Sleep Number announced a time‑vested restricted stock unit award of 69,742 shares to its newly‑hired Executive Vice President and Chief Financial Officer, Amy O’Keefe, effective December 15, 2025. The award will vest in three equal installments on each anniversary of the grant date and is contingent on continued employment, in accordance with Nasdaq Listing Rule 5635(c)(4).
The grant reflects the company’s ongoing turnaround after a challenging Q3 2025 period, when net sales fell 19.6% to $343 million, gross margin contracted to 59.9% from 60.8% the previous year, and the company recorded a net loss of $40 million versus a $3 million loss in Q3 2024. The equity incentive is part of a broader strategy to attract experienced financial leadership to drive cost reductions and operational streamlining.
Amy O’Keefe joined Sleep Number on December 8, 2025, bringing a track record of financial stewardship from prior roles. CEO Linda Findley said her experience will be valuable at a pivotal time, while O’Keefe expressed excitement about helping the company execute its turnaround plan.
The grant size of 69,742 shares, valued at roughly $1.8 million, aligns with market practice for inducement grants under Nasdaq rule 5635(c)(4) and signals board confidence in O’Keefe’s ability to improve financial performance.
Investors remain concerned after the Q3 2025 earnings miss, which highlighted declining sales and net losses. The equity grant is viewed as a step to restore confidence, though the company still faces headwinds such as demand weakness and competitive pressure.
Sleep Number has revised its full‑year 2025 outlook to net sales of approximately $1.4 billion, a gross margin of about 60%, and negative free cash flow of roughly $50 million, underscoring ongoing challenges. The CFO appointment and equity incentive are part of a broader turnaround strategy that includes cost cuts and an amended credit agreement to provide financial flexibility.
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