The company's operating performance has deteriorated significantly, with operating margins falling to -4.7% in 2026Q1 as the firm fails to achieve the volume necessary to offset its high-fixed-cost structure.
| 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 |
|---|
| Sales/Revenue | 1.34B | 1.41B | 1.68B | 1.89B | 2.11B | 2.18B | 1.86B | 1.7B | 1.53B | 1.44B | 1.31B | 1.21B | 1.16B | 960.17M | 934.98M | 743.2M | 605.68M | 544.2M | 608.52M | 799.24M | 806.04M | 691.07M | 557.64M | 458.49M | 335.8M | 261.69M | 270.08M | 273.8M | 246.3M | 184.4M |
| Revenue Growth % | -16.69% | -16.1% | -10.87% | -10.73% | -3.23% | 17.69% | 9.32% | 10.89% | 6.03% | 10.16% | 8.04% | 4.92% | 20.47% | 2.69% | 25.8% | 22.71% | 11.3% | -10.57% | -23.86% | -0.84% | 16.64% | 23.93% | 21.63% | 36.54% | 28.32% | -3.11% | -1.36% | 11.17% | 33.57% | - |
| Cost of Goods Sold | 557.62M | 578.5M | 679.52M | 798.95M | 912M | 866.1M | 700.55M | 646.43M | 603.61M | 547.15M | 501.13M | 472.95M | 449.91M | 358.42M | 338.43M | 272.86M | 227.41M | 208.74M | 249.95M | 312.83M | 315.53M | 280.59M | 216.97M | 171.16M | 125.8M | 90.08M | 90.52M | 88.4M | 79.8M | 62.6M |
| COGS % of Revenue | - | 40.99% | 40.39% | 42.33% | 43.13% | 39.64% | 37.73% | 38.06% | 39.41% | 37.88% | 38.22% | 38.97% | 38.89% | 37.33% | 36.2% | 36.71% | 37.55% | 38.36% | 41.08% | 39.14% | 39.15% | 40.6% | 38.91% | 37.33% | 37.46% | 34.42% | 33.51% | 32.29% | 32.4% | 33.95% |
| Gross Profit | 779.55M | 832.95M | 1B | 1.09B | 1.2B | 1.32B | 1.16B | 1.05B | 927.96M | 897.35M | 810.16M | 740.75M | 706.85M | 601.75M | 596.55M | 470.35M | 378.26M | 335.46M | 358.57M | 486.42M | 490.51M | 410.48M | 340.67M | 287.33M | 210M | 171.61M | 179.56M | 185.4M | 166.5M | 121.8M |
| Gross Margin % | 58.3% | 59.01% | 59.61% | 57.67% | 56.87% | 60.36% | 62.27% | 61.94% | 60.59% | 62.12% | 61.78% | 61.03% | 61.11% | 62.67% | 63.8% | 63.29% | 62.45% | 61.64% | 58.92% | 60.86% | 60.85% | 59.4% | 61.09% | 62.67% | 62.54% | 65.58% | 66.49% | 67.71% | 67.6% | 66.05% |
| Gross Profit Growth % | - | -16.94% | -7.88% | -9.46% | -8.84% | 14.09% | 9.89% | 13.36% | 3.41% | 10.76% | 9.37% | 4.8% | 17.46% | 0.87% | 26.83% | 24.34% | 12.76% | -6.45% | -26.28% | -0.83% | 19.5% | 20.49% | 18.57% | 36.82% | 22.37% | -4.43% | -3.15% | 11.35% | 36.7% | - |
| Operating Expenses | 839.96M | 828.85M | 979.9M | 1.07B | 1.13B | 1.13B | 971.1M | 939.83M | 835.53M | 805.43M | 733.51M | 665.65M | 605.1M | 511.47M | 471.02M | 379.78M | 325.62M | 310.78M | 393.44M | 442.91M | 417.7M | 341.89M | 291.14M | 244.62M | 188.98M | 182.21M | 203.58M | 198.6M | 155M | 119.7M |
| OpEx % of Revenue | - | 58.72% | 58.25% | 56.46% | 53.65% | 51.5% | 52.31% | 55.34% | 54.55% | 55.76% | 55.94% | 54.85% | 52.31% | 53.27% | 50.38% | 51.1% | 53.76% | 57.11% | 64.65% | 55.42% | 51.82% | 49.47% | 52.21% | 53.35% | 56.28% | 69.63% | 75.38% | 72.53% | 62.93% | 64.91% |
| Selling, General & Admin | 567.38M | 794.9K | 916.58M | 994.06M | 1.07B | 1.07B | 930.19M | 904.88M | 806.76M | 777.63M | 705.52M | 649.68M | 596.87M | 502M | 464.82M | 375.61M | 323.47M | 308.8M | 390.06M | 436.82M | 407.03M | 341.89M | 291.14M | 244.62M | 188.74M | 180.39M | 195.17M | 191.9M | 149.6M | 115.7M |
| SG&A % of Revenue | - | 0.06% | 54.48% | 52.67% | 50.74% | 48.82% | 50.1% | 53.28% | 52.68% | 53.83% | 53.8% | 53.53% | 51.6% | 52.28% | 49.71% | 50.54% | 53.41% | 56.74% | 64.1% | 54.65% | 50.5% | 49.47% | 52.21% | 53.35% | 56.21% | 68.93% | 72.26% | 70.09% | 60.74% | 62.74% |
| Research & Development | 28.39M | 33.9K | 45.26M | 55.8M | 61.52M | 58.54M | 40.91M | 34.95M | 28.77M | 27.81M | 27.99M | 15.97M | 8.23M | 9.48M | 6.19M | 4.17M | 2.15M | 1.97M | 3.37M | 5.68M | 4.69M | 4.69M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | 0% | 2.69% | 2.96% | 2.91% | 2.68% | 2.2% | 2.06% | 1.88% | 1.93% | 2.13% | 1.32% | 0.71% | 0.99% | 0.66% | 0.56% | 0.35% | 0.36% | 0.55% | 0.71% | 0.58% | 0.68% | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 3M | 828.02M | 18.07M | 15.73M | 0 | 0 | 0 | 0 | -5.91M | -877K | -717K | 334K | 362K | 323K | 218K | 0 | 0 | 0 | 0 | 0 | 409K | 5.98M | 0 | 0 | 0 | 233K | 1.83M | 8.41M | 6.7M | 5.4M |
| Operating Income | -60.41M | 4.11M | 22.87M | 22.94M | 67.88M | 193.54M | 184.9M | 112.09M | 92.43M | 91.92M | 76.65M | 75.1M | 101.75M | 90.69M | 119.79M | 90.45M | 52.38M | 20.67M | -69.46M | 43.51M | 72.81M | 68.59M | 49.53M | 42.7M | 21.02M | -10.6M | -24.02M | -13.2M | 11.5M | 2.1M |
| Operating Margin % | -4.52% | 0.29% | 1.36% | 1.22% | 3.21% | 8.86% | 9.96% | 6.6% | 6.03% | 6.36% | 5.85% | 6.19% | 8.8% | 9.45% | 12.81% | 12.17% | 8.65% | 3.8% | -11.41% | 5.44% | 9.03% | 9.93% | 8.88% | 9.31% | 6.26% | -4.05% | -8.89% | -4.82% | 4.67% | 1.14% |
| Operating Income Growth % | - | -82.05% | -0.31% | -66.2% | -64.93% | 4.67% | 64.95% | 21.28% | 0.56% | 19.92% | 2.07% | -26.19% | 12.19% | -24.29% | 32.43% | 72.68% | 153.39% | 129.76% | -259.65% | -40.25% | 6.15% | 38.48% | 15.99% | 103.13% | 298.28% | 55.86% | -81.95% | -214.78% | 447.62% | - |
| EBITDA | -7.27M | 57.3M | 89.22M | 95.34M | 135.28M | 253.93M | 246.46M | 173.96M | 154.39M | 153.21M | 133.82M | 122.73M | 141.56M | 121.5M | 140.19M | 104M | 67.01M | 39.73M | -47.27M | 68.3M | 92.49M | 84.34M | 63.17M | 53.98M | 31.5M | -520K | -15.61M | -6.5M | 16.9M | 6.1M |
| EBITDA Margin % | -0.54% | 4.06% | 5.3% | 5.05% | 6.4% | 11.62% | 13.28% | 10.24% | 10.08% | 10.61% | 10.21% | 10.11% | 12.24% | 12.65% | 14.99% | 13.99% | 11.06% | 7.3% | -7.77% | 8.55% | 11.48% | 12.2% | 11.33% | 11.77% | 9.38% | -0.2% | -5.78% | -2.37% | 6.86% | 3.31% |
| EBITDA Growth % | -108.77% | -35.77% | -6.42% | -29.52% | -46.73% | 3.03% | 41.67% | 12.67% | 0.78% | 14.48% | 9.04% | -13.3% | 16.51% | -13.33% | 34.8% | 55.2% | 68.67% | 184.04% | -169.22% | -26.16% | 9.67% | 33.5% | 17.04% | 71.39% | 6156.73% | 96.67% | -140.14% | -138.46% | 177.05% | - |
| D&A (Non-Cash Add-back) | 53.14M | 53.2M | 66.35M | 72.4M | 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 |
| EBIT | -63.56M | 4.11M | 22.87M | 22.94M | 67.88M | 193.54M | 184.9M | 112.09M | 92.43M | 91.92M | 76.65M | 78.1M | 101.75M | 90.69M | 120.1M | 90.61M | 51.33M | 23.72M | -67.75M | 43.51M | 75.83M | 68.59M | 49.53M | 42.7M | 21.02M | -10.6M | -24.02M | -13.2M | 11.5M | 2.1M |
| Net Interest Income | -51.4M | -49.38M | -48.37M | -42.7M | -18.98M | -6.25M | -8.92M | -11.59M | -5.91M | -877K | -717K | 334K | 362K | 323K | 218K | -33K | -779K | -9.02M | -4.91M | -3.15M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 4K | 98K | 94K | 494K | 415K | 375K | 310K | 155K | 59K | 16K | 90K | 90K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 51.4M | 49.38M | 48.37M | 42.7M | 18.98M | 6.25M | 8.92M | 11.59M | 5.91M | 975K | 811K | 160K | 53K | 52K | 92K | 188K | 838K | 9.03M | 3.24M | 3.24M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -76.29M | -100.08M | -48.37M | -42.7M | -18.98M | -6.25M | -8.92M | -11.59M | -5.91M | -877K | -717K | 334K | 362K | 323K | -5.38M | -33K | -1.89M | -5.98M | -3.29M | -40K | -2.96M | 2.17M | 1.41M | 442K | -1.28M | -1.46M | -1.6M | 200K | -7.1M | -4.8M |
| Pretax Income | -136.7M | -95.97M | -25.5M | -19.75M | 48.9M | 187.29M | 175.97M | 100.51M | 86.52M | 91.04M | 75.93M | 75.43M | 102.11M | 91.01M | 120M | 90.42M | 50.49M | 14.69M | -72.74M | 43.47M | 75.83M | 70.76M | 50.95M | 43.15M | 19.74M | -12.07M | -25.62M | -13M | 4.4M | -2.7M |
| Pretax Margin % | -10.22% | -6.8% | -1.52% | -1.05% | 2.31% | 8.57% | 9.48% | 5.92% | 5.65% | 6.3% | 5.79% | 6.21% | 8.83% | 9.48% | 12.84% | 12.17% | 8.34% | 2.7% | -11.95% | 5.44% | 9.41% | 10.24% | 9.14% | 9.41% | 5.88% | -4.61% | -9.49% | -4.75% | 1.79% | -1.46% |
| Income Tax | 36.91M | 35.98M | -5.16M | -4.47M | 12.29M | 33.55M | 36.78M | 18.66M | 16.98M | 25.96M | 24.52M | 24.91M | 34.13M | 30.93M | 41.91M | 29.94M | 18.92M | -20.86M | -2.57M | 15.85M | 28.64M | 27M | 19.39M | 15.97M | -17.76M | 0 | 11.59M | -4.8M | -2.2M | 100K |
| Effective Tax Rate % | -27% | -37.49% | 20.25% | 22.61% | 25.13% | 17.91% | 20.9% | 18.57% | 19.63% | 28.52% | 32.29% | 33.03% | 33.43% | 33.98% | 34.92% | 33.11% | 37.48% | -142.01% | 3.53% | 36.46% | 37.78% | 38.15% | 38.06% | 37.02% | -89.98% | 0% | -45.24% | 36.92% | -50% | -3.7% |
| 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 | 60.48M | 31.57M | 35.55M | -70.18M | 27.62M | 47.18M | 43.77M | 31.55M | 27.17M | 37.12M | -12.07M | -37.21M | -8.2M | 5.2M | -2.8M |
| Net Margin % | -12.98% | -9.35% | -1.21% | -0.81% | 1.73% | 7.04% | 7.5% | 4.82% | 4.54% | 4.51% | 3.92% | 4.16% | 5.88% | 6.26% | 8.35% | 8.14% | 5.21% | 6.53% | -11.53% | 3.46% | 5.85% | 6.33% | 5.66% | 5.93% | 11.05% | -4.61% | -13.78% | -2.99% | 2.11% | -1.52% |
| Net Income Growth % | -707.56% | -548.95% | -33.02% | -141.76% | -76.19% | 10.46% | 70.06% | 17.7% | 6.86% | 26.57% | 1.78% | -25.68% | 13.14% | -23.07% | 29.13% | 91.58% | -11.21% | 150.66% | -354.08% | -41.46% | 7.8% | 38.7% | 16.13% | -26.8% | 407.66% | 67.58% | -353.83% | -257.69% | 285.71% | - |
| Net Income (Continuing) | -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 | 60.48M | 31.57M | 35.55M | -70.18M | 27.62M | 47.18M | 43.77M | 31.55M | 27.17M | 37.5M | -12.07M | -37.21M | -8.2M | 6.6M | -2.8M |
| Discontinued Operations | 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 |
| Minority Interest | 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 |
| EPS (Diluted) | -7.55 | -5.77 | -0.90 | -0.68 | 1.60 | 6.16 | 4.90 | 2.70 | 1.92 | 1.55 | 1.10 | 0.97 | 1.25 | 1.08 | 1.37 | 1.07 | 0.57 | 0.77 | -1.59 | 0.57 | 0.85 | 0.76 | 0.55 | 0.47 | 0.73 | -0.30 | -1.39 | -0.30 | 0.13 | -0.54 |
| EPS Growth % | -696.84% | -541.11% | -32.35% | -142.5% | -74.03% | 25.71% | 81.48% | 40.63% | 23.87% | 40.91% | 13.4% | -22.4% | 15.74% | -21.17% | 28.04% | 87.72% | -25.97% | 148.43% | -378.95% | -32.94% | 11.84% | 38.18% | 17.02% | -35.62% | 343.33% | 78.42% | -363.33% | -330.77% | 124.07% | - |
| EPS (Basic) | - | -5.77 | -0.90 | -0.68 | 1.63 | 6.40 | 5.03 | 2.78 | 1.97 | 1.58 | 1.11 | 0.99 | 1.27 | 1.10 | 1.41 | 1.10 | 0.58 | 0.78 | -1.59 | 0.59 | 0.89 | 0.55 | 0.39 | 0.37 | 1.01 | -0.30 | -0.73 | -0.30 | 0.84 | -0.54 |
| Diluted Shares Outstanding | 23M | 22.9M | 22.6M | 22.43M | 22.85M | 24.95M | 28.43M | 30.36M | 36.16M | 42.09M | 46.9M | 52.1M | 54.19M | 55.8M | 57.08M | 56.43M | 55.26M | 46.2M | 44.19M | 48.29M | 55.59M | 57.42M | 57.42M | 57.42M | 51.8M | 40.85M | 26.71M | 27.33M | 34.74M | 5.23M |
| Basic Shares Outstanding | 23M | 22.9M | 22.6M | 22.43M | 22.4M | 24.04M | 27.66M | 29.47M | 35.26M | 41.21M | 46.15M | 51.25M | 53.45M | 54.87M | 55.52M | 55.08M | 54.01M | 45.68M | 44.19M | 46.54M | 52.84M | 56M | 56M | 56M | 36.82M | 40.85M | 26.71M | 27.33M | 6.18M | 5.23M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Liquidity and solvency constraints
As evidenced by the most recent quarterly data, Sleep Number has experienced a sustained revenue decline, with the latest period showing an 18.9% year-over-year contraction, marking a multi-quarter trend of top-line erosion that highlights the company's sensitivity to discretionary consumer spending and high-ticket financing availability.
The consistent double-digit revenue declines suggest that the company's premium smart-bed value proposition is struggling to gain traction in a high-interest-rate environment. This trend indicates that the long replacement cycle of its core product is being further extended by consumers, creating a challenging environment for near-term growth recovery.
According to the provided financial statements, the company's high fixed-cost retail model has resulted in significant operating losses, with operating margins deteriorating to -4.7% in 2026Q1 as the firm fails to achieve the necessary volume to cover its substantial store-based and corporate overhead expenses.
The inability to scale operating income alongside gross profit suggests that the current retail footprint is inefficient at lower revenue levels. Investors should monitor whether management can successfully rationalize the store base, as the current structure appears to amplify losses during periods of top-line weakness.
Based on reported figures, net income has remained consistently negative over the last ten quarters, with the 2026Q1 net margin reaching -15.8%, a figure that reflects both operational inefficiencies and the impact of non-operating items on the company's bottom-line performance during this cyclical downturn.
The persistent net losses suggest that the company is currently unable to generate sustainable shareholder value through its core operations. The reliance on stock-based compensation during periods of negative earnings warrants further investigation into the alignment of management incentives with long-term profitability.
While the company maintains a gross margin of 58.7% as of 2026Q1, the sharp decline in operating performance suggests that the underlying business model may be facing structural margin compression risks that could persist if consumer demand for premium, high-tech bedding continues to soften.
Short-term observers may focus on the potential for further margin erosion if the company is forced to increase promotional activity to drive volume. The combination of high fixed costs and a thin liquidity cushion may limit the firm's ability to pivot its strategy without significant external capital intervention.
Quick answers to the most common questions about buying SNBR stock.
For fiscal year 2025, Sleep Number Corporation (SNBR) reported total revenue of $1.41B. This represents a 665.4% increase compared to $184.4M in 1997.
Sleep Number Corporation (SNBR) reported a net loss of $132.0M for the fiscal year ending 2025.
Sleep Number Corporation (SNBR) reported an operating income of $4.1M, resulting in an operating profit margin of 0.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Sleep Number Corporation (SNBR) generated $833.0M in gross profit for the year, representing a gross profit margin of 59.0%. This demonstrates the company's core pricing power and production efficiency.