Sleep Number

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.

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

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

• Smart mattresses
• Adjustable sleep beds
• Sleep tracking technology
• Bed-in-a-box retail
• Wellness sleep products

Headquarters

HQ city

Minneapolis

HQ country

United States

HQ region

North America

Offices2 records

Markets served

GTM type

B2C

Offering type

Hardware or Manufacturing

Cost components

Operations, Personnel, Marketing or Sales, Technology or R&D, Infrastructure, Supply Chain

Revenue model

1. 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.
2. 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

Go-to-market motion2 records

Distribution channels3 records

Marketing channels6 records

Core 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

Named customers2 records

Segments3 records

Ideal customer profiles3 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

AI capability4 records

Feature5 records

Partnerships

Four partnerships are on record, tiered minor and core.

• Guggenheim SecuritiesminorOthers · 12 June 2026Investment 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/G42minorChannel Partner/ Reseller/ Distributor · 6 May 2026G42'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.
• FallonminorStrategic or Co-development Partner · 28 April 2026Sleep 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)coreGTM or Marketing Partner · 1 January 2026Sleep 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

Direct 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

• Xx.com/sleepnumber
• YouTubeyoutube.com/user/SleepNumber
• Facebookfacebook.com/sleepnumber
• LinkedInlinkedin.com/company/165914
• Instagraminstagram.com/sleepnumber
• TikToktiktok.com/@sleepnumber

Revenue estimate

Valuation estimate

Number of profiles

Profiles7 records

Subsidiaries2 records

Funding overview

Funding rounds5 records

Investors1 record

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A1 record

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Sleep Number