The fourth quarter in summary (October-December 2025)
- Net sales amounted to tSEK 57,873 (66,756) and decreased by 13.3% (+9.0%). Currency-adjusted net sales growth amounted to -9.8% (8.0%).
- Operating profit amounted to tSEK 14,058 (21,543), with an operating margin of 24.3% (32.3%). The quarter has not been affected by any costs affecting comparability.
- The total number of paying subscribers at end of period was 768k (918k).
- ARPU in the quarter totaled SEK 269 (279). Currency-adjusted ARPU amounted to SEK 279.
- Earnings per share before and after dilution for the quarter amounted to SEK 0.56 (0.86).
Full year in summary (January-December 2025)
- Net sales amounted to tSEK 247,879 (261,529) and decreased by 5.2% (+10.7%). Currency-adjusted net sales growth amounted to -3.4% (9.8%).
- Operating profit amounted to tSEK 65,960 (76,962), with an operating margin of 26.6% (29.4%). The previous year was affected by costs of tSEK 5,756 and the adjusted operating margin was 31.6%.
- The total number of paying subscribers at end of period was 768k (918k).
- ARPU for the period totaled SEK 277 (278). Currency-adjusted ARPU amounted to SEK 282.
- Earnings per share before and after dilution amounted to SEK 2.62 (3.09) for the period.
Important events during the quarter
- On October 1, the Nomination Committee announced that Christian Kanstrup had been proposed as a new member of the Board of Directors. On October 2, shareholders were convened to an extraordinary general meeting on October 28, 2025.
- On October 27, a pilot project was launched with wearables company Ultrahuman, marking an important milestone in the company's SDK licensing strategy.
- On December 3 Luma, Sleep Cycle's AI-based sleep coach, was launched.
- On December 18, Sleep Cycle signed a multi-year technology license agreement with a global Internet of Things (IoT) company.
Important events after the period end
- On January 23 2026, Sleep Cycle announced that the company has signed a start-up agreement with a leading US-based clinical research organization (CRO) to conduct the validation phase of its clinical study for its AI-based sleep apnea screening tool, as the development phase enters its final stage.
- On January 28 2026, UK Health Security Agency and Sleep Cycle launch a research study focusing on how coughing and sleep-related signals can support earlier detection of respiratory trends in the UK.
- The Board of Directors proposes an ordinary dividend of 0.53 SEK per share, equivalent to 10,747 thousand SEK, based on the number of outstanding shares as of February 4, 2026.
Commenting on the quarter, CEO Erik Jivmark says:
The fourth quarter rounded out a year of deliberate strategic choices. In a market where the traditional sleep app category remains under pressure, Sleep Cycle chose to accelerate its transformation rather than maintain the status quo. We strengthened our position and took concrete steps toward building a more diversified and resilient company, while laying the foundation for future growth opportunities at the same time. For the whole year, we achieved an EBIT margin of 26.6 percent, while partner revenue increased by 59 percent.
A profitable and evolving consumer business
Sleep Cycle is evolving from an app-focused company to a platform with multiple products, distribution channels, and revenue streams. Partner revenue increased by 46 percent during the quarter and now represents 12 percent of total revenue.
Through our Sleep SDK and Powered by Sleep Cycle we license our proprietary AI-based sound analysis technology to partners seeking to integrate sleep-related experiences into their own products. We signed two technology license agreements during the year, one of which has already been launched. This confirms both the scalability of the technology and its relevance beyond our own app, positioning us in a technology licensing market estimated to be worth approximately SEK 3 billion.
Advances in MedTech
We are now entering a new phase for Sleep Cycle, focused on creating long-term revenue growth. With early successes in our partnership strategy and an attractive opportunity within MedTech, we are deliberately increasing our investments to enable sustainable long-term growth.
We view 2026 as an investment-intensive year, with a focus on developing new business areas rather than maximizing short-term revenue growth. Investments include technology licensing through Powered by Sleep Cycle as well as continued development of our sleep apnea screening solution. These initiatives are intended to establish new revenue streams, but we assess that they will contribute only to a limited extent to revenue growth during 2026. Against this backdrop, we expect total revenues for the full year 2026 to be somewhat lower than the previous year.
This means that 2026 will be a year in which we prioritize building the structural foundations for future growth rather than driving short-term revenue expansion. Our focus is on converting investments in technology, partnerships and MedTech into scalable businesses, with a clearer revenue contribution expected from 2027 onwards.
We expect revenue growth from these initiatives to gradually accelerate from 2027 and beyond, as investments translate into commercial agreements, product launches and scalable licensing revenues. At the same time, these investments establish a solid foundation for long-term growth, higher total revenues and improved profitability over time.
The EBIT margin for the full year 2026 is expected to amount to approximately 5 percent. This is a deliberate and temporary effect of forward-looking investments and does not imply any change to our long-term profitability ambitions. Our financial targets remain unchanged, and as investments are converted into scalable revenues, we expect margins to recover to levels around 25 percent as early as 2027, supported by revenue growth and higher total revenues.
Looking ahead
Thank you for your continued trust,
Erik Jivmark, CEO
The full interim report is available on https://investors.sleepcycle.com
Sleep Cycle's CEO Erik Jivmark and CFO & Head of IR Elisabeth Hedman will present the quarter on February 4 at 9:30 a.m. CET. To participate via the webcast, please visit the link: https://sleep-cycle.events.inderes.com/q4-report-2025
Participants may submit written questions via the webcast.
For more information please contact:
Elisabeth Hedman | CFO & Head of IR
elisabeth.hedman@sleepcycle.com | +46 76 282 8958
Erik Jivmark | CEO
erik.jivmark@sleepcycle.com
About Sleep Cycle
Sleep Cycle is dedicated to making healthy sleep accessible to everyone. Our app helps users to build hero habits, identify potential sleep issues, and gain valuable insights into their sleep patterns. Leveraging patented sound technology and over 3 billion analyzed sleep sessions, Sleep Cycle provides unparalleled accuracy and personalized guidance. As part of its broader partnership program, Sleep Cycle offers company partnerships including in-app promotions, tailored SDK solutions, and an extensive data library, enabling businesses to expand their offerings with sleep solutions and insights. Sleep Cycle is listed on Nasdaq Stockholm under the ticker SLEEP, with its headquarters in Gothenburg, Sweden.
This information is information that Sleep Cycle is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2026-02-04 07:30 CET.
