Sleep Number (NASDAQ:SNBR) Issues Earnings Results, Misses Estimates By $1.85 EPS

Posted by on May 12th, 2026

Sleep Number (NASDAQ:SNBR – Get Free Report) announced its quarterly earnings data on Tuesday. The company reported ($2.19) EPS for the quarter, missing analysts’ consensus estimates of ($0.34) by ($1.85), FiscalAI reports. The company had revenue of $318.99 million for the quarter, compared to analysts’ expectations of $320.72 million.

Here are the key takeaways from Sleep Number’s conference call:

  • Sleep Number secured an agreement with lenders that adds about $55 million of near-term liquidity, including a new $25 million term loan, and provides covenant relief through June 30. Management said this buys time to pursue a longer-term capital structure solution, including strategic and financing options.
  • Q1 results were in line with expectations, with net sales of $319 million and adjusted EBITDA of $6 million, ahead of internal plan. Demand improved through the quarter, and March saw about 6% year-over-year demand growth, the first comparable growth in two years.
  • The company said its full product reset was completed quickly and early signals from the new lineup are encouraging. ComfortMode showed stronger customer satisfaction, lower return rates, and the new lineup delivered 12% higher ARU in stores with the new assortment versus legacy stores.
  • Management highlighted improving marketing effectiveness, including a better website experience, stronger organic search, and rising AI citations. They also pointed to strong early response to the new brand campaign, Travis Kelce content, and a Costco test that is already generating encouraging sales and visibility.
  • Cost actions remain a major part of the turnaround, with more than $235 million of annualized savings identified since early 2025 and about $200 million already executed. Gross margin was pressured by product mix and legacy inventory discounting, but the company expects margins to improve as the old inventory clears and the new mix scales.

Sleep Number Price Performance

Shares of NASDAQ SNBR traded down $0.57 during trading hours on Tuesday, reaching $1.89. The stock had a trading volume of 957,223 shares, compared to its average volume of 1,921,357. The company has a market cap of $43.09 million, a price-to-earnings ratio of -0.33 and a beta of 2.71. Sleep Number has a twelve month low of $1.06 and a twelve month high of $13.94. The business’s fifty day moving average is $2.93 and its two-hundred day moving average is $6.11.

Analyst Upgrades and Downgrades

Several research analysts have recently commented on the stock. UBS Group dropped their price target on shares of Sleep Number from $10.00 to $4.00 and set a “neutral” rating on the stock in a research note on Friday, March 13th. Wall Street Zen cut shares of Sleep Number from a “sell” rating to a “strong sell” rating in a report on Sunday, April 19th. Finally, Piper Sandler lowered their target price on shares of Sleep Number from $12.00 to $5.00 and set a “neutral” rating on the stock in a research report on Friday, March 13th. Two research analysts have rated the stock with a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, Sleep Number has an average rating of “Reduce” and an average price target of $4.50.

View Our Latest Research Report on SNBR

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in SNBR. Bank of Montreal Can bought a new stake in shares of Sleep Number during the fourth quarter valued at approximately $89,000. Sei Investments Co. acquired a new position in Sleep Number during the 2nd quarter worth $73,000. Sherbrooke Park Advisers LLC bought a new position in Sleep Number in the 3rd quarter valued at $87,000. Worth Venture Partners LLC acquired a new stake in shares of Sleep Number in the 3rd quarter valued at $105,000. Finally, Quadrature Capital Ltd raised its position in shares of Sleep Number by 48.3% during the fourth quarter. Quadrature Capital Ltd now owns 15,305 shares of the company’s stock worth $129,000 after acquiring an additional 4,987 shares during the last quarter. 85.67% of the stock is owned by institutional investors.

About Sleep Number

(Get Free Report)

Sleep Number Corporation (NASDAQ: SNBR) is a Minneapolis‐based company specializing in the design, manufacture and retail of adjustable air mattresses and bedding products. The company’s flagship Sleep Number® bed features dual air chambers that allow each side of the mattress to be tailored to an individual’s preferred firmness, supported by integrated SleepIQ® technology. This proprietary monitoring system tracks biometric data such as heart rate, breathing and motion, delivering personalized sleep insights through a connected app.

Founded in 1987 as Select Comfort, the business pioneered adjustable air mattress technology and has since grown into a direct-to-consumer retailer.

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Earnings History for Sleep Number (NASDAQ:SNBR)

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