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Y ear-end report 2025 4 Febr uary 2026 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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Financial highlights for Q4 2025 768 K Paying subscribers -16.4 % y-o-y growth 269 SEK ARPU -3.6 % y-o-y growth -1.1% FX-adjusted growth 58 M SEK Net sales -13.3 % y-o-y growth -9.8% FX-adjusted growth 14 M SEK EBIT EBIT-margin 24.3% 4Sleep Cycle © 2025 Sleep Cycle AB. All Rights Reserved Net sales impacted by challenging market conditions, while B2B partnerships delivered strong growth, highlighting the traction of new strategic initiatives and revenue streams. +46 % Net sales growth from B2B partnerships 12.4% of total net revenue
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Financial highlights for full year 2025 768 K Paying subscribers -16.4 % y-o-y growth 277 SEK ARPU -0.4 % y-o-y growth +2.2% FX-adjusted growth 248 M SEK Net sales -5.2 % y-o-y growth -3.4% FX-adjusted growth 66 M SEK EBIT EBIT-margin 26.6% 5Sleep Cycle © 2025 Sleep Cycle AB. All Rights Reserved Full-year net sales impacted by market conditions, while B2B partnerships grew strongly and underlying profitability remained solid. +59 % Net sales growth from B2B partnerships 10.2% of total net revenue
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Paying subscribers amounted to 768k at the end of the quarter, compared with 918k in the prior year. The decrease was driven by lower new customer acquisition in a challenging market environment, while renewal rates remained stable at 45%. Revenue, or net sales, decreased by 13.3% year -over-year to SEK 57.9 million, reflecting lower new customer acquisition and negative currency effects. FX - adjusted net sales declined by 9.8%. ARPU amounted to SEK 269, while net sales from partnerships increased by 45.5% y -o-y and represented 12.4% of total net sales. Paying subscribers Net sales 6Sleep Cycle © 2025 Sleep Cycle AB. All Rights Reserved 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 732 744 782 788 820 852 884 901 920 921 912 904 881 877 887 893 893 898 915 918 904 878 832 768 0 250 500 750 1000 1250 1500 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 # '000 38 39 40 42 42 44 49 48 50 52 55 55 56 58 61 61 63 65 66 67 65 64 62 58 0 10 20 30 40 50 60 70 80 90 100 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 SEK million 20252025
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• Partnership (B2B) revenue +46% y-o-y in Q4 and +59% for full year 2025 • 12% of total revenue • Current revenue primarily driven by established partners • Revenue from new SDK contracts will ramp up over time 7Sleep Cycle © 2025 Sleep Cycle AB. All Rights Reserved From strategic initiative to scalable business POWERED BY SLEEP CYCLE Revenue through Partnerships +46% Q4 2025 vs Q4 2024 2023 2024 0.9 0.9 1.1 1.6 3.1 3.5 4.3 4.9 5.4 5.9 6.7 7.2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2025
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Continued strong profitability despite lower revenue, with an EBIT of SEK 14.1m and an EBIT margin of 24.3% for Q4 2025. No items affecting comparability impacted results in Q4 2025. Adjusted EBIT therefore corresponds to reported EBIT. EBIT Adjusted EBIT 8Sleep Cycle © 2025 Sleep Cycle AB. All Rights Reserved 2021 2022 2023 2024 2025 5 -11 9 8 13 13 14 5 11 13 20 13 14 21 21 22 17 18 17 14 11% -26% 18% 17% 25% 25% 25% 8% 19% 22% 33% 21% 22% 32% 31% 32% 26% 28% 27% 24% -30% -20% -10% 0% 10% 20% 30% 40% 50% -15 -10 -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 Q3 Q4 SEKm EBIT EBIT-margin 12 5 12 8 13 13 14 7 11 17 20 13 20 21 21 22 17 18 17 14 28% 10% 25% 17% 25% 25% 25% 13% 20% 30% 33% 21% 31% 32% 31% 32% 26% 28% 27% 24% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 0 5 10 15 20 25 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 SEKm Adjusted EBIT Adjusted EBIT-margin 2021 2022 2023 2024 2025
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Financialperformance –Q4 2025 SEK million Q4 2025 Q4 2024 CHANGE COMMENTS Net sales 57.9 66.8 -13.3% Net sales decreased by 13.3 percent y-o-y, primarily driven by lower new customer acquisition in the consumer app, combined withnegative FX effects following a weaker USD. FX-adjusted net sales declined by 9.8 percent. Sales to existing customers increased and renewalrates remained stable. Partnership net sales grew by 45.5 percent y-o-y and accounted for 12.4 percent of total net sales, contributing to a more diversified revenue mix. Capitalized work for own account 0.9 0.2 362.5% Continued investments in the initiative for medical certification of sleep apnea screening and Sleep SDK. Distribution costs -11.2 -14.5 -23.0% Distribution costs decreased y-o-y, mainly reflecting lower commission expenses to app stores following reduced B2C sales volumes. Other external costs -17.5 -14.8 18.2% Other external costs increased y-o-y, driven by higher growth-related investments in external services linked to partnerships, technology development and initiatives to broaden the company’s revenue base. Staff costs -13.6 -13.7 -0.1% Staff costs remained broadly stable y-o-y. The average number of employees increased compared to the prior year, while overall cost levels were partly offset by timing effects related to recruitment. D&A -1.7 -2.4 -26.5% Depreciation and amortization decreased compared to the prior year, primarily due to higher depreciation levels in Q4 2024 related to lease costs for the former Stockholm office. Other operating expenses -0.7 -0.1 N/A Other operating expenses primarily relate to FX effects from platform payments, reflecting FX fluctuations between the point of sale and settlement. EBIT 14.1 21.5 -34.7% Margin 24.3% 32.3% Adjusted EBIT 14.1 21.5 -34.7% No NRIs recorded during Q4-25 or Q4-24. Adjusted EBIT-margin 24.3% 32.3% Liquidity at period end 120.8 145.2 -16.8% Cash amounted to SEK 120.8 million at the end of the period. Cash flow from operating activities remained positive, supportedby profitability, while investments during the quarter primarily related to sleep apnea screening and Sleep SDK development. 9Sleep Cycle © 2025 Sleep Cycle AB. All Rights Reserved
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Financial performance –Full Y ear 2025 SEK million Jan-Dec 2025 Jan-Dec 2024 CHANGE COMMENTS Net sales 247.9 261.5 -5.2% Net sales decreased by 5.2 percent y-o-y, driven by lower new customer acquisition in the consumer app and negative FX effects. On an FX-adjusted basis, net sales decreased by 3.4 percent. Sales to existing customers remained stable, while partnership net sales increased its share of total net sales. Capitalized work for own account 3.0 0.4 575.2% Capitalized development costs relate to continued investments in sleep apnea screening and the Sleep SDK, reflecting the company’s strategic focus on medical technology and platform-based licensing. Capitalization increased y-o-y as development activities progressed. Distribution costs -50.8 -57.9 -12.2% Distribution costs decreased y-o-y, mainly reflecting lower commission expenses to app stores following reduced B2C sales volumes. Other external costs -68.6 -58.5 17.2% Other external costs increased y-o-y, driven by higher growth-related investments in external services, including partnerships, technology development and initiatives to broaden the company’s revenue base. Staff costs -54.9 -60.1 -8.7% Staff costs were broadly stable y-o-y. The average number of employees increased compared to the prior year, reflecting continued investments in product development, partnerships and health technology. The prior-year period included non-recurring items of SEK 5m related to reorganization. D&A -6.1 -8.6 -29.4% Depreciation and amortization decreased y-o-y, primarily due to the termination of the lease for the former Stockholm office during 2024, which resulted in higher depreciation in the prior-year period. Other operating expenses -4.9 -0.3 N/A Other operating expenses mainly relate to FX effects from platform payments, reflecting currency fluctuations between the point of sale and settlement throughout the year. EBIT 66.0 77.0 -14.3% Margin 26.6% 29.4% Adjusted EBIT 66.0 82.7 -20.3% NRIs of SEK 5.8m in Jan-Dex ‘24 related to reorganization. No NRIs during Jan-Dec ‘25. Adjusted EBIT-margin 26.6% 31.6% Liquidity at period end 120.8 145.2 -16.8% Cash and cash equivalents amounted to SEK 120.8 million at year-end. Operating cash flow remained strong. A dividend of SEK 61 million was distributed during the year, while capital expenditures primarily related to sleep apnea screening and the Sleep SDK. Proposed dividend of SEK 0.53 per share, in total SEK 10.7m. 10Sleep Cycle © 2025 Sleep Cycle AB. All Rights Reserved
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On a transformational journey 2024 New strategy 2025 Strong profitability 2026 Deliberate investments 2027 and onwards Scaling opportunities 11Sleep Cycle © 2025 Sleep Cycle AB. All Rights Reserved
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The no.1 Sleep App B2C & B2B Combination B2B SaaS based PRODUCTS, POWERED BY SLEEP CYCLE TYPE OF BUSINESS Sleep Apnea Screening Potential product under development The no 1. Sleep App B2C & B2B Combination Sleep SDK 12Sleep Cycle © 2025 Sleep Cycle AB. All Rights Reserved We are leveraging the technology - moving from one product to three
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PRODUCTS, POWERED BY SLEEP CYCLE TYPE OF BUSINESS B2B SaaS basedSleep SDK 13Sleep Cycle © 2025 Sleep Cycle AB. All Rights Reserved We are executing our long-term strategy Platform and Data B2C & B2B Combination Sleep Apnea Screening Potential product under development OUR LONG-TERM STRATEGY B2C & B2B Combination The no 1. Sleep App User Acquisition User Engagement
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© 2025 Sleep Cycle AB. All Rights Reserved A profitable and resilient consumer core • Consumer business remains profitable and cash -generative • Stable ARPU and renewal rates • Provides data, users and distribution for platform strategy Sleep Cycle 14Sleep Cycle © 2025 Sleep Cycle AB. All Rights Reserved AI and personalization driving the next phase • Launch of Luma – AI based sleep coach • Development of new Sleep Quality Score • Continued high NPS (49) • App prepared for integration with external AI platforms The no 1 sleep app – a profitable consumer app with strategic platform value
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• Recurring B2B revenue paid by partners, not end consumers • Lower customer acquisition costs • Distribution beyond app stores • Same core technology, multiple use cases • Signed customer contracts in Q4 • Contract-based revenues with delayed but scalable monetization 15Sleep Cycle © 2025 Sleep Cycle AB. All Rights Reserved A structural shift in the business model Sleep SDK
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Expected completion in Q1 2026 Development phase US-based clinical validation underway, expected completion in September 2026 Validation phase Estimated market size for home-testing SEK 10 billion 16Sleep Cycle © 2025 Sleep Cycle AB. All Rights Reserved A Long-Term MedTech Opportunity Sleep apnea screening
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17Sleep Cycle © 2025 Sleep Cycle AB. All Rights Reserved 2025 - A year of deliberate strategic choices Initiated transformation Strong profitability despite topline pressure Foundations laid for diversified growth Chose transformation over short -term optimization Maintained strong EBIT margins in a weaker market Platform, partnership and medical growth foundations in place
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18Sleep Cycle © 2025 Sleep Cycle AB. All Rights Reserved 2026 – A deliberate investment year to unlock long-term growth FINANCIAL FOCUS Revenue for 2026 is expected to come in slightly lower than 2025 Lower margins expected for 2026, around 5% for the full year - a deliberate choice driven by front -loaded investments Investing in growth engines: MedTech and technology licensing of Sleep SDK Total investments approximately SEK 90m • ~SEK 50m impacting P&L • ~SEK 40 capitalized development SEK 40m SEK 20m SEK 15m SEK 15m Study and sleep apnea screening Clinical study and product development, CAPEX Employees Majority of new hires are developers External Specialists Primary related to sales of global B2B/SDK sales Marketing Marketing of B2B/SDK and sleep apnea screening Allocation of 2026 growth investments Revenue growth is expected from 2027 onwards, with margins gradually recovering toward ~25% as investments translate into scalable revenues
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19 Clear investment plan for 20262 3 Scalable platform model for long-term value creation Strong and profitable core business1 19Sleep Cycle © 2025 Sleep Cycle AB. All Rights Reserved Quarterly Highlight
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Questions & Answers 20Sleep Cycle © 2025 Sleep Cycle AB. All Rights Reserved