SNBR Sleep Number Corp
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Executive Summary
Sleep Number reported Q1 2026 net sales of $319M, down 18.9% YoY, and a GAAP net loss of -$2.19 per share, significantly worse than the consensus estimate of -$0.47. Adjusted EBITDA collapsed 74% to $6M. The company is not providing guidance due to an ongoing strategic review, and its forward-looking statements explicitly reference going concern risk. The filing is bearish due to accelerating revenue decline, deepening losses, and a liquidity crisis despite a recent $55M lender lifeline.
Key Financial Metrics
Actionable Insight
This is a distressed company with accelerating revenue decline, deepening losses, and a going concern warning. The strategic review (Guggenheim) and recent lender covenant relief suggest restructuring, debt-for-equity swap, or sale is likely. Short sellers should monitor for further covenant breaches or a dilutive capital raise. The stock is highly speculative and could gap down significantly on this report.
Key Facts
- Q1 2026 net sales of $319M, down 18.9% YoY from $393M
- GAAP net loss per share of -$2.19 vs consensus estimate of -$0.47 (miss of ~366%)
- Adjusted EBITDA of $6M, down 74% YoY from $22M; margin fell 380 bps to 1.8%
- Net loss of $50.3M vs -$8.6M in the prior year quarter
- Operating cash flow was -$7.8M; free cash flow was -$13.2M
- Credit facility borrowings increased to $605.6M from $588.2M at year-end; shareholders' deficit widened to -$626M
- Company is not providing financial guidance due to ongoing strategic review with Guggenheim Securities
- Forward-looking statements cite going concern risk from the 10-K and 10-Q
- Store count fell to 577 from 600 at year-end (23 closures in Q1)
- Comparable-store sales declined 17% YoY
Financial Impact
Revenue decline of $74M YoY; net loss worsened by $41.7M; Adjusted EBITDA fell $16.3M; $55M incremental liquidity added via lender agreement but credit facility drawn to $605.6M
Risk Factors
- Going concern risk explicitly cited in forward-looking statements
- Shareholders' deficit of -$626M with $605.6M drawn on credit facility
- No financial guidance provided; strategic review creates uncertainty
- Store closures accelerating (23 in Q1 vs 5 in prior year period)
- Potential for dilutive equity raise or restructuring that wipes out common equity
Market Snapshot
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000827187-26-000039 |
| Document: snbr-20260512.htm | 0000827187-26-000039 |
| Document: 0000827187-26-000039-index-headers.html | 0000827187-26-000039 |
| Document: 0000827187-26-000039-index.html | 0000827187-26-000039 |
| Document: 0000827187-26-000039.txt | 0000827187-26-000039 |
| 8-K Data (Synthetic) | 0000827187-26-000039 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
|
May 12, 2026
8d ago
|
8-K
| $1.90 $1.55 | ▲ +18.42% | ▲ +18.50% | $1.63 (+14.21%) |
|
Apr 28, 2026
22d ago
|
8-K
| $3.25 $2.68 | ▲ +17.54% | ▲ +19.23% | $1.63 (+49.85%) |
|
Mar 12, 2026
9w ago
|
8-K
| $3.67 $2.85 | ▼ −22.34% | ▼ −21.36% | $1.63 (−55.59%) |
|
Mar 12, 2026
9w ago
|
8-K
| $3.67 $2.85 | ▼ −22.34% | ▼ −21.36% | $1.63 (−55.59%) |
US Market Status
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