Sleep Cycle AB reported a 20% decline in net sales to just under SEK 50 million for Q2 2026, as the company’s shares slipped 2.4% to SEK 24.35 in early trading. The Stockholm-based sleep-tech firm’s paying subscribers fell to 665,000 from 878,000 a year earlier, a drop of 24.3%, while average revenue per user rose 4.1% on a currency-adjusted basis to SEK 280.
The company’s reported EBIT loss widened to SEK 7.5 million, though adjusted EBIT remained positive at SEK 3.4 million, reflecting SEK 11 million in total items affecting comparability. These included SEK 9 million in transaction costs and SEK 2 million in reorganization expenses. B2B revenue grew approximately 30% year-over-year, now accounting for roughly 15% of total revenue, up from about 5% nine quarters ago. Management expects Q3 B2B revenue to exceed SEK 9 million, representing about 30% growth year-over-year.
Sleep Cycle is transitioning from a consumer sleep app to a broader B2B licensing and medical technology model, targeting the U.S. FDA approval for sleep apnea detection in 2026. The company estimates its addressable market at SEK 47 billion annually, up from the historical SEK 1.7 billion sleep app market. CEO Erik Jivmark emphasized the strategic shift, stating, “We are moving beyond app stores.”
The sleep apnea clinical validation study faced delays due to participant mix issues, with fewer than expected cases of moderate to severe obstructive sleep apnea. Management noted the underlying technology remained unaffected, requiring additional enrollment to meet FDA statistical requirements. The company paid a SEK 0.53 per share dividend for 2025 and targets a medium-term payout of 40% to 60% of post-tax profits once targets are met.
Sleep Cycle’s shares are trading 22.8% below their 52-week high of SEK 31.60 and 64% above the 52-week low of SEK 14.84, with a stock beta of 0.07.
