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Somnigroup International (SGI) investor relations material
Somnigroup International Q3 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Achieved record Q3 2025 net sales of $2.12 billion, up 63.3% year-over-year, driven by the Mattress Firm acquisition, synergy realization, and direct-to-consumer growth.
Adjusted EBITDA rose 52.4% to $419 million; adjusted EPS up 15.9% to $0.95; net income increased 36.5% to $177.4 million.
Mattress Firm acquisition completed in Q1 2025, with divestiture of Sleep Outfitters and 73 Mattress Firm stores in Q2.
Early synergy realization from Mattress Firm, with $60 million in 2025 sales synergies and a $200 million net synergy target by 2027.
Cash flow from operations reached a record $408 million for the quarter.
Financial highlights
Q3 2025 net sales: $2.12 billion (+63.3% YoY); TTM net sales: $6.82 billion (+39.3% YoY).
Adjusted EBITDA: $419 million (+52.4% YoY); adjusted EPS: $0.95 (+15.9% YoY); net income: $177.4 million (+36.5% YoY).
Gross margin improved to 44.9% (adjusted: 45.6%) from 42.4% (adjusted: 43.2%) year-over-year.
Record operating cash flow of $408 million and free cash flow of $360 million.
Consolidated debt less cash at $4.6 billion; leverage ratio at 3.28x as of 9/30/25.
Outlook and guidance
Raised 2025 adjusted EPS guidance to $2.60–$2.75; sales expected at or above $7.5 billion.
Adjusted EBITDA for 2025 expected at approximately $1.3 billion; consolidated gross margin slightly above 44%.
Leverage expected to return to 2–3x range by early 2026; focus on debt repayment over share repurchases in the near term.
2025 CapEx projected at $175 million, including $25 million for Mattress Firm store refreshes.
Quarterly dividend of $0.15 per share declared for Q4 2025.
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