Sweden's Sleep Cycle Q3 sales fall on weaker consumer app demand

Sleep Cycle AB (publ)

23/10/2026 06:42

Overview
Sweden sleep tracking app's Q3 net sales fell 17% yr/yr, driven by weaker consumer app sales
Adjusted EBIT margin rose to 29.7%, but reported EBIT margin dropped to 2.2% due to one-off costs
B2B sales grew 49% yr/yr and now represent 20% of net sales

Outlook
Sleep Cycle expects full-year 2026 adjusted operating margin of about 20% for current operations
Company expects reported operating margin of about 7% for 2026, including SEK 25 mln in comparability items
Company expects annual savings of about SEK 35 mln from reorganization, with significant impact in Q4

Result Drivers
CONSUMER APP WEAKNESS - Co said net sales decline was driven by continued challenges in new consumer app sales
B2B GROWTH - Co said B2B revenue rose 49% and reached a record high, now accounting for 20% of net sales
RESTRUCTURING COSTS - Co said reported profit was reduced by SEK 14 mln in one-off costs related to CEO change and reorganization

Company press release: ID:nMFN7cyg5z

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
 
SEK 50.86 mln
 
Q3 Adjusted EBIT
 
SEK 15.10 mln
 
Q3 Adjusted EBIT Margin
 
29.70%
 
Q3 EBIT
 
SEK 1.14 mln
 
Q3 EBIT Margin
 
2.20%
 

Analyst Coverage
Wall Street's median 12-month price target for Sleep Cycle AB (publ) is SEK29.50, about 21.9% above its October 22 closing price of SEK24.20
The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 33 three months ago

Reuters Recommended Reads
Oct 22 - Sweden's Cdon Q3 GMV rises 18%, sales up 3%
Oct 22 - Sweden's Nelly Q3 revenue rises on promotional activity
Oct 22 - Finland's Verkkokauppa Q3 revenue misses estimates on weak demand

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)