Sleep Number Announces Third Quarter 2025 Results

About this update from Sleep Number Corporation

Company Secured an Amendment and Extension of Bank Agreement Through 2027 Sleep Number Executing a Company-wide Turnaround to Reposition Brand, Expand Reach, and Reignite Growth MINNEAPOLIS, November 05, 2025 --( BUSINESS WIRE )--Sleep Number Corporation (Nasdaq: SNBR) today reported results for the quarter ended September 27, 2025. Linda Findley, President and CEO, commented, "We have successfully executed an amendment and extension of our bank agreement through 2027, giving us greater flexibility to further our turnaround plans. With this new agreement, combined with meaningful fixed cost reductions achieved in 2025, we will invest in growth in 2026. To drive consumer demand, we are making strategic shifts in three key areas: product, brand positioning and distribution." "My learnings thus far make me incredibly optimistic about Sleep Number’s future and the ability to create significant shareholder value in the coming years. To be clear, this is a full turnaround of an inherently great company. I came to Sleep Number because I saw huge potential, and I remain excited about what is ahead. As in many situations like this, there were more challenges than I expected, which required us to move extremely fast to fix the business. The pace of our work, along with constraints imposed by our capital structure, has made the first six months difficult. However, we have accomplished a lot and are optimistic that this work positions us to execute the turnaround in 2026." Third Quarter Overview (all comparisons year-over-year unless otherwise noted) Cash Flows, Liquidity and Balance Sheet Highlights (all comparisons year-over-year unless otherwise noted) Financial Outlook Conference Call Information Management will host its regularly scheduled conference call to discuss the company’s results at 8:30 a.m. ET (7:30 a.m. CT; 5:30 a.m. PT) today. To access the webcast, please visit the investor relations area of the Sleep Number website at https://ir.sleepnumber.com . The webcast replay will remain available for approximately 60 days. About Sleep Number Corporation Sleep Number is a sleep wellness company. We are guided by our purpose to improve the health and wellbeing of society through higher quality sleep; to date, our innovations have improved 16 million lives. Our sleep wellness platform helps solve sleep problems, whether it’s providing individualized temperature control for each sleeper through our Climate360 ® smart bed or applying our 36 billion hours of longitudinal sleep data and expertise to research with global institutions. Our smart bed ecosystem drives best-in-class engagement through dynamic, adjustable, and effortless sleep with personalized sleep and health insights; our millions of Smart Sleepers are loyal brand advocates. And our 3,200 mission-driven team members passionately innovate to drive value creation through our vertically integrated business model, including our exclusive direct-to-consumer selling in 611 stores and online. To learn more about life-changing, individualized sleep, visit a Sleep Number ® store near you, our investor relations site, or SleepNumber.com. Forward-looking Statements Statements used in this news release relating to future plans, events, financial results or performance, such as the statements that: the company’s new bank agreement gives it greater flexibility to further its turnaround plans, and combined with meaningful fixed cost reductions, will allow it to invest in growth in 2026; to drive consumer demand, the company is making strategic shifts in its product, brand positioning and distribution; the company is in a full turnaround but it is positioned to execute the turnaround in 2026; the company is revising its outlook for 2025 and expectations around full year 2025 net sales, gross profit margin, full year operating expenses, and negative free cash flow in 2025 are forward-looking statements subject to certain risks and uncertainties which could cause the company’s results to differ materially. The most important risks and uncertainties are described in the company’s filings with the Securities and Exchange Commission, including in Item 1A of the company’s Annual Report on Form 10-K and other periodic reports. Forward-looking statements speak only as of the date they are made, and the company does not undertake any obligation to update any forward-looking statement.   View source version on businesswire.com: https://www.businesswire.com/news/home/20251104208520/en/ Contacts Investor Contact: [email protected] Media Contact: Muriel Lussier, [email protected]

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