Sleep Cycle (SLEEP) Q2 2026 earnings summary

Executive summary

• Q2 2026 net sales declined 21.5% year-over-year to SEK 49.9 million, mainly due to lower B2C acquisition and FX headwinds, but B2B revenue grew 26.9% and now represents 15.1% of total revenue.

• Adjusted EBIT margin was 6.8%, with reported EBIT at SEK -7.5 million due to SEK 10.9 million in non-recurring costs related to a public offer and reorganization.

• The company is leveraging its technology and data to expand into sleep apnea solutions and tech licensing, broadening the addressable market from SEK 1.7 billion to SEK 47 billion.

• Paying subscribers declined to 665,000 from 878,000 a year ago, mainly due to weaker performance in the Apple App Store.

• Strategic transformation is progressing, with a focus on B2B and tech licensing.

Financial highlights

• Net sales for Q2 2026 were SEK 49.9 million, down 21.5% year-over-year (currency-adjusted -15.4%).

• Adjusted EBIT was SEK 3.4 million (margin 6.8%); reported EBIT was SEK -7.5 million (margin -15.1%) due to SEK 10.9 million in non-recurring costs.

• B2B revenue share increased to 15.1% of total revenue, up from 9.3% a year ago, with recurring B2B revenue of SEK 7.0 million.

• ARPU for Q2 was SEK 257 reported, SEK 280 currency-adjusted.

• Cash and cash equivalents at period end: SEK 99.1 million, with positive operating cash flow of SEK 7.6 million.

Outlook and guidance

• Full-year net sales expected to decline, but the rate of decline should moderate in H2 2026 as B2B revenue grows.

• B2B revenue projected to exceed SEK 9 million in Q3 2026, representing about 30% year-on-year growth.

• Full-year reported EBIT margin expected around 5%, adjusted margin around 9%.

• U.S. regulatory approval for sleep apnea targeted for 2027, pending study extension.

• Medium-term targets: double revenue, EBIT margin of at least 25% through the cycle, and 40%-60% of profit after tax paid as dividends.