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Earnings call Interim Report April – June 2026 26 Augus t 202 6 Sleep Cycle © 2026 Sleep Cycle AB. All Rights Reserved
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Chief Executive Officer Chief Finance Officer & Head of Investor Relations Erik Jivmark Elisabeth Hedman 2Sleep Cycle © 2026 Sleep Cycle AB. All Rights Reserved Agenda 01 The strategic opportunity 02 Market & TAM expansion 03 Our three growth pillars 04 Q2 2026 financial highlights 05 Medium-term targets 06 Summary & Q&A Presenters
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Our mission is to improve global health by empowering people to take control of their sleep. 3Sleep Cycle © 2026 Sleep Cycle AB. All Rights Reserved
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4 Built largely through organic growth and with a highly efficient operating model Sleep Cycle’s mission is to improve global health by helping people sleep better The world’s leading sleep tracking and analysis platform Scalable business model with recurring revenue 2.5m Active users1) +60 Scientifically based sleep programs +4bn Nights analyzed +82m Installs2) Note(s): 1) Active users 2025. Defined as individuals w ith an activity in the app during the past year. 2) Up until Dec. 2025. Sleep Cycle © 2026 Sleep Cycle AB. All Rights Reserved A uniquely scaled sleep platform Data, distribution and sleep expertise built over more than a decade. Difficult to replicate in a single platform.
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Five years of organic, profitable growth in mobile sleep apps. We now redeploy that profitability to build the platform and re-accelerate growth from 2027. Net sales (MSEK) EBIT margin % B2B share of net sales 182 2021 212 2022 236 2023 262 2024 248 2025 4.9% 20.2% 24.0% 29.4% 26.6% 2% 6% 10% 2021 – 2025 Profitable organic growth +36% net sales · +22pp EBIT margin · 5 × B2B share · ~35 employees, asset -light. → 2026 Scaling beyond the app Investing in Tech Licensing, Sleep Apnea and new distribution while maintaining positive underlying profitability → 2 0 2 7 o n w a r d s Multiple growth engines Multi-product platform · expanded TAM (~47 BSEK) · structurally higher B2B mix. Sleep Cycle © 2026 Sleep Cycle AB. All Rights Reserved 5 Profitable growth — funding the next phase 222 L TM Q 2'26 13% LTM Q2'26 = rolling twelve months (FY2025 − H1 2025 + H1 2026). EBIT margin as reported; adjusted LTM margin 18.5%. 13.5%
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6Sleep Cycle © 2026 Sleep Cycle AB. All Rights Reserved There is a growing recognition of sleep as a critical component of overall health, with insufficient sleep linked to various chronic conditions such as obesity, diabetes, and cardiovascular diseases Sleep is growing beyond the standalone sleep app category Growing relevance Sleep is increasingly recognized as a key driver of health, recovery, performance and longevity. Technology fit Demand is increasing for passive, continuous and embedded health insights — exactly where Sleep Cycle’s technology is strongest. New ecosystems Sleep experiences are moving into wearables, pharma, digital health, smart home and broader health platforms.
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H i s t o r i c a l M a r k e t ~1.7 BSEK Sleep apps — our historical market. → expands to N e w O p p o r t u n i t y ~ 47 BSEK, annually Sleep A pnea ~25 BSEK Medical detection T ec h L icen sing ~20 BSEK SDK / platform / research BSEK. Source(s): Estimates are b ased on analysis conducted by Arkwright Consulting on behalf of Sleep Cycle, using a combination of p ublic data sources, industry reports and internal assumptions. The total addressable market (TAM) represents an estimate of the potential market opportunity for Sleep Cycle’s current and future offerings and does not reflect current revenues or realized market size. Sleep a p ps ~1.7 BSEK Our historical market 7Sleep Cycle © 2026 Sleep Cycle AB. All Rights Reserved Same technology. More use cases. More distribution channels. A materially larger market. The same core technology opens a ~27× larger addressable market
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8Sleep Cycle © 2026 Sleep Cycle AB. All Rights Reserved P i l l a r 1 — B 2 C / B 2 B Sleep Cycle App Our cash-generating consumer engine. Large installed base and recurring revenue. Focus on retention, pricing, engagement and rebuilding acquisition. 1.5M MAU for Q2’26 P i l l a r 3 — B 2 B Tech Licensing Bringing Sleep Cycle technology into partner ecosystems across wearables, pharma, digital health and Io T. Sleep Score Live in Q2’26 P i l l a r 2 — B 2 C / B 2 B Sleep Apnea Contactless, software-only risk detection — no external hardware. The study needs to be extended to secure the statistical basis; the Board is preparing the decision on its scope. 150k Registered interest from potential B2C customers One technology platform powering three complementary growth engines. Unlocking the company's next phase by leveraging the tech platform and powering three business areas
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9Sleep Cycle T A K I N G M A R K E T S H A R E S Sleep Cycle continues to gain download share within Sensor Tower’s Meditation & Sleep Trackers segment on iOS FX - A D J U S T E D A R P U SEK 280 +4% Higher compared to ARPU in Q2 2025 following price increases. +3x Sleep Aid listening © 2026 Sleep Cycle AB. All Rights Reserved Our Sleep App - A cash-generating B2C engine 1.5m Monthly Active Users, average Q2 ‘26 M A I N C H A L L E N G E : A C Q U I S I T I O N Installs remain under pressure, making top -of-funnel growth the key focus. R E T E N T I O N R A T E S T A B L E Renewal rate stable through the quarter and versus last year. First version of earned reward concept for churned users released. S L E E P A I D Sleep Aid listening 3 × higher, while re- engagement initiatives are showing positive early results. W E B - TO - A P P G A I N I N G T R A C T I O N Growing from small volumes, with better conversion and higher ARPU.
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10Sleep Cycle © 2026 Sleep Cycle AB. All Rights Reserved Sleep apnea — a large and largely undiagnosed market Existing diagnostic pathways are expensive, cumbersome and hard to scale — which is why most cases are never found. ~1bn People affected by sleep apnea globally ~80% Of all cases remain undiagnosed today ~SEK 25bn Estimated total addressable market 150,000+ people have already registered interest in the consumer offering — demand is established ahead of launch.
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11Sleep Cycle Why the study is being extended The proportion of participants with moderate -to-severe OSA has been lower than expected. Participants cannot be recruited with a previously known apnea diagnosis, so the final clinical mix becomes known only after completed study nights. Additional enrolment is therefore required to reach the statistical basis for regulatory approval. What this means A materially increased investment and a shifted timeline. The scope of the extension is being prepared by the newly appointed Board and will begin once decided. The ambition of US regulatory approval is unchanged — an updated timeline will be communicated when the decision is taken. 458 / 460 Of planned study nights delivered © 2026 Sleep Cycle AB. All Rights Reserved Sleep apnea — study status and the extension Design freeze 2027 Reached July 2026 — device design locked and quality-reviewed Ambition for US regulatory approval — updated timing to follow the Board decision
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12Sleep Cycle © 2026 Sleep Cycle AB. All Rights Reserved 1 De-risked regulatory approach External specialist consultants engaged to validate approach and ensure alignment with all relevant 510(k) and CE -marking standards. 2 Quality system being put in place Processes operating under ISO 13485, ISO 14971, IEC 62366 -1 and ISO 62304 to meet regulatory requirements. 3 Documentation audit passed External pre -audit of all existing documentation has confirmed that our approach is sound and we are on the right regulatory path. 4 Base study completed 458 of 460 planned study nights delivered; Design Freeze and Design Review 2 reached in July 2026. The Board is preparing the decision on the extension required to secure the statistical basis. P r e l i m i n a r y t i m e l i n e — r e g u l a t o r y a p p r o v a l ✓ Q1'25 Pre-sub meeting with FDA ✓ Q2'25 Study initiated ✓ Q4'25 Internal doc review Jul'26 App build & design freeze Base study done, extension decision Extended study done, FDA filing Expected approval & US launch Regulatory programme — milestones completed, study to be extended ✓ Milestones after Q2 2026 are preliminary and will be updated in connection with the Board's decision on the study extension. Ambition: US regulatory approval during 2027 — timing depends on recruitment pace in the extended study. H2'26 H1'27 H2'27
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S D K C A P A B I L I T I E S Partner -ready capabilities Sleep staging (real -time) S m art A larm D u al sensing C o ug h d etec tio n UK H SA - valid ated S no rin g d etec tio n M ovem ent & breathing A D D R E S S A B L E V E R T I C A L S Where the SDK plugs in Wearables (rings, watches) Pharma & clinical trials Clinical research Digital health platforms Smart home / IoT Insurance & wellness Sleep clinics P A R T N E R S L I V E Commercial proof ✓ Ultrahuman - SDK license agreement Com m erc ial ag re ement sig ned after quarter - conve rsion of the N ov 20 25 pilot ✓ SDK pilot with Ant Group Entry into the Chine se m arket ✓ Global IoT customer agreement Revenue contribution from Q3 2 026 Sleep Cycle © 2026 Sleep Cycle AB. All Rights Reserved Tech Licensing is converting from platform build to commercial adoption 13 Sleep Score NEW IN Q2 Sleep Metrics ✓ UKHSA Research collaboration completion V alidating coug h data vs existing early -warning sig nals ✓
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Top line pressured by lower consumer acquisition and FX. Reported profitability burdened by items affecting comparability of SEK 10.9m, while adjusted EBIT stayed positive. 49.9 Net sales, MSEK · -21.5% (-15.4% FX adj.) -7.5 EBIT, MSEK · -15.1% margin (28.4%) 3.4 Adj. EBIT, MSEK · 6.8% margin (28.4%) 15.1% B2B revenue share · +26.9% YoY 14Sleep Cycle © 2026 Sleep Cycle AB. All Rights Reserved 665k Paying subscribers · 878k LY 257 SEK ARPU · 269 LY · FX -adj. 280 (274) 99.1 MSEK Liquidity, MSEK · 112.4 LY Q2: consumer pressure, continued B2B growth and positive adjusted EBIT 38 Average no. of employees Q2’26
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15 B2C subscription revenue B2B / partnership revenue 4.9% Q1'24 5.4% Q2'24 6.5% Q3'24 7.3% Q4'24 8.3% Q1'25 9.3% Q2'25 10.9% Q3'25 12.5% Q4'25 14.5% Q1'26 B 2 B s h a r e o f r e v e n u e 4.9% → 15.1% Q1'24 vs Q2'26 · ~3× over nine quarters B 2 B r e v e n u e g r o w t h +26.9% Q2'26 y/y · 15.1% of total revenue (9.3%) B 2 C F X - a d j . A R P U 280 SEK Reported 257 (269) — FX is the headwind, not willingness-to-pay. Sleep Cycle © 2026 Sleep Cycle AB. All Rights Reserved The pivot is already visible in the revenue mix 15.1% Q2'26
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Financial performance – Q2 2026 16Sleep Cycle © 2026 Sleep Cycle AB. All Rights Reserved • FX-adjusted net sales growth of -15.4%, driven by lower new B2C sales in the App Store. • B2B revenue growth was +26.9% , now 15.1% of total revenue (9.3%), of which SEK 7.0m recurring. • Excluding items affecting comparability , other external costs were 22.3 (16.1) and personnel 15.7 (13.7). • EBIT-margin of -15.1% for Q2; adjusted EBIT -margin of 6.8% (28.4%). • Items affecting comparability of SEK 10.9m — SEK 8.6m transaction costs for the public cash offer and SEK 2.3m for the reorganization. • H1: net sales 102.5 (128.5), -20.2%; adjusted EBIT 10.1 (35.1), a 9.9% margin. SEK M Q2-26 Q2-25 CHANGE Net sales 49.9 63.6 -21.5% Other operating income 1.0 0.0 Capitalized work for own account 1.4 0.9 58% Distribution costs -8.9 -13.3 -33% Other external expenses -30.9 -16.1 92% Personnel expenses -18.0 -13.7 32% Other operating expenses -0.5 -2.0 -75% EBITDA -6.0 19.4 -25.4 EBITDA-margin -12.0% 30.5% D&A -1.5 -1.3 15% EBIT -7.5 18.0 -25.6 EBIT-margin -15.1% 28.4% Items affecting comparability 10.9 — Adjusted EBITDA 4.9 19.4 -14.4 Adjusted EBITDA-margin 9.9% 30.5% Adjusted EBIT 3.4 18.0 -14.6 Adjusted EBIT-margin 6.8% 28.4%
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17 E B I T , r e p o r t e d -7.5 SEK m · -15.1% margin I t e m s a f f e c t i n g c o m p a r a b i l i t y 10.9 8.6 public offer · 2.3 reorganization A d j u s t e d E B I T 3.4 6.8% margin (28.4% in Q2 2025) Sleep Cycle © 2026 Sleep Cycle AB. All Rights Reserved Offer and reorganization costs mask a profitable quarter -7.5 EBIT, reported +8.6 Public offer transaction costs +2.3 Reorganization 3.4 Adjusted EBIT Items affecting comparability of SEK 10.9m. Excluding these, the quarter delivered a positive EBIT margin of 6.8% (28.4% in Q2 2025).
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18Sleep Cycle © 2026 Sleep Cycle AB. All Rights Reserved SEKm Q2-26 Q2-25 CHANGE Cashflow, operating activities 7.6 19.9 -12.3 Cashflow, investments -12.2 -3.0 -9.3 Cashflow, financing -11.5 -61.6 50.1 Total cashflow for the period -16.2 -44.6 28.5 Liquidity at period end 99.1 112.4 -12% Self-funded investment • Operating cash flow +7.6 MSEK — operations still generate cash. • Q2 cash flow -16.2 MSEK, of which dividend -10.7 MSEK and capex -12.2 MSEK — both deliberate. • Capitalized development 38.7 MSEK at 30 June (15.6 at year-end), of which Sleep Apnea 31.3 MSEK. • Cash 99.1 MSEK (112.4) — funded internally — we do not expect to need external capital. Operations still generate cash — the swing is a dividend plus a deliberate investment programme. Strong cash position, Investing for tomorrow
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Capital discipline, growth and profitability — anchored in through-cycle targets. 19Sleep Cycle © 2026 Sleep Cycle AB. All Rights Reserved C a p i t a l r e t u r n 40–60% of profit after tax, paid out to shareholders G r o w t h 2× revenue doubling ambition, medium -term P r o f i t a b i l i t y ≥25% EBIT margin per annum, through -cycle Dividend of SEK 0.53 per share for FY2025 approved at the AGM on 13 April 2026. Unchanged medium-term ambition
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Decline moderating in H2 on signed B2B agreements, and a proposed apnea study extension pending a Board decision. 20Sleep Cycle © 2026 Sleep Cycle AB. All Rights Reserved Financial targets unchanged — recovery paced by the apnea process and licensing ramp -up. Projected Outlook 2026 N ET S A L ES Decline moderating Full-year net sales are still expected to decline, but the decline should moderate in H2 as B2B revenue grows out of already signed agreements. H1 was -20.2% y/y ( - 14.2% FX-adjusted). B 2 B R EV E N U E I N Q 3 >9 MSEK Revenue from B2B customers, up around 30% y/y, based on signed agreements and the current revenue run -rate - before any new contracts are added. EB I T M A R G I N ~5% reported · ~9% adjusted Reported FY2026 margin in line with what we communicated earlier. The adjusted figure excludes the SEK 10.9m of non -recurring costs taken in Q2. S LE EP A P N EA 2027 US approval ambition unchanged. The study must be extended to secure the statistical basis, and the Board is preparing the decision on its scope.
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Questions & Answers 21Sleep Cycle © 2026 Sleep Cycle AB. All Rights Reserved