The second quarter in summary (April-June 2026)
- Net sales amounted to tSEK 49,904 (63,559) and decreased by 21.5% (2.9%). Currency-adjusted net sales growth amounted to -15.4% (-0.6%). Net sales from the B2B segment grew by 26.9% and represented 15.1% (9.3%) of total net sales.
- EBITDA amounted to tSEK -5,987 (19,366) and the EBITDA margin was -12.0% (30.5%). The quarter has been affected by costs affecting comparability of tSEK 10,913. Adjusted EBITDA amounted to tSEK 4,926 (19,366).
- EBIT amounted to tSEK -7,536 (18,019) and the EBIT margin was -15.1% (28.4%). Adjusted EBIT amounted to tSEK 3,377 (18,019) and the adjusted EBIT margin to 6.8% (28.4%).
- The total number of paying subscribers at end of period was 665k (878k).
- ARPU in the quarter totaled SEK 257 (269). Currency-adjusted ARPU amounted to SEK 280.
- Earnings per share before and after dilution for the quarter amounted to SEK -0.29 (0.71).
The period in summary (January-June 2026)
- Net sales amounted to tSEK 102,483 (128,484) and decreased by 20.2% (0.3%). Currency-adjusted net sales growth amounted to -14.2% (0.5%). Net sales from the B2B segment grew by 34.2% and represented 14.8% (8.8%) of total net sales.
- EBITDA amounted to tSEK 2,222 (37,725) and the EBITDA margin was 2.2% (29.4%). The second quarter has been affected by costs affecting comparability of tSEK 10,913. Adjusted EBITDA amounted to tSEK 13,134 (37,725).
- EBIT amounted to tSEK -805 (35,110) and the EBIT margin was -0.8% (27.3%). Adjusted EBIT amounted to tSEK 10,107 (35,110) and the adjusted EBIT margin to 9.9% (27.3%).
- ARPU for the period totaled SEK 254 (271). Currency-adjusted ARPU amounted to SEK 277.
- Earnings per share before and after dilution amounted to SEK -0.02 (1.39) for the period.
Highlights
- On May 11, 2026, Snark BidCo AB, a company controlled by Altor Fund V (No.1) and Altor Fund V (No.2), announced a public offer to the shareholders of Sleep Cycle to transfer all shares for SEK 24.50 in cash per share; on May 22, 2026, the independent members of the Board at the time unanimously recommended that the shareholders not accept the offer, the offer document was made public on May 25, 2026, and the acceptance period began on May 26, 2026.
- On June 18, 2026, Snark BidCo announced that at the end of the initial acceptance period, the Offer had been accepted by shareholders representing 74.6 percent of the share capital and votes in Sleep Cycle, that the consideration would not be increased, that the necessary regulatory approvals had been obtained and that the acceptance period had been extended until July 2, 2026.
- On July 3, 2026, Snark BidCo announced that the offer is being completed and thus declared unconditional and that Snark BidCo thereby controlled 78.2 percent of the shares and votes in Sleep Cycle. At the same time, the acceptance period was extended until July 17, 2026, in order to allow shareholders of Sleep Cycle who had not yet tendered their shares additional time to accept the Offer.
- On July 3, 2026, the company announced that a commercial SDK license agreement with Ultrahuman had been signed following a successful pilot project.
- On July 10, 2026, the Board, at the request of Snark BidCo, convened an Extraordinary General Meeting on August 5, 2026, to, among other things, elect a new Board. The Meeting resolved that the Board shall consist of five members without deputies; Andreas Källström Säfweräng, Matilda Elfving Hauan, Anna Bäck, Henrik Torstensson and Steve Savoca were elected as Board members and Andreas Källström Säfweräng was elected Chairman of the Board.
- On July 20, 2026, Snark BidCo publicized the final outcome of the offer and announced that Snark BidCo thereby controls 79.2 percent of the shares and votes in Sleep Cycle.
- On July 23, 2026, it was announced that the company had signed a technology licensing agreement with Ant Group.
Commenting on the quarter, CEO Erik Jivmark says:
"We are seeing more and more tangible signs that the strategic shift is beginning to translate into commercial results. Net sales for the quarter amounted to SEK 49.9 million, a decrease of 21.5 percent, or 15.4 percent adjusted for currency effects. The decline should be seen against a continued challenging market for sleep apps, where, according to market data, we are gaining market share on iOS.
B2B revenue increased 26.9 percent and accounted for 15.1 percent of net sales. After the end of the quarter, we signed an updated commercial SDK license agreement with Ultrahuman and a one-year SDK pilot licensing agreement with Ant Group, one of China's leading technology companies and the operator behind Alipay. Based on concluded agreements and the current revenue rate, B2B revenue is expected to exceed SEK 9 million in the third quarter - a growth of over 30 percent compared to the previous year.
The clinical validation study in the US began in April and has progressed well - the planned study nights are largely completed. However, the proportion of participants with moderate to severe sleep apnea has been lower than expected, and to achieve the statistical data required for regulatory approval, the study needs to be expanded, which entails a significantly increased investment and a delayed timeline. The company's newly elected Board of Directors is now preparing the decision on the expansion. Our ambition of regulatory approval in the US remains; an updated timeline will be communicated once the decision has been made.
2026 is an investment year - we are taking the costs of building the platform now, while revenues from the new areas come later. For the full year, we expect net sales to decline, but at a slower rate in the second half than the first half's -20.2 percent, as B2B revenue grows out of agreements already signed. Despite one-off costs of SEK 10.9 million, we expect a reported operating margin for the full year in line with the approximately 5 percent previously communicated - and, excluding these items, a margin of approximately 9 percent. Our financial targets remain unchanged."
Erik Jivmark
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 give a presentation on 26 August at 9:30 CET. The presentation can be followed on https://sleep-cycle.events.inderes.com/q2-report-2026
Written questions can be sent in 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 4 billion analyzed sleep sessions, Sleep Cycle provides great 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 and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above, at 2026-08-26 07:30 CEST.
