SOMNIGROUP INTERNATIONAL INC.SGI
SOMNIGROUP INTERNATIONAL INC. Revenue Disclosure
Net Sales
The following table presents the Company's disaggregated revenue by channel and geographical region, including a reconciliation of disaggregated revenue by segment, for the years ended December 31.
| Twelve Months Ended December 31, 2025 | |||||||||||||||||||||||
| (in millions) | Mattress Firm | Tempur Sealy North America | Tempur Sealy International | Consolidated | |||||||||||||||||||
| Channel | |||||||||||||||||||||||
| Direct | $ | 3,505.4 | $ | 437.6 | $ | 802.9 | $ | 4,745.9 | |||||||||||||||
| Wholesale | — | 2,263.6 | 467.0 | 2,730.6 | |||||||||||||||||||
| Net sales | $ | 3,505.4 | $ | 2,701.2 | $ | 1,269.9 | $ | 7,476.5 | |||||||||||||||
| Mattress Firm | Tempur Sealy North America | Tempur Sealy International | Consolidated | ||||||||||||||||||||
| Geographical region | |||||||||||||||||||||||
| United States | $ | 3,505.4 | $ | 2,429.3 | $ | — | $ | 5,934.7 | |||||||||||||||
| All other | — | 271.9 | 1,269.9 | 1,541.8 | |||||||||||||||||||
| Net sales | $ | 3,505.4 | $ | 2,701.2 | $ | 1,269.9 | $ | 7,476.5 | |||||||||||||||
| Twelve Months Ended December 31, 2024 | |||||||||||||||||
| (in millions) | Tempur Sealy North America | Tempur Sealy International | Consolidated | ||||||||||||||
| Channel | |||||||||||||||||
| Direct | $ | 513.7 | $ | 715.6 | $ | 1,229.3 | |||||||||||
| Wholesale | 3,275.2 | 426.4 | 3,701.6 | ||||||||||||||
| Net sales | $ | 3,788.9 | $ | 1,142.0 | $ | 4,930.9 | |||||||||||
| Tempur Sealy North America | Tempur Sealy International | Consolidated | |||||||||||||||
| Geographical region | |||||||||||||||||
| United States | $ | 3,490.1 | $ | — | $ | 3,490.1 | |||||||||||
| All other | 298.8 | 1,142.0 | 1,440.8 | ||||||||||||||
| Net sales | $ | 3,788.9 | $ | 1,142.0 | $ | 4,930.9 | |||||||||||
| Twelve Months Ended December 31, 2023 | |||||||||||||||||
| (in millions) | Tempur Sealy North America | Tempur Sealy International | Consolidated | ||||||||||||||
| Channel | |||||||||||||||||
| Direct | $ | 507.3 | $ | 672.0 | $ | 1,179.3 | |||||||||||
| Wholesale | 3,348.2 | 397.9 | 3,746.1 | ||||||||||||||
| Net sales | $ | 3,855.5 | $ | 1,069.9 | $ | 4,925.4 | |||||||||||
| Tempur Sealy North America | Tempur Sealy International | Consolidated | |||||||||||||||
| Geographical region | |||||||||||||||||
| United States | $ | 3,560.8 | $ | — | $ | 3,560.8 | |||||||||||
| All other | 294.7 | 1,069.9 | 1,364.6 | ||||||||||||||
| Net sales | $ | 3,855.5 | $ | 1,069.9 | $ | 4,925.4 | |||||||||||
Substantially all revenue is associated with bedding product sales.
The Mattress Firm segment sells products through one channel: Direct. The Tempur Sealy North America and Tempur Sealy International segments sell product through two channels: Direct and Wholesale. The Direct channel includes product sales through company-owned stores, e-commerce and call centers. The Wholesale channel includes all product sales to third-party retailers, including third-party distribution, hospitality and healthcare.
The Wholesale channel also includes income from royalties derived by licensing Sealy®, Stearns & Foster® and Tempur® brands, technology and trademarks to other manufacturers. The licenses include rights for the licensees to use trademarks as well as current proprietary or patented technology that the Company utilizes. The Company also provides its licensees with product specifications, research and development, statistical services and marketing programs. The Company recognizes royalty income based on the occurrence of sales of Sealy®, Stearns & Foster® and Tempur® branded products by various licensees. Royalty income in the Wholesale channel was $31.0 million, $31.5 million and $32.3 million for the years ended December 31, 2025, 2024 and 2023, respectively. Royalty income and franchise revenue in the Direct channel was $7.2 million for the year ended December 31, 2025.
For product sales in each of the Company's channels, the Company recognizes a sale when the performance obligations under the terms of the contract with the customer are satisfied, which is generally when control of the product has transferred to the customer. Transferring control of each product sold is considered a separate performance obligation. The Company transfers control and recognizes a sale when the customer receives the product. Each unit sold is considered an independent, unbundled performance obligation. The Company does not have any additional performance obligations other than product sales that are material in the context of the contract. The Company also offers assurance type warranties on certain of its products, which is not accounted for as separate performance obligations under the revenue model.
The transaction price is measured as the amount of consideration the Company expects to receive in exchange for transferring goods. The amount of consideration the Company receives, and correspondingly, the revenue that is recognized, varies due to sales incentives and returns the Company offers to its Direct and Wholesale channel customers. Specifically, the Company extends volume discounts, as well as promotional allowances, floor sample discounts, commissions paid to retail associates and slotting fees to its Wholesale channel customers and reflects these amounts as a reduction of sales at the time revenue is recognized based on historical experience. The Company allows returns following a sale, depending on the channel and promotion. The Company reduces revenue and cost of sales for its estimate of the expected returns, which is primarily based on the level of historical sales returns. The Company does not offer extended payment terms beyond one year to customers. As such, the Company does not adjust its consideration for financing arrangements.
In certain jurisdictions, the Company is subject to certain non-income taxes including, but not limited to, sales tax, value added tax, excise tax and other taxes. These taxes are excluded from the transaction price, and therefore, excluded from revenue. The Company has elected to account for shipping and handling activities as a fulfillment cost. Accordingly, the Company reflects all amounts billed to customers for shipping and handling in revenue and the costs of fulfillment in cost of sales.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2019 | Feb 24, 2020 | |
| 2018 | Feb 25, 2019 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.