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Sleep Number Corp (SNBR) Stock Fundamental Analysis & AI Rating 2026

SNBR Nasdaq Household Furniture MN CIK: 0000827187
Recently Updated • Analysis: Apr 16, 2026 • SEC Data: 2026-01-03
STRONG SELL
95% Conf
Pending
Analysis scheduled

📊 SNBR Key Takeaways

Revenue: $1.4B
Net Margin: -9.3%
Free Cash Flow: $-17.7M
Current Ratio: 0.16x
Debt/Equity: N/A
EPS: $-5.77
AI Rating: STRONG SELL with 95% confidence
Sleep Number Corp (SNBR) receives a STRONG SELL rating with 95% confidence from our AI fundamental analysis based on SEC 10-K filings. With revenue of $1.4B, net profit margin of -9.3%, 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 Corp exhibits severe financial distress with negative stockholders' equity of -$578.5M, indicating technical insolvency. The company is experiencing a liquidity crisis with a critical 0.16x current ratio and only $1.7M cash against $1.3B in liabilities, combined with negative operating cash flow and declining revenues (-16.1% YoY), making debt service and operational sustainability highly questionable.

Why Buy Sleep Number Corp Stock? SNBR Key Strengths

Claude
  • + Gross margin of 59% demonstrates pricing power in core product category
  • + Established brand with $1.4B revenue base despite operational challenges
  • + Insider activity (8 Form 4 filings) suggests some stakeholder engagement

SNBR Stock Risks: Sleep Number Corp Investment Risks

Claude
  • ! Negative stockholders' equity of -$578.5M signals technical insolvency and balance sheet deterioration
  • ! Liquidity crisis: 0.16x current ratio with only $1.7M cash versus $1.3B total liabilities
  • ! Negative operating cash flow (-$3.3M) and free cash flow (-$17.7M) indicate unsustainable cash burn
  • ! Revenue declined 16.1% YoY with net loss of -$132M and operating loss of -$46.6M
  • ! Negative interest coverage (-4.0x) indicates inability to service debt obligations
  • ! Continued capital expenditure of $14.4M while burning cash is unsustainable

Key Metrics to Watch

Claude
  • * Stockholders' equity trajectory and path to positive capital structure
  • * Operating cash flow and cash burn rate relative to remaining liquidity
  • * Debt refinancing ability and covenant compliance status
  • * Revenue stabilization and gross margin sustainability under distress

Sleep Number Corp (SNBR) Financial Metrics & Key Ratios

Revenue
$1.4B
Net Income
$-132.0M
EPS (Diluted)
$-5.77
Free Cash Flow
$-17.7M
Total Assets
$680.1M
Cash Position
$1.7M

💡 AI Analyst Insight

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

SNBR Profit Margin, ROE & Profitability Analysis

Gross Margin 59.0%
Operating Margin -3.3%
Net Margin -9.3%
ROE N/A
ROA -19.4%
FCF Margin -1.3%

SNBR vs Market Sector: How Sleep Number Corp Compares

How Sleep Number Corp compares to Market sector averages

Net Margin
SNBR -9.3%
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
-9.3%
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
0.16x
Quick Ratio
0.07x
Debt/Equity
N/A
Debt/Assets
185.1%
Interest Coverage
-4.02x
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
-1.3%
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
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
Q2 2023 $458.8M $754.0K $0.03

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
-$3.3M
Cash generated from operations
Stock Buybacks
$1.2M
Shares repurchased (TTM)
Capital Expenditures
$14.4M
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
Apr 8, 2026 DEF 14A snbr-20260408.htm View →
Mar 23, 2026 8-K snbr-20260317.htm View →
Mar 18, 2026 4 xslF345X06/wk-form4_1773866076.xml View →
Mar 18, 2026 4 xslF345X06/wk-form4_1773866050.xml View →
Mar 18, 2026 4 xslF345X06/wk-form4_1773866027.xml View →

Frequently Asked Questions about SNBR

What is the AI rating for SNBR?

Sleep Number Corp (SNBR) has an AI rating of STRONG SELL with 95% confidence, based on fundamental analysis of SEC EDGAR filings.

What are SNBR's key strengths?

Claude: Gross margin of 59% demonstrates pricing power in core product category. Established brand with $1.4B revenue base despite operational challenges.

What are the risks of investing in SNBR?

Claude: Negative stockholders' equity of -$578.5M signals technical insolvency and balance sheet deterioration. Liquidity crisis: 0.16x current ratio with only $1.7M cash versus $1.3B total liabilities.

What is SNBR's revenue and growth?

Sleep Number Corp reported revenue of $1.4B.

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 $-5.77.

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 rating reflects both perspectives for balanced insights.

Is SNBR a good stock to buy right now?

Based on our AI fundamental analysis in April 2026, Sleep Number Corp has a STRONG SELL rating with 95% confidence. Review the strengths and risks sections above before making a decision. 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 -9.3% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.

Should I buy SNBR stock in 2026?

Our dual AI analysis gives Sleep Number Corp a combined STRONG SELL rating 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 $-3.3M, with capital expenditures of $14.4M. FCF margin is -1.3%.

How does SNBR compare to other Market stocks?

Vs Default sector averages: Net margin -9.3% (avg: 12%), ROE N/A (avg: 15%), current ratio 0.16 (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: Apr 16, 2026 | Data as of: 2026-01-03 | Powered by Claude AI