The Sleep Number smart bed, an air mattress that adjusts firmness as the sleeper moves and reports sleep data to an app, has been a high-profile piece of sleep tech in the U.S., with 600 company stores across all 50 states at the start of 2026. In 2026 it also became the clearest sign that the category has cooled. The company filed for Chapter 11 on June 12, and a court-approved sale of substantially all its assets closed on July 31.
The collapse did not come out of nowhere. The company’s own SEC filings show four straight years of shrinking sales, a swing to heavy losses and a going-concern warning in March 2026. Here is what the numbers show and what the sale means for owners and shoppers.
Trend Signal
15/100 Weak momentum
- Emerging
- Rising
- Mainstream
- Peaking
- Cooling
Net sales down 35% from 2021, then a court-run sale
Sleep Number’s net sales fell from $2.18 billion in fiscal 2021 to $1.41 billion in fiscal 2025, and it sold substantially all its assets in a Chapter 11 sale that closed on July 31, 2026.
Our editorial reading of the cited data, not a forecast. How it is scored
By the numbers
- $1.41BSleep Number net sales, fiscal year ended January 3, 2026Sleep Number 10-K, SEC
- 35%Net sales change, fiscal 2021 ($2.18B) to fiscal 2025 ($1.41B), our calculationSleep Number 10-K filings, SEC
- $529.5MCash price in the court-approved asset sale to a Sleep Country Canada unit, July 2026Sleep Number 8-K, SEC
- 600Sleep Number stores operating as of January 3, 2026Sleep Number 10-K, SEC
Four straight years of shrinking sales
Sleep Number’s income statements trace the slide. Net sales were $2.18 billion in the fiscal year ended January 1, 2022, then $2.11 billion in fiscal 2022, $1.89 billion in fiscal 2023, $1.68 billion in fiscal 2024 and $1.41 billion in the fiscal year ended January 3, 2026. By our calculation that is a decline of about 35% over four years; the company put the 2025 drop at 16%.
Profits went the same way. The company earned $153.7 million in fiscal 2021 and $36.6 million in fiscal 2022, then posted net losses of $15.3 million in 2023, $20.3 million in 2024 and $132.0 million in 2025. In its annual report filed March 12, 2026, the company said “ongoing industry demand decline and the impact of lower store traffic contributed to a 16% net sales decline in 2025,” and that its liquidity raised substantial doubt about its ability to continue as a going concern.
| Fiscal year | Net sales | Net income (loss) |
|---|---|---|
| 2021 | $2,184.9M | $153.7M |
| 2022 | $2,114.3M | $36.6M |
| 2023 | $1,887.5M | ($15.3M) |
| 2024 | $1,682.3M | ($20.3M) |
| 2025 | $1,411.5M | ($132.0M) |
This was a multi-year demand problem in a high-priced category, not a one-quarter stumble.
How the court-run sale played out
On June 12, 2026, Sleep Number filed for Chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York and signed a stalking-horse agreement to sell substantially all its assets to Sleep Country Canada. The company said it expected up to $260 million of debtor-in-possession financing, including up to $65 million of new money. Chief executive Linda Findley said the capital structure “remains unsustainable” despite progress on a turnaround.
The opening bid of $415 million rose after a court-supervised auction. An amended agreement signed July 18, 2026 set the cash price at $529.5 million, the court approved the sale on July 21, and the deal closed on July 31 with SNBR, Inc., a wholly owned subsidiary of Sleep Country Canada Inc., as the buyer. According to the company’s August 3 filing, about $267.4 million went to repay debtor-in-possession term loans and roll-up loans plus certain fees and expenses, and the company does not expect any proceeds to be available for shareholders.
- March 12, 2026: annual report flags substantial doubt about continuing as a going concern
- June 12, 2026: Chapter 11 filing and a $415 million stalking-horse agreement with Sleep Country Canada
- July 18, 2026: amended agreement at $529.5 million after the auction
- July 21, 2026: bankruptcy court approves the sale
- July 31, 2026: sale closes
What owners were told about the app and warranties
The connected features are what make a smart bed smart, so the app question matters more here than in an ordinary mattress bankruptcy. In its June 12, 2026 announcement, the company said “the infrastructure supporting Sleep Number’s connected smart beds and App will remain operational as they are today.” It also said stores were open, SleepNumber.com was taking orders, and it was standing behind its 100-night trial and honoring warranties, gift cards and rewards points.
The later filings we read, the amended sale agreement and the closing report, cover the price and the transfer of substantially all assets but do not describe what the buyer plans for the brand, the stores or the app. That gap is the main open question for the more than 3 million “Smart Sleepers” the company counted in its 2026 annual report, which it said use the app at an average monthly engagement rate of about 80%.
The practical step for owners costs nothing: keep the order confirmation, warranty terms and model details somewhere outside the app, since any future claim would rest on that paperwork.
A connected bed depends on its maker’s servers as well as its air pump.
Where sleep tracking went instead
Sleep tracking itself has not cooled; it has moved onto devices people already own. Apple announced a Sleep Score for Apple Watch on September 9, 2025, built on factors including sleep duration, bedtime consistency, how often a person wakes and time spent in each sleep stage, and said on September 15 that it was available in the watchOS 26 software update. Apple lists it for models as old as Apple Watch Series 6. A smart bed now has to justify its price against that kind of update to a watch already on the wrist.
Across the wider bedroom furniture category, prices show no sign of a spike. The Bureau of Labor Statistics consumer price index for bedroom furniture stood at 142.2 in August 2026, about 5.6% below its July 2022 reading of 150.7 by our calculation, and roughly flat from 142.9 in August 2025.
We see no sign in the index that bedroom furniture prices are about to jump, which lowers the cost of waiting while the new owner sets its plans.
Who should buy a smart bed now
Buy now only if adjustable firmness is what you want and you accept that the connected features could change under new ownership. Adjustable air beds and standalone sleep trackers are a lower-commitment way to get those two functions.
Wait if the app and sleep data are the main reason you want the bed. Until SNBR, Inc. or Sleep Country Canada publishes plans for the brand and its software, the June 2026 assurances remain the most specific public commitment on record.
What to watch next
- Statements from SNBR, Inc. or Sleep Country Canada on the Sleep Number brand, store network and app after the July 31, 2026 closing
- Whether the 100-night trial and warranty terms Sleep Number described in June 2026 carry over under the new owner
- The monthly BLS bedroom furniture price index, which in August 2026 sat about 5.6% below its July 2022 level by our calculation
Where to start
Paid links: we earn a commission if you buy through the buttons below, at no extra cost to you. As an Amazon Associate I earn from qualifying purchases.
Ways to get adjustable firmness or sleep data, compared
| Product type | Good fit for | Where to look |
|---|---|---|
| Dual-chamber adjustable air mattress | Fits couples who want different firmness | See listings on AmazonOpens Amazon search results, not one listing: check the model on the product page. |
| Under-mattress sleep tracker pad | Fits people keeping their mattress | See listings on AmazonOpens Amazon search results, not one listing: check the model on the product page. |
| Adjustable bed base | Fits raising the head or feet | See listings on AmazonOpens Amazon search results, not one listing: check the model on the product page. |
Product types that fit the trend described above, not tested models. Check the exact listing before you buy. How we pick them.
Dual-chamber adjustable air mattress
Where to look: Amazon
Fits couples who want the main mechanical feature of a smart bed without buying into one brand’s app. Check what still works when the phone is out of reach.
- Firmness set separately per side
- Core function is mechanical
- More parts than a foam mattress
- Pump and hose warranty terms vary
Under-mattress sleep tracker pad
Where to look: Amazon
Fits people who want sleep data without replacing a mattress. The Sleep Number sale is a reminder to check the maker’s support terms and data export options first.
- Adds sleep data without a new bed
- Moves with you to another bed
- Depends on its app staying online
- Some features may need a subscription
More: Health and Wellness trends and how the Trend Signal is scored.
Sources
- Sleep Number Corp. annual report on Form 10-K for fiscal 2025 — SEC
- Consolidated statements of operations, fiscal 2023 to 2025 — SEC
- Consolidated statements of operations, fiscal 2021 to 2023 — SEC
- Sleep Number enters asset purchase agreement with Sleep Country Canada, press release of June 12, 2026 — SEC
- Form 8-K on the amended asset purchase agreement, July 2026 — SEC
- Form 8-K on completion of the asset sale, August 3, 2026 — SEC
- CPI for bedroom furniture, U.S. city average — Bureau of Labor Statistics
- Apple debuts Apple Watch Series 11, featuring groundbreaking health insights — Apple Newsroom
- New versions of Apple’s software platforms are available today — Apple Newsroom
Questions readers ask
Did Sleep Number go bankrupt?
Yes. Sleep Number filed for Chapter 11 on June 12, 2026 in the U.S. Bankruptcy Court for the Southern District of New York, case 26-11399. It sold substantially all its assets to SNBR, Inc., a subsidiary of Sleep Country Canada, for $529.5 million in cash, and the sale closed on July 31, 2026, according to its SEC filings.
Will my Sleep Number bed app keep working?
In its June 12, 2026 announcement, the company said the infrastructure supporting its connected smart beds and app would remain operational as it was. The later SEC filings on the sale do not describe the buyer’s plans for the app, so that statement is the most specific public commitment so far.
Is Sleep Number still honoring warranties?
As of June 12, 2026, the company said it was honoring warranties, gift cards and rewards points and standing behind its 100-night trial. The filings on the July 31, 2026 closing do not restate those terms, so keep your order and warranty records.
Why did Sleep Number’s sales fall?
In its annual report filed March 12, 2026, the company pointed to ongoing industry demand decline and lower store traffic, which it said contributed to a 16% net sales decline in 2025. Net sales fell from $2.18 billion in fiscal 2021 to $1.41 billion in fiscal 2025.
