Somnigroup International Reports 52.5% Revenue Growth in Q2 2025, Net Income Declines

Somnigroup International Inc. reported significant financial results for the second quarter of 2025, with net sales reaching $1,880.8 million, a 52.5% increase from $1,233.6 million in the same period last year. This growth was primarily driven by the inclusion of $948.8 million in sales from Mattress Firm, which the company acquired on February 5, 2025, for approximately $5.1 billion. Despite the increase in sales, net income attributable to Somnigroup decreased by 6.7% to $99.0 million, compared to $106.1 million in the prior year, reflecting higher operating expenses and interest costs.

The company's gross profit for the quarter was $827.2 million, resulting in a gross margin of 44.0%, up from 42.0% in the previous year. Operating income increased slightly by 3.8% to $179.9 million, while selling and marketing expenses surged to $460.5 million, up from $239.6 million, largely due to increased advertising and promotional activities associated with the Mattress Firm acquisition. General and administrative expenses also rose to $175.9 million from $107.8 million, reflecting the costs of integrating the new business.

In terms of operational metrics, Somnigroup's total assets increased significantly to $11.4 billion as of June 30, 2025, compared to $6.0 billion at the end of 2024, largely due to the acquisition of Mattress Firm, which added substantial goodwill and intangible assets. The company reported a working capital deficit of $294.5 million, primarily driven by increased short-term operating lease obligations related to the acquisition. The total debt also rose to $4.95 billion, up from $3.84 billion at the end of 2024, reflecting the financing used for the acquisition.

Looking ahead, Somnigroup anticipates continued growth driven by its strategic investments in product innovation and market expansion. The company has launched a new collection of Sealy Posturepedic products aimed at revitalizing its presence in the mid-to-entry level market. Despite facing macroeconomic pressures and potential tariff impacts, management remains optimistic about outperforming the bedding industry, supported by its strong brand portfolio and omni-channel distribution strategy. The company expects to maintain its focus on operational efficiencies and cost management to navigate the evolving market landscape.