AI assistant
Sleep Cycle Interim / Quarterly Report 2026
3201_10-q_2026-04-29_09da7885-065d-4c5c-94b6-675223ca6cb8.pdf
Interim / Quarterly Report
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Sleep Cycle
Interim Report
January – March 2026
Sleep Cycle AB (publ)
Sleep Cycle Interim Report January – March 2026
Strategic expansion into new growth areas
First quarter
January – March 2026
- Net sales amounted to tSEK 52,579 (64,925) and decreased by 19.0% (+2.3%). Currency-adjusted net sales growth amounted to -12.2% (1.6%). Net sales from the B2B segment grew by 42.2% and represented 14.5% (8.3%) of total net sales.
- EBITDA amounted to tSEK 8,209 (18,359), and the EBITDA margin was 15.6% (28.3%). The quarter has not been affected by any items affecting comparability.
- EBIT amounted to tSEK 6,731 (17,091) and the EBIT margin was 12.8% (26.3%).
- The total number of paying subscribers at end of period was 715k (904k).
- ARPU in the quarter totaled SEK 255 (270). Currency-adjusted ARPU amounted to SEK 277.
- Earnings per share before and after dilution for the quarter amounted to SEK 0.27 (0.68).
| 52.6 | 8.2 | 6.7 | 14.5% |
|---|---|---|---|
| Net sales/MSEK | EBITDA/MSEK | EBIT/MSEK | Revenue from B2B |
Highlights
- In March 2026, an updated Sleep Quality Score was launched,
- A research collaboration with the Delphi Group at Carnegie Mellon University (CMU) was initiated, aimed at the early detection of disease outbreaks.
- A research collaboration with the UK Health Security Agency was initiated to identify disease trends. The study will be completed in Q2.
- An agreement has been signed with a leading U.S.-based CRO for the validation of sleep apnea screening; the study is slated for completion in September 2026.
- 150,000 people have registered their interest in the B2C service for sleep apnea detection.
- In connection with the company's transformation, the company intends to carry out a reorganization to streamline and adapt its operations. As part of the proposed change, CTO Mikael Kägebäck is intended to assume the role of CTPO and Kajsa Lernestål the role of Chief Growth Officer, while CPO Petter Höglander is intended to leave the company. As part of the reorganisation, certain functions are intended to be consolidated; in addition to the management team changes, a small number of employees are affected.
- Sleep Cycle is being launched as an app in ChatGPT with Sleep Aid audio content designed for relaxation and falling asleep — a first step in the company's strategy of distributing services via AI-based platforms beyond its own app.
> "Global interest in health and sleep continues to grow. Sleep Cycle is evolving from a sleep app into a sleep platform, opening up new markets"
>
> ERIK JIVMARK, CEO
A leader in sleep analysis and health technology
Sleep Cycle is a technology company specializing in AI-based, contactless sleep analysis, utilizing patented technology and a unique global data platform. The company is well-positioned to expand into larger and more value-creating markets in digital health, tech licensing, and Medtech, driven by growing global interest in sleep and health.
Sleep Cycle
Interim report Jan – Mar 2026
Sleep science
We hear when you dream
Using advanced sound analysis, our algorithms can tell when you're sleeping, how you're sleeping, and how you're feeling – even when you're dreaming. Sleep Cycle's offering is based on groundbreaking, scientifically-backed AI sound technology.
Word-leading AI technology
Our technology is based on extensive polysomnographic data from sleep labs as well as our own data collected since 2009. With our patented AI algorithms, we process approximately 71 TB of data every ten minutes and enable fully contactless analysis via the mobile phone — capturing both breathing patterns and movement sounds.
Sleep stages
Using our contactless sound analysis, the Sleep Stages feature can identify the user's sleep stage. It shows when the user is in REM sleep, light sleep, or deep sleep, as well as the balance between these stages.
Our platform – patented
Our platform and products are based on scientific research and are protected by several patents, with U.S. Patent No. 8493220 central among these. This enables highly accurate sleep tracking, including sleep duration, awakenings, and sleep stages.
Unmatched data
Using patented sound analysis and advanced AI, we collect and analyze over 300,000 hours of sleep every hour. In total, more than 3 billion nights of sleep have been analyzed across over 180 countries, making us one of the world's most comprehensive sources of sleep statistics.
Cooperation in research
We collaborate with leading universities around the world. Together with the University of Cambridge and University College London, among others, we are conducting research on air pollution, Alzheimer's disease, and sleep patterns. A clinical study on the detection of sleep apnea using an iPhone was also initiated during the year.
Luma – your sleep coach
An AI-powered sleep coach that helps users achieve health goals where sleep plays a central role – from mental and physical health to performance. Through personalized, conversation-based guidance, complex insights are transformed into concrete advice customized to the individual user's situation.
Continuous innovation
We continuously invest in new technology and regularly launch new features that push the boundaries of consumer-based sleep analysis. Through our own research, data-driven development and close collaboration with leading universities, we ensure that Sleep Cycle remains at the forefront.
Group key performance indicators
| Jan – Mar | Jan – Dec | ||
|---|---|---|---|
| tSEK | 2026 | 2025 | 2025 |
| Net sales | 52,579 | 64,925 | 247,879 |
| Net sales growth (%) | -19.0% | 2.3% | -5.2% |
| Currency-adjusted net sales growth (%) | -12.2% | 1.6% | -3.4% |
| EBITDA | 8,209 | 18,359 | 72,049 |
| EBITDA margin (%) | 15.6% | 28.3% | 29.1% |
| EBIT (Operating profit/loss) | 6,731 | 17,091 | 65,960 |
| EBIT margin (Operating margin) (%) | 12.8% | 26.3% | 26.6% |
| Items affecting comparability | - | - | - |
| Adjusted EBIT | 6,731 | 17,091 | 65,960 |
| Adjusted EBIT margin (%) | 12.8% | 26.3% | 26.6% |
| Profit/loss for the period | 5,505 | 13,792 | 53,209 |
| Operational key performance indicators | |||
| Total subscriptions (Thousands) | 715 | 904 | 768 |
| Subscriptions, B2C | 677 | 874 | 732 |
| Subscriptions, B2B | 37 | 30 | 35 |
| ARPU (SEK) | 255 | 270 | 274 |
| Currency-adjusted ARPU (SEK) | 277 | 272 | 280 |
| Average number of employees (¥) | 40 | 33 | 36 |
For definitions, justifications, and deductions see pages 20-21.
Sleep Cycle
Interim report Jan – Mar 2026
Statement by the CEO
Expansion into larger and more value-creating markets
We continue to take important steps in implementing our strategy to expand Sleep Cycle into a larger and more value-creating segment, thereby increasing the addressable market from SEK 1.7 billion to SEK 47 billion.
Our AI-powered technology platform
At the core of our future potential lies our technology platform, built over more than a decade, combining contactless sensor technology, AI-based analysis, and over 3 billion nights of sleep data. The platform enables both continuous product improvement and cost-effective expansion into new markets.
A large and fragmented market
The global sleep market is growing rapidly and represents a significant long-term opportunity, with estimated annual revenue of approximately SEK 1,450 billion. Sleep Cycle today addresses only a small portion of this market, where the sleep-tracking app segment is estimated at approximately SEK 1.7 billion. This gap illustrates a clear opportunity. Building on a strong and profitable position in the consumer market, we are now expanding into significantly larger addressable markets in Tech Licensing and sleep apnea detection.
Our strategy is built on three pillars:
- A strong and profitable consumer business
- A scalable B2B business in technology licensing
- The development of our first Medtech product for sleep apnea
Together, these expand our addressable market by approximately SEK 45 billion, driven by the sleep apnea segment (approximately SEK 25 billion) and Tech Licensing (approximately SEK 20 billion) — segments where our technology is more valuable, more integrated, and harder to replace.
The app — our foundation, source of data, and growth driver
Our consumer app remains a central part of the business, with stable revenue and strong profitability, while also serving as our primary data source and funding our continued expansion. Over the quarter, we have strengthened our growth engine through more data-driven product development.
An updated paywall, launched in mid-March, has increased first-night activation from 24% to 45%, which over time creates a larger active user base to convert. We have also launched an updated Sleep Quality Score, which improves day-8 retention by approximately 5 percent.
Tech Licensing — scaling beyond our own distribution
Through our SDK and data platform, partners can integrate our technology into their own products and thereby reach new users and markets. Over the quarter, we have expanded our partner pipeline and engaged in discussions across several segments. This creates favorable conditions for scalable, recurring revenue with high margins. We have also continued to develop and broaden our Tech Licensing product portfolio, with features such as Smart Alarm, real-time sleep-stage analysis, and improved sensor combinations. This strengthens our offering to partners and enables more integration points across different types of products and platforms.
Sleep Apnea — entering the Medtech sector
Sleep apnea is a major global health problem, with an estimated one billion people affected, of whom approximately 80% remain undiagnosed. Our solution is built on our technology and enables screening without external hardware. In our tests, the algorithm has reached the level of performance required for regulatory approval, comparable to established solutions on the market. The clinical study, initiated together with a well-established Clinical Research Organization in the United States, is progressing as planned and is expected to be completed in September 2026. More than 150,000 individuals have already registered interest in the product, and discussions are underway with several potential B2B partners across various segments of the value chain.
Sleep Cycle
Interim report Jan – Mar 2026
Statement by the CEO
Towards an updated organisation and new distribution channels
Sleep Cycle is one of the first players in digital sleep health on an AI platform — a concrete step into new distribution channels.
Distribution via AI platforms
As a first step into a new distribution channel, we launched Sleep Cycle's app in ChatGPT after the end of the period, built around our audio-based Sleep Aid content designed for relaxation and falling asleep. When a user in ChatGPT seeks help falling asleep, the platform can suggest Sleep Cycle's audio, which plays directly in the chat flow.
The launch positions us as one of the first players in digital sleep health on an AI platform and is a concrete expression of our strategy to meet users where they already are — beyond our own app. Over time, we see potential to further develop the app and broaden its use cases, while also contributing to greater reach and new partnership opportunities.
Competence for the next phase
In connection with the company's transformation from a single product to a platform with multiple parallel business areas, the company intends to carry out a reorganisation in order to streamline and adapt operations. As part of the change, CTO Mikael Kägebäck is intended to assume the role of CTPO (Chief Technology and Product Officer), with combined responsibility for product and technology in B2C. At the same time, Kajsa Lernestål is intended to assume the role of Chief Growth Officer with expanded responsibility for the company's growth in B2C, while CPO Petter Höglander is intended to leave the company. As part of the reorganisation, certain functions are intended to be consolidated, and in addition to the changes in the management team, a small number of employees are affected. Consultations with the relevant trade unions have been initiated.
Sleep Cycle has over the past years established three complementary business areas: Sleep Cycle App (B2C and B2B), Sleep Apnea, and Tech Licensing. All areas are built on the company's AI-based audio analysis technology, enabling scalable development and commercialization across multiple use cases. To fully realize this potential, the company intends to implement an updated operating model designed to drive multiple business areas in parallel with greater speed, clearer accountability and higher scalability. The new structure introduces clearer business-area accountability at management level and a more focused organisation with fewer dependencies, strengthening the conditions for faster development and
more efficient resource utilisation.
The updated operating model is designed to drive the company's three complementary business areas — Sleep Cycle App, Sleep Apnea, and Tech Licensing — on the same technology platform. The change also reflects the rapid development within AI, where smaller and more focused teams can deliver significantly more than before. Together, we are creating a structure built for long-term scalability and technological leverage. The actions are not expected to have any material impact on the company's financial position in the short term but are expected over time to contribute to more efficient resource utilisation and strengthened scalability.
Financial performance and outlook
During the quarter, net sales amounted to SEK 52.6 million, a decrease of 19 percent compared with the prior year, or 12 percent adjusted for currency effects, while EBITDA amounted to SEK 8.2 million. B2B revenue continued to grow and accounted for 14.5% of total revenue. The earnings trend reflects our prioritised investments in new growth areas and is a direct result of our strategic transformation, with 2026 being a year of significant investment.
The quarter reflects continued execution of our strategy, while external factors such as competition and currency have an impact. We continue to invest in our platform and our three strategic pillars to enable long-term growth.
In summary
We are at the beginning of a clear development — from app to platform within sleep and digital health. With a strong base, a differentiated technology platform, and a substantially larger addressable market, we are well positioned for the future.
I remain confident in our strategy and in our ability to execute it.
Sleep Cycle
Interim report Jan - Mar 2026
Market trends
Market size and Sleep Cycle's growth potential
Within the global sleep market, Sleep Cycle estimates its current total addressable market (TAM) to be approximately SEK 47 billion. This compares with a previous addressable market of approximately SEK 1.7 billion, on which Sleep Cycle's market share is estimated at 15%. This illustrates how the company's strategic development has significantly expanded its commercial potential.
Sleep Cycle is expanding its market presence through two main growth drivers
Tech licensing
One of Sleep Cycle's key growth drivers is tech licensing. Approximately 7,000 potential partners have been identified in the fields of consumer apps, digital health, Medtech, wearables, and clinical research. Together, these companies are estimated to invest approximately SEK 154 billion annually in R&D, of which about SEK 20 billion relates to software where Sleep Cycle's technology is relevant, thereby constituting the company's total addressable market (TAM).
In addition to this market, Sleep Cycle could also become relevant in a broader healthcare context. Obstructive sleep apnea is linked not only to a range of common conditions, including cardiovascular, metabolic, and respiratory disorders, but also to mental health issues. Based on our analysis, we estimate the hypothetical value associated with undiagnosed OSA (obstructive sleep apnea) and related conditions to be over SEK 100 billion*.
Sleep apnea screening represents a global market of approximately SEK 25 billion and tech licensing approximately SEK 20 billion — together, this represents an expanded addressable market potential of approximately SEK 47 billion for Sleep Cycle.
Sleep apnea screening
Today, an estimated 1 billion people worldwide suffer from sleep apnea, about 80% of whom remain undiagnosed. Through sleep apnea screening and tech licensing, Sleep Cycle has the potential to support patients throughout the entire care delivery chain — from initial screening and first contact with healthcare providers, through sleep evaluation, to treatment. This market opportunity in the sleep apnea sector is estimated at approximately SEK 25 billion (TAM).
*This figure should be taken as an indication of the broader economic impact of sleep apnea, rather than a directly addressable market for Sleep Cycle. The company's potential role in this related area is to help identify at-risk individuals at an earlier stage and to facilitate connections between patients, healthcare providers, and partners throughout the care delivery chain.
Market data and estimates in this report are based on publicly available information, third-party sources, and internal assessments. While Sleep Cycle considers these sources to be reliable, no guarantees are made regarding their accuracy or completeness. Estimates and forward-looking statements are subject to uncertainty and may differ materially.
Sleep Cycle
Interim report Jan - Mar 2026
Strategy
Our position
The importance of sleep for health is gaining increased attention. Sleep Cycle is well-positioned for growth in the sleep tech market.
From ~1.7 to ~47 billion SEK
Through expansion into sleep apnea and tech licensing, Sleep Cycle is addressing a substantially larger market.
The various components of our platform
- Movement detection
- Sleep
- Breathing
- Cough
- Snoring
- Smart alarms
Addressable market segments
- Sleep clinics
- Pharmaceutical companies
- Wearables/Apps
- Digital healthcare services
- Medtech products
- Smart Homes
B2C/B2B
Sleep app
- Accurate sleep tracking and smart alarm
- Personalized insights and sleep coaching
- Long-term monitoring of sleep and habits
- Sleep aid and sleep programs
B2C/B2B
Sleep apnea
- Contactless detection of sleep apnea risk
- Early detection without hardware
- Simple integration into partnerships and platforms
B2B
Tech Licensing
- Plug-and-play sleep tracking via SDK (software development kit)
- Fast integration into apps, devices and platforms
- Access to validated sleep and respiratory insights
1.5m
MAU (Monthly Active Users)¹
0.9m
DAU (Daily Active Users)²
150k
Registered interest in B2C offering
Clinical validation
Ongoing phase for AI-based sleep apnea tool
SDK
Launched in Q4'25
0.6m
SDK revenue in Q1'26
Technology & data platform
Enables multiple products and use cases
- Contactless measurement of sleep and breathing
-
AI-based analysis at scale
-
Over 4B+ nights of real-world data
- Modular infrastructure (SDK, APIs, app)
Notes: ¹) Average for Q1'26; ²) Average for Q1'26
Sleep Cycle
Interim report Jan – Mar 2026
Platform
Our technology platform – the foundation for growth
Sleep Cycle's technology platform forms the foundation for all of its products, services, and partnerships. The platform is based on the company's patented technology for contactless sleep tracking (U.S. Patent 8493220), which enables high-precision sleep measurement through advanced sound analysis and AI.
The platform processes anonymized data in real time – equivalent to more than 300,000 hours of sleep every hour – and serves as a horizontal layer within the digital health ecosystem. This technological foundation enables the development of both consumer-oriented products and B2B solutions, where the value of data, algorithms, and analytics can be applied across a variety of industries.
The platform serves as a common hub for multiple revenue streams and serves as the foundation for all products, including the company's own app, tech licensing via Sleep SDK, partnerships, and development in the Medtech sector, such as sleep apnea detection. We develop products ranging from subscription-based consumer services to scalable licensing models and next-generation Medtech applications.
Since its launch, over 3 billion nights have been analyzed, creating a unique and scalable database that continuously enhances the platform's performance and areas of application.
The continuous growth of the user base further strengthens the platform by increasing data generation, which improves the quality of analytics, personalization, and product development. The combination of technology, data, and global reach makes Sleep Cycle's platform unique in terms of both scale and quality.
The transition from a standalone app to a comprehensive platform fundamentally transforms the company's growth potential and paves the way for expansion into multiple markets – regardless of developments in the traditional app market.
Sleep app
Over the quarter, we continued to strengthen our consumer business through improved onboarding and pricing. A new onboarding process featuring a soft paywall has boosted activation rates as early as the first night, while price adjustments have contributed to an increase in currency-adjusted ARPU. The number of monthly active users (MAU) has remained stable at 1.5m and serves as an important foundation for continued growth, both through an increase in potential subscribers and greater data generation. A new Sleep Quality Score was also launched during the period, which has helped improve user retention.
Sleep Apnea
Development in the area of sleep apnea is advancing according to plan and is a key focus area for the company's long-term growth. Our AI-based algorithm demonstrates strong performance, on par with or better than leading players, and the clinical trial has now entered the validation phase. The solution is being developed as a non-invasive, software-based screening tool that requires no external hardware, allowing for a cost-effective and scalable model. Interest is high, with over 150,000 registered users, and the market for at-home testing is estimated at approximately SEK 25 billion, including B2B potential.
Tech Licensing
We continue to grow our B2B business in tech licensing, where our platform is relevant across several segments, including wearables, IoT, and digital health platforms. Over the quarter, we have engaged in several advanced discussions with potential partners. This strengthens our position as a scalable technology provider and broadens our revenue streams. The market for tech licensing is estimated at SEK 20 billion and is expected to grow as new applications emerge.
Sleep Cycle
Interim report Jan - Mar 2026
Clinical study
Sleep Apnea – Sleep Apnea Detection
Sleep apnea is one of the most common and widely underdiagnosed sleep disorders worldwide
Sleep Cycle collects data during sleep that provides deep insights into both sleep patterns and health, including metrics such as interruptions in breathing. This enables a new generation of accessible sleep and breathing analysis. Sleep apnea is one of the most common and widely underdiagnosed sleep disorders worldwide and represents a significantly larger market than traditional sleep tracking, with a significant need for scalable screening solutions.
A strong position
Over the quarter, we have continued to develop our AI-based solution for the detection of sleep apnea, with internal tests demonstrating high performance in terms of specificity and sensitivity. The clinical study led by Dr. Mike Stadesar and Dr. Mikael Kågebäck, is currently in the validation phase of the United States and is expected to be completed in September 2026. Discussions have also been held with the FDA to ensure regulatory compliance.
Interest is high, with over 150,000 registered users already, and early tests indicate highly competitive customer acquisition costs.
Sleep Apnea constitutes a natural extension of Sleep Cycle's technology and is a long-term value driver, offering opportunities in both partnerships and licensing agreements.
Our clinical trial is expected to be completed in September 2026, with launch in the United States during the first half of 2027
Sleep Cycle
Interim report Jan – Mar 2026
Invest
Invest in Sleep Cycle
Sleep Cycle is well-positioned to expand in a rapidly growing market. We are focused on driving organic growth through our unique AI-based technology in the field of sleep and the aggregation of large amounts of data.
We are a world leader in the field of sleep analysis
As awareness of the importance of sleep for health grows, the company is well-positioned to assume a leading role in the global sleep tech market. Against this backdrop, Sleep Cycle estimates its total addressable market (TAM) to be approximately SEK 47 billion. With a scalable solution suitable for virtually all smartphone users, the company is well-positioned to gradually capture a larger share of this market.
The company is a global leader in AI-based sleep analysis, with a technology platform grounded in scientific research and backed by strong patent protection. Close collaboration with leading universities in the field of sleep research ensures a continued high level of innovation and scientific rigor.
Multiple revenue streams
Our technical platform combines:
- A stable and cash flow generating consumer business
- A scalable licensing model with high margins and global potential
- Long-term growth in Med Tech and digital health
The company is well positioned for sustainable growth and improved margins. The market for tech licensing is estimated at approximately SEK 20 billion, with significant potential in our partnership strategy
A stable core business with high profitability
The Sleep Cycle app is our flagship product, providing a solid foundation of recurring revenue and valuable user data. With stable APPLI, a high renewal rate, and positive cash flow, the core business is funding future growth initiatives.
Going forward, the focus will be on increasing user value through innovation, optimized pricing, and an improved user experience. The app provides our platform with data every day, making it continuously smarter and more powerful.
Growing potential in med tech and sleep apnea detection
Sleep Cycle is currently developing a medical solution for the detection of sleep apnea based on our proprietary technology. The sleep apnea market is in a growth phase, and is estimated to be worth approximately SEK 25 billion. Our ongoing clinical trial is a milestone toward certification and commercialization. This initiative positions Sleep Cycle at the intersection of consumer health and medical diagnostics.
Increased B2B revenue
+42%
Q1 2026 vs. Q1 2025
Sleep Cycle
Interim report Jan - Mar 2026
Financial overview
The group's performance January – March 2026
As all significant operations in the Group are conducted in the Parent Company, the comments below refer to both the Parent Company and the Group. For profit and cash flow, comparative figures refer to the corresponding period for prior year. For financial position, comparative figures refer to the balance sheet item as of December 31, 2025.
First quarter January – March 2026
Sleep Cycle is a technology company specializing in AI-based, contactless sleep analysis, utilizing patented technology and a unique global data platform. The company is well-positioned to expand into larger and more value-creating markets in digital health, tech licensing, and Medtech, driven by growing global interest in sleep and health. Sleep Cycle is listed on Nasdaq Stockholm under the ticker SLEEP and is headquartered in Gothenburg, Sweden.
Sales and earnings
The first quarter reflects Sleep Cycle's ongoing development from a consumer app to a broader, more value-creating sleep tech platform, where investments in new growth areas are impacting margins in the short term but laying the groundwork for a more scalable business model and greater value creation in the long term.
The Group's net sales amounted to tSEK 52,579 (64,925), a decrease of 19.0% (+2.3%) compared with prior year. The decline is driven primarily by lower sales to new customers in the consumer business, where performance in the Apple App Store has been weaker, while Google Play has performed steadily and online sales are increasing, albeit from modest levels. Currency-adjusted net sales growth amounted to -12.2% (1.6%).
The number of paying subscribers stood at 715,000 (904,000), as a result of lower new sales. At the same time, the user base remains strong and stable, with approximately 1.5 million monthly active users (MAU). During the full year 2025, a total of 2.5 million unique users completed at least one sleep session. This underscores the strength of our user base and its role as the foundation for future conversions, data generation, and expansion into new business areas. ARPU for the period was SEK 255 (270). Adjusted for currency effects, ARPU rose to SEK 277, following recent price adjustments.
Partnership revenue continues to grow strongly and increased by 42.2% compared to prior year, accounting for 14.5% of total revenue. This is a clear step toward a more diversified and scalable revenue model with higher structural quality. Our SDK product, launched in late 2025, generated approximately 120,000 sleep sessions during the quarter, confirming early commercial traction and a potential to scale our technology beyond our own application.
EBITDA amounted to tSEK 8,209 (18,359). Operating profit amounted to tSEK 6,731 (17,091), with an operating margin of 12.8% (26.3%). The decline in margins is a direct result of increased investments in line with our strategy to transform the company from a product-based business into a platform-based one. The investments focus primarily on developing AI-based detection of the risk of sleep apnea, enhancing our technology platform, and expanding our partnership business. These initiatives target significantly larger and higher-value market segments than our traditional app business, with the potential to enhance the company's growth profile and valuation over time.
Overall, this means that investments are currently ahead of revenues, which is a natural part of this gradual development. At the same time, we are laying the groundwork for a more scalable revenue base with the potential for higher growth, improved margins, and increased valuation multiples over time.
Personnel expenses amounted to tSEK 16,944 (13,750), and the average number of employees increased to 40 (33), primarily in product development, partnerships, and health technology – areas central to the company's continued growth.
Cash flow and financial position
Cash flow from operating activities amounted to tSEK 7,184 (16,712), primarily due to lower operating profit and increased investments in the company's development.
Cash flow from investment activities amounted to tSEK -11,981 (-3,803) and primarily relates to capitalized development costs associated with strategic initiatives in the detection of sleep apnea risk and the Sleep SDK. These investments are in line with the company's evolution towards a broader platform and are intended to enable future scalable growth in both the consumer and partnership businesses.
Cash flow from financing activities amounted to tSEK -781 (-1,073), related to amortization of leasing liabilities.
Cash flow for the quarter totaled tSEK -5,578 (11,836). The Group's cash and cash equivalents amounted to tSEK 115,267 (157,071) at the end of the period, which continues to provide the financial flexibility needed to carry out planned investments.
Consolidated equity amounted to tSEK 77,338 as of March 31. The opening balance as of January 1 was tSEK 71,833.
Sleep Cycle
Interim report Jan – Mar 2026
Other information
Other information
Parent company
The parent company, Sleep Cycle AB (publ), is headquartered in Gothenburg. The Group's operations are essentially conducted in the parent company; refer to Group information below.
Risks and uncertainties
The group's over-arching risk management aims to minimize negative effects on profit and position. Significant risks and uncertainties are described in the annual report for 2025. No significant events have occurred during the period that affect or change the descriptions of the Group's risks and their management.
Global macroeconomic and geopolitical developments continue to be marked by uncertainty, which could potentially affect Sleep Cycle's operations both directly and indirectly. Factors such as inflation, changes in interest rates, currency fluctuations, and shifts in consumer behavior can affect demand for the company's products and services, particularly in the consumer business.
Sleep Cycle closely monitors developments and is continuously working to adapt its operations to manage these risks, in part through geographic diversification, a flexible business model, and a continued focus on cost efficiency and long-term value-creating growth.
Market data and estimates
The market data and estimates presented in this report are based on publicly available information, third-party sources and internal assessments. Although Sleep Cycle believes these sources to be reliable, no representations or warranties are made as to their accuracy or completeness. All estimates and forward-looking statements are subject to uncertainty and may differ materially as a result of factors such as market developments, regulatory changes and commercial execution.
Financial goals
Sleep Cycle's financial goals are to double revenues over the medium term and to achieve an annual EBIT margin of at least 25%.
Related party transactions
There have been no related-party transactions aside from transactions with senior executives in their capacity as such.
Dividend
Sleep Cycle has a history of solid profitability and strong cash generation. At the same time, the company is in a phase where investments in new business areas, technology licensing and medical technology are prioritized in order to create long-term revenue growth and shareholder value. Against this background, the Board of Directors decided to propose a lower dividend for the financial year 2025, with the aim of enabling continued reinvestment in the business.
The goal is for the dividend to amount to between 40% and 60% of net income after taxes over time.
At Sleep Cycle AB's annual general meeting on April 13, 2026, a dividend of SEK 0.53 per share was approved for the 2025 fiscal year.
Significant events during the period
- On March 12, Sleep Cycle published its 2025 Annual and Sustainability Report.
- On March 9, 2026, the company published the call for the 2026 Annual General Meeting.
- On February 4, Sleep Cycle published its 2025 Year-End Report.
Significant events after the end of the period
- On April 13, the company published the resolutions adopted at Sleep Cycle's 2026 Annual General Meeting, whereby the members of the Board of Directors and CEO were granted discharge from liability for the 2025 fiscal year.
- April 20, dividend payment date via Euroclear.
Sleep Cycle
Interim report Jan – Mar 2026
Other information
Board of Directors
The Sleep Cycle Board of Directors consists of Chairperson Anne Broeng and board members Christian Kanstrup, Mathias Høyer, and Maciej Drejak.
Management Team
The Company's management team currently consists of CEO Erik Jivmark, CFO & Head of IR Elisabeth Hedman, CCO Peter Alsterberg, CTO Mikael Kägebäck and CPO Petter Höglander.
The Company intends to implement changes to the management team - CTO Mikael Kägebäck is intended to assume the role of CTPO (Chief Technology and Product Officer), and Kajsa Lernestål is intended to join as Chief Growth Officer, while CPO Petter Höglander is intended to leave the Company. Consultations with the relevant trade unions have been initiated.
Employees
As of March 31, 2026, the average number of employees in the Group was 40 (33), all of whom are based in Sweden. Of these, women accounted for 38% and men for 62%.
Annual General Meeting 2026
The Annual General Meeting of Sleep Cycle AB (publ) was held on April 13, 2026, at 09:30 a.m. at Jacy'z Hotel, floor 4, Drakegatan 10, 412 50 Gothenburg, Sweden. All information from the meeting is available on the company website.
Review
This report has not been reviewed by the Company's auditors.
This is a translation of the original Swedish Sleep Cycle interim report jan–mar 2026. In the event of any discrepancies between the two versions, the original Swedish version shall apply.
The share
Sleep Cycle went public on June 8, 2021, on the Nasdaq Stockholm Small Cap market. Share capital on the balance sheet date totaled tSEK 563. The stock trades under the ticker symbol SLEEP, and its ISIN code is SE0015961404. As of March 31, 2026, total number of shares was 20,277,563. The closing price as of March 31, 2026, was SEK 17.38, and the number of shareholders was 3,679.
Shareholders
Main shareholders in Sleep Cycle AB (publ) as of March 31, 2026.
| Owner | Number of shares | Votes and capital |
|---|---|---|
| Maciej Drejak through company | 8,707,984 | 42.9% |
| Pierre Siri through company | 4,047,686 | 20.0% |
| Avanza Pension | 894,432 | 4.4% |
| Nordnet Pensionsförsäkring | 683,368 | 3.4% |
| Lancelot Asset Management AB | 650,000 | 3.2% |
| Cancerfonden - The Swedish Cancer Society | 339,993 | 1.7% |
| Johan Qviberg | 300,000 | 1.5% |
| Storebrand Asset Management | 148,373 | 0.7% |
| Handelsbanken Fonder | 113,500 | 0.6% |
| SEB Funds | 108,055 | 0.5% |
| Other | 4,284,172 | 21.1% |
| Total | 20,277,563 | 100% |
Sleep Cycle
Interim report Jan – Mar 2026
Other information
Statement by the Board of Directors and CEO
The Board of Directors and CEO assure that the interim report provides a fair and accurate overview of the operations, financial position and earnings of the parent company and group and describes significant risks and uncertainties that the parent company and the companies included in the group face.
Gothenburg, April 29, 2026
Anne Broeng
Chairman of the Board
Christian Kanstrup
Board member
Mathias Høyer
Board member
Maciej Drejak
Board member
Erik Jivmark
CEO
Presentation for investors, analysts, and the media
Sleep Cycle AB (publ) will publish its interim report for January – March 2026 on April 29 at 7:30 a.m.
At 9:30 a.m., company CEO Erik Jivmark and CFO & IR Elisabeth Hedman will present the report to shareholders, the media, and other stakeholders via webcast. The presentation will be held in English and will be followed by a Q&A session. Questions can be submitted during the webcast.
To participate, use the link https://sleep-cycle.events.inderes.com/q1-report-2026
For more information, please contact
Erik Jivmark, CEO
email: [email protected]
Elisabeth Hedman, CFO and Head of Investor Relations
Tel: +46 76-282 89 58
Email: [email protected]
Upcoming reporting dates
August 26, 2026
Interim report April-June 2026
October 23, 2026
Interim report July-September 2026
Sleep Cycle AB (publ)
Business reg. No. 556614-7368,
10 Drakegatan, 412 50 Gothenburg, Sweden
Ticker: SLEEP
This information is information that Sleep Cycle AB is required to disclose under the EU Market Abuse Regulation. The information was submitted for publication on April 29, 2026, at 7:30 a.m. CET.
Sleep Cycle
Interim report Jan - Mar 2026
Consolidated statement of comprehensive income
| Jan – Mar | Jan – Dec | |||
|---|---|---|---|---|
| tSEK | Note | 2026 | 2025 | 2025 |
| Operating income | ||||
| Net sales | 4 | 52,579 | 64,925 | 247,879 |
| Other operating income | 628 | 205 | 335 | |
| Operating expenses | ||||
| Capitalized work for own account | 1,389 | 400 | 3,020 | |
| Distribution costs | -9,663 | -13,893 | -50,816 | |
| Other external expenses | -18,797 | -17,929 | -68,569 | |
| Personnel expenses | -16,944 | -13,750 | -54,878 | |
| Depreciation and impairment of tangible and intangible assets | -1,478 | -1,268 | -6,089 | |
| Other operating expenses | -984 | -1,598 | -4,922 | |
| Operating profit/loss | 6,731 | 17,091 | 65,960 | |
| Financial items | ||||
| Financial income | 305 | 432 | 1,575 | |
| Financial expenses | -81 | -125 | -420 | |
| Profit before tax | 6,955 | 17,398 | 67,115 | |
| Tax on profit for the period | -1,450 | -3,606 | -13,906 | |
| Profit for the period attributable to the parent company's shareholders | 5,505 | 13,792 | 53,209 | |
| Other comprehensive income | - | - | - | |
| Comprehensive income for the period attributable to the parent company's shareholders | 5,505 | 13,792 | 53,209 | |
| Earnings per share before dilution, SEK | 0.27 | 0.68 | 2.62 | |
| Earnings per share after dilution, SEK | 0.27 | 0.68 | 2.62 | |
| Average number of shares outstanding for the period before dilution | 20,277,563 | 20,277,563 | 20,277,563 | |
| Average number of shares outstanding for the period after dilution | 20,277,563 | 20,277,563 | 20,277,563 |
Sleep Cycle
Interim report Jan - Mar 2026
15
Consolidated statement of financial position
| tSEK | Note | 03/31/2026 | 03/31/2025 | 12/31/2025 |
|---|---|---|---|---|
| Assets | ||||
| Intangible fixed assets | ||||
| Capitalized development expenditures | 27,077 | 8,176 | 15,602 | |
| Patent | - | - | - | |
| Total intangible fixed assets | 27,077 | 8,176 | 15,602 | |
| Tangible fixed assets | ||||
| Right-of-use assets | 6,148 | 9,222 | 6,916 | |
| Cost of improvement on other's property | 553 | 844 | 626 | |
| Equipment and computers | 655 | 1,159 | 785 | |
| Total tangible fixed assets | 7,356 | 11,225 | 8,327 | |
| Financial assets | ||||
| Other long-term receivables | - | 23 | - | |
| Total financial assets | - | 23 | - | |
| Deferred tax | ||||
| Deferred prepaid tax | 189 | 140 | 191 | |
| Total deferred tax | 189 | 140 | 191 | |
| Current assets | ||||
| Accounts receivable | 29,741 | 41,173 | 29,427 | |
| Other receivables | 1,475 | 1,124 | 1,724 | |
| Current tax assets | - | 663 | - | |
| Prepaid expenses and accrued income | 25,966 | 34,224 | 24,031 | |
| Cash and cash equivalents | 115,267 | 157,071 | 120,846 | |
| Total current assets | 172,449 | 234,255 | 176,027 | |
| Total assets | 207,070 | 253,819 | 200,148 |
Equity and liabilities
| Equity | |||
|---|---|---|---|
| Share capital | 563 | 563 | 563 |
| Other contributed capital | 2,744 | 2,744 | 2,744 |
| Retained earnings, including profit for the year | 74,031 | 89,942 | 68,526 |
| Total equity attributable to the parent company's shareholders | 77,338 | 93,249 | 71,833 |
| Long-term liabilities | |||
| Leasing liabilities | 3,379 | 6,599 | 4,199 |
| Total long-term liabilities | 3,379 | 6,599 | 4,199 |
| Current liabilities | |||
| Leasing liabilities | 3,219 | 3,067 | 3,180 |
| Accounts payable | 17,495 | 14,178 | 14,425 |
| Current tax liabilities | 832 | - | 524 |
| Other liabilities | 3,404 | 3,648 | 2,984 |
| Accrued expenses and deferred income | 101,403 | 133,079 | 103,002 |
| Total current liabilities | 126,353 | 153,971 | 124,116 |
| Total equity and liabilities | 207,070 | 253,819 | 200,148 |
Sleep Cycle
Interim report Jan - Mar 2026
Consolidated statement of changes in equity
Attributable to the parent company's shareholders
| tSEK | 03/31/2026 | 03/31/2025 | 12/31/2025 |
|---|---|---|---|
| Opening balance | 71,833 | 79,457 | 79,457 |
| Comprehensive income for the period | 5,505 | 13,792 | 53,209 |
| Dividend | - | - | -60,833 |
| Closing balance | 77,338 | 93,249 | 71,833 |
Consolidated cash flow statement
| tSEK | Note | Jan – Mar | Jan – Dec | |
|---|---|---|---|---|
| 2026 | 2025 | 2025 | ||
| Cash flow from operating activities | ||||
| Operating profit/loss | 6,731 | 17,091 | 65,960 | |
| Adjustments for items not included in cash flow: | ||||
| Depreciation and impairment | 1,478 | 1,268 | 6,089 | |
| Other items not affecting cash flow | - | -51 | -52 | |
| Interest received | 305 | 432 | 1,575 | |
| Interest paid | -81 | -125 | -420 | |
| Tax paid | -1,139 | -4,779 | -13,943 | |
| Cash flow from operating activities before changes in working capital | 7,294 | 13,837 | 59,209 | |
| Change in working capital | ||||
| Change in operating receivables | -2,000 | -3,254 | 18,086 | |
| Change in operating liabilities | 1,890 | 6,129 | -24,364 | |
| Cash flow from operating activities | 7,184 | 16,712 | 52,931 | |
| Investment activities | ||||
| Capitalization of development expenses | -11,981 | -3,803 | -13,104 | |
| Acquisition of tangible fixed assets | - | - | -48 | |
| Cash flow from investment activities | -11,981 | -3,803 | -13,153 | |
| Financing activities | ||||
| Amortization of leasing liabilities | -781 | -1,073 | -3,359 | |
| Dividend | - | - | -60,833 | |
| Cash flow from financing activities | -781 | -1,073 | -64,192 | |
| Cash flow for the period | -5,578 | 11,836 | -24,413 | |
| Liquid funds at the beginning of the period | 120,846 | 145,234 | 145,234 | |
| Reclassification of cash and cash equivalents | - | - | 24 | |
| Liquid funds at the end of the period | 115,267 | 157,071 | 120,846 |
Sleep Cycle
Interim report Jan - Mar 2026
Parent company income statement
| tSEK | Note | Jan – Mar | Jan – Dec | |
|---|---|---|---|---|
| 2026 | 2025 | 2025 | ||
| Operating income | ||||
| Net sales | 52,579 | 64,925 | 247,879 | |
| Other operating income | 628 | 153 | 283 | |
| Capitalized work for own account | 1,389 | 400 | 3,020 | |
| Operating expenses | ||||
| Distribution costs | -9,663 | -13,893 | -50,816 | |
| Other external expenses | -19,654 | -18,658 | -71,877 | |
| Personnel expenses | -16,944 | -13,750 | -54,878 | |
| Depreciation and impairment of tangible and intangible assets | -709 | -644 | -3,159 | |
| Other operating expenses | -984 | -1,598 | -4,922 | |
| Operating profit/loss | 6,642 | 16,935 | 65,530 | |
| Profit from financial items | ||||
| Interest income and similar income | 305 | 432 | 1,575 | |
| Interest expenses and similar expenses | -1 | - | - | |
| Profit after financial items | 6,946 | 17,367 | 67,105 | |
| APPROPRIATIONS | ||||
| Group contributions | - | - | -10 | |
| Profit before tax | 6,946 | 17,367 | 67,095 | |
| Tax on profit for the period | -1,447 | -3,598 | -13,902 | |
| Profit/loss for the period | 5,499 | 13,769 | 53,193 | |
| Comprehensive income for the period | 5,499 | 13,769 | 53,193 |
Since the parent company has no items recognized as other comprehensive income, total comprehensive income for the period is equal to profit for the period.
Sleep Cycle
Interim report Jan - Mar 2026
Parent company balance sheet
| tSEK | Note | 03/31/2026 | 03/31/2025 | 12/31/2025 |
|---|---|---|---|---|
| Assets | ||||
| Intangible fixed assets | ||||
| Capitalized development expenditures | 27,077 | 8,176 | 15,602 | |
| Patent | - | - | - | |
| Total intangible fixed assets | 27,077 | 8,176 | 15,602 | |
| Tangible fixed assets | ||||
| Cost of improvement on other's property | 553 | 844 | 626 | |
| Equipment and computers | 655 | 1,159 | 785 | |
| Total tangible fixed assets | 1,208 | 2,003 | 1,411 | |
| Financial assets | ||||
| Participations in group companies | 50 | 50 | 50 | |
| Deferred prepaid tax | 96 | 49 | 96 | |
| Other long-term receivables | - | 23 | - | |
| Total financial assets | 146 | 122 | 146 | |
| Total fixed assets | 28,431 | 10,301 | 17,159 | |
| Current receivables | ||||
| Accounts receivable | 29,741 | 41,173 | 29,427 | |
| Other receivables | 1,475 | 1,124 | 1,724 | |
| Current tax assets | - | 663 | - | |
| Prepaid expenses and accrued income | 25,966 | 34,224 | 24,031 | |
| Total current receivables | 57,182 | 77,184 | 55,182 | |
| Short-term investments | ||||
| Other short-term investments | 50,000 | 90,000 | 80,000 | |
| Total short-term investments | 50,000 | 90,000 | 80,000 | |
| Cash and bank balances | 65,132 | 66,931 | 40,707 | |
| Total current assets | 172,314 | 234,115 | 175,889 | |
| Total assets | 200,745 | 244,416 | 193,048 | |
| Equity and liabilities | ||||
| Restricted equity | ||||
| Share capital | 563 | 563 | 563 | |
| Fund for development expenditures | 27,077 | 8,176 | 15,602 | |
| Total restricted equity | 27,640 | 8,740 | 16,166 | |
| Unrestricted equity | ||||
| Share premium fund | 2,744 | 2,744 | 2,744 | |
| Retained earnings | 41,718 | 68,259 | - | |
| Profit/loss for the period | 5,499 | 13,769 | 53,193 | |
| Total unrestricted equity | 49,961 | 84,772 | 55,937 | |
| Total equity | 77,601 | 93,511 | 72,102 | |
| Current liabilities | ||||
| Accounts payable | 17,495 | 14,178 | 14,425 | |
| Liabilities to group companies | 10 | - | 10 | |
| Current tax liabilities | 832 | - | 524 | |
| Other liabilities | 3,404 | 3,648 | 2,984 | |
| Accrued expenses and deferred income | 101,403 | 133,079 | 103,002 | |
| Total current liabilities | 123,143 | 150,905 | 120,946 | |
| Total equity and liabilities | 200,745 | 244,416 | 193,048 |
Sleep Cycle
Interim report Jan - Mar 2026
Notes
Note 1 General information
The address of the company's registered office is Drakegatan 10, 412 50 Gothenburg, Sweden. Sleep Cycle is developing one of the world's most widely used sleep platforms. Sleep Cycle's sleep solutions help users fall asleep more easily, measure sleep habits and improve sleep and through its extensive sleep database, contribute to improved sleep habits and increased sleep awareness worldwide. The business is essentially conducted in the parent company. The parent company's holding of shares in group companies as of March 31, 2026 consists of the wholly owned subsidiary Sleep Cycle Sverige AB (559278-9688).
Note 2 Accounting principles
The consolidated financial statement for Sleep Cycle AB has been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU, the Swedish Annual Accounts Act (ÅRL) and the Swedish Financial Reporting Board's RFR 1 "Supplementary accounting rules for groups". The parent company's financial statements are prepared in accordance with the Annual Accounts Act and RFR 2, "Accounting for Legal Entities." This interim report has been prepared in accordance with IAS 34 "Interim Financial Reporting." Disclosures in accordance with IAS 34 are provided in notes as well as elsewhere in the interim report. The accounting principles and calculation methods applied are in accordance with those described in the annual report for 2025. New standards and interpretations that came into force on January 1, 2026 have not had any effect on the group's or the parent company's financial statements for the interim period.
Note 3 Segment information
Sleep Cycle's CEO, as the most senior executive decision-maker, monitors and analyses profit and loss and the financial position of the group in its entirety. The CEO does not track results at a level lower than the Group as a whole. The CEO thereby also decides on allocation of resources, and makes strategic decisions based on the Group as a whole. Based on the above analysis, which is itself based on IFRS 8, it is concluded that the Sleep Cycle group consists of a single reporting segment.
Note 4 Distribution of net sales
| tSEK | Jan – Mar | Jan – Dec | |
|---|---|---|---|
| 2026 | 2025 | 2025 | |
| Revenue, B2C | 44,945 | 59,555 | 222,616 |
| Subscription income, B2C | 44,945 | 59,555 | 222,616 |
| Revenue from B2B | 7,634 | 5,370 | 25,263 |
| Recurring revenue, B2B | 6,592 | 5,149 | 23,358 |
| Other income | 1,043 | 221 | 1,905 |
| Total | 52,579 | 64,925 | 247,879 |
The presentation has been adjusted to increase transparency and clarify the composition of revenue. Comparative figures have been reclassified to ensure comparability between periods.
Note 5 Financial instruments
| tSEK | 03/31/2026 | 03/31/2025 | 12/31/2025 |
|---|---|---|---|
| Financial assets valued at amortized cost | |||
| Accounts receivable | 29,741 | 41,173 | 29,427 |
| Other receivables | 9 | 23 | 6 |
| Accrued income | 1,165 | 1,367 | 1,237 |
| Cash and cash equivalents | 115,267 | 157,071 | 120,846 |
| Total financial assets | 146,182 | 199,634 | 151,515 |
| Financial liabilities valued at amortized cost | |||
| Accounts payable | 17,495 | 14,178 | 14,425 |
| Accrued expenses | 3,535 | 3,885 | 3,396 |
| Total financial liabilities | 21,029 | 18,063 | 17,821 |
Sleep Cycle does not hold any financial instruments that are valued and reported at fair value. For all financial assets and liabilities, the carrying amount is considered as above to be a reasonable approximation of fair value.
Note 6 Accrued expenses and deferred income
| tSEK | 03/31/2026 | 03/31/2025 | 12/31/2025 |
|---|---|---|---|
| Contractual liabilities (deferred income) | 88,973 | 121,851 | 88,413 |
| Accrued staff-related costs | 8,406 | 7,087 | 10,699 |
| Other items | 4,024 | 4,141 | 3,890 |
| Total | 101,403 | 133,079 | 103,002 |
Sleep Cycle
Interim report Jan - Mar 2026
Definitions of key performance indicators and calculations
Sleep Cycle applies the guidelines for alternative key performance indicators issued by ESMA. This report presents certain financial key performance ratios, including alternative key performance indicators which are not defined under IFRS. The Company considers these key performance indicators an important complement, as they facilitate a better evaluation of the Company's financial trends. These financial indicators should not be assessed independently or considered substitutes for performance indicators calculated in accordance with IFRS. In addition, such key performance indicators, as defined by Sleep Cycle, should not be compared with other key performance indicators with similar names utilized by other companies. This is because the key performance indicators below are not always defined in the same way, and other companies may calculate them differently than Sleep Cycle.
| Key performance indicators | Definition | Background of the use of the key performance indicator |
|---|---|---|
| Net sales growth | Change in net sales compared with the same period of prior year. | The measure shows the company's growth in net sales compared with the same period of prior year. |
| Currency-adjusted net sales growth | Defined as the net sales for the current year, converted to the prior year's average exchange rates, divided by the prior year's net sales. | Used to measure the company's underlying net sales growth adjusted for currency effects. |
| EBITDA | EBITDA is defined as operating profit before depreciation and amortization. | This metric is used to describe the company's operating profit before depreciation and amortization and to compare profitability over time. |
| EBITDA margin | EBITDA as a percentage of net sales. | The EBITDA margin is used to show the company's operating profitability before depreciation, amortization, and impairment charges relative to net sales. |
| EBIT (Operating profit/loss) | Operating profit before interest and tax. | Operating profit is used to understand the company's earning capacity. |
| EBIT margin (Operating margin) | Operating profit as a percentage of the company's net sales. | Operating margin is an indication of the company's earning capacity in relation to net sales. |
| Items affecting comparability | Items of a non-recurring nature that are not part of normal business and therefore affect comparison between different periods. Refers to costs related to IPO in 2021, public cash offer in 2022, cost savings in 2023, and reorganization in 2024. | The measure is used to understand the company's development and comparison between the years. |
| Adjusted EBIT/operating profit | Operating profit adjusted for items affecting comparability. | Adjusted operating profit is used to understand the company's earning capacity adjusted for items affecting comparability. |
| Adjusted EBIT/operating margin | Adjusted operating profit as a percentage of the company's net sales. | Adjusted operating margin is used to understand the company's earning capacity adjusted for items affecting comparability. |
| Total subscriptions | Total number of subscriptions at the end of the period. | The measure indicates how many subscribers the company has at the end of the period. |
| Subscriptions, B2C | The number of direct-to-consumer subscriptions at the end of the period. | This metric indicates the number of consumer subscribers the company has at the end of the period. |
| Subscriptions, B2B | Number of subscriptions for which revenue is paid by a B2B partner at the end of the period. | This metric indicates the volume of subscriptions distributed through partners. |
| Subscription income, B2C | Revenue attributable to a subscription paid directly by the consumer. | Subscription revenue, D2C is used to measure the company's revenue generated from consumer subscribers. |
| Recurring revenue, B2B | Revenue from B2B agreements that are recurring in nature, such as subscription or license revenue. | This metric is used to show the portion of B2B revenue that is recurring in nature and thus contributes to greater predictability and stability in the revenue base. |
| Other income, B2B | Non-recurring revenue from B2B customers, such as one-time revenue. | This metric is used to distinguish non-recurring B2B revenue and thus provide a more accurate picture of the quality and composition of revenue. |
| ARPU | Average annual subscription revenue per paying D2C subscriber during the period, annualized. | This metric is used to measure revenue per subscription in the consumer business. |
| Currency-adjusted ARPU | Average annual subscription revenue per paying D2C subscription, converted using the prior year's exchange rates and extrapolated to a full year. | This metric indicates the company's average consumer subscription revenue per consumer subscription, adjusted for currency effects. |
Sleep Cycle
Interim report Jan - Mar 2026
Reconciliation of alternative key performance indicators
The table below derives from the calculation of alternative key performance indicators not defined in accordance with IFRS or where the calculation is not shown in another table in this report.
Net sales growth and currency-adjusted net sales growth
| Jan – Mar | Jan – Dec | ||
|---|---|---|---|
| tSEK | 2026 | 2025 | 2025 |
| Net sales prior period | 64,925 | 63,457 | 261,529 |
| Net sales current period | 52,579 | 64,925 | 247,879 |
| Net sales growth | -19.0% | 2.3% | -5.2% |
| Net sales prior period | 64,925 | 63,457 | 261,529 |
| Currency-adjusted net sales for the current period | 57,007 | 64,489 | 252,734 |
| Currency-adjusted net sales growth | -12.2% | 1.6% | -3.4% |
EBITDA, EBITDA margin, EBIT, and EBITmargin
| Jan – Mar | Jan – Dec | ||
|---|---|---|---|
| tSEK | 2026 | 2025 | 2025 |
| Net sales | 52,579 | 64,925 | 247,879 |
| Other operating income | 628 | 205 | 335 |
| Capitalized work for own account | 1,389 | 400 | 3,020 |
| Distribution costs | -9,663 | -13,893 | -50,816 |
| Other external expenses | -18,797 | -17,929 | -68,569 |
| Personnel expenses | -16,944 | -13,750 | -54,878 |
| Depreciation and impairment of tangible and intangible assets | -1,478 | -1,268 | -6,089 |
| Other operating expenses | -984 | -1,598 | -4,922 |
| EBIT | 6,731 | 17,091 | 65,960 |
| EBIT margin | 12.8% | 26.3% | 26.6% |
| Depreciation and impairment of tangible and intangible assets | 1,478 | 1,268 | 6,089 |
| EBITDA | 8,209 | 18,359 | 72,049 |
| EBITDA margin | 15.6% | 28.3% | 29.1% |
Adjusted EBIT and adjusted EBITmargin
| Jan – Mar | Jan – Dec | ||
|---|---|---|---|
| tSEK | 2026 | 2025 | 2025 |
| EBIT | 6,731 | 17,091 | 65,960 |
| Items affecting comparability | |||
| Other external expenses | - | - | - |
| Personnel expenses | - | - | - |
| Total items affecting comparability | - | - | - |
| Adjusted EBIT | 6,731 | 17,091 | 65,960 |
| Adjusted EBIT margin | 12.8% | 26.3% | 26.6% |
ARPU and currency-adjusted ARPU
| Jan – Mar | Jan – Dec | ||
|---|---|---|---|
| tSEK | 2026 | 2025 | 2025 |
| Subscription income, B2C | 44,945 | 59,555 | 222,616 |
| Currency-adjusted subscription income, B2C | 48,780 | 60,021 | 227,750 |
| Number of B2C subscriptions, prior period (thousands) | 732 | 892 | 892 |
| Number of B2C subscriptions, current period (thousands) | 677 | 874 | 732 |
| ARPU (SEK) | 255 | 270 | 274 |
| Currency-adjusted ARPU (SEK) | 277 | 272 | 280 |
Sleep Cycle
Interim report Jan - Mar 2026
ARPU
Definition of ARPU, clarified
Starting this quarter, the company has updated its definition of ARPU in order to more accurately reflect trends in the consumer business. The new definition applies only to revenue from consumer subscriptions and excludes revenue from partnerships.
The former definition included, in addition to consumer revenue, certain partnership revenue as well, which meant that ARPU was affected by changes in the revenue mix rather than solely by underlying trends in the consumer business. The updated definition thus provides a more transparent and relevant picture of actual monetization per user.
The tables below show the difference between the definitions on a quarterly basis, including adjustments for currency effects.
ARPU
| SEK | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 |
|---|---|---|---|---|---|---|---|---|---|
| 2024 | 2024 | 2024 | 2024 | 2025 | 2025 | 2025 | 2025 | 2026 | |
| ARPU, new definition | 275 | 282 | 279 | 278 | 270 | 269 | 269 | 266 | 255 |
| ARPU, former definition | 276 | 282 | 280 | 279 | 272 | 271 | 271 | 269 | 259 |
| Difference | -1 | 0 | -1 | -1 | -2 | -2 | -2 | -3 | -4 |
Currency-adjusted ARPU
| SEK | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 |
|---|---|---|---|---|---|---|---|---|---|
| 2024 | 2024 | 2024 | 2024 | 2025 | 2025 | 2025 | 2025 | 2026 | |
| Currency-adjusted ARPU, new definition | 270 | 276 | 282 | 283 | 272 | 274 | 276 | 277 | 277 |
| ARPU, former definition | 271 | 277 | 284 | 276 | 270 | 277 | 276 | 279 | 280 |
| Difference | -1 | -1 | -2 | 7 | 2 | -3 | 0 | -2 | -3 |
Sleep Cycle
Interim report Jan – Mar 2026