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Somnigroup International (SGI) FY2025 results: revenue $7.5 billion, up 51.6% on the year

Somnigroup International Inc. (SGI) reported revenue of $7.5 billion for fiscal 2025, the year ended 31 December 2025, up 51.6% on the year before. Net income was $384 million, down 0.1%, and diluted earnings per share $1.84. The figures are the company's own, from the 10-K it filed with the SEC on 27 February 2026.

Revenue
$7.5 billion
+51.6% on the year
FY2018FY2025
Operating margin
10.1%
12.9% a year earlier
FY2018FY2025
Net income
$384 million
-0.1% on the year
FY2018FY2025
Diluted EPS
$1.84
-14.8% on the year
FY2018FY2025

this yearthe year beforeHover a bar for its figure.

The year in brief

What management said about the year

Guidance figures: 3 new.

  • Net sales rose 54.7%: Net sales reached $1,868.4 million. Mattress Firm was the main driver, while $269.0 million of sales from North America to Mattress Firm was eliminated on consolidation.
  • Operating income rose 93.7%: Operating income was $247.1 million. Adjusted operating income rose 59.8% to $267.8 million.
  • Adjusted EPS up 20%: Diluted EPS was $0.66, up 65.0%. Adjusted EPS was $0.72, up 20.0%. Net income attributable to the company was $140.8 million, up 95.8%.
  • Mattress Firm sales of $892.1 million: All Mattress Firm sales go through the direct channel. Its gross margin was 30.8% and operating margin 4.4%, or 32.4% and 5.4% on an adjusted basis.
  • North America adjusted margins rose: North America gross margin was 59.0% and operating margin 27.2%. Adjusted operating margin rose 1,280 basis points to 27.6%, from the Mattress Firm acquisition and expense leverage.
Read the Q4 FY2025 earnings call summary

From this 10-K

Somnigroup International designs, makes, distributes and sells mattresses, pillows and other bedding products in over 100 countries through three wholly owned businesses, Tempur Sealy, Mattress Firm and Dreams. The company describes itself as the world's largest bedding company, and its brands include Tempur-Pedic, Sealy and Stearns & Foster. As of December 31, 2025 it had over 2,800 retail stores, approximately 30 e-commerce platforms, over 70 manufacturing facilities and four research and development facilities worldwide. It was incorporated in Delaware in September 2002, and its principal executive office is in Dallas, Texas.

Somnigroup International Inc., the 10-K for 2025

Somnigroup International designs, makes, distributes and sells mattresses, pillows and other bedding products in over 100 countries through three wholly owned businesses, Tempur Sealy, Mattress Firm and Dreams. The company describes itself as the world's largest bedding company, and its brands include Tempur-Pedic, Sealy and Stearns & Foster. As of December 31, 2025 it had over 2,800 retail stores, approximately 30 e-commerce platforms, over 70 manufacturing facilities and four research and development facilities worldwide. It was incorporated in Delaware in September 2002, and its principal executive office is in Dallas, Texas.

Mattress Firm and the name change

On February 5, 2025 it completed its acquisition of Mattress Firm, which the filing calls the nation's largest mattress specialty retailer, paying partly in cash and partly with approximately 34.2 million shares of its common stock. In connection with the deal it changed its name to Somnigroup International effective February 18, 2025. To comply with commitments made to win approval of the deal, it set its merchandising plan to give 43% of horizontal premium floor slots, on average across its open Mattress Firm stores, to third-party premium mattresses, and management determined that it was in compliance as assessed on December 31, 2025.

Segments

Since the acquisition it has reported three segments. Mattress Firm consists of retail stores and distribution centers in the U.S., where manufacturers ship merchandise to 62 distribution centers serving over 2,100 retail stores and e-commerce operations, and third-party delivery services take it to customers' homes or to stores. Tempur Sealy North America consists of manufacturing, distribution and retail subsidiaries and licensees in the U.S., Canada and Mexico. Tempur Sealy International covers subsidiaries, joint ventures and licensees in Europe, Asia-Pacific and Latin America other than Mexico.

Brands and channels

Tempur-Pedic, founded in 1991, uses the company's proprietary Tempur material, which adapts to the shape, weight and temperature of the sleeper. Stearns & Foster dates from 1846 and offers mattresses built by trained craftsmen, and Sealy originated in 1881 in Sealy, Texas, with the Sealy Posturepedic line introduced in 1950. Sleepy's is its private label brand at Mattress Firm stores and online, and it also sells non-branded mattresses, pillows and components to third-party retailers through its OEM business. It sells through two main channels, Direct, which covers its company-owned stores, e-commerce platforms and call centers, and Wholesale, which covers third-party retailers, hospitality businesses and healthcare customers.

Suppliers and research

It buys the chemicals and proprietary additives for Tempur-Pedic products and other components such as textiles from suppliers with manufacturing locations around the world. Raw materials for Sealy and non-branded products are mainly polyurethane foam, textiles and steel innerspring components, and in the U.S. and Canada it sources most of its foam and spring components for Sealy and Stearns & Foster mattresses from key suppliers for each component. Mattress Firm buys finished goods from various bedding manufacturers, including Tempur Sealy North America, and buys adjustable bed bases and foundations from a limited number of key suppliers whose components supply chains originate in China. It has four research and development centers, three in the U.S. and one in Denmark, and a product testing facility that runs hundreds of consumer tests a year.

Competition

It competes with other bedding manufacturers and retailers, and the filing describes the domestic market for manufacturers as concentrated and the domestic market for retailers as fragmented, while internationally both are highly fragmented. It states that participants compete mainly on price, quality, brand name recognition, product availability and product performance, and that more U.S. and international companies are selling mattresses online directly to consumers.

People

As of December 31, 2025 it had over 19,000 full-time employees, and its joint ventures employed over 1,500 more.

From Somnigroup International's annual report on Form 10-K for the year ended 31 December 2025. The filing

Written from the 10-K filed 27 February 2026: read the full 10-K.

The four quarters: Q1 FY2025 · Q2 FY2025 · Q3 FY2025 · Q4 FY2025

Income statement (profit and loss)

$ millionFY2025FY2024FY2023On the yearLast 8 years
Revenue7,4764,9314,925+51.6%
Cost of revenue4,2932,9032,939+47.9%
Gross profit3,1832,0281,986+57.0%
Gross margin42.6%41.1%40.3%
Research and development32.930.830.6+6.8%
Operating income755634607+19.0%
Operating margin10.1%12.9%12.3%
Interest expense268135130+98.7%
Pre-tax income481504474-4.6%
Income tax95.7119103-19.3%
Effective tax rate19.9%23.5%21.8%
Net income384384368-0.1%
Net margin5.1%7.8%7.5%
Diluted EPS$1.84$2.16$2.08-14.8%
$ million except per share.
Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ millionFY2025FY2024FY2023On the yearLast 8 years
Operating cash flow800666570+20.0%
Capital expenditure16797.3185+71.5%
Free cash flow633569385+11.2%
Free cash flow margin8.5%11.5%7.8%
Cash from investing-3,024-96.7-188
Cash from financing6171,077-384-42.7%
Depreciation and amortisation290202183+44.2%
Share-based compensation41.036.447.7+12.6%
Dividends paid12792.777.7+37.4%
Dividend per share$0.60$0.52$0.44+15.4%
Diluted shares, weighted209m178m177m+17.4%

Balance sheet

$ millionFY2025FY2024FY2023On the yearLast 8 years
Shareholders' equity3,108559323+456.0%
Redeemable equity8.99.310.0-4.3%
Debt4,6073,8102,502+20.9%
Operating lease liabilities1,590532575+198.8%
Finance lease liabilities85.171.877.0+18.5%
Other liabilities2,2029981,067+120.6%
Total liabilities and equity11,6015,9804,554+94.0%
Goodwill4,5961,0671,083+330.9%
Intangible assets2,587700715+269.3%
Cash and equivalents1351,71074.9-92.1%
Receivables358404431-11.4%
Inventory630447483+40.9%
Other assets3,2941,6521,766+99.4%
Total assets11,6015,9804,554+94.0%

10-K for the year ended 31 December 2025, filed 27 February 2026: the filing.