Item 4 is hereby amended to add the following: On March 13, 2025, the Issuer and SCM entered into an agreement (the "Agreement"). Pursuant to the Agreement, (i) Stadium Capital irrevocably withdrew its notice of intent to nominate candidates for election to the Issuer's Board of Directors (the "Board") at the Issuer's 2025 annual meeting of shareholders (the "2025 Annual Meeting"); (ii) at the 2025 Annual Meeting, Michael J. Harrison, Shelly R. Ibach and Barbara R. Matas shall not stand for re-election to the Board; (iii) the only directors to be nominated for election to the Board at the 2025 Annual Meeting shall be Linda Findley, Deborah L. Kilpatrick and Hilary A. Schneider, it being understood and agreed that Ms. Schneider shall be reclassified as a member of the Board in the class with a term expiring at the 2025 Annual Meeting; (iv) no later than the completion of the Issuer's debt refinancing or at the conclusion of the 2026 annual meeting of shareholders (the "2026 Annual Meeting"), whichever occurs first, Stephen L. Gulis, Jr. shall resign from the Board; (v) Brenda J. Lauderback shall resign from the Board effective December 31, 2025; (vi) Ms. Schneider will be appointed the Chair of the Management Development and Compensation Committee of the Board, effective as of the 2025 Annual Meeting; (vii) following the conclusion of the 2025 Annual Meeting, the Board shall take all necessary actions to reduce the size of the Board to nine (9) directors; (viii) effective upon the earlier to occur of (A) the resignation of Mr. Gulis and (B) the resignation of Ms. Lauderback, the Board shall take all necessary actions to reduce the size of the Board from nine (9) to eight (8) directors; and (ix) effective upon the later to occur of (A) the resignation of Mr. Gulis and (B) the resignation of Ms. Lauderback, the Board shall take all necessary actions to reduce the size of the Board from eight (8) to seven (7) directors. The Agreement further provides, among other things, that: - unless otherwise mutually agreed to in writing by each of SCM and the Issuer, the Agreement shall remain in effect until the date that is the earlier to occur of: (i) thirty (30) days prior to the deadline for delivery of notice under the Restated Bylaws of the Issuer for the nomination of director candidates for election to the Board at the 2026 Annual Meeting or (ii) one hundred twenty (120) days prior to the first anniversary of the date that the Issuer first releases its proxy statement to shareholders in connection with the 2025 Annual Meeting (such date, the "Termination Date"), it being understood that the Issuer shall be required to give sufficient advance notice to Stadium Capital in the event the Issuer determines to advance or delay the 2026 Annual Meeting, so that Stadium Capital will continue to have no less than thirty (30) days to nominate at such meeting; - at the 2025 Annual Meeting, Stadium Capital shall vote (or cause to be voted) any and all Shares which it beneficially owns and which it has the right to vote on the record date for such meeting in favor of Mses. Findley, Kilpatrick and Schneider; and - until the Termination Date, each of Stadium Capital and the Issuer agreed not to publicly disparage the other. The foregoing description of the Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Agreement, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

Item 6 is hereby amended to add the following: On March 13, 2025, SCM and the Issuer entered into the Agreement as defined and described in Item 4 above and attached as Exhibit 99.1 hereto. On March 14, 2025, Stadium Capital delivered the Termination Notice to the other Participants, thereby terminating the Joint Filing and Solicitation Agreement. A copy of the Termination Notice is attached as Exhibit 99.2 hereto and is incorporated herein by reference. On March 14, 2025, the members of Stadium Capital entered into a Joint Filing Agreement pursuant to which they agreed to the joint filing on behalf of each of them of statements on Schedule 13D with respect to the securities of the Issuer to the extent required by applicable law. A copy of the Joint Filing Agreement is attached hereto as Exhibit 99.3 and is incorporated herein by reference.

Item 7 is hereby amended to add the following exhibits: 99.1 - Agreement, dated March 13, 2025, between Sleep Number Corporation and Stadium Capital Management, LLC (incorporated by reference to Ex. 10.1 to the Issuer's Current Report on Form 8-K, filed with the Securities and Exchange Commission on March 13, 2025). 99.2 - Termination Notice, dated March 14, 2025. 99.3 - Joint Filing Agreement, dated March 14, 2025.