Liquidity remains under extreme pressure, with free cash flow margins bottoming out at -11.6% in 2023Q4 and the company reporting a negative $13.2 million free cash flow in 2026Q1.
| Metric | TTM | Jan'26 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 |
|---|
| Cash from Operations | -8.09M | -3.28M | 27.14M | -9.03M | 36.14M | 300.01M | 279.66M | 189.16M | 131.54M | 172.61M | 151.65M | 107.94M | 144.47M | 88.11M | 100.63M | 91.05M | 71.22M | 66.64M | 2.97M | 44.03M | 59.38M | 87.5M | 52.48M | 49.2M | 36.14M | 415K | -10.29M | 7.7M | 11M | 7.3M |
| Operating CF Margin % | - | -0.23% | 1.61% | -0.48% | 1.71% | 13.73% | 15.06% | 11.14% | 8.59% | 11.95% | 11.56% | 8.89% | 12.49% | 9.18% | 10.76% | 12.25% | 11.76% | 12.25% | 0.49% | 5.51% | 7.37% | 12.66% | 9.41% | 10.73% | 10.76% | 0.16% | -3.81% | 2.81% | 4.47% | 3.96% |
| Operating CF Growth % | -71.98% | -112.1% | 400.65% | -124.98% | -87.95% | 7.28% | 47.84% | 43.8% | -23.79% | 13.82% | 40.49% | -25.28% | 63.97% | -12.44% | 10.52% | 27.84% | 6.87% | 2141.47% | -93.25% | -25.84% | -32.14% | 66.72% | 6.66% | 36.13% | 8609.4% | 104.03% | -233.58% | -30% | 50.68% | - |
| Net Income | -173.61M | -131.96M | -20.33M | -15.29M | 36.61M | 153.75M | 139.19M | 81.84M | 69.54M | 65.08M | 51.42M | 50.52M | 67.97M | 60.08M | 78.09M | 78.09M | 31.57M | 35.55M | -70.18M | 27.62M | 47.18M | 43.77M | 31.55M | 27.17M | 37.12M | -12.07M | -37.21M | -8.2M | 6.6M | -2.8M |
| Depreciation & Amortization | 52.58M | 55.61M | 66.35M | 74.04M | 67.4M | 60.39M | 61.56M | 61.87M | 61.97M | 61.29M | 57.17M | 47.63M | 39.81M | 30.81M | 20.4M | 13.54M | 14.63M | 19.05M | 22.19M | 24.79M | 19.68M | 15.75M | 13.64M | 11.28M | 10.47M | 10.08M | 8.41M | 6.7M | 5.4M | 4M |
| Stock-Based Compensation | 5.95M | 6.28M | 11.44M | 14.86M | 13.22M | 23.21M | 21.81M | 16.66M | 11.41M | 15.76M | 11.96M | 10.29M | 6.8M | 4.23M | 10.31M | 4.97M | 3.96M | 3.24M | 3.7M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 34.5M | 33.18M | -13.32M | -12.29M | -8.65M | 446K | -3.57M | -1.01M | 7.45M | 2.04M | -1.64M | 11.92M | -311K | 2.04M | 3.5M | 2.84M | 2.35M | -18.21M | 25.07M | -7.28M | -7.67M | -1.35M | -4.03M | 5.65M | -17.31M | -17.31M | 10.89M | -5M | -5M | 0 |
| Other Non-Cash Items | 15.57M | 46.11M | 4.32M | 2.9M | 291K | 37K | 247K | -430K | -51K | 249K | -490K | -8.88M | -671K | -3.81M | -6.33M | -19.71M | -1.11M | 683K | 34.56M | 1.92M | 5.67M | 5.67M | 4.72M | 416K | 171K | 548K | -9.2M | 100K | 1.4M | 3.5M |
| Working Capital Changes | 6.67M | -12.5M | -21.31M | -73.24M | -72.74M | 62.17M | 60.41M | 30.24M | -18.77M | 28.18M | 33.23M | -3.54M | 30.87M | -5.25M | -5.34M | 11.31M | 19.82M | 26.32M | -12.37M | -6.72M | -5.5M | 24.61M | 10.9M | 4.94M | 5.31M | 712K | 5.46M | 12.8M | -800K | 2.6M |
| Change in Receivables | 2.6M | 2.01M | 13.33M | -854K | -287K | 3.09M | -10.84M | 7.88M | -5.48M | 393K | 9.3M | -9.26M | -4.72M | 1.99M | -2.71M | -3.94M | 530K | -155K | 13.96M | 13.96M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 14M | 11.35M | 12.28M | -1.4M | -11.56M | -24.28M | 5.7M | -2.18M | -584K | -9.27M | 11.57M | -33.06M | -13.38M | -3.91M | -10.71M | -5.2M | -4M | 3.03M | 13.84M | -8.4M | -2.14M | -1.5M | -6.37M | -3.4M | -894K | 2.93M | 640K | -1.3M | -2.4M | -2.2M |
| Change in Payables | 17.71M | 22.67M | -15.91M | -28.93M | -4.74M | 54.41M | -16.75M | 10.66M | -9.89M | 21.78M | -4.96M | 19.13M | 14.34M | -3.48M | 7.11M | 6.91M | 4M | 2.54M | -20.05M | -20.05M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -18.53M | -17.69M | -26.29M | -58.35M | -70.61M | -66.64M | -39.02M | -56.62M | -45.24M | -56.64M | -42.67M | -44.28M | -114.43M | -87.3M | -112.1M | -56.19M | -7.34M | -2.44M | -32.2M | 37.57M | -33.21M | -28.39M | -47.68M | -55.11M | -21.45M | -909K | 3.69M | -35.8M | -8.8M | -10.7M |
| Capital Expenditures | -15.25M | -14.41M | -23.5M | -57.06M | -69.45M | -66.9M | -37.1M | -59.24M | -45.52M | -59.83M | -57.85M | -85.59M | -76.59M | -76.81M | -51.59M | -23.53M | -7.35M | -2.46M | -32.2M | -43.51M | -31.08M | -25.84M | -21.4M | -18.36M | -7.8M | -4.86M | -12.08M | -13.7M | -8.8M | -10.7M |
| CapEx % of Revenue | 1.14% | 1.02% | 1.4% | 3.02% | 3.28% | 3.06% | 2% | 3.49% | 2.97% | 4.14% | 4.41% | 7.05% | 6.62% | 8% | 5.52% | 3.17% | 1.21% | 0.45% | 5.29% | 5.44% | 3.86% | 3.74% | 3.84% | 4.01% | 2.32% | 1.86% | 4.47% | 5% | 3.57% | 5.8% |
| Acquisitions | 0 | 0 | 0 | 0 | 49K | 0 | 0 | 0 | 272K | 36K | 11.99M | -70.02M | -70.02M | -15.5M | -15.5M | 11K | 32.67M | 0 | 0 | 0 | -28.07M | 0 | 0 | 0 | 0 | 0 | 0 | -16.18M | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -3.28M | -3.28M | -2.79M | -1.3M | 49K | 257K | -1.92M | 2.62M | 272K | 3.19M | -11.9M | 72K | 69.52M | 117K | 15.54M | -2.65M | -2.64M | 15K | -32.2K | 37.6K | 28.07M | 0 | 0 | 0 | 0 | 24.78M | -400K | -2M | 20.1M | 0 |
| Cash from Financing | 26.41M | 20.71M | -1.44M | 68.13M | 33.87M | -235.22M | -237.99M | -132.56M | -88.34M | -123.92M | -118.36M | -94.67M | -36.26M | -30.5M | -16.86M | 5.38M | -236K | -59.53M | 35.01M | -83.14M | -61.21M | -41.31M | -14.46M | 3.46M | -3.89M | 15.37M | 648K | -10M | 30.7M | 13.6M |
| Debt Issued (Net) | 32.79M | 28.07M | -673K | 73.46M | 97.65M | 145.47M | -11.64M | 26.36M | 182.34M | 28.09M | 5.93M | 1.1M | 6.19M | -223K | 6.49M | -795K | -1.07M | -84.76M | 34.34M | 45.24M | -1.39M | 784K | 10.22M | -11K | -5.02M | 15M | -16K | -900K | -16M | 14M |
| Equity Issued (Net) | -1.02M | -1.21M | -768K | -3.32M | -63.06M | -377.94M | -226.04M | -157.89M | -269.66M | -152M | -124.39M | -97.22M | -43.62M | -34.11M | -29.75M | 3.98M | -377K | 26.53M | 651K | -129.88M | -68.39M | -41.31M | -14.46M | 3.47M | 1.13M | 369K | 664K | -9.1M | 46.7M | 400K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -1.02M | -1.21M | -768K | -3.75M | -64.19M | -382.38M | -235.64M | -165.08M | -272.45M | -155.25M | -126.69M | -100.2M | -46.49M | -42.07M | -34.89M | -371K | -1.39M | 0 | 0 | -134.45M | -77.2M | -49.73M | -20.85M | -1.83M | 0 | 0 | 0 | -12.7M | 0 | 0 |
| Other Financing | -5.35M | -6.14M | 0 | -2.02M | -718K | -2.76M | -312K | -1.02M | -1.01M | -12K | 108K | 1.46M | 1.16M | 3.83M | 6.4M | 2.19M | 1.22M | -1.31M | 19K | 1.5M | 8.56M | 0 | -10.22M | 0 | 0 | 0 | 0 | 0 | 0 | -800K |
| Net Change in Cash | -207K | -257K | -589K | 747K | -597K | -1.85M | 2.65M | -19K | -2.04M | -7.96M | -9.38M | -31M | -6.23M | -29.69M | -28.34M | 40.24M | 63.64M | 4.66M | 5.78M | -1.54M | -35.05M | 17.8M | -9.66M | -2.45M | 10.8M | 14.88M | -5.94M | -38.2M | -5.3M | 10.2M |
| Free Cash Flow | -26.62M | -17.69M | 3.64M | -66.08M | -33.32M | 233.11M | 240.59M | 129.92M | 86.03M | 112.78M | 93.79M | 22.36M | 67.87M | 11.29M | 49.03M | 67.52M | 63.87M | 64.18M | -29.23M | 517K | 28.3M | 61.66M | 31.08M | 30.84M | 28.34M | -4.44M | -22.37M | -6M | 2.2M | -3.4M |
| FCF Margin % | -1.99% | -1.25% | 0.22% | -3.5% | -1.58% | 10.67% | 12.96% | 7.65% | 5.62% | 7.81% | 7.15% | 1.84% | 5.87% | 1.18% | 5.24% | 9.08% | 10.55% | 11.79% | -4.8% | 0.06% | 3.51% | 8.92% | 5.57% | 6.73% | 8.44% | -1.7% | -8.28% | -2.19% | 0.89% | -1.84% |
| FCF Growth % | 5.01% | -586.26% | 105.51% | -98.36% | -114.29% | -3.11% | 85.18% | 51.03% | -23.72% | 20.24% | 319.54% | -67.06% | 500.97% | -76.97% | -27.38% | 5.71% | -0.48% | 319.58% | -5753.58% | -98.17% | -54.11% | 98.37% | 0.79% | 8.81% | 737.76% | 80.13% | -272.83% | -372.73% | 164.71% | - |
| FCF per Share | -1.16 | -0.77 | 0.16 | -2.95 | -1.46 | 9.34 | 8.46 | 4.28 | 2.38 | 2.68 | 2.00 | 0.43 | 1.25 | 0.20 | 0.86 | 1.20 | 1.16 | 1.39 | -0.66 | 0.01 | 0.51 | 1.07 | 0.54 | 0.54 | 0.55 | -0.11 | -0.84 | -0.22 | 0.06 | -0.65 |
| FCF Conversion (FCF/Net Income) | 0.15x | 0.02x | -1.33x | 0.59x | 0.99x | 1.95x | 2.01x | 2.31x | 1.89x | 2.65x | 2.95x | 2.14x | 2.13x | 1.47x | 1.29x | 1.51x | 2.26x | 1.87x | -0.04x | 1.59x | 1.26x | 2.00x | 1.66x | 1.81x | 0.97x | -0.03x | 0.28x | -0.94x | 2.12x | -2.61x |
| Interest Paid | 0 | 0 | 45.09M | 40.57M | 16.92M | 5.44M | 9.05M | 10.66M | 5.09M | 753K | 608K | 96K | 49K | 34K | 81K | 113K | 44K | 4.75M | 3.64M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 4.01M | 13.72M | 19.79M | 36.3M | 38.7M | 17.18M | 15.03M | 22.81M | -653K | 26.68M | 38.47M | 24.25M | 34.18M | 23.78M | 9.73M | 25.98M | 1.31M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Liquidity and solvency constraints
According to the provided quarterly data, the relationship between net income and operating cash flow remains highly erratic, with the OCF/NI ratio fluctuating wildly between 0.15 and 5.08, suggesting that accounting accruals and working capital swings are currently masking the underlying cash-generative capacity of the business.
The persistent divergence between net losses and operating cash flow indicates that the company's reported earnings are heavily influenced by non-cash charges and volatile working capital adjustments. Investors should monitor whether this instability reflects a fundamental inability to convert sales into cash or merely the timing of inventory and receivables management during a period of significant revenue contraction.
As reported in financial statements, the company's free cash flow trajectory has turned decisively negative, with FCF margins bottoming out at -11.6% in 2023Q4 and remaining largely suppressed, highlighting the severe pressure on liquidity as the firm struggles to maintain its high-fixed-cost retail infrastructure.
The inability to generate positive free cash flow suggests that the current business model is not self-sustaining under existing volume levels. This trend warrants further investigation into whether the company can achieve a turnaround without further eroding its already thin liquidity cushion through additional debt or equity financing.
Based on the reported figures, working capital changes have been a primary source of cash flow volatility, with swings ranging from a $42.1 million outflow in 2023Q4 to a $14.7 million inflow in 2024Q3, indicating that inventory and payables management are highly sensitive to shifting demand.
The erratic nature of these working capital movements suggests that the company may be struggling to align its inventory levels with rapidly changing consumer demand. This volatility appears to be a significant contributor to the company's current liquidity constraints, as cash is frequently trapped in inventory or released only through aggressive, potentially margin-dilutive, sales efforts.
Analysis of the cash flow statement reveals that stock-based compensation and capitalized software costs, as noted in recent filings, continue to provide a modest cushion to reported figures, potentially obscuring the true extent of the cash burn occurring within the core retail operations.
While these adjustments are standard, their impact on the cash flow statement may lead to an overestimation of the company's operational health. Analysts should be cautious, as the reliance on these non-cash adjustments to bolster the bottom line may mask the underlying structural challenges of the firm's high-cost, direct-to-consumer model.
Quick answers to the most common questions about buying SNBR stock.
Sleep Number Corporation (SNBR) generated $-3.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Sleep Number Corporation (SNBR) reported negative free cash flow of $17.7M in 2025, indicating capital requirements exceeded cash from operations.
Sleep Number Corporation (SNBR) spent $14.4M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Sleep Number Corporation (SNBR) spent $1.2M on share repurchases. This shows the company's commitment to returning capital to its equity investors.