SGI earnings analysis
What we found in SGI's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
For Q1 2026, Somnigroup International reported total revenue of $1.802 billion, reflecting a 12.3% increase from the previous year. EPS rose to $0.59, beating estimates, while operating income surged by 1,317.4% amid ongoing operational improvements. However, revenue fell short of expectations, leading to mixed market reactions.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Strong Operating Income Growth
- Operating income soared to $187.1 million, a 1,317.4% increase from $13.2 million in Q1 2025.
- Record EPS Beat
- Reported EPS of $0.59 exceeded estimates of $0.57, reflecting a substantial recovery from a loss of $(0.17) in Q1 2025.
- Solid Revenue Increase
- Q1 2026 revenue reached $1.802 billion, up 12.3% from $1.605 billion a year prior.
- Improved Gross Margin
- Gross margin improved to 43.1%, up from 36.2% in Q1 2025, reflecting enhanced operational efficiencies.
- Increased Cash Flow from Operations
- Operating cash flow increased to $246.5 million compared to $106.4 million in Q1 2025.
- Debt Reduction Achieved
- Total debt decreased to $4.578 billion from $4.717 billion at the end of 2025.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Significant Revenue Miss
- Actual revenue of $1.802 billion was below the estimate of $1.833 billion, reflecting potential market challenges.
- Decline in Wholesale Segment
- Tempur Sealy North America's revenue dropped by $142.7 million, or 20.2%, primarily due to discontinued sales to Mattress Firm.
- Ongoing Geopolitical Risks
- Management highlighted persistent geopolitical tensions and inflation as headwinds impacting consumer spending.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.59
- Gross margin
- 43.1%
- Operating margin
- 10.4%
- Segment
- Mattress Firm: $885.9M
- Segment
- Tempur Sealy North America: $563.5M
- Segment
- Tempur Sealy International: $352.1M
What they said about what is next.
Management maintains guidance for full-year adjusted EPS between $3.00 and $3.40.
The filing reads about the same as the one before it.
What came before.
- 10-K · February 27, 2026
- Somnigroup completed the Mattress Firm acquisition on February 5, 2025 for approximately $5.1 billion (net of $0.3 billion cash acquired), financed with $3.1 billion cash and ~34.2 million shares valued at $65.65 each,…
- 10-Q · November 7, 2025
- Somnigroup reported a strong Q3 driven by the Mattress Firm acquisition: revenue of $2,122.6M and gross profit of $952.8M for the quarter, materially above the prior-year quarter. Operating profit and diluted EPS…
- 10-Q · August 8, 2025
- Somnigroup reported Q2 net sales of $1,880.8 million, up $647.2 million (+52.5%) versus Q2 2024 driven by the Mattress Firm acquisition. Gross profit rose to $827.2 million (44.0% margin) while diluted EPS was $0.47,…
- 10-Q · May 12, 2025
- Somnigroup reported consolidated net sales of $1,604.7 million for the quarter (up $415.3 million, +34.9% vs. $1,189.4 million a year ago) driven by the February 5, 2025 acquisition of Mattress Firm (stub-period revenue…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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