Sleep Number Posts $58.5M Q4 Loss as ComfortMode Sales Exceed Projections
Sleep Number reported Q4 revenue of $347.4 million and a net loss of $58.5 million ($2.55 per share, $1.95 adjusted loss). The company expects Q1 sales to decline in the high teens but forecasts a 3.5-times stronger-than-expected debut for its ComfortMode mattress, a 10-percentage-point margin improvement, and $50 million in operational savings.
1. Q4 Performance
In Q4 2025, Sleep Number generated $347.4 million in revenue but recorded a net loss of $58.5 million, or $2.55 per share. Adjusted for non-recurring and restructuring costs, the loss narrowed to $1.95 per share.
2. Q1 Sales Outlook
The company anticipates net sales for Q1 will decline in the high teens as it clears existing inventory and navigates a softened consumer environment. Management attributes the downturn to a sluggish start and planned discounting on legacy products.
3. ComfortMode Success and Product Line
The newly launched ComfortMode mattress achieved sales 3.5 times higher than projections and delivered a 10-percentage-point gross margin uplift versus its predecessors. A parallel Climate Collection rollout offers luxury materials at accessible prices to broaden the customer base.
4. Cost Savings and Rollout Plans
Sleep Number expects $50 million in savings this year through logistics, delivery, labor model resets, and corporate overhead reductions. All new beds and bases become available March 23, with most stores updated by mid-April and full rollout by Memorial Day, while marketing spend remains flat year-over-year.