Sleep Number Corp (NASDAQ: SNBR) is a specialty sleep products company that designs, manufactures, and sells smart adjustable beds, bases, and sleep-related accessories through its own retail stores and direct channels. Revenue is transactional, generated at the point of sale for smart beds, FlexFit adjustable bases, bedding, and upholstered furniture sold primarily through company-owned retail stores, which accounted for 87.6% of net sales in FY2025, with the remaining 12.4% from online, phone, and chat. The company operates 600 retail stores as of the end of FY2025, down from 640 at the start of the year, and competes against traditional innerspring, foam, and other technology-enabled mattress manufacturers and retailers. Net sales declined 16% to $1.4 billion in FY2025 from $1.7 billion in FY2024, with an operating loss of $46.6 million and a net loss of $132.0 million. Average revenue per smart bed unit was $6,060 in FY2025. The company is headquartered in Minneapolis, Minnesota, with product development also conducted at a Sleep Number Labs facility in San Jose, California.

Revenue model

Transactional sales of smart beds, FlexFit adjustable bases, bedding, pillows, and upholstered furniture through company-owned retail stores (87.6% of FY2025 net sales) and direct online, phone, and chat channels (12.4%). Products are made-to-order with minimal finished goods inventory. Average revenue per smart bed unit was $6,060 in FY2025.

Products and services

Sleep Number smart beds with air-adjustable firmness technology, FlexFit smart adjustable bases (with Partner Snore technology, Foot Warming, and under-bed lighting), Sleep Number branded bedding including position-specific pillows, and the Sleep Number Lifestyle Collection upholstered furniture. The company also operates a sleep wellness platform collecting data from over 4.8 billion real-world sleep sessions and more than 558,000 opted-in Smart Sleeper Community members as of the FY2025 10-K filing date.

Customers and end markets

Direct-to-consumer retail customers purchasing premium sleep products. No disclosed customer concentration. Demand is driven by consumer spending on home furnishings and sleep health. Industry demand pressure and lower store traffic contributed to a 17% Total Retail comparable sales decrease in FY2025.

Value-chain role

Vertically integrated specialty retailer and manufacturer. Sources raw materials and components from third parties, assembles products made-to-order at distribution centers in Cincinnati, OH and Dallas, TX, and sells exclusively through its own retail stores and direct channels. Delivery and installation performed by company technicians and trained third-party service providers.

Geographic exposure

United States only, based on filing disclosures. Retail stores, assembly distribution centers, and customer service operations are nationwide. Corporate headquarters in Minneapolis, Minnesota; product development also in San Jose, California.

Competitors

Traditional innerspring mattress manufacturers and retailers, Viscoelastic and foam mattress manufacturers and retailers, Sleep tracking and monitoring product manufacturers

Source: SEC 10-K, filed 2026-03-12

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