/
Its mattresses are designed to evolve with each sleeper to help them feel and perform their best. With adjustable firmness, pressure-relieving support and temperature balancing comfort built into every mattress, Sleep Number beds adapt to customers changing needs, night after night, year after year.
The business is unprofitable at the operating level (-3.30% margin). The thesis depends entirely on whether and when it reaches sustainable profitability.
Revenue declined 16.1% YoY. Margins deteriorated 4.7pp alongside, both lines moving the wrong way.
Free cash flow declined 586% versus the prior year, cash generation momentum has weakened. ROIC dropped from 1.89% to -3.92%, capital efficiency is deteriorating.
Profitability & Returns
Revenue (TTM)
$1.34B
▼ -16.1% YoY
Net Income (TTM)
-$174M
▼ -549.0% YoY
Op. Margin
-6.38%
▼ -4.7pp YoY
ROIC
-7.15%
▼ -5.8pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
-$24M
▼ -586.3% YoY
Op. Cash Flow (TTM)
-$8M
▼ -112.1% YoY
Net Debt
$952M
Cash & Equiv.
$1M
5Y CAGR: -5.3%
Continue Research