--- title: "Sleep Number | 8-K: FY2027 Q1 Revenue Misses Estimate at USD 318.99 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/286085591.md" datetime: "2026-05-12T11:04:21.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/286085591.md) - [en](https://longbridge.com/en/news/286085591.md) - [zh-HK](https://longbridge.com/zh-HK/news/286085591.md) --- # Sleep Number | 8-K: FY2027 Q1 Revenue Misses Estimate at USD 318.99 M Revenue: As of FY2027 Q1, the actual value is USD 318.99 M, missing the estimate of USD 352.07 M. EPS: As of FY2027 Q1, the actual value is USD -2.19, missing the estimate of USD -0.01. EBIT: As of FY2027 Q1, the actual value is USD -23.75 M. ### Financial Overview (Three Months Ended April 4, 2026 vs. March 29, 2025) #### Segment Revenue - Net sales for the first quarter of 2026 were $319 million, representing a decrease of 18.9% year-over-year, primarily due to lower volume and a reduced store count. Detailed net sales were $318,987 thousand for Q1 2026, compared to $393,261 thousand for Q1 2025 . #### Operational Metrics - **Gross Profit:** Gross profit was $185 million in Q1 2026, a decrease of $56 million from the prior year. The gross profit margin was 57.9% for Q1 2026, compared to 61.2% for the same period last year. Detailed gross profit was $184,615 thousand for Q1 2026, compared to $240,535 thousand for Q1 2025 . - **Operating Expenses:** Total operating expenses were $221 million in Q1 2026. Adjusted operating expenses, excluding restructuring and other non-recurring costs, were $195 million, an 18% decrease year-over-year or $42 million. Restructuring and other non-recurring costs amounted to $22 million in Q1 2026 . Detailed sales and marketing expenses were $160,795 thousand for Q1 2026, compared to $189,103 thousand for Q1 2025. General and administrative expenses were $33,592 thousand for Q1 2026, compared to $38,619 thousand for Q1 2025. Research and development expenses were $5,348 thousand for Q1 2026, compared to $10,903 thousand for Q1 2025. Restructuring costs were $21,736 thousand for Q1 2026, compared to $60 thousand for Q1 2025. Total operating expenses were $221,471 thousand for Q1 2026, compared to $238,685 thousand for Q1 2025 . - **Operating Profit / Loss:** Operating loss was - $36,856 thousand for Q1 2026, compared to an operating income of $1,850 thousand for Q1 2025 . - **Net Loss:** Net loss was - $50 million in Q1 2026, compared to a net loss of - $9 million for the same period last year. Detailed net loss was - $50,297 thousand for Q1 2026, compared to - $8,646 thousand for Q1 2025 . - **Adjusted EBITDA:** Adjusted EBITDA was $6 million for Q1 2026, a 74% decrease year-over-year. The Adjusted EBITDA margin was 1.8% for Q1 2026, down 380 basis points. Detailed Adjusted EBITDA was $5,750 thousand for Q1 2026, compared to $22,041 thousand for Q1 2025 . #### Cash Flow - Net cash used in year-to-date operating activities was - $8 million, a decrease of $5 million year-over-year. Detailed net cash used in operating activities was - $7,751 thousand for Q1 2026, compared to - $2,626 thousand for Q1 2025 . - Purchases of property and equipment were - $5,441 thousand for Q1 2026, compared to - $4,599 thousand for Q1 2025 . - Net cash used in investing activities was - $5,441 thousand for Q1 2026, compared to - $4,599 thousand for Q1 2025 . - Year-to-date Free cash flow was - $13.2 million. Detailed Free cash flow was - $13,192 thousand for Q1 2026, compared to - $7,225 thousand for Q1 2025 . #### Liquidity and Balance Sheet - Cash and cash equivalents at the end of Q1 2026 were $1,484 thousand, down from $1,693 thousand at the beginning of the period . - Borrowings under credit facility were $605,600 thousand at April 4, 2026, compared to $588,200 thousand at January 3, 2026 . - Net increase in short-term borrowings was $13,805 thousand for Q1 2026, compared to $9,087 thousand for Q1 2025 . - Sleep Number Corporation reached an agreement with existing lenders for relief from certain financial covenants and $55 million of incremental liquidity, including a new $25 million term loan . #### Operational Metrics - Retail stores accounted for 87.0% of sales in Q1 2026, compared to 87.6% in Q1 2025. Online, phone, chat, and other channels accounted for 13.0% of sales in Q1 2026, compared to 12.4% in Q1 2025 . - Retail comparable-store sales decreased by 17% in Q1 2026, compared to a 15% decrease in Q1 2025 . - Online, phone, and chat sales decreased by 15% in Q1 2026, compared to a 12% decrease in Q1 2025 . - Total Retail comparable sales decreased by 16% in Q1 2026, compared to a 15% decrease in Q1 2025 . - The company closed 23 stores in Q1 2026, ending the period with 577 stores, compared to 637 stores at the end of Q1 2025 . - Average sales per store (trailing twelve months) were $2,170 thousand in Q1 2026, compared to $2,495 thousand in Q1 2025 . - Average sales per square foot (trailing twelve months) were $700 in Q1 2026, compared to $807 in Q1 2025 . - Average revenue per mattress unit was $6,021 in Q1 2026, compared to $5,992 in Q1 2025 . - The company has executed approximately $200 million of annualized cost savings, including efficiencies across G&A, corporate structure, technology, and real estate . #### Outlook / Guidance - Sleep Number Corporation is not providing specific financial guidance while it evaluates strategic and financing options . 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