Sleep Number discloses revised credit covenants; expects FY25 adjusted EBITDA ~$70M

Sleep Number Corp

Net leverage ratio covenant set at 5.25x for Q3 2025, stepping down to 4.00x by mid-2026.
Consolidated EBITDA definition expanded to include addbacks for cost actions not yet fully realized in trailing results.
FY2025 adjusted EBITDA expected ~$70M; with addbacks, Consolidated EBITDA ~$110M for covenant compliance.
Approximately $40M of structural cost changes mostly executed; expects to remain covenant-compliant in Q4 2025.
Anticipates stabilizing marketing investments in 2026 to support new products and repeat-buyer demand.

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