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Sleep Number (SNBR) Q4 Loss Widens to $2.55/Share as Revenue Falls 7.8% to $347.4M

LOSS er Share (GAAP)
$-2.55
estimate N/A
Revenue
$347.4M
estimate N/A

Loss widens sharply. Sleep Number Corporation (SNBR) reported a loss of $2.55 per share for Q4 2025, significantly wider than the $0.21 loss posted in the year-ago quarter. The loss deepened by 1,114% year-over-year, marking the company’s fourth consecutive quarter of substantial losses. The $58.5 million net loss reflects ongoing operational challenges in the home furnishings sector.

Revenue declines accelerate. Q4 2025 revenue of $347.4 million fell 7.8% from $376.8 million in the prior-year quarter. The top-line contraction follows a pattern of sequential weakness, with Q4 revenue essentially flat versus Q3’s $342.9 million but down from Q1 2025’s $393.3 million. Gross profit of $193.3 million translated to a 55.6% gross margin, but operating losses of $8.1 million before additional charges underscore the company’s struggle to align its cost structure with declining demand.

Trading volume signals attention. Shares traded 1.6 million times on the earnings release, closing at $4.96—well below the 52-week high of $13.94 but above the $3.49 low. With a market capitalization of just $104.6 million and adjusted EBITDA of $26 million, the company faces mounting pressure to demonstrate a path back to profitability.

What to Watch: The earnings call scheduled for 8:30 AM ET today will be critical—listen for management’s commentary on demand trends, inventory levels, and any restructuring plans to stem the widening losses heading into 2026.

This article was generated using AlphaStreet’s proprietary financial analysis technology and reviewed by our editorial team.

Tags: SNBR
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