Sleep Number insider exits; 8,230 RSU vesting, remaining RSUs forfeited

Rhea-AI Filing Summary

Sleep Number Corp (SNBR) insider Francis K. Lee reported separation from the company on 08/15/2025 and filed a final Form 4. The filing shows that 8,230 shares vested from a restricted stock unit award on the separation date, but a portion of those vested shares were withheld to cover the reporting person's estimated tax obligation. The report records a disposition of 2,671 shares at $10.68 each, leaving 18,874 shares beneficially owned by the reporting person following the transaction. The filing also states that any remaining unvested restricted stock units were forfeited upon separation.

Positive

• Timely disclosure of separation and related equity transactions via a Form 4
• Tax withholding applied to vested shares rather than a large open-market sale

Negative

• Reduction in beneficial ownership: disposition of 2,671 shares leaving 18,874 shares owned
• Forfeiture of remaining restricted stock units upon separation

Insights

Financial Analyst

TL;DR: Insider separation led to a modest disposal and forfeiture, slightly reducing insider holdings but not indicating a large market-moving sale.

The Form 4 documents a departure and final reportable transaction for the reporting person. A disposition of 2,671 shares at $10.68 reduced direct ownership to 18,874 shares. The filing notes 8,230 shares vested on separation with some withheld for taxes and remaining restricted stock units forfeited. From a financial standpoint this is a routine post-employment vesting and tax-withholding event rather than an opportunistic liquidity event; the disclosed disposal size appears small relative to typical market volumes and lacks additional context on intent or broader compensation changes.

Corporate Governance Expert

TL;DR: The filing is a compliant, final Section 16 disclosure after an officer's separation with forfeiture of unvested awards.

The Form 4 properly records the reporting person's separation date and resulting changes in beneficial ownership. It specifies that remaining restricted stock units were forfeited and that vested shares were partly withheld to satisfy tax obligations. The signature by an attorney-in-fact is documented. Governance-wise, this is a standard post-employment equity and reporting outcome; there is no indication in the filing of misconduct, accelerated vesting beyond separation, or other special arrangements disclosed.

SEC Form 4

FORM 4

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934
or Section 30(h) of the Investment Company Act of 1940

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X

Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

Check this box to indicate that a transaction was made pursuant to a contract, instruction or written plan for the purchase or sale of equity securities of the issuer that is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c). See Instruction 10.

1. Name and Address of Reporting Person^*

Lee Francis K

(Last) (First) (Middle)

1001 THIRD AVENUE SOUTH

(Street)

MINNEAPOLIS MN 55404

(City) (State) (Zip)

2. Issuer Name and Ticker or Trading Symbol
Sleep Number Corp [ SNBR ]

5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)

	Director		10% Owner
	Officer (give title below)	X	Other (specify below)
			Strategic Advisor

3. Date of Earliest Transaction (Month/Day/Year)
08/15/2025

4. If Amendment, Date of Original Filed (Month/Day/Year)

6. Individual or Joint/Group Filing (Check Applicable Line)

X	Form filed by One Reporting Person
	Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	3. Transaction Code (Instr. 8)		4. Securities Acquired (A) or Disposed Of (D) (Instr. 3, 4 and 5)			5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4)	6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
			Code	V	Amount	(A) or (D)	Price
Common Stock	08/15/2025		F(1)		2,671(2)	D	$10.68	18,874	D

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Transaction Date (Month/Day/Year)	3A. Deemed Execution Date, if any (Month/Day/Year)	4. Transaction Code (Instr. 8)		5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5)		6. Date Exercisable and Expiration Date (Month/Day/Year)		7. Title and Amount of Securities Underlying Derivative Security (Instr. 3 and 4)		8. Price of Derivative Security (Instr. 5)	9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)	10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
				Code	V	(A)	(D)	Date Exercisable	Expiration Date	Title	Amount or Number of Shares

Explanation of Responses:

1. On 8/15/25, the reporting person separated from the company. This will be the final reportable event as there have been no opposite way transactions in the past 6 months. Any remaining restricted stock units were forfeited upon separation and have been removed from their beneficial ownership.

2. On 8/15/25, 8,230 shares vested from a restricted stock unit award. The shares noted above were withheld from the vesting to cover the reporting person's estimated tax obligation.

Remarks:

	/s/ Francis K. Lee, by Brandon Rykkeli, attorney-in-fact	08/19/2025
	** Signature of Reporting Person	Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 4 (b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.
Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB Number.

FAQ

What change in ownership did the Form 4 for SNBR report?

The filing reports a disposition of 2,671 shares at $10.68, leaving the reporting person with 18,874 shares beneficially owned.

When did the reporting person separate from Sleep Number (SNBR)?

The filing states the reporting person separated from the company on 08/15/2025.

Were any restricted stock units forfeited in the SNBR Form 4?

Yes. The Form 4 states that any remaining restricted stock units were forfeited upon separation.

Did any shares vest at separation and how were taxes handled?

On 08/15/2025, 8,230 shares vested from an RSU award and some of those vested shares were withheld to cover the reporting person's estimated tax obligation.

Who signed the Form 4 and when was it filed?

The Form 4 was signed /s/ Francis K. Lee, by Brandon Rykkeli, attorney-in-fact and dated 08/19/2025.