Sleep Number Corporation · NASDAQ:SNBR
Sleep Number — Investor Presentation (December 2025)
18 slides from Sleep Number's investor presentation, Dec 2, 2025
Slide 1: Investor Presentation December 2025
INVESTOR PRESENTATION Nasdaq: SNBR December 2025
Slide 2: Forward Looking Statements
This investor presentation contains statements regarding the company’s expectations, future plans, events, financial results or performance, such as the following statements that are forward-looking statements subject to certain risks and uncertainties which could cause the company’s results to diff
Slide 3: Why Now, Why Sleep Number
3 WHY NOW, WHY SLEEP NUMBER | The company has initiated a comprehensive financial and operational transformation, setting a clear vision for growth, new opportunities, and lasting shareholder value EXPECTED RETURNS AND TIMELINE UNIQUE POSITION ADVANTAGE CLEAR VALUE CREATION PATHWAY SHAREHOLDER VALUE
Slide 4: Leading with Speed and a Clear Vision
Leading with Speed and a Clear Vision Sleep Number is in a turnaround. Since I joined in April 2025, every part of the business has been impacted by change. We: • Created a more streamlined operation to ensure quicker decision making, • Reduced costs across the business by more than $135M as compare
Slide 5: Stabilizing the foundation and positioning for growth
5 Stabilizing the foundation and positioning for growth Immediate Actions Taken Since April 2025 • Streamlined organization for faster decision-making across all business units • Achieved >$135M in cost savings in 2025 vs. 2024 (excluding restructuring and non-recurring costs), with more to come • S
Slide 6: Company At-a-Glance
1. Trailing-twelve months Total Retail comparable sales per store open at least one year as of September 27, 2025. See Appendix for reconciliations. 2. Enterprise value as of September 27, 2025. 3. Trailing-twelve months as of September 27, 2025. See Appendix for reconciliations. 4. Leverage ratio a
Slide 7: Sleep Number Shifts: Our Turnaround Strategy
7 sleep number shifts OUR TURNAROUND STRATEGY | Sleep Number Shifts, a focused, company-wide effort REPOSITION OUR BRAND By highlighting our core value proposition: helping people get a great night of sleep, tonight EXPAND CUSTOMER REACH By offering what they want most: comfort, value and durability
Slide 8: Driving growth through strategic transformation: our three-pillar approach
8 SLEEP NUMBER SHIFTS | Driving growth through strategic transformation: our three-pillar approach While we continue to see benefits in our vertically integrated model, we believe there are opportunities to expand distribution into new channels, both physical and digital DISTRIBUTION 3 We are reshap
Slide 9: Products: Simplifying our product line
PRODUCTS | Simplifying our product line to meet the needs of a new customer segment 9 • Starting in 2026, we will adapt our offerings to deliver what consumers want most – comfort, value and durability • Leveraging extensive IP and staying true to core differentiators, while building value for those
Slide 10: Marketing: Enhanced full funnel strategy
MARKETING | Enhanced full funnel strategy to drive cost effective growth 10 • Build on top of strong brand relevance to attract consumers from a larger addressable market • Exploiting on the correlation between marketing and consumer demand, deliver improvements in marketing effectiveness and return
Slide 11: Distribution: Optimize and expand our addressable market
DISTRIBUTION | Optimize and expand our addressable market 11 • Optimizing store footprint and leaning into digital to meet customers where they are, while exploring selective partnerships and new routes to market • Simplifying the shopping experience in our retail stores and our website to better ma
Slide 12: Leadership and Capabilities
12 LEADERSHIP AND CAPABILITIES | Experienced and driven team leading the transformation All members of the executive leadership team report into new President and CEO Linda Findley. We streamlined our leadership and their teams into an agile, cross-functional team by consolidating roles across key f
Slide 13: Financial Model: Financial stability in 2026
FINANCIAL MODEL | Financial stability in 2026 and positioning for meaningful generation of free cash flow 1. Source: Company filings. Excludes restructuring and other non-recurring costs. 2. Year-end 2025 pro-forma Operating Expenses include cost reductions for actions taken and implemented but not
Slide 14: Financial Model: Expanding Adjusted EBITDA Margin
FINANCIAL MODEL | Return to growth and a lower fixed cost structure leads to expanding Adjusted EBITDA Margin1 12.8% 11.0% 11.1% 11.7% 10.8% 11.2% 14.4% 12.7% 7.0% 6.7% 7.1% 5.0% 7.9% ’14 ’15 ’16 ’17 ’18 ’19 ’20 ’21 ’22 ’23 ’24 ’25 E ’25 Pro- Forma Adjusted EBITDA Margin1 1. Source: Company filings.
Slide 15: Why Now, Why Sleep Number
Why Now, Why Sleep Number Our leaner cost structure and gross margin profile is expected to create stabilization, regardless of industry trends Unique Position Advantage • Strong and recognizable brand • Unique and innovative product Clear Value Creation Pathway • New leadership team driving the bus
Slide 16: Reconciliation of Adjusted EBITDA
FINANCIALS | Reconciliation of Adjusted EBITDA 16
Slide 17: Reconciliation of Free Cash Flow
FINANCIALS | Reconciliation of Free Cash Flow 17
Slide 18: For more information, visit ir.sleepnumber.com
18 For more information, visit ir.sleepnumber.com