Slide 1: Investor Presentation March 2026
INVESTOR PRESENTATION Nasdaq: SNBR March 2026
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 company has a clear focus on the consumer through a simple turnaround strategy – Sleep Number Shifts: product – simplifying the offering with a fo
Slide 3: Why Now, Why Sleep Number
3 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 EXPECTED RETURNS AND TIMELINE UNIQUE POSITION ADVANTAGE A CLEAR PATH FORWARD SHAREHOLDER VALUE PROPOSITION • New CEO and ma
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
5 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 ad
Slide 6: Company At-a-Glance
1. Trailing-twelve months Total Retail comparable sales per store open at least one year as of January 3, 2025. See Appendix for reconciliations. 2. Enterprise value as of January 3, 2025. 3. Trailing-twelve months as of January 3, 2025. See Appendix for reconciliations. 4. Leverage ratio as of Janu
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 durabili
Slide 8: Sleep Number Shifts: 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 resh
Slide 9: Products: Creating product value fit and expanding TAM
PRODUCTS | Creating product value fit and expanding total addressable market 9 • 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 building value for
Slide 10: Products: Redesigned mattress portfolio with five new beds
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: Enhanced full funnel strategy
MARKETING | Enhanced full funnel strategy to drive cost effective growth 11 • 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 return on investme
Slide 12: Distribution: Optimize and expand our addressable market
DISTRIBUTION | Optimize and expand our addressable market 12 • 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 13: Leadership and Capabilities
13 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 a nd their teams into an agile, cross - functional team by consolidating roles across ke
Slide 14: 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 15: Financial Model: Return to growth and expanding Adjusted EBITDA Margin
FINANCIAL MODEL | Return to growth and a lower fixed cost structure leads to expanding Adjusted EBITDA Margin 1 12.8% 11.0% 11.1% 11.7% 10.8% 11.2% 14.4% 12.7% 7.0% 6.7% 7.1% 5.5% ’14 ’15 ’16 ’17 ’18 ’19 ’20 ’21 ’22 ’23 ’24 ’25 ’25 Pro forma ~ 9.0% Adjusted EBITDA Margin 1 1. Source: Company filings
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 17 ($ in millions) 201 4 201 5 201 6 201 7 201 8 201 9 2020 2021 2022 2023 2024 2025 Net Income (Loss) 68.0$ 50.5$ 51 .4$ 65.1$ 69.5$ 81 .8$ 1 39.2$ 1 53.7$ 36.6$ (1 5.3)$ (20.3)$ (1 32.0)$ Adjustments: (+/-) Income Tax Expense (Benefit) 34.1 24.9 24.5
Slide 18: Reconciliation of Free Cash Flow
FINANCIALS | Reconciliation of Free Cash Flow 18 ($ in millions) 201 4 201 5 201 6 201 7 201 8 201 9 2020 2021 2022 2023 2024 2025 Net Cash Prov ided by (Used in) Operating Activ ities 1 44.5$ 1 07.9$ 1 51 .6$ 1 72.6$ 1 31 .5$ 1 89.2$ 279.7$ 300.0$ 36.1$ (9.0)$ 27.1$ (3.3)$ Adjustments: (-) Purchase
Slide 19: Reconciliation of Pro Forma Adjusted EBITDA margin
FINANCIALS | Reconciliation of Pro Forma Adjusted EBITDA margin 19 Fiscal Year ($ in millions) 2025 Adjusted EBITDA 78,255$ Adjustments: (+) Pro forma annualized cost reductions 1 50,000 Proforma adjusted EBITDA 1 28,255$ Net Sales 1 ,41 1 ,450 Proforma adjusted EBITDA margin 9.1 % 1 Represents annu
Slide 20: For more information, visit ir.sleepnumber.com
20 For more information, visit ir.sleepnumber.com