Sleep Number
Sleep Number Corporation is a U.S. smart-bed manufacturer that designs, sells, and services adjustable SleepIQ-equipped mattresses through 572 retail stores and e-commerce, targeting premium shoppers and athlete-endorsed segments with AI-driven comfort optimization.
- Company typePublic
- Founded1987
- HeadquartersMinneapolis, United States
- Headcount1,001–5,000
- GTM typeB2C
- OfferingHardware or Manufacturing
What Sleep Number does
Sleep Number Corporation, founded in 1987 and headquartered in Minneapolis, is a U.S. smart-bed manufacturer that designs, markets, and sells adjustable air mattresses with proprietary SleepIQ tracking and automated comfort control technology. The company historically operated 572 company-owned retail showrooms in the United States alongside a direct e-commerce platform, served approximately 2,920 employees, and reported FY2025 net sales of $1.41 billion before a 16% year-over-year revenue decline and Chapter 11 filing in June 2026. Product architecture centers on three collections — ComfortMode (adaptive firmness launched under $1,600 in January 2026), ComfortNext (featuring first-of-its-kind Tri-Brid micro-coil/foam/air construction), and Climate (Climate360 and ClimateCool active temperature regulation) — simplified from 12 to 7 models in March 2026.
Revenue is generated almost entirely through one-time hardware sales of smart beds ranging from under $1,600 (ComfortMode Entry) to over $9,200 (Climate360 queen), complemented by accessories and a 100-night trial/10-year warranty. Pricing is paid in a single transaction per unit, though Truemed partnership enables HSA/FSA reimbursement on ClimateCool. Marketing centers on premium shoppers and athlete audiences, anchored by a nine-year NFL Official Sleep + Wellness partnership and a January 2026 three-year strategic deal with Travis Kelce (under 5% equity stake). Underpinning the product is a proprietary AI/ML stack: over 40 billion hours of collected sleep data, a clinically validated deep neural network for sleep apnea detection (83.3% accuracy against polysomnography), and the BreatheIQ mobile app extending the SleepIQ platform into consumer sleep-health applications.
Following pandemic-era peak revenue of $2.18 billion in FY2021, Sleep Number entered a multi-year decline driven by weak housing demand, inflation, tariffs, and falling showroom traffic, prompting CEO Linda Findley (appointed April 2025) to execute a ReShape turnaround delivering $185 million in annualized cost reductions and 21% management cuts. On June 12, 2026, the company filed for Chapter 11 protection in the Southern District of New York with approximately $672.5 million in debt and $1.3 billion in liabilities, agreeing to sell substantially all assets to Canadian acquirer Sleep Country Canada Inc. for $415 million cash as the stalking horse bidder, with closing targeted by July 31, 2026. Shares were delisted from Nasdaq on June 23, 2026 following multiple securities-fraud investigations by Pomerantz LLP, Schall Law Firm, and Wolf Haldenstein.
Sleep Number firmographics
Firmographics- Name
- Sleep Number
- Legal name
- Sleep Number Corporation
- Website
- https://sleepnumber.com
- Company type
- Public
- Founded year
- 1987
- Operating status
- Operating
- Headcount range
- 1,001–5,000 employees
- Short description
- Sleep Number Corporation is a U.S. smart-bed manufacturer that designs, sells, and services adjustable SleepIQ-equipped mattresses through 572 retail stores and e-commerce, targeting premium shoppers and athlete-endorsed segments with AI-driven comfort optimization.
- Ownership category
- akta.pro rank
Sleep Number industry classification
Industry- Product category
- Smart Mattresses and Sleep Products
- NAICS
- Mattress Manufacturing (33791), Mattress Manufacturing (337910)
- akta.pro primary industry
- Sleep Technology & Smart Sleep Devices Retail (Sleep Trackers, Smart Mattresses) (CRAIABAH)
Keywords
Where Sleep Number is headquartered
LocationHeadquarters
- HQ city
- Minneapolis
- HQ country
- United States
- HQ region
- North America
Offices2 records
Markets served
Sleep Number business model
Business model- GTM type
- B2C
- Offering type
- Hardware or Manufacturing
- Cost components
- Operations, Personnel, Marketing or Sales, Technology or R&D, Infrastructure, Supply Chain
Revenue model
- Smart Bed Hardware Sales: Sleep Number generates revenue primarily from selling smart beds and mattresses with adjustable firmness and temperature control features. The company operates 572 retail stores and an e-commerce platform. Q1 2026 net sales were $319 million, down 18.6% year-over-year, with a net loss of $50 million.
- Sleep Data Services: Sleep Number collects over 40 billion hours of sleep data through its SleepIQ technology, which may be monetized through insights and partnerships. The company has validated its smart bed technology against polysomnography for sleep apnea detection.
Pricing tiers
| Model | Billing | Price |
|---|---|---|
| One time/ perpetual license | Pay-as-you-go | ComfortMode Lux - Mid-range smart bed with adjustable firmness |
| One time/ perpetual license | Pay-as-you-go | Climate360 - Premium temperature-regulating smart bed |
| One time/ perpetual license | Pay-as-you-go | ComfortNext Ultra - High-end with Tri-Brid design |
| One time/ perpetual license | Pay-as-you-go | ComfortNext Lux - Premium smart bed |
| One time/ perpetual license | Pay-as-you-go | ComfortMode Entry - Entry-level smart bed under $1,600 |
Go-to-market motion2 records
Distribution channels3 records
Marketing channels6 records
Sleep Number product offering
Product offeringCore offering
Sleep Number designs, manufactures, and sells smart beds with adjustable air-chamber firmness, integrated temperature control, and proprietary SleepIQ sleep tracking technology. The portfolio spans three collections (ComfortMode, ComfortNext, Climate) plus the BreatheIQ sleep health mobile app, distributed through 572 company-owned U.S. retail stores and the sleepnumber.com e-commerce site.
Product overview
Sleep Number Corporation offers a portfolio of smart beds and sleep wellness products organized across three main collections: ComfortMode, ComfortNext, and Climate. The company's flagship offering consists of AI-enabled mattresses with adjustable firmness on each side, automatic temperature control, and integrated sleep tracking via SleepIQ technology. The product lineup was significantly simplified in 2026, reducing from 12 to 7 models across three collections, with the ComfortNext collection featuring the proprietary Tri-Brid design combining micro coils, foam, and air. Supporting offerings include the BreatheIQ mobile app for sleep health tracking.
Differentiator
Problem solved
Functional benefit
Brands
- ComfortMode: Mattress collection featuring automatic firmness adjustment technology, launched January 2026
- ComfortNext
- Climate
- BreatheIQ
- SleepIQ
Products and services
- Climate Collection Smart Beds
- ComfortMode Collection
- ComfortNext Collection
- P6 Smart Bed
- ClimateCool Smart Bed
- BreatheIQ App
Quantifiable outcome
- 52.5 additional minutes of restful sleep per night with Climate360 bed
- +4 more outcomes
Companies that use Sleep Number
Customer profileNamed customers2 records
Segments3 records
Ideal customer profiles3 records
Sleep Number technology and API
TechnologyTechnology focussed Yes
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
AI capability4 records
Feature5 records
Sleep Number partnerships and signals
Strategic signalPartnerships
Four partnerships are on record, tiered minor and core.
- Guggenheim SecuritiesminorInvestment bank engaged by Sleep Number to evaluate strategic and financing options, including refinancing alternatives, as the company faced liquidity constraints and potential bankruptcy. Previously engaged in March 2026 following going-concern warning.
- Core42/G42minorG42's subsidiary Core42 signed as the primary tenant for an office-to-data center conversion in downtown Minneapolis at 1001 Third Avenue S, taking 20 megawatts of capacity. Cogent Communications and Sleep Number Corp. are also tenants in the building. The data center tenant drove the $235 million sale of the Sleep Number headquarters building in January 2026.
- FallonminorSleep Number partnered with advertising agency Fallon to create its 'To a Good Life's Sleep' integrated marketing campaign, representing the company's first major integrated campaign in several years. Fallon also created the ComfortMode advertising campaign.
- National Football League (NFL)coreSleep Number has maintained a nine-year relationship as the Official Sleep + Wellness Partner of the NFL, with 83% of players using Sleep Number beds. The partnership provides significant marketing exposure and credibility in the athlete and sports enthusiast segment.
Scale indicators8 records
Recent moves9 records
Expansion highlights5 records
Sleep Number competitors and assessment
Company assessmentDirect peers
- Tempur Sealy International: World's largest bedding manufacturer and Sleep Number's primary industry peer; Tempur-Pedic, Sealy, and Stearns & Foster brands compete directly in premium and smart/adjustable mattress categories through similar retail and DTC channels.
- Purple Innovation: Direct-to-consumer premium mattress brand with patented hyper-elastic polymer grid technology; targets the same premium consumer shopping for differentiated sleep technology through retail and DTC channels.
- Casper Sleep: Original bed-in-a-box disruptor now selling premium mattresses (including the Casper Snow with active cooling) through DTC and retail; competes for the same premium-mattress shopper with technology-forward positioning.
- Eight Sleep: Direct competitor in the AI-powered smart mattress category with the Pod line featuring temperature regulation, sleep tracking, and biometrics; targets the same high-end health-conscious tech adopter segment Sleep Number serves.
- Sleep Country Canada: Canada's largest specialty mattress retailer (300+ stores) and Sleep Number's announced $415M acquirer; operates as a peer in Canadian markets and as customer overlap in U.S. distribution before the merger.
- Saatva: Premium DTC mattress brand positioned on luxury, handcrafted, and white-glove delivery; competes with Sleep Number for the high-end mattress shopper with similar premium ASPs and direct sales model.
Broad incumbents
- Serta Simmons Bedding: Long-established incumbent mattress manufacturer with Serta, Beautyrest, and Simmons brands across all price points; competes through mass retail and department-store channels that overlap with Sleep Number's premium shopper.
- Mattress Firm: Largest specialty mattress retailer in the U.S. (~2,300+ stores) carrying Sleep Number's competitors including Tempur-Pedic and Serta Simmons; competes directly for foot traffic and showroom conversions.
Emerging players
- Helix Sleep: DTC personalized mattress brand using a quiz-driven recommendation engine; targets the same premium mid-market shopper who values customization, overlapping meaningfully with Sleep Number's personalization narrative.
- Zoma Sleep: DTC mattress brand with a performance/sports-focused positioning (tied to athlete partnerships); overlaps with Sleep Number's NFL and athlete-endorsement marketing in the premium-tier smart bed category.
Market position
Strengths5 records
Weaknesses5 records
Competitive moat4 records
Key risks7 records
Key highlights7 records
Customer concentration
Sleep Number social profiles
Digital presenceSleep Number financial estimates
Financial estimateRevenue estimate
Valuation estimate
Sleep Number leadership team
Management profileNumber of profiles
Profiles7 records
Sleep Number subsidiaries and ownership
Company hierarchySubsidiaries2 records
Sleep Number funding detail
Funding detailFunding overview
Funding rounds5 records
Investors1 record
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
Sleep Number M&A and investment
M&A and investmentM&A1 record
Investments
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about Sleep Number
What does Sleep Number do?
Sleep Number designs, manufactures, and sells smart beds with adjustable air-chamber firmness, integrated temperature control, and proprietary SleepIQ sleep tracking technology. The portfolio spans three collections (ComfortMode, ComfortNext, Climate) plus the BreatheIQ sleep health mobile app, distributed through 572 company-owned U.S. retail stores and the sleepnumber.com e-commerce site.
Is Sleep Number a public or private company?
Sleep Number is a public company. It is classified as public and is currently operating.
When was Sleep Number founded?
Sleep Number was founded in 1987. It employs 1,001 to 5,000 people.
Where is Sleep Number based?
Sleep Number is headquartered in Minneapolis, United States, in the North America region.
How does Sleep Number make money?
Two revenue lines are on record. Smart Bed Hardware Sales are the primary driver. The others are sleep Data Services.
Who are Sleep Number's main competitors?
Direct peers on record are Tempur Sealy International, Purple Innovation, Casper Sleep, Eight Sleep, Sleep Country Canada and Saatva. Broad incumbents are Serta Simmons Bedding and Mattress Firm. Emerging players are Helix Sleep and Zoma Sleep.
Does Sleep Number have an API?
No public API is recorded for Sleep Number.
What industry is Sleep Number in?
Sleep Number's product category is Smart Mattresses and Sleep Products. Its primary akta.pro industry code is CRAIABAH, Sleep Technology & Smart Sleep Devices Retail (Sleep Trackers, Smart Mattresses). Its NAICS code is 33791.