Exhibit 99.1 FOR IMMEDIATE RELEASE Sleep Number Announces First Quarter 2025 Results Cash Flows, Liquidity and Balance Sheet Highlights (all comparisons year-over-year unless otherwise noted) Management Implements New Organizational Structure, Driving Company-Wide Efficiency, Including Marketing, Research and Development and General and Administrative Costs New Structure Aims to Improve Cash Generation and Shareholder Value MINNEAPOLIS – (April 30, 2025) – Sleep Number Corporation (Nasdaq: SNBR) today repor ...

Sleep Number (SNBR) shares rallied 14.7% in the last trading session to close at $5.40. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 32.8% loss over the past four weeks.Following President Trump's announcement to suspend U.S. tariffs on most countries for 90 days, Sleep Number shares soared, reflecting renewed investor optimism.This seller of beds, mattresses and bedding products is expected to post quarte ...

Core Insights - GEM HEALTH has partnered with Sleep Number Corporation to integrate its flagship product, GEM SLEEP, into Sleep Number's BreatheIQ digital sleep health app, enhancing user access to virtual sleep care [1][4]. Company Overview - GEM HEALTH specializes in virtual specialty care, focusing on sleep disorders, particularly obstructive sleep apnea, which affects an estimated 30 million people in the U.S. [7]. - GEM SLEEP offers comprehensive virtual care, including clinical evaluation, diagnosis, treatment setup, and ongoing support, all without requiring in-person clinic visits [2][7]. Product Features - GEM SLEEP aims to provide a user-friendly solution for the 80% of individuals with undiagnosed obstructive sleep apnea, addressing significant health risks associated with untreated conditions, such as stroke, diabetes, and cardiovascular diseases [2]. - The integration with BreatheIQ allows users to easily connect to GEM SLEEP, facilitating a streamlined care journey [3][4]. Market Access - GEM HEALTH's services are in-network with health plans covering 53 million Americans, ensuring broad access to care services [5][7]. - The company emphasizes reducing the time to relief from months to weeks, which benefits both patients and insurers [5].

Financial Performance - Net sales for 2024 decreased 11% to $1.7 billion, compared to $1.9 billion in 2023, primarily due to ongoing weakness in the mattress industry and consumer spending scrutiny [213]. - The average sales per store for the year ended December 28, 2024, totaled $2.6 million, down from $2.9 million in 2023 [213]. - Operating income for 2024 remained at $23 million, with an operating income rate of 1.4%, up from 1.2% in 2023, despite the decrease in net sales [213]. - Adjusted EBITDA for 2024 was $120 million, compared to $127 million in 2023, reflecting ongoing gross margin improvements [213]. - The net loss for 2024 was $20 million, with a net loss per diluted share of $0.90, compared to a net loss of $15 million and $0.68 per share in 2023 [213]. - Gross profit for 2024 was $1.0 billion, down $86 million or 8% from 2023, while the gross profit rate increased to 59.6% of net sales from 57.7% [221]. - Total net sales for 2024 were $1.68 billion, a decrease from $1.89 billion in 2023, with retail store sales at $1.47 billion and online sales at $208 million [397]. - The company reported a net loss of $20.3 million for 2024, compared to a net loss of $15.3 million in 2023, resulting in a basic and diluted net loss per share of $0.90 [392]. Cash Flow and Liquidity - The company generated $27 million in cash from operating activities in 2024, compared to cash used in operating activities of $9 million in 2023 [213]. - Free cash flow provided $4 million for the year ended December 28, 2024, compared to a cash usage of $66 million for the same period last year [213]. - Cash provided by operating activities was $27 million in 2024, a significant increase from net cash used in operating activities of $9 million in 2023 [234]. - Cash and cash equivalents at the end of 2024 were $1,950, a decrease from $2,539 in 2023 [288]. - The company had cash and cash equivalents of $2.0 million as of December 28, 2024, down from $2.5 million in the previous year [233]. - The Company’s additional borrowing capacity as of December 28, 2024, was $123,753,000 [372]. Expenses and Cost Management - Sales and marketing expenses decreased to $767 million in 2024, with the expense rate increasing to 45.6% of net sales due to an 11% net sales decrease [222]. - General and administrative expenses rose to $150 million in 2024, representing 8.9% of net sales, up from 7.8% in the prior year [223]. - Research and development expenses decreased by $11 million to $45 million in 2024, as the company re-prioritized R&D resources [224]. - The Company incurred $18.1 million in restructuring costs in 2024, compared to $15.7 million in 2023, with an expectation of an additional $5 million to $7 million in 2025 [226]. - Total operating expenses decreased to $979,901 in 2024 from $1,065,588 in 2023, primarily due to reductions in sales and marketing expenses [282]. Debt and Financing - Interest expense increased to $48 million in 2024, up from $43 million in the previous year, primarily due to a higher weighted-average interest rate [227]. - The Company amended its Credit Agreement, reducing the total aggregate commitment from $825 million to $685 million, with an accordion feature allowing an increase to $1.0 billion [239]. - As of December 28, 2024, the Company had $547 million in borrowings under its revolving credit facility and net liquidity available of $124 million [242]. - Outstanding borrowings as of December 28, 2024, were $546,600,000, with a weighted-average interest rate of 7.6% [372]. - The Company was in compliance with all financial covenants as of December 28, 2024 [373]. Inventory and Assets - The number of retail stores decreased to 640 at the end of 2024, down from 672 at the end of 2023, with 12 stores opened and 44 closed during the year [218]. - Total assets decreased from $950.88 million in 2023 to $860.81 million in 2024 [280]. - Accounts receivable decreased from $26.86 million in 2023 to $17.52 million in 2024 [280]. - Inventories decreased from $115.43 million in 2023 to $103.15 million in 2024 [280]. - Finished goods inventories decreased from $106.249 million in 2023 to $91.588 million in 2024, with specific categories showing declines: finished beds from $39.235 million to $34.725 million, finished components from $46.179 million to $39.634 million, and retail accessories from $20.835 million to $17.229 million [363]. Shareholder Returns and Stock Compensation - The company repurchased $768 in common stock in 2024, down from $3,747 in 2023, reflecting a strategic shift in capital allocation [288]. - At December 28, 2024, there was $348 million remaining authorization under the $600 million share repurchase program [316]. - Total stock-based compensation expense for 2024 was $11,444,000, down from $14,855,000 in 2023 [381]. - The Company expects to recognize $2.1 million of total stock option compensation expense related to non-vested stock options over a weighted-average period of 1.2 years [384]. - The company had $8.7 million of unrecognized compensation expense related to non-vested stock awards, expected to be recognized over an average period of 1.8 years [389]. Market Conditions and Industry Trends - The mattress industry unit volumes are estimated to return to 24 million units in 2024, the lowest level since 2015, indicating ongoing sector-level recession [211]. - Net sales decreased by $205 million year-over-year, primarily due to a $144 million decrease in Total Retail comparable net sales and a 12% decrease in Total Retail smart bed unit sales [220]. - The Company continues to focus on its vertically integrated business model, offering high-quality, individualized sleep solutions and expanding its product offerings [291].

Sleep Number Corporation’s (SNBR) fourth-quarter 2024 earnings topped the Zacks Consensus Estimate and grew year over year. On the other hand, net sales missed the consensus mark and tumbled year over year.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.The ongoing softness in the U.S. bedding industry, along with a lower store count, marred the sales growth during the quarter. However, despite the declining market trends, the company’s bottom line witnessed a boost due to the benefit ...

Financial Data and Key Metrics Changes - Fourth quarter net sales declined 12% year-over-year to $377 million, slightly below expectations [12][24] - Full year net sales totaled $1.68 billion, down 11% compared to the prior year [29] - Adjusted EBITDA for the fourth quarter increased by 43% year-over-year to $26 million, while full year adjusted EBITDA was $120 million, a 6% decline [10][29] - Gross margin for Q4 reached 59.9%, a 330 basis point increase year-over-year, with a full year gross margin of 59.6%, up 190 basis points from 2023 [11][25][29] - Operating expenses were reduced by $28 million in Q4 and $88 million for the full year, exceeding initial targets [11][27][29] Business Line Data and Key Metrics Changes - The mattress industry faced significant demand challenges, with U.S. mattress volumes for 2024 estimated at 24 million units, the lowest since 2015 [9] - The company reduced media spending by 18% year-over-year in Q4 and 9% for the full year, returning to 2019 levels [12] - The Climate series of products, which are higher margin, outperformed expectations, contributing positively to gross margin despite pressures at the lower end of the product line [41][56] Market Data and Key Metrics Changes - Consumer sentiment has dropped significantly, now 12 points lower than a year ago, impacting discretionary spending [13] - The consumer purchasing power weakened due to high interest rates and inflation concerns, leading to a 19% drop in buying conditions for durables [14] - The mattress category saw a decline in search interest, particularly affecting sales during key promotional events [14] Company Strategy and Development Direction - The company is focused on optimizing media and promotional strategies to drive demand and maximize returns [16] - A robust program is in place to examine costs, including material cost reductions and supplier negotiations [39] - The company aims to maintain financial resilience through structural changes and cost reductions, preparing for long-term growth once the market recovers [20][31] Management's Comments on Operating Environment and Future Outlook - Management expressed that the consumer environment remains challenging, with expectations of continued pressure in the first half of 2025 [30][75] - The company is not providing a financial outlook for 2025 at this time, allowing the new CEO to evaluate strategies and business trends [34] - Management highlighted the importance of generating cash to pay down debt and reduce leverage, with ongoing contingency plans in place [33][78] Other Important Information - Linda Findley has been appointed as the new President and CEO, set to join on April 7, 2025 [6][7] - The company has amended its financial covenants to provide flexibility in navigating ongoing industry pressures [32] Q&A Session Summary Question: Can you help us think about the runway for gross margin improvements? - Management indicated a robust program for cost efficiency, focusing on material cost reductions and supplier negotiations [39] Question: What are the dynamics regarding store leases and product launches? - Management noted that the Climate series is performing well and is expected to contribute positively in the upcoming quarters [41] Question: What is the impact of tariffs on cost of goods sold? - Management stated that about 70% of cost of goods sold relates to material costs, with significant exposure from Mexico [46] Question: What are the expectations for industry demand this year? - Management suggested that industry recovery might be slower than previously expected, with a more conservative outlook for the first half of the year [75] Question: How much further opportunity is there to drive expense savings? - Management highlighted that significant cost reductions have already been realized, but they will continue to seek additional efficiencies [78]

Core Insights - Sleep Number (SNBR) reported a quarterly loss of $0.18 per share, better than the Zacks Consensus Estimate of a loss of $0.22, and an improvement from a loss of $0.58 per share a year ago, indicating an earnings surprise of 18.18% [1] - The company posted revenues of $376.82 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 3.01%, and down from $429.52 million year-over-year [2] - Sleep Number shares have declined approximately 17.1% since the beginning of the year, contrasting with the S&P 500's decline of 1.8% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.33 on revenues of $454.9 million, and for the current fiscal year, it is $0.46 on revenues of $1.71 billion [7] - The estimate revisions trend for Sleep Number is mixed, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6] Industry Context - The Furniture industry, to which Sleep Number belongs, is currently ranked in the bottom 23% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Another company in the same industry, Bassett Furniture (BSET), is expected to report quarterly earnings of $0.02 per share, reflecting a year-over-year change of +114.3%, with revenues projected at $79.24 million, down 8.5% from the previous year [9]

Core Insights - Sleep Number reported a mixed earnings release with better-than-expected earnings but lower revenue, indicating successful cost management [1][2] Financial Performance - The company reported a smaller loss of -$0.21 per share compared to forecasts of -$0.23, marking an 81.3% improvement year-over-year from -$1.12 [2][3] - Revenue for Q4 2024 was $377 million, falling short of the expected $389 million and down 12.2% from $429.5 million in Q4 2023 [3][7] - Gross margin improved to 59.9%, up from 56.6% the previous year, reflecting a 3.3 percentage point increase [3][6] - Adjusted EBITDA for the quarter was $26 million, a 42.9% increase from $18.3 million in Q4 2023 [3] Strategic Focus - Sleep Number is focusing on innovation within its smart bed technology and a direct-to-consumer distribution model, which is crucial amid declining consumer demand in the bedding industry [5] - The company has implemented strategic cost reductions, achieving $28 million in operating expense cuts year-over-year, which helped cushion the impact of revenue declines [6][8] Market Position and Challenges - The decline in net sales was primarily due to a drop in retail store sales, which accounted for 86.6% of total sales, showing a slight increase in contribution from the previous year despite fewer sales [7] - The company reported a $36 million increase in net cash from operating activities and reduced its leverage ratio to 4.2x EBITDAR, indicating a focus on financial stability [8] Leadership Transition - Linda Findley is set to become the new CEO in April 2025, which may lead to a reevaluation of the company's strategy [9] Future Outlook - The outlook for Sleep Number is cautiously optimistic as it plans to address ongoing industry challenges such as high interest rates and lower consumer spending [10] - The leadership transition suggests a potential reappraisal of strategies, although new financial projections have not yet been provided [10]

Financial Performance - Fourth quarter gross profit rate improved to 59.9%, up 330 basis points year-over-year, with a full-year gross profit rate of 59.6%, up 190 basis points [7]. - Fourth quarter net sales were $377 million, down 12% compared to the prior year, while full-year net sales decreased 11% to $1.68 billion [8]. - Fourth quarter adjusted EBITDA was $26 million, up 43% year-over-year, with a full-year adjusted EBITDA of $120 million, at the midpoint of the earnings outlook [7]. - The company reported a fourth quarter net loss of $5 million, an improvement from a net loss of $25 million in the same period last year, while the full-year net loss was $20 million compared to a net loss of $15 million the previous year [8]. - Net loss for the twelve months ended December 28, 2024, was $20,334 million, compared to a net loss of $15,287 million in 2023, representing a 33.3% increase in losses [22]. - Adjusted EBITDA for the trailing twelve months ended December 28, 2024, was $119,579 million, down from $126,676 million in 2023, a decrease of about 5.6% [25]. - Consolidated EBITDAR decreased from $240,477 to $226,684, a decline of approximately 5.7% [30]. - Adjusted ROIC for the trailing twelve months ended December 28, 2024, was 7.6%, slightly down from 7.8% in the previous year [33]. - Adjusted NOPAT for the trailing twelve months ended December 28, 2024, was $37,740, compared to $38,868, a decrease of about 2.9% [33]. Cost Management - Operating expenses for the fourth quarter were reduced by $28 million year-over-year, totaling $219 million, with a full-year reduction of $88 million [8]. - Free cash flow for the year was $4 million, an increase of $70 million compared to the prior year [8]. - Free cash flow for the trailing twelve months ended December 28, 2024, was $3,638 million, compared to a negative $66,084 million in 2023, indicating a significant improvement [27]. - Total current liabilities decreased from $936,071 million in 2023 to $908,012 million in 2024, a reduction of about 3% [20]. - Cash and cash equivalents at the end of the period were $1,950 million in 2024, down from $2,539 million in 2023, a decrease of approximately 23.1% [22]. - Total debt including operating lease liabilities decreased from $980,120 to $943,496, a reduction of approximately 3.7% [30]. - Operating lease liabilities decreased from $433,154 to $389,508, a reduction of about 10.1% [33]. - Consolidated rent expense decreased from $113,801 to $107,105, a decline of approximately 5.9% [30]. Sales and Market Trends - Retail comparable-store sales decreased by 10% for the three months ended December 28, 2024, compared to a 15% decline in the same period of 2023 [24]. - Average revenue per smart bed unit increased to $5,959 in 2024 from $5,541 in 2023, reflecting a growth of approximately 7.5% [24]. - The percentage of sales from retail stores increased to 86.6% in Q4 2024 from 85.9% in Q4 2023, indicating a shift towards physical retail [24]. Leadership and Strategic Changes - The company announced a leadership transition with Linda Findley appointed as President and CEO effective April 7, 2025 [7]. - The company has transformed its operating model over the past 18 months to enhance financial resilience amid ongoing challenges in the U.S. bedding industry [3]. - Future financial outlook for 2025 will be provided later as the new CEO evaluates strategies and business trends [10]. Asset Management - Total assets decreased from $950,880 million in 2023 to $860,810 million in 2024, a decline of approximately 9.4% [20]. - Long-term debt increased from $539,819 to $546,841, an increase of about 1.3% [33]. - The leverage ratio at the end of the year was 4.2x EBITDAR, below the covenant maximum of 4.8x [8]. - The net leverage ratio under the revolving credit facility increased from 4.1 to 1.0 to 4.2 to 1.0 [30]. - Average adjusted invested capital increased slightly from $496,612 to $497,972, an increase of approximately 0.3% [33]. - The company opened 1 new store and closed 4 stores in the three months ended December 28, 2024, resulting in a total of 640 stores at the end of the period [24].

Core Insights - True value in investments is derived from growth rather than short-term gains, emphasizing the importance of a long-term perspective [1] - Great businesses provide significant societal value and demonstrate durability, which is a key factor for investment [1] - Companies that offer products and services significantly better than competitors are positioned for substantial growth [1] Business Characteristics - Selection, convenience, and value are critical attributes sought in businesses [1] - Durability acts as a multiplier for value, with a preference for non-cyclical businesses [1] - The ability to innovate and maintain competitive advantages is essential for long-term success [1] Revenue and Structure - Multiple revenue streams and anti-fragile business structures are preferred for resilience [1] - A business's ability to recover from adversity is a strong indicator of its potential [1] - Uniqueness is identified as the primary driver of value [1] Cost and Investment Strategy - Low costs associated with maintaining existing operations allow for high leverage in reinvestment and growth [1] - Minimal marketing expenses are advantageous for sustainable growth [1] - Trust and network effects are valuable indicators of a business's durability [1] Management and Leadership - Effective management is crucial, with a preference for executives who have aligned interests and a strong focus on the business [1] - Companies led by seasoned CEOs, founders, or family businesses are favored [1] - Good management fosters a culture of empowerment and attracts talent [1] Market Timing and Investment Philosophy - The best investment opportunities arise when negative news is already priced in, revealing true value [1] - Companies that can maintain stability during layoffs and adverse conditions are seen as more valuable [1] - Price movements are influenced by expectations, with a focus on undervalued companies amidst negative sentiment [1]