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Sleep Number (SNBRQ) AI Stock Analysis
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Sleep Number
(Other OTC:SNBRQ)
The score is driven by extremely weak financial performance (declining revenue, losses, negative cash flow, and negative equity) and a highly adverse corporate event outcome (bankruptcy asset sale with expected cancellation of common stock). Technicals reinforce the risk with a severe downtrend, while valuation metrics provide no offset given ongoing losses and no dividend data.
Sleep Number (SNBRQ) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $2.93M
- Dividend Yield
- ―
- Average Volume (3M)
- 197.26K
- Price to Earnings (P/E)
- -0.0
- Beta (1Y)
- 4.03
- Revenue Growth
- -16.69%
- EPS Growth
- -698.31%
- Country
- US
- Employees
- 3,114
- Sector
- Consumer Cyclical
- Sector Strength
- 61
- Industry
- Furnishings, Fixtures & Appliances
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 products....
How the Company Makes Money
Sleep Number primarily makes money by selling sleep products directly to consumers, with revenue driven mainly by (1) smart beds and bed bases, and (2) accessories and services tied to those purchases. Its core revenue stream is the retail sale of Sl...
Sleep Number Earnings Call Summary
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.
Q1-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Guidance for Q2 is cautious: the company expects net sales to be down low single digits to flat year‑over‑year, with media investment roughly flat to Q1 but meaningfully higher than last year, and April demand running in line with internal expectations (March demand improved ~6% YoY, the first YoY demand growth in two years). Key metrics underpinning the outlook include Q1 net sales of $319M (‑19% YoY), adjusted EBITDA ~$5.8M, gross margin 57.9% (‑329 bps YoY, with discounting accounting for <100 bps of the decline), adjusted operating expenses $195M (down $42M, ‑18% YoY), Q1 free cash flow use $13.2M (≈$20M favorable to plan, $6M unfavorable vs prior year), ARU ~$6,021 (stores reset with new lineup showed ~12% higher ARU), end‑of‑Q1 liquidity ~$40M with lender amendment adding ~ $55M incremental relief including a $25M term loan due 6/30/2026 and temporary relief from a $30M minimum liquidity covenant through 6/30/26. Product and marketing signals that support the guidance: ComfortMode NPS +15 pts overall (+27 vs prior entry‑level), a ~100 bps lower return rate for ComfortMode, ComfortNext Lux selling at ~ $4,000, e‑commerce demand +5% YoY in April, AI citations +25% YTD, and cost actions identifying >$235M of annualized savings with $200M executed (and a $50M plan ~30% executed YTD); management declined to provide further financial guidance while it pursues strategic and financing options with advisors.
Sleep Number Financial Statement Overview
Summary
Financials are severely weakened: sharp TTM revenue decline (~27.8%), net losses in the latest annual period and TTM, and operating/free cash flow turning negative. The balance sheet is highly pressured with negative shareholders’ equity and sizable debt, limiting financial flexibility and increasing funding risk.
Income Statement
24NegativeBalance Sheet
18Very NegativeCash Flow
22NegativeSleep Number Technical Analysis
Price Trends
Market Momentum
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 0.01 is below the 20-day moving average (MA) of 0.02, below the 50-day MA of 0.02, and below the 200-day MA of 2.65, indicating a bearish trend. The MACD of -0.00 indicates Negative momentum. The RSI at 16.44 is Positive, neither overbought nor oversold. The STOCH value of 20.94 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.
Latest Risks Added
1 New RiskSleep Number Peers Comparison
Overall Rating
ETD68Neutral
LZB65Neutral
MLKN60Neutral
PRPL43Neutral- SNBRQ37Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ETD | 68Neutral | $513.16M | 12.97 | 8.40% | 23.62% | -5.72% | -22.50% |
| LZB | 65Neutral | $1.22B | 15.28 | 7.86% | 3.18% | 0.20% | -10.08% |
| Sector * | 61Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
| MLKN | 60Neutral | $1.48B | 15.24 | 7.34% | 3.49% | 1.20% | ― |
| PRPL | 43Neutral | $13.08M | -0.27 | 107.92% | ― | -0.74% | 42.52% |
| SNBRQ | 37Underperform | $6,915 | -0.02 | 31.47% | ― | -16.69% | -698.31% |
* Consumer Cyclical Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| SNBRQ | Sleep Number Corp | 0.01 | -5.10 | -99.80% | |
| ETD | Ethan Allen Interiors | 20.36 | 0.98 | 5.06% | |
| MLKN | MillerKnoll, Inc. | 21.49 | 6.84 | 46.73% | |
| LZB | La-Z-Boy Incorporated | 30.44 | -0.17 | -0.56% | |
| PRPL | Purple Innovation, Inc. | 3.00 | -16.93 | -84.95% |
Sleep Number Corporate Events
Sleep Number Completes Asset Sale, Shareholders Wiped Out
NegativeSleep Number Corporation and its subsidiaries, which filed for Chapter 11 bankruptcy protection on June 12, 2026 in the Southern District of New York, have completed the court-approved sale of substantially all of the company’s assets to SNBR,...
Sleep Number Amends Bankruptcy Asset Sale Agreement
NeutralOn June 12, 2026, Sleep Number entered into a stalking horse asset purchase agreement with SNBR, Inc., a subsidiary of Sleep Country Canada, to sell substantially all of its assets for $415 million in cash plus the assumption of certain liabilities,...
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.
Date of analysis: Oct 23, 2026