Quarterly ResultMay 12, 2026, 07:12 AM
Sleep Number Q1 Net Loss $(50.3)M, Sales $319.0M; Going Concern Doubt
AI Summary
Sleep Number Corp reported a net loss of $(50.3) million for Q1 2026, a significant increase from $(8.6) million in Q1 2025, on net sales of $319.0 million, down from $393.3 million year-over-year. The company incurred $21.7 million in restructuring costs during the quarter, primarily due to asset impairments. Management also raised substantial doubt about the company's ability to continue as a going concern, despite ongoing turnaround strategies and recent credit agreement amendments.
Key Highlights
- Substantial doubt raised about Sleep Number's ability to continue as a going concern.
- Q1 2026 net loss significantly widened to $(50.3) million from $(8.6) million in Q1 2025.
- Net sales for Q1 2026 decreased to $319.0 million from $393.3 million year-over-year.
- Incurred $21.7 million in restructuring costs in Q1 2026, primarily from asset impairments.
- Operating loss was $(36.9) million in Q1 2026, compared to operating income of $1.9 million in Q1 2025.
- Credit Agreement amended on April 27, 2026, adding a $25 million term loan and forbearance on defaults.
- Total shareholders' deficit worsened to $(626.3) million as of April 4, 2026.