Sleep Cycle Interim Report January – March 2026: Strategic Expansion into New Growth Areas
Sleep Cycle is accelerating its transformation from sleep app to platform within sleep and digital health. In the first quarter of 2026, B2B revenue grew by 42 percent and accounted for 14.5% of total revenue, the clinical study for sleep apnea screening is progressing as planned towards completion in September, and after the end of the period Sleep Cycle launched its app in ChatGPT – as one of the first players in digital sleep health on an AI platform. The company also intends to implement an organisational change to drive its three business areas with greater speed and clearer accountability.
The first quarter in summary (January-March 2026)
- Net sales amounted to tSEK 52,579 (64,925) and decreased by 19.0% (+2.3%). Currency-adjusted net sales growth amounted to -12.2% (1.6%). Net sales from the B2B segment grew by 42.2% and represented 14.5% (8.3%) of total net sales.
- EBITDA amounted to tSEK 8,209 (18,359), and the EBITDA margin was 15.6% (28.3%). The quarter has not been affected by any items affecting comparability.
- EBIT amounted to tSEK 6,731 (17,091) and the EBIT margin was 12.8% (26.3%).
- The total number of paying subscribers at end of period was 715k (904k).
ARPU in the quarter totaled SEK 255 (270). Currency-adjusted ARPU amounted to SEK 277. - Earnings per share before and after dilution for the quarter amounted to SEK 0.27 (0.68).
Highlights
- In March 2026, an updated Sleep Quality Score was launched,
A research collaboration with the Delphi Group at Carnegie Mellon University (CMU) was initiated, aimed at the early detection of disease outbreaks. - A research collaboration with the UK Health Security Agency was initiated to identify disease trends. The study will be completed in Q2.
- An agreement has been signed with a leading U.S.-based CRO for the validation of sleep apnea screening; the study is slated for completion in September 2026.
- 150,000 people have registered their interest in the B2C service for sleep apnea detection.
- In connection with the company’s transformation, the company intends to carry out a reorganization to streamline and adapt its operations. As part of the proposed change, CTO Mikael Kågebäck is intended to assume the role of CTPO and Kajsa Lernestål the role of Chief Growth Officer, while CPO Petter Höglander is intended to leave the company. As part of the reorganisation, certain functions are intended to be consolidated; in addition to the management team changes, a small number of employees are affected.
- Sleep Cycle is being launched as an app in ChatGPT with Sleep Aid audio content designed for relaxation and falling asleep — a first step in the company’s strategy of distributing services via AI-based platforms beyond its own app.
Commenting on the quarter, CEO Erik Jivmark says:
“We continue to take important steps in implementing our strategy to expand Sleep Cycle into a larger and more value-creating segment, thereby increasing the addressable market from SEK 1.7 billion to SEK 47 billion. Our strategy is built on three pillars: a strong and profitable consumer business, a scalable B2B business in technology licensing, and the development of our first Med Tech product for sleep apnea.
The consumer app remains our foundation and primary data source. The updated paywall we launched in mid-March has increased first-night activation from 24% to 45%, and an updated Sleep Quality Score improves day-8 retention by approximately 5 percent. In Tech Licensing, we have expanded our partner pipeline and engaged in discussions across several segments, creating favourable conditions for scalable, recurring revenue with high margins. In sleep apnea, our algorithm has in internal testing reached the level of performance required for regulatory approval. The clinical study is progressing as planned and is expected to be completed in September 2026, and more than 150,000 individuals have already registered interest in the product.
After the end of the period, we launched Sleep Cycle’s app in ChatGPT – our first step onto an AI platform and a concrete expression of our strategy to meet users where they already are, beyond our own app. In parallel, we intend to carry out an organisational change to drive our three business areas with greater speed and clearer accountability: Mikael Kågebäck is intended to assume the role of CTPO, Kajsa Lernestål the role of Chief Growth Officer, while Petter Höglander is intended to leave the company.
B2B revenue grew by 42 percent and accounted for 14.5% of total revenue – clear evidence that our strategic transformation is delivering results. 2026 is a year of significant investment, and I remain confident in our strategy and in our ability to execute it.”
Erik Jivmark
The full interim report is available on https://investors.sleepcycle.com
Sleep Cycles CEO Erik Jivmark and CFO & Head of IR Elisabeth Hedman will give a presentation on April 29 at 9:30 a.m. CET. The presentation can be followed on https://sleep-cycle.events.inderes.com/q1-report-2026
Written questions can be sent in the webcast.
For more information please contact:
Elisabeth Hedman | CFO & Head of IR
[email protected] | +46 76 282 8958
Erik Jivmark | CEO
[email protected]
About Sleep Cycle
Sleep Cycle is dedicated to making healthy sleep accessible to everyone. Our app helps users to build hero habits, identify potential sleep issues, and gain valuable insights into their sleep patterns. Leveraging patented sound technology and over 3 billion analyzed sleep sessions, Sleep Cycle provides unparalleled accuracy and personalized guidance. As part of its broader partnership program, Sleep Cycle offers company partnerships including in-app promotions, tailored SDK solutions, and an extensive data library, enabling businesses to expand their offerings with sleep solutions and insights. Sleep Cycle is listed on Nasdaq Stockholm under the ticker SLEEP, with its headquarters in Gothenburg, Sweden.
