Sleep Number Financials
This page shows Sleep Number (SNBR) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 14 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).
A shrinking sales base left stable product margins unable to absorb overhead and a heavy financing burden.
From FY2023 to FY2026, gross margin stayed around59% even as revenue fell25.2% ; that points to volume deleverage rather than product economics breaking down. At the same time, net loss reached-$132M while operating cash flow was only-$3.3M , showing reported earnings weakened much faster than cash generation.
The balance-sheet cushion is thin: cash was just
Even with capital spending down to
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 retains $-3 of operating profit per $100 of revenue. This results in a moderate score of 31/100, indicating healthy but not exceptional operating efficiency. 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.
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.
While Sleep Number generated -$3.3M in operating cash flow, capex of $14.4M consumed most of it, leaving -$17.7M in free cash flow. This results in a low score of 26/100, reflecting heavy capital investment rather than weak cash generation.
Sleep Number scores -0.96, below the 1.81 distress threshold. The score is driven primarily by a large market capitalization ($4.8M) 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.
For every $1 of reported earnings, Sleep Number generates $0.02 in operating cash flow (-$3.3M OCF vs -$132.0M net income). This low ratio suggests earnings are primarily driven by accounting accruals rather than cash generation, which may not be sustainable.
Sleep Number earns $-0.9 in operating income for every $1 of interest expense (-$46.6M vs $49.4M). This narrow margin raises concern about the company's ability to service its debt if operating income declines.
Key Financial Metrics
Earnings & Revenue
Sleep Number generated $1.4B in revenue in fiscal year 2026. This represents a decrease of 16.1% from the prior year.
Sleep Number's EBITDA was $9.0M in fiscal year 2026, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 89.9% from the prior year.
Sleep Number reported -$132.0M in net income in fiscal year 2026. This represents a decrease of 549.2% from the prior year.
Sleep Number earned $-5.77 per diluted share (EPS) in fiscal year 2026. This represents a decrease of 541.1% from the prior year.
Cash & Balance Sheet
Sleep Number generated -$17.7M in free cash flow in fiscal year 2026, representing cash available after capex. This represents a decrease of 586.3% from the prior year.
Sleep Number held $1.5M in cash against $0 in long-term debt as of fiscal year 2026.
Sleep Number had 23M shares outstanding in fiscal year 2026. This represents an increase of 2.9% from the prior year.
Margins & Returns
Sleep Number's gross margin was 59.0% in fiscal year 2026, indicating the percentage of revenue retained after direct costs. This is down 0.6 percentage points from the prior year.
Sleep Number's operating margin was -3.3% in fiscal year 2026, reflecting core business profitability. This is down 4.7 percentage points from the prior year.
Sleep Number's net profit margin was -9.3% in fiscal year 2026, showing the share of revenue converted to profit. This is down 8.1 percentage points from the prior year.
Capital Allocation
Sleep Number invested $33.9M in research and development in fiscal year 2026. This represents a decrease of 25.0% from the prior year.
Sleep Number spent $1.2M on share buybacks in fiscal year 2026, returning capital to shareholders by reducing shares outstanding. This represents an increase of 57.9% from the prior year.
Sleep Number invested $14.4M in capex in fiscal year 2026, funding long-term assets and infrastructure. This represents a decrease of 38.7% from the prior year.
SNBR Income Statement
| 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
| 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 |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| 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 |
SNBR Cash Flow Statement
| 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 |
| Dividends Paid | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | $373K+92.3% | $194K+158.7% | $75K-80.3% | $381K-32.3% | $563K+1307.5% | $40K-65.5% | $116K+176.2% | $42K |
SNBR Financial Ratios
| 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 Equity | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| 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 | 0.15-0.0 | 0.16-0.0 | 0.190.0 | 0.190.0 | 0.190.0 | 0.200.0 | 0.190.0 | 0.20 |
| Debt-to-Equity | -2.02+0.2 | -2.18+0.3 | -2.44+0.2 | -2.67+0.2 | -2.83+0.1 | -2.91+0.0 | -2.93+0.1 | -2.98 |
| 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% |
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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Frequently Asked Questions
What is Sleep Number's annual revenue?
Sleep Number (SNBR) reported $1.4B in total revenue for fiscal year 2026. This represents a -16.1% 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 16.1% year-over-year, from $1.7B to $1.4B in fiscal year 2026.
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) generated -$17.7M in free cash flow during fiscal year 2026. This represents a -586.3% 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 -$3.3M in operating cash flow during fiscal year 2026, representing cash generated from 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 debt-to-equity ratio?
Sleep Number (SNBR) had a debt-to-equity ratio of -2.02 as of fiscal year 2026, 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 -20.6% for fiscal year 2026, measuring how efficiently the company uses its assets to generate profit.
What is Sleep Number's cash runway?
Based on fiscal year 2026 data, Sleep Number (SNBR) had $1.5M in cash against an annual operating cash burn of $3.3M. This gives an estimated cash runway of approximately 5 months at the current burn rate. Cash runway measures how long a company can continue operating before running out of cash, assuming no additional funding.
Why is Sleep Number's debt-to-equity ratio negative or unusual?
Sleep Number (SNBR) has negative shareholder equity of -$626.3M as of fiscal year 2026, 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 -0.96, 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) has an earnings quality ratio of 0.02x, considered low quality (accrual-driven). 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 -0.9x, 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 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.