Revenue growth has moderated to 12.3% in 2026Q1 while operating margins remain under pressure, compressing to 0.8% in 2025Q1 due to high fixed costs.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Jun'16 | Jun'15 | Jun'14 | Jun'13 | Jun'12 | Jun'11 | Dec'08 | Dec'07 | Dec'06 | Dec'05 |
|---|
| Sales/Revenue | 7.67B | 7.48B | 4.93B | 4.93B | 4.92B | 4.93B | 3.68B | 532.93M | 521.26M | 529.95M | 767.23M | 752.99M | 629.57M | 247.43M | 353.15M | 360.38M | 214.99M |
| Revenue Growth % | 43.53% | 51.63% | 0.11% | 0.09% | -0.19% | 34.1% | 589.94% | 2.24% | -1.64% | -30.93% | 1.89% | 19.6% | 154.44% | -29.94% | -2% | 67.63% | - |
| Cost of Goods Sold | 4.27B | 4.16B | 2.75B | 2.8B | 2.87B | 2.77B | 2.04B | 388.38M | 386.62M | 391.54M | 578.17M | 559.17M | 459.76M | 1.12M | 304.18M | 286.98M | 165.33M |
| COGS % of Revenue | - | 55.65% | 55.79% | 56.78% | 58.35% | 56.22% | 55.44% | 72.88% | 74.17% | 73.88% | 75.36% | 74.26% | 73.03% | 0.45% | 86.13% | 79.63% | 76.9% |
| Gross Profit | 3.4B | 3.32B | 2.18B | 2.13B | 2.05B | 2.16B | 1.64B | 144.54M | 134.64M | 138.41M | 189.05M | 193.82M | 169.81M | 246.31M | 48.97M | 73.39M | 49.66M |
| Gross Margin % | 44.37% | 44.35% | 44.21% | 43.22% | 41.65% | 43.78% | 44.56% | 27.12% | 25.83% | 26.12% | 24.64% | 25.74% | 26.97% | 99.55% | 13.87% | 20.37% | 23.1% |
| Gross Profit Growth % | - | 52.1% | 2.41% | 3.86% | -5.05% | 31.76% | 1033.49% | 7.36% | -2.72% | -26.79% | -2.46% | 14.14% | -31.06% | 402.96% | -33.27% | 47.8% | - |
| Operating Expenses | 2.45B | 2.33B | 1.55B | 1.52B | 1.37B | 1.25B | 1.11B | 150.08M | 168.73M | 193.25M | 202.71M | 215.26M | 188.8M | 8.03M | 120.55M | 65.43M | 26.04M |
| OpEx % of Revenue | - | 31.17% | 31.35% | 30.89% | 27.82% | 25.28% | 30.09% | 28.16% | 32.37% | 36.47% | 26.42% | 28.59% | 29.99% | 3.25% | 34.14% | 18.16% | 12.11% |
| Selling, General & Admin | 2.46B | 2.43B | 1.56B | 1.54B | 1.39B | 1.28B | 1.12B | 47.86M | 53.86M | 55.8M | 54.32M | 62.02M | 52.58M | 4.65M | 36.15M | 21.89M | 8.39M |
| SG&A % of Revenue | - | 32.56% | 31.73% | 31.36% | 28.25% | 25.9% | 30.53% | 8.98% | 10.33% | 10.53% | 7.08% | 8.24% | 8.35% | 1.88% | 10.24% | 6.08% | 3.9% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 50.7M | 53.21M | 63.53M | 60.61M | 62.36M | 54.07M | 1.81M | 26.28M | 13.64M | 2.25M |
| R&D % of Revenue | - | - | - | - | - | - | - | 9.51% | 10.21% | 11.99% | 7.9% | 8.28% | 8.59% | 0.73% | 7.44% | 3.79% | 1.05% |
| Other Operating Expenses | -100K | -103.5M | -18.9M | -23M | -21.1M | -30.6M | -16.4M | 51.52M | 61.66M | 73.93M | 87.78M | 90.88M | 82.16M | 1.57M | 58.12M | 29.89M | 15.4M |
| Operating Income | 954.3M | 985.4M | 634.2M | 607.2M | 680.6M | 912.3M | 532.1M | -1.11M | -34.09M | -54.85M | -13.65M | -21.44M | -18.99M | -34.05M | -71.58M | 11.55M | 23.62M |
| Operating Margin % | 12.44% | 13.18% | 12.86% | 12.33% | 13.83% | 18.5% | 14.47% | -0.21% | -6.54% | -10.35% | -1.78% | -2.85% | -3.02% | -13.76% | -20.27% | 3.2% | 10.99% |
| Operating Income Growth % | - | 55.38% | 4.45% | -10.78% | -25.4% | 71.45% | 47950.72% | 96.74% | 37.85% | -301.69% | 36.32% | -12.92% | 44.23% | 52.43% | -719.88% | -51.11% | - |
| EBITDA | 1.23B | 1.28B | 799.3M | 742.5M | 807.7M | 1.03B | 630.1M | 9.95M | -22.9M | -40.3M | 615K | -6.87M | -1.19M | -28.4M | -64.11M | 15.11M | 27.54M |
| EBITDA Margin % | 16.02% | 17.08% | 16.21% | 15.07% | 16.41% | 20.8% | 17.14% | 1.87% | -4.39% | -7.6% | 0.08% | -0.91% | -0.19% | -11.48% | -18.15% | 4.19% | 12.81% |
| EBITDA Growth % | 75.78% | 59.76% | 7.65% | -8.07% | -21.24% | 62.75% | 6232.66% | 143.45% | 43.18% | -6652.52% | 108.95% | -477.23% | 95.81% | 55.69% | -524.17% | -45.13% | - |
| D&A (Non-Cash Add-back) | 275.3M | 291.6M | 165.1M | 135.3M | 127.1M | 113.2M | 98M | 11.06M | 11.19M | 14.55M | 14.27M | 14.57M | 17.8M | 5.65M | 7.47M | 3.57M | 3.93M |
| EBIT | 944.5M | 748.9M | 639.1M | 604M | 680.2M | 890.3M | 529.4M | -11.8M | -38.7M | -52.8M | -15.44M | -23.46M | -19.99M | -53.85M | -62.98M | 19.86M | 19.96M |
| Net Interest Income | -266.6M | -267.9M | -134.8M | -129.9M | -103M | -66.3M | -77M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 266.6M | 267.9M | 134.8M | 129.9M | 103M | 66.3M | 77M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 8K | 13K | 1.54M |
| Other Income/Expense | -286.7M | -504.4M | -129.9M | -133.1M | -103.4M | -88.3M | -79.7M | -10.69M | -4.62M | 2.04M | -1.79M | -2.02M | -1M | -19.8M | 8.59M | 8.3M | -5.2M |
| Pretax Income | 667.6M | 481M | 504.3M | 474.1M | 577.2M | 824M | 452.4M | -11.8M | -38.7M | -52.8M | -15.44M | -23.46M | -19.99M | -53.85M | -62.99M | 19.84M | 18.42M |
| Pretax Margin % | 8.7% | 6.43% | 10.23% | 9.63% | 11.73% | 16.71% | 12.3% | -2.21% | -7.43% | -9.96% | -2.01% | -3.12% | -3.18% | -21.76% | -17.84% | 5.51% | 8.57% |
| Income Tax | 145.6M | 95.7M | 118.6M | 103.4M | 119M | 198.3M | 102.6M | -626K | 440K | 12K | -12.62M | 1M | 1.24M | 376K | 6.57M | 8.37M | 9.91M |
| Effective Tax Rate % | 21.81% | 19.9% | 23.52% | 21.81% | 20.62% | 24.07% | 22.68% | 5.3% | -1.14% | -0.02% | 81.74% | -4.27% | -6.21% | -0.7% | -10.43% | 42.19% | 53.79% |
| Net Income | 521.4M | 384.1M | 384.3M | 368.1M | 455.7M | 624.5M | 348.8M | -11.18M | -39.15M | -52.81M | -2.82M | -24.46M | -21.23M | -54.23M | -69.56M | 11.47M | 8.51M |
| Net Margin % | 6.79% | 5.14% | 7.79% | 7.47% | 9.26% | 12.67% | 9.49% | -2.1% | -7.51% | -9.97% | -0.37% | -3.25% | -3.37% | -21.92% | -19.7% | 3.18% | 3.96% |
| Net Income Growth % | 89.67% | -0.05% | 4.4% | -19.22% | -27.03% | 79.04% | 3220.42% | 71.44% | 25.88% | -1772.84% | 88.47% | -15.2% | 60.85% | 22.04% | -706.32% | 34.77% | - |
| Net Income (Continuing) | 522M | 385.3M | 385.7M | 370.7M | 458.2M | 625.7M | 349.8M | -11.18M | -39.15M | -52.81M | -2.82M | -24.46M | -21.23M | -54.23M | -69.56M | 11.47M | 8.51M |
| Discontinued Operations | 0 | 0 | 0 | 0 | -400K | -700K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 7.9M | 8.9M | 9.3M | 10M | 9.8M | 9.2M | 9.9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 2.45 | 1.84 | 2.16 | 2.08 | 2.53 | 3.06 | 1.64 | -0.31 | -1.10 | -1.49 | -0.08 | -0.76 | -0.69 | -1.75 | -2.42 | 0.40 | 0.47 |
| EPS Growth % | 57.05% | -14.81% | 3.85% | -17.79% | -17.32% | 86.59% | 629.03% | 71.82% | 26.17% | -1778.94% | 89.57% | -10.14% | 60.57% | 27.69% | -705% | -14.89% | - |
| EPS (Basic) | - | 1.86 | 2.21 | 2.14 | 2.61 | 3.17 | 1.68 | -0.31 | -1.10 | -1.49 | -0.08 | -0.76 | -0.69 | -1.75 | -2.42 | 0.43 | 0.86 |
| Diluted Shares Outstanding | 212.6M | 209.2M | 178.2M | 177.3M | 180.3M | 204.3M | 212.3M | 208.04M | 206.92M | 206.92M | 206.92M | 187.92M | 178.14M | 180.67M | 167.28M | 166.92M | 104.99M |
| Basic Shares Outstanding | 210.3M | 206M | 173.6M | 172.2M | 174.9M | 197M | 207.9M | 208.04M | 206.92M | 35.55M | 206.92M | 187.92M | 178.14M | 180.67M | 167.28M | 155.27M | 57.89M |
| Dividend Payout Ratio | - | 33.17% | 24.12% | 21.11% | 15.47% | 10.1% | - | - | - | - | - | - | - | - | - | - | - |
High Customer Acquisition Costs
According to quarterly financial data, SGI experienced a significant revenue acceleration, peaking at 63.3% year-over-year growth in 2025Q3, though this rapid expansion appears to have moderated to 12.3% by 2026Q1, suggesting that the initial post-period growth spike may be normalizing toward a more sustainable baseline.
The sharp revenue trajectory shift from 2024 to 2025 suggests either a successful product cycle or aggressive market penetration strategies. Investors should monitor whether this growth is organic or driven by promotional discounting, as the subsequent deceleration in 2026Q1 warrants caution regarding the long-term durability of these gains.
As reported in recent income statements, SGI has maintained a relatively consistent gross margin profile, hovering near 44% despite significant revenue fluctuations, which indicates a degree of pricing power in its premium sleep hardware segment that effectively offsets the volatility in raw material and logistics costs.
The ability to hold margins near 44% during periods of rapid top-line growth suggests that the company is successfully passing through input cost pressures to the consumer. However, the dip to 36.2% in 2025Q1 serves as a reminder that the cost structure remains sensitive to operational disruptions or potential inventory inefficiencies.
Based on the provided income statement figures, SGI's operating income has failed to scale linearly with revenue, as evidenced by the 2025Q1 operating margin compression to 0.8%, suggesting that the company's fixed cost base, particularly in SG&A, remains a significant drag on overall profitability during growth phases.
The lack of consistent operating leverage implies that SGI is currently prioritizing market share acquisition over immediate margin expansion. Analysts should investigate whether the elevated SG&A spending is a permanent structural requirement for maintaining its 'smart' ecosystem or if it represents temporary investment in brand awareness.
As indicated by the historical data, SGI's net income has been periodically impacted by stock-based compensation expenses, which reached $10.1 million in 2025Q2, potentially obscuring the true cash-generating capability of the business and complicating the assessment of core operational performance for the period.
The presence of stock-based compensation, while common in tech-enabled firms, necessitates a closer look at the dilution impact on shareholders. The volatility in net income, including the net loss in 2025Q1, suggests that the company's bottom line remains susceptible to non-operating items and high overhead costs.
Based on an analysis of the reported financials, the sharp divergence between revenue growth and net margin performance suggests that SGI may be 'buying' growth through heavy marketing or promotional activity, a strategy that could prove unsustainable if consumer demand for premium sleep technology cools unexpectedly.
Short-term investors should be wary of the potential for margin compression if the company is forced to increase promotional intensity to maintain its current growth trajectory. The reliance on high-ticket hardware sales makes the company particularly vulnerable to shifts in consumer discretionary spending and interest rate environments.
Quick answers to the most common questions about buying SGI stock.
For fiscal year 2025, Somnigroup International Inc (SGI) reported total revenue of $7.48B. This represents a 3377.7% increase compared to $215.0M in 2005.
Somnigroup International Inc (SGI) is profitable, generating $384.1M in net income for the fiscal year ending 2025 with a net profit margin of 5.1%.
Somnigroup International Inc (SGI) reported an operating income of $985.4M, resulting in an operating profit margin of 13.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Somnigroup International Inc (SGI) generated $3.32B in gross profit for the year, representing a gross profit margin of 44.4%. This demonstrates the company's core pricing power and production efficiency.