Sweden's Sleep Cycle Q4 sales fall 13.3% on decline in app store downloads

Sleep Cycle AB (publ)

04/02/2026 06:39

Overview

Sweden-based sleep app firm's Q4 net sales fell 13.3% yr/yr

Operating profit margin for Q4 was 24.3%, down from 32.3% last year

Company launched AI-based sleep coach and signed IoT tech license deal

Outlook

Company expects 2026 revenue to be slightly lower than 2025

Sleep Cycle projects 2026 EBIT margin at approximately 5%

Revenue growth expected to accelerate from 2027 onwards

Result Drivers

APP STORE DECLINE - Revenue decreased due to a decline in app store downloads, affecting net sales by 13.3% yr/yr

AI SLEEP COACH - Launch of AI-based sleep coach Luma increased engagement and conversion rates

TECHNOLOGY LICENSING - Partner revenue increased by 46%, driven by technology licensing agreements

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Sales
SEK 57.87 mln
Q4 Adjusted EPS
SEK 0.56
Q4 EBIT
SEK 14.06 mln
Q4 EBIT Margin
24.30%


Analyst Coverage

Wall Street's median 12-month price target for Sleep Cycle AB (publ) is SEK38.75, about 61.5% above its February 3 closing price of SEK24.00

The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nMFN8z5DsT

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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.)