.1M-1.7% | $12.3M |
| Income Tax | $338K-99.1% | $36.6M+376.9% | -$13.2M-200.1% | $13.2M+2356.9% | -$585K+86.4% | -$4.3M-779.1% | -$489K+55.5% | -$1.1M |
| Net Income | -$50.3M+14.1% | -$58.6M-47.2% | -$39.8M-59.1% | -$25.0M-189.3% | -$8.6M-85.3% | -$4.7M-48.8% | -$3.1M+37.9% | -$5.1M |
| EPS (Diluted) | -$2.19 | N/A | -$1.73-58.7% | -$1.09-186.8% | -$0.38 | N/A | -$0.14+36.4% | -$0.22 |
SNBR Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | Q1'27 | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $641.0M-5.7% | $680.1M-9.3% | $749.4M-6.9% | $804.5M-3.9% | $836.8M-2.8% | $860.8M-0.4% | $864.7M-2.1% | $883.6M |
| Current Assets | $143.5M-4.3% | $150.0M-11.7% | $169.8M-3.3% | $175.5M+0.1% | $175.4M-3.3% | $181.3M+6.5% | $170.3M-4.0% | $177.4M |
| Cash & Equivalents | $1.5M-12.3% | $1.7M+33.9% | $1.3M-6.3% | $1.3M-20.2% | $1.7M-13.3% | $1.9M+22.5% | $1.6M-21.2% | $2.0M |
| Inventory | $78.2M-4.9% | $82.2M-8.5% | $89.8M-9.7% | $99.5M-4.3% | $103.9M+0.7% | $103.2M+10.9% | $93.0M-2.9% | $95.8M |
| Accounts Receivable | $13.4M-13.9% | $15.5M+11.5% | $13.9M-13.2% | $16.0M+12.6% | $14.2M-18.8% | $17.5M+2.9% | $17.0M-16.0% | $20.3M |
| 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+0.7% | $1.3B-1.0% | $1.3B-1.1% | $1.3B-0.7% | $1.3B-1.4% | $1.3B-0.1% | $1.3B-1.3% | $1.3B |
| Current Liabilities | $931.7M+2.1% | $912.5M+1.5% | $898.8M-0.5% | $903.2M-0.1% | $904.4M-0.4% | $908.0M+1.6% | $894.0M-0.7% | $900.6M |
| Total Equity | -$626.3M-8.3% | -$578.5M-11.0% | -$521.3M-8.5% | -$480.7M-5.2% | -$456.8M-1.2% | -$451.6M-0.6% | -$448.8M-0.4% | -$447.0M |
| Retained Earnings | -$661.5M-8.2% | -$611.2M-10.6% | -$552.6M-7.8% | -$512.9M-5.1% | -$487.8M-1.8% | -$479.2M-1.0% | -$474.5M-0.7% | -$471.4M |
Not reported in any period shown, so not listed: Long-Term Debt.
SNBR Cash Flow Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | Q1'27 | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -$7.8M-513.2% | $1.9M+129.5% | -$6.4M-266.3% | $3.8M+245.5% | -$2.6M+88.9% | -$23.7M-186.7% | $27.3M+367.0% | -$10.2M |
| Capital Expenditures | $5.4M+116.0% | $2.5M-34.3% | $3.8M+11.1% | $3.5M-24.9% | $4.6M-26.8% | $6.3M+100.0% | $3.1M-34.1% | $4.8M |
| Free Cash Flow | -$13.2M-1951.6% | -$643K+93.7% | -$10.2M-2861.8% | $369K+105.1% | -$7.2M+75.9% | -$30.0M-224.0% | $24.2M+261.2% | -$15.0M |
| Investing Cash Flow | -$5.4M-116.0% | -$2.5M+34.3% | -$3.8M+43.0% | -$6.7M-46.4% | -$4.6M+26.8% | -$6.3M-110.5% | -$3.0M+37.3% | -$4.8M |
| Financing Cash Flow | $13.0M+1111.1% | $1.1M-89.4% | $10.1M+293.4% | $2.6M-63.1% | $7.0M-77.0% | $30.3M+222.5% | -$24.7M-265.6% | $14.9M |
| Share Buybacks | $373K+92.3% | $194K+158.7% | $75K-80.3% | $381K-32.3% | $563K+1307.5% | $40K-65.5% | $116K+176.2% | $42K |
Not reported in any period shown, so not listed: Dividends Paid.
SNBR Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples.
| Metric | Q1'27 | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 57.9%+2.2pp | 55.6%-4.3pp | 59.9%+0.8pp | 59.1%-2.1pp | 61.2%+1.3pp | 59.9%-1.0pp | 60.8%+1.7pp | 59.1% |
| Operating Margin | -11.6%-9.2pp | -2.3%+9.4pp | -11.8%-11.7pp | 0.0%-0.5pp | 0.5%-0.3pp | 0.7%-1.2pp | 2.0%+0.5pp | 1.5% |
| Net Margin | -15.8%+1.1pp | -16.9%-5.3pp | -11.6%-4.0pp | -7.6%-5.4pp | -2.2%-1.0pp | -1.2%-0.5pp | -0.7%+0.5pp | -1.2% |
| Return on Assets | -7.8%+0.8pp | -8.6%-3.3pp | -5.3%-2.2pp | -3.1%-2.1pp | -1.0%-0.5pp | -0.5%-0.2pp | -0.4%+0.2pp | -0.6% |
| Current Ratio | 0.150.0x | 0.160.0x | 0.190.0x | 0.190.0x | 0.190.0x | 0.200.0x | 0.190.0x | 0.20 |
| FCF Margin | -4.1%-4.0pp | -0.2%+2.8pp | -3.0%-3.1pp | 0.1%+1.9pp | -1.8%+6.1pp | -8.0%-13.6pp | 5.7%+9.3pp | -3.7% |
Not reported in any period shown, so not listed: Return on Equity, Debt-to-Equity.
Note: Shareholder equity is negative (-$626.3M), 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 (0.15), indicating current liabilities exceed current assets, which may suggest potential short-term liquidity concerns.
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Where Sleep Number Ranks
Frequently Asked Questions
What is Sleep Number's annual revenue?
Sleep Number (SNBR) reported $1.4B in total revenue for fiscal year 2026. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
Is Sleep Number profitable?
No, Sleep Number (SNBR) reported a net income of -$132.0M in fiscal year 2026, with a net profit margin of -9.3%.
What is Sleep Number's EBITDA?
Sleep Number (SNBR) had EBITDA of $9.0M in fiscal year 2026, measuring earnings before interest, taxes, depreciation, and amortization.
What is Sleep Number's gross margin?
Sleep Number (SNBR) had a gross margin of 59.0% in fiscal year 2026, 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 -3.3% in fiscal year 2026, 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 -9.3% in fiscal year 2026, representing the share of revenue converted into profit after all expenses.
What is Sleep Number's free cash flow?
Sleep Number (SNBR) recorded an outflow of $17.7M in free cash flow during fiscal year 2026. 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) recorded an outflow of $3.3M in operating cash flow during fiscal year 2026, representing cash used by core business activities.
What are Sleep Number's total assets?
Sleep Number (SNBR) had $641.0M in total assets as of fiscal year 2026, including both current and long-term assets.
What are Sleep Number's capital expenditures?
Sleep Number (SNBR) invested $14.4M in capital expenditures during fiscal year 2026, funding long-term assets and infrastructure.
How much does Sleep Number spend on research and development?
Sleep Number (SNBR) invested $33.9M in research and development during fiscal year 2026.
What is Sleep Number's current ratio?
Sleep Number (SNBR) had a current ratio of 0.15 as of fiscal year 2026, which is below 1.0, which may suggest potential liquidity concerns.
What is Sleep Number's return on assets (ROA)?
Sleep Number (SNBR) had a return on assets of -20.6% for fiscal year 2026, measuring how efficiently the company uses its assets to generate profit.
How does Sleep Number's liquidity compare with its operating cash outflow?
At the end of fiscal year 2026, Sleep Number (SNBR) held $1.5M in cash, cash equivalents and investments, and reported an operating cash outflow of $3.3M over that year. Dividing the one by the other, the reported balance equals about 5 months of the outflow reported that year. This is arithmetic over figures already filed, not a projection: it assumes nothing about future spending, financing or operations.
Why is Sleep Number's debt-to-equity ratio negative or not reported?
Sleep Number (SNBR) has negative shareholder equity of -$626.3M as of fiscal year 2026, so no debt-to-equity ratio is reported: dividing debt by equity that is not positive produces a number that cannot be read as leverage. 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 -0.96, 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 2 out of 8 computable signals; 1 of the nine could not be computed from available data, so the full-scale strength rating is not shown. 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 to 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) reported a net loss of $132.0M while operations used $3.3M of cash. With neither figure positive, the ratio between the two carries no quality signal. 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) reported an operating loss of $46.6M against $49.4M in interest expense. There is no operating profit to cover interest, so interest must be met from cash reserves or from financing rather than from operations. 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 26 out of 100 on our Financial Health Score, indicating weak standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.