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Sleep Number Corp (SNBR) Fundamental Analysis & AI Grade 2026

SNBR Nasdaq Household Furniture MN CIK: 0000827187
Updated This Month • Analysis: May 13, 2026 • SEC Data: 2026-04-04
Combined AI Grade
D
97% Confidence
N/A
D
97% Conf
Pending
Analysis scheduled

📊 SNBR Key Takeaways

Revenue: $319.0M
Net Margin: -15.8%
Free Cash Flow: $-13.2M
Current Ratio: 0.15x
Debt/Equity: N/A
EPS: $-2.19
AI Grade: D with 97% confidence
Sleep Number Corp (SNBR) receives a D fundamental grade with 97% confidence from our AI analysis based on SEC 10-K filings. With revenue of $319.0M, net profit margin of -15.8%, Sleep Number Corp demonstrates mixed fundamentals in the Market sector. Below is our complete SNBR stock analysis for 2026.

Is Sleep Number Corp (SNBR) a Good Investment?

Claude

Sleep Number is in severe financial distress with negative stockholders' equity of -$626.3M, indicating liabilities exceed assets. The company faces accelerating revenue decline (-16.1% YoY), sustained operating losses (-$36.9M), and negative free cash flow (-$13.2M) with critically insufficient liquidity (current ratio 0.15x, only $1.5M cash). Structural profitability collapse with deteriorating margins indicates the business model is not sustainable at current scale.

Sleep Number Corp Key Strengths (SNBR)

Claude
  • + Gross margin of 57.9% demonstrates product economics remain relatively intact
  • + Established brand presence in specialty mattress retail segment
  • + Recent insider activity (8 Form 4 filings) suggests ongoing corporate engagement

SNBR Stock Risks: Sleep Number Corp Investment Risks

Claude
  • ! Negative stockholders' equity of -$626.3M creates imminent balance sheet insolvency risk
  • ! Severe liquidity crisis with current ratio of 0.15x and minimal cash reserves of $1.5M
  • ! Persistent negative operating cash flow (-$7.8M) and free cash flow (-$13.2M) indicate cash burn unsustainable
  • ! Revenue contraction of 16.1% YoY suggests loss of market share and demand weakness
  • ! Total liabilities exceed total assets by $659M, indicating debt covenant default risk

Key Metrics to Watch

Claude
  • * Stockholders equity trajectory and debt restructuring developments
  • * Operating cash flow stabilization and path to positive FCF
  • * Revenue stabilization and gross margin sustainability under cost pressures
  • * Liquidity position and refinancing ability given negative equity constraints

Sleep Number Corp (SNBR) Financial Metrics & Key Ratios

Revenue
$319.0M
Net Income
$-50.3M
EPS (Diluted)
$-2.19
Free Cash Flow
$-13.2M
Total Assets
$641.0M
Cash Position
$1.5M

💡 AI Analyst Insight

The current ratio below 1.0x warrants monitoring of short-term liquidity.

SNBR Profit Margin, ROE & Profitability Analysis

Gross Margin 57.9%
Operating Margin -11.6%
Net Margin -15.8%
ROE N/A
ROA -7.8%
FCF Margin -4.1%

SNBR vs Market Sector: How Sleep Number Corp Compares

How Sleep Number Corp compares to Market sector averages

Net Margin
SNBR -15.8%
vs
Sector Avg 12.0%
SNBR Sector
ROE
SNBR 0.0%
vs
Sector Avg 15.0%
SNBR Sector
Current Ratio
SNBR 0.2x
vs
Sector Avg 1.8x
SNBR Sector
Debt/Equity
SNBR 0.0x
vs
Sector Avg 0.7x
SNBR Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is Sleep Number Corp Stock Overvalued? SNBR Valuation Analysis 2026

Based on fundamental analysis, Sleep Number Corp has mixed fundamental signals relative to the Market sector in 2026.

Return on Equity
N/A
Sector avg: 15%
Net Profit Margin
-15.8%
Sector avg: 12%
Revenue Growth
N/A
Year-over-year
Debt/Equity
N/A
Sector avg: 0.7x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

Sleep Number Corp Balance Sheet: SNBR Debt, Cash & Liquidity

Current Ratio
0.15x
Quick Ratio
0.07x
Debt/Equity
N/A
Debt/Assets
197.7%
Interest Coverage
-3.18x
Long-term Debt
N/A

SNBR Revenue & Earnings Growth: 5-Year Financial Trend

SNBR 5-year financial data: Year 2021: Revenue $2.2B, Net Income $81.8M, EPS $2.70. Year 2022: Revenue $2.2B, Net Income $139.2M, EPS $4.90. Year 2023: Revenue $2.2B, Net Income $153.7M, EPS $6.16. Year 2024: Revenue $2.1B, Net Income $36.6M, EPS $1.60. Year 2025: Revenue $1.9B, Net Income -$15.3M, EPS $-0.68.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Sleep Number Corp's revenue has declined by 14% over the 5-year period, indicating business contraction. The most recent EPS of $-0.68 indicates the company is currently unprofitable.

SNBR Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-4.1%
Free cash flow / Revenue

SNBR Quarterly Earnings & Performance

Quarterly financial performance data for Sleep Number Corp including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q1 2026 $319.0M -$8.6M $-0.38
Q3 2025 $342.9M -$3.1M $-0.14
Q2 2025 $327.9M -$5.1M $-0.22
Q1 2025 $393.3M -$7.5M $-0.33
Q3 2024 $426.6M $754.0K $-0.10
Q2 2024 $408.4M $754.0K $0.03
Q1 2024 $470.4M -$7.5M $-0.33
Q3 2023 $472.6M $754.0K $-0.10

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

Sleep Number Corp Dividends, Buybacks & Capital Allocation

Operating Cash Flow
-$7.8M
Cash generated from operations
Stock Buybacks
$373.0K
Shares repurchased (TTM)
Capital Expenditures
$5.4M
Investment in assets
Dividends
None
No dividend program

SNBR SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for Sleep Number Corp (CIK: 0000827187)

📋 Recent SEC Filings

Date Form Document Action
May 27, 2026 8-K snbr-20260521.htm View →
May 21, 2026 4 xslF345X06/wk-form4_1779393844.xml View →
May 21, 2026 4 xslF345X06/wk-form4_1779393821.xml View →
May 21, 2026 4 xslF345X06/wk-form4_1779393795.xml View →
May 21, 2026 4 xslF345X06/wk-form4_1779393762.xml View →

Frequently Asked Questions about SNBR

What is the AI rating for SNBR?

Sleep Number Corp (SNBR) has an AI grade of D with 97% confidence, based on fundamental analysis of SEC EDGAR filings.

What are SNBR's key strengths?

Claude: Gross margin of 57.9% demonstrates product economics remain relatively intact. Established brand presence in specialty mattress retail segment.

What are the risks of investing in SNBR?

Claude: Negative stockholders' equity of -$626.3M creates imminent balance sheet insolvency risk. Severe liquidity crisis with current ratio of 0.15x and minimal cash reserves of $1.5M.

What is SNBR's revenue and growth?

Sleep Number Corp reported revenue of $319.0M.

Does SNBR pay dividends?

Sleep Number Corp does not currently pay dividends.

Where can I find SNBR SEC filings?

Official SEC filings for Sleep Number Corp (CIK: 0000827187) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is SNBR's EPS?

Sleep Number Corp has a diluted EPS of $-2.19.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.

What is SNBR's fundamental grade?

Based on our AI fundamental analysis in May 2026, Sleep Number Corp has a D grade with 97% confidence. Review the strengths and risks sections above for full context. This is not investment advice.

Is SNBR stock overvalued or undervalued?

Valuation metrics for SNBR: ROE of N/A (sector avg: 15%), net margin of -15.8% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.

What is SNBR's AI grade for 2026?

Our dual AI analysis gives Sleep Number Corp a combined D grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is SNBR's free cash flow?

Sleep Number Corp's operating cash flow is $-7.8M, with capital expenditures of $5.4M. FCF margin is -4.1%.

How does SNBR compare to other Market stocks?

Vs Default sector averages: Net margin -15.8% (avg: 12%), ROE N/A (avg: 15%), current ratio 0.15 (avg: 1.8).

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: May 13, 2026 | Data as of: 2026-04-04 | Powered by Claude AI