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Sleep Number
(OTC:SNBRQ)
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Rating:41Neutral
Price Target:
$0.02
▼(-99.13% Downside)
Action:Upgraded
Date:07/02/26
The score is held down primarily by very weak financial performance (declining sales, losses, negative cash flow) and a stressed balance sheet with negative equity. Technicals also indicate a severe downtrend (price well below key moving averages), with only oversold readings suggesting a possible near-term bounce rather than a confirmed reversal. The latest earnings call adds some offset from early product and demand improvements plus short-term lender relief, but guidance remains cautious and financing/cash-flow risk is still a central overhang.
Positive Factors
High gross margins
Sustained gross margins near 58–60% reflect strong product-level economics from Sleep Number's proprietary smart beds and DTC model. High product margins provide a durable buffer for SG&A, fund marketing/product investment, and help restore profitability as volumes recover, supporting longer-term cash generation.
Negative Factors
Material, multi‑period revenue decline
A sustained revenue contraction (TTM ~-27.8% and Q1 -19% YoY) erodes scale and fixed-cost absorption, pressuring margins and cash flow. Persistent top-line weakness increases reliance on structural fixes (cost cuts, product mix) and limits room to reinvest in marketing or store footprint expansion over the medium term.
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Positive Factors
Negative Factors
High gross margins
Sustained gross margins near 58–60% reflect strong product-level economics from Sleep Number's proprietary smart beds and DTC model. High product margins provide a durable buffer for SG&A, fund marketing/product investment, and help restore profitability as volumes recover, supporting longer-term cash generation.
Read all positive factors
Sleep Number (SNBRQ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$610.80K
Dividend YieldN/A
Average Volume (3M)702.55K
Price to Earnings (P/E)―
Beta (1Y)4.32
Revenue Growth-16.69%
EPS Growth-698.31%
CountryUS
Employees3,114
SectorConsumer Cyclical
Sector Strength84
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)-7.57
Shares Outstanding23,049,000
10 Day Avg. Volume1,142,307
30 Day Avg. Volume702,550
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)-0.34
Price to Sales (P/S)0.14
P/FCF Ratio-11.12
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$2.50Price Target Upside-1.19% Downside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)-0.99
Revenue Forecast (FY)$1.38B
Sleep Number Business Overview & Revenue Model
Company Description
Sleep Number Corporation, together with its subsidiaries, designs, manufactures, markets, distributes, retails, and services sleep solutions in the United States. It offers smart beds and adjustable bases, pillows, sheets, and other bedding produc...
How the Company Makes Money
Sleep Number primarily makes money by selling products directly to consumers, with revenue largely driven by smart bed systems (its core Sleep Number branded beds) and associated components. A meaningful portion of sales also comes from complement...
Sleep Number Financial Statement Overview
Summary
Income Statement
24
Negative
Balance Sheet
18
Very Negative
Cash Flow
22
Negative
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Sleep Number Technical Analysis
Negative
2.53
Price Trends
0.84
Negative
2.05
Negative
4.83
Negative
Market Momentum
-0.21
Negative
29.36
Positive
40.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SNBRQ, the sentiment is Negative. The current price of 2.53 is above the 20-day moving average (MA) of 0.05, above the 50-day MA of 0.84, and below the 200-day MA of 4.83, indicating a bearish trend. The MACD of -0.21 indicates Negative momentum. The RSI at 29.36 is Positive, neither overbought nor oversold. The STOCH value of 40.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SNBRQ.
Sleep Number Risk Analysis
Sleep Number disclosed 2 risk factors in its most recent earnings report. Sleep Number reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Sleep Number Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $1.59B | 16.01 | 9.83% | 2.39% | 0.83% | 4.17% | |
69 Neutral | $579.67M | 14.42 | 8.46% | 7.86% | -4.79% | -30.21% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | $1.51B | 6.81 | 23.12% | 1.84% | -8.33% | ― | |
56 Neutral | $1.49B | 16.53 | 0.83% | 4.16% | 4.68% | ― | |
41 Neutral | $610.80K | -0.02 | 31.47% | ― | -16.69% | -698.31% | |
41 Neutral | $31.57M | -0.50 | 189.80% | ― | -2.49% | 6.65% |
* Consumer Cyclical Sector Average
SNBRQ
Sleep Number
0.03
-7.17
-99.64%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.