EarningsQ1 2026 Earnings Report
MX:SNBR Q1 2026 EPS Results
Actual EPS-$39.43
Consensus EPS-$7.06
Beat/MissMissed by -$32.37
One Year Ago EPS-$6.84
MX:SNBR Q1 2026 Revenue Results
Actual Revenue$5.74B
Expected Revenue$5.77B
Beat/MissMissed by -$31.17M
YoY Revenue Growth-18.89%
Earnings Announcement Details
QuarterQ1 2026
Date05/12/2026
TimeBefore Open
Conference CallTuesday, May 12, 2026
MX:SNBR Upcoming Earnings
Sleep Number's next earnings date is estimated for October 28, 2026, based on past reporting schedules.
Q1 2026 Earnings Call Audio
MX:SNBR Q1 2026 Earnings Call
0:00 / 0:00
Q1 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q1 2026 Earnings Call Summary
Earnings Call Sentiment|Neutral
The call presented a mix of encouraging operational progress and meaningful near-term financial stress. Highlights include a successful and fast product reset with strong early consumer metrics (NPS gains, ARU improvement, lower returns), improving March and April demand trends, e-commerce growth, sizeable cost-savings execution, and short-term lender support that provided $55 million of incremental liquidity. Offsetting these positives are significant YoY revenue decline (-19%), margin compression (~329 bps YoY), negative free cash flow for the quarter, a short-term $25 million term loan maturing June 30, 2026 that requires a recapitalization, and continued reliance on discounts to clear legacy inventory. Overall the company shows tangible operational momentum but remains exposed to capital-structure and cash-flow risk until a longer-term financing solution is secured.Company Guidance
Product Reset and Strong Early Product Metrics
Completed a full product reset across all stores in <4 weeks; stores with the new lineup showed 12% higher ARU versus stores with legacy products. ComfortMode (launched Jan, broad rollout Mar 23) drove +15 point improvement in overall NPS and +27 points versus prior entry-level C series; ComfortMode has ~100 bps lower return rate versus the historical product it replaces.
Demand Improvement in March
March demand rose ~6% year-over-year — the first comparable YoY demand growth in two years — driven by ComfortMode launch, updated marketing and legacy SKU clearance efforts.
Net Sales and Adjusted EBITDA Performance vs Plan
Reported Q1 net sales of $319 million (in line with company expectations). Adjusted EBITDA was approximately $5.8–$6.0 million, ahead of the company's internal plan for the quarter.
Average Retail Unit (ARU) and Ticket Expansion
Q1 ARU was $6,021 (up slightly year-over-year). Stores set with new beds showed ~12% higher ARU; management expects ARU expansion as the full product line rolls out.
Premium Product Traction
ComfortNext Lux is the top-selling bed, priced around $4,000 (queen size), representing an early favorable shift toward a higher-margin product mix.
E‑commerce and Digital Discoverability Gains
E-commerce demand grew ~5% year-over-year in April; AI discoverability work improved AI citations by ~25% year-to-date and website improvements simplified purchase flow.
Material Cost-Savings and Expense Reductions
Since the start of 2025, identified >$235 million of annualized savings and executed ~$200 million; Q1 adjusted operating expenses before restructuring were $195 million, down $42 million (18%) YoY. Executing a $50 million annualized cost savings plan (~30% executed YTD).
Near-Term Liquidity Relief Secured
Reached amendment with lenders providing approximately $55 million of near-term incremental liquidity, including a new $25 million senior secured term loan and covenant forbearance and relief (minimum liquidity covenant relief through June 30, 2026). Q1 total liquidity was $40 million (cash + revolver capacity).
MX:SNBR Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed