Sleep Number Corporation (Nasdaq: SNBR) reported second-quarter 2025 results, showing net sales of $328 million, a decrease of 19.7% year-over-year, attributed to lower volume and a reduced store count. The company recorded a net loss of $25 million, primarily due to reduced net sales, partially offset by decreased operating expenses. Gross profit was $194 million, with a gross profit margin of 59.1%, consistent with the prior year. Operating expenses before restructuring and other non-recurring costs were reduced by 21% to $185 million, driven by cuts in marketing, selling, and administrative expenses. Adjusted EBITDA stood at $24 million, down 17%, with an improved margin by 30 basis points to 7.2%. Net cash from operating activities was $1.2 million, down $22 million year-over-year, while free cash flow was a negative $6.9 million. The company's leverage ratio was 4.56x EBITDAR, close to the covenant maximum of 4.75x. The company is in a turnaround phase, focusing on building its strong brand and differentiated products, with plans to enhance its product assortment and consumer engagement to return to profitable growth.