SLEEP NUMBER Business Summary

Sleep Number Corp (SNBR) operates as a vertically integrated wellness technology company, primarily generating revenue through a direct-to-consumer (DTC) model that encompasses its proprietary 360 smart beds, adjustable bases, and sleep-related accessories. The company’s business is centralized under its "Total Retail" segment, which leverages a network of over 630 physical stores alongside integrated digital, phone, and chat channels to capture full retail margins and maintain brand exclusivity. By embedding biometric sensors and SleepIQ software into its hardware, Sleep Number has transitioned from a traditional mattress retailer into a data-driven health platform, having aggregated over 24 billion hours of longitudinal sleep data to drive product innovation. Its primary competitors include industry giant Tempur Sealy, a restructured Serta Simmons Bedding, and DTC-native Purple Innovation; within this landscape, Sleep Number distinguishes itself as the premium technological leader, commanding an estimated 30-35% share of the specialized smart bed market despite a smaller 6-7% share of the broader U.S. mattress industry. Founded in 1987 by Robert and JoAnne Walker as Select Comfort, the company is currently led by President and CEO Linda Findley, who assumed the role in April 2025 following the retirement of long-time leader Shelly Ibach. Findley brings a high-growth digital and operational pedigree, having previously served as CEO of Blue Apron and COO of Etsy. The executive leadership team was further restructured in late 2025 with the appointment of Amy K. O’Keefe as Executive Vice President and Chief Financial Officer, alongside Melissa Barra as Chief Product and Enterprise Strategy Officer and Amber L. Minson as Chief Marketing Officer. The company’s strategic direction is overseen by an independent Board of Directors chaired by Phillip M. Eyler, with significant institutional influence from activist investor Stadium Capital Management—which holds an approximate 11.5% stake—as well as major shareholders BlackRock and Vanguard.