Sleep Cycle (SLEEP) Q4 2025 earnings summary

Executive summary

• Strategic transformation underway, shifting from an app-centric model to a diversified platform with B2B technology licensing and MedTech opportunities, prioritizing long-term growth over short-term optimization.

• Maintained strong profitability and EBIT margins despite a 13% Q4 and 5% full-year net sales decline in a challenging consumer market.

• Partnership revenue grew 46% in Q4 and 59% for the year, now representing over 12% of total net revenue.

• Launched Luma, an AI-based sleep coach, and advanced sleep apnea screening solution.

• Deliberate choice to prioritize investments in platform, partnerships, and MedTech for future growth.

Financial highlights

• Q4 net sales: SEK 57.9m, down 13.3% year-over-year; full-year net sales: SEK 247.9m, down 5.2%.

• Q4 EBIT: SEK 14.1m (margin 24.3%); full-year EBIT: SEK 66.0m (margin 26.6%).

• Number of paying subscribers at year-end: 768,000, down from 918,000; ARPU Q4: SEK 269 (FX adjusted SEK 279); full-year ARPU: SEK 277 (FX adjusted SEK 282).

• Cash and cash equivalents at year-end: SEK 120.8m; positive operating cash flow.

• Board proposed a dividend of SEK 0.53 per share, totaling SEK 10.7m.

Outlook and guidance

• 2026 will be investment-intensive, with revenue expected slightly below 2025 due to delayed ramp-up in new business areas.

• EBIT margin guided to compress to around 5% in 2026, returning to approximately 25% in 2027 as new revenue streams scale.

• Long-term targets unchanged; growth in net sales anticipated to accelerate from 2027 onward, driven by MedTech and B2B licensing.