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Interim Report April –June 2025 2 2 A ugu st 2 02 5 1Sleep Cycle © 2025 Sleep Cycle AB. All Rights Reserved
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Chief Executive Officer Presenters Chief Finance Officer & Head of Investor Relations Erik Jivmark Elisabeth Hedman 2Sleep Cycle © 2025 Sleep Cycle AB. All Rights Reserved
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Our Mission is to improve global health by empowering people to take control of their sleep. 3Sleep Cycle © 2025 Sleep Cycle AB. All Rights Reserved
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Xd We Unlock Healthy Habits W e tr ansform sleep habits by providing powerful tools andfeatures to impr ove sleep quality and offering deep insights into sleep patterns, ultimately leading to a more satisfying life. 4Sleep Cycle © 2025 Sleep Cycle AB. All Rights Reserved
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Our Strategy 5Sleep Cycle © 2025 Sleep Cycle AB. All Rights Reserved User Acquisition Improve the upper funnel User Engagement Platform and Data Installs Subscriptions Product development Conversion Retention ARPU Monetization of data and technology Data monetization Technology licensing New products leveraging the platform
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The World's No.1 Sleep App Streams of Health Data Integrate with Patented T echnology Massive, Actionable Health Dataset With over 3 billion nights of anonymized sleep data analyzed, our platform provides one of the largest health data streams available—trusted by academic institutions and researchers globally. Seamless, Real-Time Integration Our live data feed can be effortlessly integrated into existing health platforms, wearables, and connected systems — enabling continuous insights and smarter , more responsive health experiences driven by AI. Personalized Sleep Insights for Better Health Deliver tailored, data-driven sleep insights that empower individuals to improve their sleep quality—leading to enhanced overall health, long-term well-being, and improved lifestyle habits. Boosted Performance & Wellness at Scale. Enable higher productivity and reduced absenteeism through a deeper understanding of health patterns and behaviors. Flexible SDK & Supporting R&D Capabilities Empower seamless integration with connected hardware or software through our versatile SDK. Customizable Data Presentation Deliver insights and metrics through the interface and feature set that best aligns with your brand and product—designed for flexibility and clarity. 6Sleep Cycle © 2025 Sleep Cycle AB. All Rights Reserved
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7 Today Evidence-based and effective, but reactive, treatment-focused with limited focus on prevention. Healthcare 2.0 Healthcare 3.0 The Future Proactive, personalized healthcare. Tailored based on individual genetic, lifestyle, and real-time data. Pre-Scientific Revolution Trial and error-based treatment, limited evidence base and efficacy. Healthcare 1.0 7Sleep Cycle © 2025 Sleep Cycle AB. All Rights Reserved The Evolution of Healthcare
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Age 30–69 suffer from mild to severe sleep apnea worldwide 950M Of individuals with Obstructive Sleep Apnea remain undiagnosed 80% Greater risk of heart disease, stroke, and diabetes 3x 8Sleep Cycle © 2025 Sleep Cycle AB. All Rights Reserved Solving a Public Health Problem at Scale SLEEP APNEA
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Expanding our Total Addressable Market (TAM) Building new high-margin revenue stream Opens doors to B2B partnerships and health markets Strategic Leap into a Multi- Billion Market SLEEP APNEA 9Sleep Cycle © 2025 Sleep Cycle AB. All Rights Reserved
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Led by Sleep Scientist Dr . Gradisar & AI expert Dr . Kågebäck Dr . Kågebäck Dr . Gradisar Clinical Study Underway SLEEP APNEA 10Sleep Cycle © 2025 Sleep Cycle AB. All Rights Reserved
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Financial Development for Q22025 -2.2 % YoY Subscriptions Growth 878 K Paying Subscribers -3.9 % YoY ARPU Growth 271 SEK ARPU -2.9 % YoY Net Sales Growth FX Adjusted Growth -0.6% 64 M SEK Net Sales 28.4 % EBIT Margin 18 M SEK EBIT 12Sleep Cycle © 2025 Sleep Cycle AB. All Rights Reserved
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Number of paying subscribers decreased with –2.2% y-o-y to 878k, driven by softer market conditions leading to a lower intake of new customers. Retention rates remain stable. Net sales decreased by –2.9% as a result of a lower intake of new customers combined with pressure on ARPU. FX adjusted sales development was -0.6% for Q2 and +0.5% for H1. Net sales generated through partnership grew with 68% y-o-y and represents 9% of total net sales. Paying Subscribers Net Sales 202520242023202220212020 202520242023202220212020 13Sleep Cycle © 2025 Sleep Cycle AB. All Rights Reserved
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2021 5 -11 9 8 13 13 14 5 11 13 20 13 14 21 21 22 17 18 11.2% -25.9% 18.4% 16.7% 25.5% 24.6% 24.7% 8.3% 19.5% 22.0% 33.5% 20.7% 21.8% 32.0% 31.3% 32.3% 26.3% 28.4% -3 0% -2 0% -1 0% 0% 10% 20% 30% -1 5 -1 0 -5 0 5 10 15 20 25 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 SEKm EBIT EBIT-margin Continued solid profitability with an EBIT of SEK 18m and an EBIT-margin of 28.4% for Q2-25. The adjusted EBIT-margin has been above 25% for 6 quarters in a row . No NRIs in Q2-25. EBIT Adjusted EBIT 14Sleep Cycle © 2025 Sleep Cycle AB. All Rights Reserved 202520242023202220212025202420232022 12 5 12 8 13 13 14 7 11 17 20 13 20 21 21 22 17 18 28.1% 10.3% 24.5% 16.7% 25.5% 24.6% 24.7% 13.4% 20.0% 29.8% 33.5% 20.7% 30.9% 32.0% 31.3% 32.3% 26.3% 28.4% 0% 5% 10% 15% 20% 25% 30% 35% 0 5 10 15 20 25 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 SEKm Adjusted EBIT Adjusted EBIT-margin
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Strong Margin of 28.4% in Q2-25 Despite Decrease in Net Revenue SEK M Q2-25 Q2-24 CHANGE COMMENTS Net sales 63.6 65.4 -2.9% Decline due to softer intake of new customers and a lower ARPU. FX- adjusted net sales development was -0.6%. Partnership generated sales was 9% of the total net sales, up from 5% in Q2-24. Capitalized work for own account 0.9 0.2 -458.5% Continued investments in medical certification of sleep apnea screening. Distribution costs -13.3 -14.4 7.9% Lower commission to mainly App Store, a result of lower sales to new customers. Other external costs -16.1 -13.6 -18.9% Costs related to use of consultants is higher compared to last year. Marketing spend on same level. Staff costs -13.7 -14.5 5.5% Average number of employees for Q2-25 was 35, same period last year we had an average of 30 employees. Q2-24 included costs for incentive program of SEK 2m. D&A -1.3 -2.1 36.7% Lower D&A mainly as the lease for the former Stockholm office no longer impacts the results. Other operating expenses -2.0 0.0 N/A FX effects of SEK –2.0m in Q2-25 due to currency fluctuations between the point of sales and point of payment from platforms. EBIT 18.0 21.0 -14.0% Margin 28.4% 32.0% Target for EBIT-margin is 25% or more annually. Adjusted EBIT 18.0 21.0 -14.0% No NRIs recorded during Q2-25 or Q2-24. Adjusted EBIT-margin 28.4% 32.0% Liquidity at period end 112.4 120.4 -6.7% Strong cash position and solid development of cash flow. Cash flow from operations was SEK 19.9m (16.2). Cash flow for the period was SEK -44.6m after a dividend payout of SEK -60.8m. 15Sleep Cycle © 2025 Sleep Cycle AB. All Rights Reserved
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Building Long-termValuein a ShiftingMarket SEK M Jan-Jun-25 Jan-Jun 24 CHANGE COMMENTS Net sales 128.5 128.9 -0.3% FX-adjusted net sales growth of +0.5% for the full period. Majority of the sales is recognized over 12 months. Capitalized work for own account 1.3 0.2 702.4% SEK 1.3m staff costs mainly related to the medical certification of sleep apnea screening. Distribution costs -27.2 -28.8 5.4% The lower sales to new customers results in slightly lower commission to Apple. Other external costs -34.1 -28.5 -19.4% Jan-Jun-24 included NRIs related to reorganization of SEK 0.8m. The increase in OpEx comes is explained by a higher use of external consultants and slightly higher marketing spend. Staff costs -27.4 -32.8 16.4% Staff costs for Jan-Jun-24 included NRIs of SEK 5m related to reorganization. The average number of employees in Jan-Jun- 25 was 34 (34). D&A -2.6 -4.3 38.5% Costs were lower mainly as the lease for the former Stockholm office no longer impacts the results. Other operating expenses -3.6 -0.1 N/A FX effects of SEK –3.6m in Jan-Jun-25 due to currency fluctuations between the point of sales and point of payment from platforms. EBIT 35.1 34.8 0.9% Margin 27.3% 27.0% Target for EBIT-margin is 25% or more annually. Adjusted EBIT 35.1 40.6 -13.4% NRIs of SEK 5.8m in Jan-Jun-24 related to reorganization. No NRIs during Jan-Jun 2025. Adjusted EBIT-margin 27.3% 31.5% Liquidity at period end 112.4 120.4 -6.7% Strong cash position, dividend of SEK 60.8m paid out in Q2-25. Cashflow from operations of SEK 36.6m (34.5). 16Sleep Cycle © 2025 Sleep Cycle AB. All Rights Reserved
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Quarterly Highlight 17Sleep Cycle © 2025 Sleep Cycle AB. All Rights Reserved Powered by Sleep Cycle Sleep Apnea study9% Partnership revenue
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Questions & Answers 19Sleep Cycle © 2025 Sleep Cycle AB. All Rights Reserved