Somnigroup Q2 Earnings: Revenue Misses Estimates, Margins Compressed Amid Sales Growth and Integration Progress

Somnigroup (NYSE:SGI) Q2 CY2025 results show a 52.5% YoY sales increase to $1.88 billion, beating expectations by 0.6%. However, revenue fell short of analyst estimates, and non-GAAP profit of $0.53 per share was 3.6% above consensus estimates. Management raised full-year adjusted EPS guidance to $2.55, a 3% increase. Despite margin compression, the company's strong sales growth and integration progress contributed to its positive performance.

Somnigroup (NYSE:SGI), a leading bedding manufacturer, reported its Q2 2025 results, showcasing a 52.5% year-over-year (YoY) sales increase to $1.88 billion, beating market expectations by 0.6% [1]. Despite this strong performance, the company's revenue fell short of analyst estimates. The non-GAAP earnings per share (EPS) of $0.53 exceeded analyst estimates by 3.6%, and management raised its full-year adjusted EPS guidance to $2.55, a 3% increase.

The Chairman and CEO, Scott Thompson, attributed the robust sales growth to the Mattress Firm acquisition, the launch of the new Sealy line in North America, and robust international sales. However, the company's 13.5% annual revenue growth over the past five years lags behind sector benchmarks [1]. Over the last two years, direct-to-consumer sales surged by 46.5%, while wholesale revenue declined by 7.7%. Analysts project a 27.8% revenue increase for the next 12 months, signaling optimism about new product lines [1].

Despite a contraction in operating margin to 9.6% this quarter, the company maintained a two-year average of 10.4%. Adjusted EPS declined year-over-year to $0.53 but still beat expectations. Wall Street forecasts full-year EPS growth of 13.8% to $2.44 [1]. Following the earnings release, Somnigroup shares dipped 1.1% to $72.76 as investors reacted to the mixed results.

The report provides an in-depth analysis of the global mattress market, including the latest data on market trends and opportunities by country, consumption, production, and price developments [1]. The forecast exhibits the market prospects through 2030. Key players in the market include LEGGETT AND PLATT INCORPORATED, TEMPUR SEALY INTERNATIONAL, INC, SELECT COMFORT CORPORATION, and others [1].

References:
[1] https://www.indexbox.io/blog/somnigroup-reports-mixed-q2-2025-results-despite-strong-sales-growth/