Slide 1: Investor Presentation
INVESTOR PRESENTATION Nasdaq: SNBR March 2026
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This investor presentation contains statements regarding the company’s expectations, future plans, events, financial results or performance, such as: the company has a clear focus on the consumer through a simple turnaround strategy – Sleep Number Shifts: product – simplif
Slide 3: Why Now, Why Sleep Number
WHY NOW, WHY SLEEP NUMBER | The company is executing a comprehensive financial and operational transformation, setting a clear vision for growth and lasting shareholder value UNIQUE POSITION A CLEAR PATH SHAREHOLDER VALUE EXPECTED RETURNS AND ADVANTAGE FORWARD PROPOSITION TIMELINE • Sleep is recogni
Slide 4: Executing the Turnaround & Building Momentum for 2026
Executing the Turnaround & Building Momentum for 2026 2025 was a pivotal year for Sleep Number. A reshaped team drove meaningful turnaround progress across the business, from retail and operations to marketing and product development, setting a strong foundation for the work ahead in 2026. We remain
Slide 5: Executing on Turnaround with Focus on a Profitable, Growing Company
Executing on Turnaround with Focus on a Profitable, Growing Company Managing Costs and Delivering Results • 2025 net sales of $1.41B in line with guidance despite lower marketing spend and traffic; adjusted EBITDA of $78M exceeded $70M outlook • Removed $185M+ in annualized costs and identified addi
Slide 6: Company At-A-Glance
COMPANY AT-A-GLANCE | A sleep wellness company and market leader in design, manufacturing, marketing and distribution of innovative sleep solutions • The leader in premium personalized sleep through the design, engineering, manufacturing, distribution and marketing of innovative sleep solutions • Ou
Slide 7: Our Turnaround Strategy
OUR TURNAROUND STRATEGY | Sleep Number Shifts, a focused, company-wide effort sleep number shifts By highlighting our core value proposition: helping REPOSITION OUR BRAND people get a great night of sleep, tonight By offering what they want most: comfort, value EXPAND CUSTOMER REACH and durability B
Slide 8: Sleep Number Shifts
SLEEP NUMBER SHIFTS | Driving growth through strategic transformation: our three-pillar approach THREE FOCUSED INITIATIVES THAT WILL TRANSFORM SLEEP NUMBER Shift to a customer-centric sleep wellness company, positioned for sustainable growth through simplified offerings, smarter marketing, and expan
Slide 9: Products
PRODUCTS | Creating product value fit and expanding total addressable market Product Commitments • Beginning in early 2026, we have refreshed our offerings to deliver what consumers want most – comfort, value and durability • Leveraging extensive IP and staying true to core differentiators, while bu
Slide 10: Products
PRODUCTS | Redesigned mattress portfolio with five new beds that address customers’ most pressing sleep needs with improved shopability, conversion, and margins 10
Slide 11: Marketing
MARKETING | Enhanced full funnel strategy to drive cost effective growth Marketing Commitments • Build on strong brand relevance to attract consumers from a larger addressable market • Exploit the correlation between marketing and consumer demand, deliver improvements in marketing effectiveness and
Slide 12: Distribution
DISTRIBUTION | Optimize and expand our addressable market Distribution Commitments • 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 ou
Slide 13: Leadership and Capabilities
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 func
Slide 14: Financial Model
FINANCIAL MODEL | Financial stability in 2026 and positioning for meaningful generation of free cash flow Adjusted Operating Expenses1 1,134 • Recently amended and extended credit agreement and a R&D 62 lower cost structure expected to bring financial stability in 1,049 2026 56 G&A 153 961 45 • Key
Slide 15: Financial Model
FINANCIAL MODEL | Return to growth and a lower fixed cost structure leads to expanding Adjusted EBITDA Margin1 Adjusted EBITDA Margin1 • Strong brand awareness and a highly differentiated product are supported by a transformed business model, amplifying the company’s earning potential 14.4% 12.8% 12
Slide 16: 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 17: Reconciliation of Adjusted EBITDA
FINANCIALS | Reconciliation of Adjusted EBITDA Fiscal Year ($ in millions) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Net Income (Loss) $ 68.0 $ 50.5 $ 51.4 $ 65.1 $ 69.5 $ 81.8 $ 139.2 $ 153.7 $ 36.6 $ (15.3) $ (20.3) $ (132.0) Adjustments: (+/-) Income Tax Expense (Benefit) 34.1 2
Slide 18: Reconciliation of Free Cash Flow
FINANCIALS | Reconciliation of Free Cash Flow Fiscal Year ($ in millions) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Net Cash Provided by (Used in) Operating Activities $ 144.5 $ 107.9 $ 151.6 $ 172.6 $ 131.5 $ 189.2 $ 279.7 $ 300.0 $ 36.1 $ (9.0) $ 27.1 $ (3.3) Adjustments: (-) Pur
Slide 19: Reconciliation of Pro Forma Adjusted EBITDA margin
FINANCIALS | Reconciliation of Pro Forma Adjusted EBITDA margin Fiscal Year ($ in millions) 2025 Adjusted EBITDA $ 78,255 Adjustments: (+) Pro forma annualized cost reductions 1 50,000 Proforma adjusted EBITDA $ 128,255 Net Sales 1,411,450 Proforma adjusted EBITDA margin 9.1% 1 Represents annualized
Slide 20: For more information, visit ir.sleepnumber.com
For more information, visit ir.sleepnumber.com 20