Interim report
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Sleep Cycle AB (publ) Sleep Cycle Interim report April–June 2026
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• Net sales amounted to tSEK 49,904 (63,559) and decreased by 21.5% (2.9%). Currency-adjusted net sales growth amounted to -15.4% (-0.6%). Net sales from the B2B-sector grew by 26.9% and represented 15.1% (9.3%) of total net sales. • EBITDA amounted to tSEK -5,987 (19,366) and the EBITDA margin was -12.0% (30.5%). The quarter has been affected by costs affecting comparability of tSEK 10,913. Adjusted EBITDA amounted to tSEK 4,926 (19,366). • EBIT amounted to tSEK -7,536 (18,019) and the EBIT margin was -15.1% (28.4%). Adjusted EBIT amounted to tSEK 3,377 (18,019) and adjusted EBIT margin to 6.8% (28.4%). • The total number of paying subscribers at end of period was 665k (878k). • ARPU in the quarter totaled SEK 257 (269). Currency- adjusted ARPU amounted to SEK 280. • Earnings per share before and after dilution for the quarter amounted to SEK -0.29 (0.71). Second quarter April – June 2026 Significant events Sleep Cycle Interim report April – June 2026 • On May 11, 2026, Snark BidCo AB, a company controlled by Altor Fund V (No.1) and Altor Fund V (No.2), announced a public offer to the shareholders of Sleep Cycle to transfer all shares for SEK 24.50 in cash per share; on May 22, 2026, the independent members of the Board at the time unanimously recommended that the shareholders not accept the offer, the offer document was made public on May 25, 2026, and the acceptance period began on May 26, 2026. • On June 18, 2026, Snark BidCo announced that at the end of the initial acceptance period, the Offer had been accepted by shareholders representing 74.6 percent of the share capital and votes in Sleep Cycle, that the consideration would not be increased, that the necessary regulatory approvals had been obtained and that the acceptance period had been extended until July 2, 2026. • On July 3, 2026, Snark BidCo announced that the offer is being completed and thus declared unconditional and that Snark BidCo thereby controlled 78.2 percent of the shares and votes in Sleep Cycle. At the same time, the acceptance period was extended until July 17, 2026, in order to allow shareholders of Sleep Cycle who had not yet tendered their shares additional time to accept the Offer. • On July 3, 2026, the company announced that a commercial SDK license agreement with Ultrahuman had been signed following a successful pilot project. • On July 10, 2026, the Board, at the request of Snark BidCo, convened an Extraordinary General Meeting on August 5, 2026, to, among other things, elect a new Board. The Meeting resolved that the Board shall consist of five members without deputies; Andreas Källström Säfweräng, Matilda Elfving Hauan, Anna Bäck, Henrik Torstensson and Steve Savoca were elected as Board members and Andreas Källström Säfweräng was elected Chairman of the Board. • On July 20, 2026, Snark BidCo publicized the final outcome of the offer and announced that Snark BidCo thereby controls 79.2 percent of the shares and votes in Sleep Cycle. • On July 23, 2026, it was announced that the company had signed a technology licensing agreement with Ant Group. A greater opportunity takes shape 49.9 -7.5 15.1% Net sales/MSEK EBIT/MSEK Share of revenue from B2B 3.4 Adjusted EBIT / MSEK • Net sales amounted to tSEK 102,483 (128,484) and decreased by 20.2% (0.3%). Currency-adjusted net sales growth amounted to -14.2% (0.5%). Net sales from the B2B-sector grew by 34.2% and represented 14.8% (8.8%) of total net sales. • EBITDA amounted to tSEK 2,222 (37,725), and the EBITDA margin was 2.2% (29.4%). The second quarter has been affected by costs affecting comparability of tSEK 10,913. Adjusted EBITDA amounted to tSEK 13,134 (37,725). • EBIT amounted to tSEK -805 (35,110) and the EBIT margin was -0.8% (27.3%). Adjusted EBIT amounted to tSEK 10,107 (35,110) and adjusted EBIT margin to 9.9% (27.3%). • The total number of paying subscribers at end of period was 665k (878k). • ARPU for the period totaled SEK 254 (271). Currency- adjusted ARPU amounted to SEK 277. • Earnings per share before and after dilution amounted to SEK -0.02 (1.39) for the period. Period January – June 2026 2 Sleep Cycle Interim report Apr-Jun 2026
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Apr - Jun Jan - Jun Jan – Dec tSEK 2026 2025 2026 2025 2025 Net sales 49,904 63,559 102,483 128,484 247,879 Net sales growth (%) -21.5% -2.9% -20.2% -0.3% -5.2% Currency-adjusted net sales growth (%) -15.4% -0.6% -14.2% 0.5% -3.4% EBITDA -5,987 19,366 2,222 37,725 72,049 EBITDA margin (%) -12.0% 30.5% 2.2% 29.4% 29.1% EBIT (Operating profit/loss) -7,536 18,019 -805 35,110 65,960 EBIT margin (Operating margin) (%) -15.1% 28.4% -0.8% 27.3% 26.6% Items affecting comparability -10,913 - -10,913 - - Adjusted EBITDA 4,926 19,366 13,134 37,725 72,049 Adjusted EBITDA margin (%) 9.9% 30.5% 12.8% 29.4% 29.1% Adjusted EBIT 3,377 18,019 10,107 35,110 65,960 Adjusted EBIT margin (%) 6.8% 28.4% 9.9% 27.3% 26.6% Profit/loss for the period -5,957 14,488 -451 28,280 53,209 Operational key performance indicators Total subscriptions (Thousands) 665 878 665 878 768 Subscriptions, B2C 640 840 640 840 732 Subscriptions, B2B 25 38 25 38 35 ARPU (SEK) 257 269 254 271 274 Currency-adjusted ARPU (SEK) 280 274 277 274 280 Average number of employees (#) 38 35 39 34 36 For definitions, justifications and deductions see pages 22-23. We hear when you dream Sleep science Unique AI technology Our technology is based on extensive polysomnographic data from sleep labs as well as our own data collected since 2009. With our patented AI algorithms, we handle approximately 71 TB of data every ten minutes and enable completely contactless analysis via mobile phone – capturing both breathing patterns and movement sounds. Sleep stages Using our contactless sound analysis, the Sleep Stages feature can identify the user's sleep stage. It shows when the user is in REM sleep, light sleep, or deep sleep, as well as the balance between these stages. Our platform - patented Our platform and products are based on scientific research and are protected by several patents, with U.S. Patent No. 8493220 central among these. This enables highly accurate sleep tracking, including sleep duration, awakenings and sleep stages. Group key performance indicators Unmatched data Using patented sound analysis and advanced AI, we collect and analyze over 300,000 hours of sleep every hour. In total, more than 4 billion nights of sleep have been analyzed across over 180 countries, making us one of the world’s most comprehensive sources of sleep statistics. Cooperation in research We collaborate with leading universities around the world. Together with the University of Cambridge and University College London, among others, we are conducting research on air pollution, Alzheimer’s disease and sleep patterns. A clinical study on the detection of sleep apnea using an iPhone was also initiated during the year. Luma – your sleep coach An AI-powered sleep coach that helps users achieve health goals where sleep plays a central role – from mental and physical health to performance. Through personalized, conversation-based guidance, complex insights are transformed into concrete advice customized to the individual user's situation. Continuous innovation We continuously invest in new technologies and regularly launch new features that push the boundaries of consumer-based sleep analytics. Through our own research, data-driven development and close collaboration with leading universities, we ensure that Sleep Cycle remains at the forefront. Using advanced sound analysis, our algorithms can tell when you're sleeping, how you're sleeping, and how you're feeling – even when you're dreaming. Sleep Cycle's offering is based on groundbreaking, scientifically-backed AI sound technology. 3Sleep Cycle Interim report Apr-Jun 2026
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Net sales for the quarter amounted to SEK 49.9 million (63.6), corresponding to a decrease of 21.5 percent or 15.4 percent, adjusted for currency effects. The decline should be seen against a continued challenging market for sleep apps where, according to market data*, we are gaining market share on iOS. Developments during the quarter also show that the strategic shift we initiated earlier this year is beginning to have an impact. At the same time, the pressure on the consumer business is tangible. The number of paying subscribers amounted to 665k (878k), mainly as a result of lower new sales in the Apple App Store. We are meeting this with price initiatives, improved renewal trends and a growing web channel, but expect the app market to remain weak for the remainder of the year. Sleep Cycle is evolving from a successful sleep app to a broader sleep technology platform. Through technology licensing and sleep apnea detection, we are expanding our addressable market from approximately SEK 1.7 billion to approximately SEK 47 billion. Our opportunity is built on a strong foundation: one of the world’s largest sleep datasets, proprietary AI technology and more than four billion analyzed nights A scalable partnership business B2B revenue increased 26.9 percent year-on-year and accounted for 15.1 percent (9.3) of net sales. At the same time, revenue was slightly lower than in the first quarter. This is mainly explained by Tech Licensing, where revenue from Ultrahuman was temporarily paused while the pilot collaboration was renegotiated into a com - mercial agreement. The underlying development in the partnership business remains positive. At the same time, interest in licensing Sleep Cycle’s technology continues to grow in wearables, digital health and MedTech. After the end of the quarter, we signed an updated commercial SDK license agreement with Ultrahuman, building on the pilot that began in November 2025. The usage-based revenue model tracks the A greater opportunity takes shape We are seeing more and more tangible signs that the strategic shift is beginning to translate into commercial results. The partnership deal is growing, our technology is reaching new platforms and the work with sleep apnea is bringing us closer to a significantly larger market. Statement by the CEO growth of Ultrahuman’s ecosystem and creates a recurring revenue stream. The agreement demonstrates our ability to transform pilot partnerships into commercial agreements. After the end of the quarter, we also signed a one-year SDK pilot licensing agreement with Ant Group, one of China’s leading technology companies and the operator behind Alipay. The partnership has thus entered a paid phase that makes our contactless sleep analysis available within Ant Group’s digital health services. The agreement is not material in the context of the company, but represents yet another commercial proof point, strengthens the reference base for our SDK offering and demonstrates that our “Powered by Sleep Cycle” strategy scales across markets and platforms. Overall, the B2B-business heads into the second half of the year with a stronger commercial base. Based on concluded agreements and the current revenue rate, B2B revenue is expected to exceed SEK 9 million in the third quarter – a growth of over 30 percent compared to the previous year, before contributions from additional new agreements. The value of our data platform was further confirmed through our collaboration with the UK Health Security Agency. Aggregated and privacy-protected data on nighttime coughing from Sleep Cycle consistently provided indication about one week earlier compared to established indicators for monitoring respiratory tract infections. The results open up a new category of potential partners in public health and research. Sales cycles in technology licensing are naturally longer than in the consumer business, but our commercial pipeline has matured during the first half of the year. We are building a diversified licensing business where multiple partners can create recurring revenue streams on the same technology platform. *Market data from Sensor Tower, a global provider of digital market intelligence on consumer behavior and market trends across mobile apps, digital platforms, and gaming. 4Sleep Cycle Interim report Apr-Jun 2026
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ERIK JIVMARK, CEO An expanded validation study The clinical validation study in the US began in April and has progressed well — the planned study nights are largely completed. In recent weeks, however, it has become clear that the proportion of participants with moderate to severe sleep apnea is lower than expected. As the study may not include individuals with previously diagnosed sleep apnea, and it is only after a completed study night that it can be determined which participants meet the clinical criteria, the actual distribution becomes known only gradually. To achieve the statistical data required for regulatory approval, the study therefore needs to be expanded, which entails a significantly increased investment and a delayed timeline. The company’s newly elected Board of Directors is now preparing the decision on the expansion as part of its review of the business, and the expansion will commence thereafter. Our ambition of regulatory approval in the US remains; an updated timeline will be communicated once the decision has been made. A successful trial result would be an important step towards bringing Sleep Cycle’s technology to a large market with significant unmet needs. Our ambition is simple: to enable risk detection with just the smartphone that is already on the bedside table. Increased focus and stronger distribution During the quarter, we completed the organizational changes communicated earlier this year. The result is a more efficient organization with clearer responsibilities, faster decision-making and increased focus on our long-term growth opportunities. Growing our own distribution remains strategically important. Our web channel continued to grow, albeit from low levels, while price initiatives supported ARPU and renewal trends improved further. With a still challenging app market, we continue to invest in the channels we control, while building new distribution channels through partnerships. The offer from Snark BidCo During the quarter, Snark BidCo, a company controlled by Altor Fund V, announced a public cash offer for all shares in Sleep Cycle. After the end of the quarter, the offer was completed and at the end of the last acceptance period on July 17, Snark BidCo controlled 79.2 percent of the shares and votes in the company. Throughout the process our priorities have remained unchanged. The organization has continued to focus on our customers, the implementation of our plan and the strategy we have communicated. Financial development EBIT amounted to SEK -7.5 million (18.0), affected by items affecting comparability of SEK 10.9 million, mainly related to Snark BidCo’s offer and the reorganization. Adjusted EBIT amounted to SEK 3.4 million, corresponding to a margin of 6.8 percent, demonstrating continued underlying profitability while investing in our new growth areas. Looking ahead 2026 is an investment year — we are taking the costs of building the platform now, while revenues from the new areas come later. For the full year, we expect net sales to decline, but at a slower rate in the second half than the first half’s -20.2 percent, as B2B revenue grows out of agreements already signed. Despite one- off costs of SEK 10.9 million, we expect a reported operating margin for the full year in line with the approximately 5 percent previously communicated — and, excluding these items, a margin of approximately 9 percent. Our financial targets remain unchanged. How quickly the margin recovers will above all be determined by two things: the regulatory process in sleep apnea and the ramp-up in technology licensing. Our priorities for the second half of the year are clear: strengthening the app business through our own distribution channels and partnerships, continue building the technology licensing and converting our pipeline into commercial agreements, as well as supporting the Board’s preparation of the sleep apnea trial expansion and preparing for the next phase of the regulatory process. The progress during the quarter, and the agreements we have signed since, show that our strategic shift is paying off. We are entering the second half of the year with a focus on translating this momentum into growth. Thank you for your continued support. Statement by the CEO 5 Sleep Cycle Interim report Apr-Jun 2026
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Market size and growth opportunities Market trends The global sleep market is estimated to be worth approximately SEK 1,450 billion in annual revenue. Within this market, Sleep Cycle estimates its current total addressable market (TAM) to be approximately SEK 47 billion. This compares with a previously addressable market of approximately SEK 1.7 billion, in which Sleep Cycle’s previous market share is estimated at 15 percent. This shows how the company’s strategic development has significantly expanded its commercial potential. Sleep Cycle is expanding its market presence through two main growth drivers Tech Licensing One of Sleep Cycle's key growth drivers is tech licensing. Approximately 7,000 potential partners have been identified in the fields of consumer apps, digital health, Medtech, wearables, and clinical research. Together, these companies are estimated to invest approximately SEK 154 billion annually in R&D, of which about SEK 20 billion relates to software where Sleep Cycle’s technology is relevant, thereby constituting the company’s total addressable market (TAM). In addition to this market, Sleep Cycle could also become relevant in a broader healthcare context. Obstructive sleep apnea is linked not only to a range of common conditions, including cardiovascular, metabolic, and respiratory disorders, but also to mental health issues. Based on our analysis, we estimate the hypothetical value associated with undiagnosed OSA (Obstructive sleep apnea) and related conditions to be over SEK 100 billion 1. Detection of sleep apnea risk represents a global market of approximately SEK 25 billion, and Tech Licensing approximately 20 billion – altogether this means a higher addressable market potential of SEK 47 billion for Sleep Cycle. Detection of sleep apnea risk Today, an estimated 1 billion people worldwide suffer from sleep apnea, about 80 percent of whom remain undiagnosed. Through detection of sleep apnea risk and tech licensing, Sleep Cycle has the potential to support patients throughout the entire care delivery chain – from initial screening and first contact with healthcare providers, through sleep evaluation, to treatment. This market opportunity in the sleep apnea sector is estimated at approximately SEK 25 billion (TAM). 1)This figure should be taken as an indication of the broader economic impact of sleep apnea, rather than a directly addressable market for Sleep Cycle. The company's potential role in this related area is to help identify at-risk individuals at an earlier stage and to facilitate connections between patients, healthcare providers, and partners throughout the care delivery chain. The market data and estimates in this report are based on publicly available information, third-party sources and internal assessments. Although Sleep Cycle considers the sources to be reliable, no assurance is given as to accuracy or completeness. Estimates and forward-looking statements are subject to uncertainty and may differ significantly. SEK billion Sleep apps - our historical market increased to SEK billion Annually Our historic market Medical detection SDK / platform / research Previously New addressable TAM Sleep apps Sleep apnea Tech Licensing ~1.7 ~47 ~ SEK 1.7 billion ~ SEK 20 billion ~ SEK 25 billion 6 Sleep Cycle Interim report Apr-Jun 2026
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Our position Strategy The importance of sleep for health is gaining increased attention. Sleep Cycle is well-positioned to grow in the sleep technology market. Sleep app • Accurate sleep tracking and smart alarm • Personal insights and sleep coaching • Long-term monitoring of sleep and habits • Sleep aid and sleep programs • Contactless tracking of sleep and breathing • AI-based analytics at scale • Over 4B+ nights of real data • Modular infrastructure (SDK, APIs, app)Enables multiple products and applications Technology and data platform Sleep apnea • Contactless detection of sleep apnea risk • Early detection without hardware • Easy integration into partnerships and platforms Tech Licensing • Plug-and-play sleep tracking via SDK (software development kit) • Fast integration into apps, devices and platforms • Access to validated sleep and respiratory insights Movement detection Sleep clinics The various components of our platform Addressable market segments Sleep Pharmaceutical companies Breathing Wearables/Apps Cough Digital healthcare services Snoring Medtech products Smart alarms Smart Homes From SEK ~1.7 to ~47 billion Through expansion in sleep apnea and tech licensing, Sleep Cycle addresses a significantly larger market. B2C/B2B B2C/B2B B2B 1.5m 150k SDK0.9m Clinical validation MAU (Monthly Active Users) 1 Notes: 1) Average for Q2'26; 2) Average for Q2’26 Registered interest in B2C-offer Launched in Q4'25 DAU (Daily Active Users) 2 Current phase for AI-based sleep apnea tool Launched in Q2'26 Sleep Score 7 Sleep Cycle Interim report Apr-Jun 2026
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The platform processes anonymized data in real time – equivalent to more than 300,000 hours of sleep every hour – and serves as a horizontal layer within the digital health ecosystem. This technological foundation enables the development of both consumer-oriented products and B2B solutions, where the value of data, algorithms and analytics can be applied in several different verticals. The platform serves as a common hub for multiple revenue streams and serves as the foundation for all products, including the company’s own app, tech licensing via Sleep SDK, partnerships, and development in the Medtech sector, such as sleep apnea detection. We develop products ranging from subscription-based consumer services to scalable licensing models and next- generation Medtech applications. Our technology platform – the foundation for growth Platform Sleep Cycle’s technology platform forms the foundation for all of its products, services, and partnerships. The platform is based on the company’s patented technology for contactless sleep tracking (U.S. Patent 8493220), which enables high-precision sleep measurement through advanced sound analysis and AI. The continuous growth of the user base further strengthens the platform by increasing data generation, which improves the quality of analytics, personalization, and product development. The combination of technology, data, and global reach makes Sleep Cycles’ platform unique in terms of both scale and quality. The development from a standalone app to a comprehensive platform fundamentally transforms the company’s growth potential and paves the way for expansion into multiple markets – regardless of developments in the traditional app market. Sleep app The sleep and meditation app segment remained weak, but our assessment is that Sleep Cycle is strengthening its relative position. New Sleep Aid collections more than tripled Sleep Aid listening, and the first targeted campaigns toward lapsed users had a positive effect, as did a new loyalty concept that will be further developed in the third quarter. Currency-adjusted ARPU increased to SEK 280 following implemented price adjustments. Monthly active users averaged 1.5 million, of whom 0.9 million were active daily — a high level of engagement that drives both conversion and data generation. Tech Licensing We continue to develop our B2B business in tech licensing, where our platform is relevant across several segments, including wearables, IoT and digital health platforms. Revenue from B2B increased by 26.9 percent during the quarter and represented 15.1 percent of net sales. After the end of the quarter, we signed a commercial SDK license agreement with Ultrahuman and a one-year SDK pilot license agreement with Ant Group, which opens the Chinese market. Sales cycles are longer than in the consumer business, but our pipeline has matured. The market for technology licensing is estimated at SEK 20 billion. Sleep apnea Development in sleep apnea is a key focus area for the company’s long-term growth. The clinical study in the US has completed the planned study nights, but the proportion of participants with moderate to severe sleep apnea has been lower than expected. The study therefore needs to be expanded, which entails an increased investment and a longer lead time. The decision on the scope of the expansion is being prepared by the Board of Directors. Interest remains strong, with over 150,000 registered users. Since the launch, we have analyzed more than 4 billion nights, creating a unique and scalable database that continuously enhances the platform’s performance and areas of use. 8 Sleep Cycle Interim report Apr-Jun 2026
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Sleep Cycle collects data during sleep that provides deep insights into both sleep patterns and health, including metrics such as interruptions in breathing. This enables a new generation of accessible sleep and breathing analysis. Sleep apnea is one of the most common and widely underdiagnosed conditions globally and represents a significantly larger market than traditional sleep tracking, with a great need for scalable screening solutions. Interest is high, with over 150,000 registered users already, and early tests indicate attractive customer acquisition costs. An extended validation study The US validation study, led by Dr. Michael Gradisar and Dr. Mikael Kågebäck, has completed the planned study nights at a high recruitment pace, and internal tests continue to show strong performance in terms of specificity and sensitivity. However, the proportion of participants with moderate to severe sleep apnea has been lower than expected, and the study therefore needs to be expanded to achieve the statistical data required in the regulatory process. The expansion entails a significantly increased investment and a delayed timeline; the decision on its scope is being prepared by the Board of Directors. Our ambition of regulatory approval in the US remains, and an updated timeline will be communicated in connection with the decision. Sleep Apnea constitutes a natural extension of Sleep Cycle’s technology and is a long-term value driver, offering opportunities in both partnerships and licensing agreements. Sleep Apnea – Sleep Apnea Detection Clinical study Sleep apnea is one of the most common and widely underdiagnosed conditions worldwide Q1 ‘25 Q2 ‘25 Q4 ‘25 Jul ‘26 H2 '26 H1 ‘27 H2 ‘27 Pre-sub meeting with FDA Trial initiated Internal doc review App Build and Design Freeze Base study completed, decision on expansion Expanded study completed and FDA submission filed Expected approval and launch in the US Our ambition is regulatory approval in the US during 2027. The timeline depends on the recruitment pace of the expanded study. PRELIMINARY REGULATORY APPROVAL TIMELINE Milestones after Q2 2026 are preliminary and will be updated in connection with the Board’s decision on the study expansion. 9 Sleep Cycle Interim report Apr-Jun 2026
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Based on signed agreements, B2B revenue is expected to exceed SEK 9 million in Q3 2026. 0.9 Q1 Q1 Q1Q2 Q2 Q2Q3 Q3 Q3Q4 Q4 0.9 1.1 1.6 3.1 3.5 4.3 4.9 5.4 5.9 6.7 2023 2024 2025 Q4 7.2 Invest in Sleep Cycle Invest Sleep Cycle is well-positioned to expand in a rapidly growing market. We are focused on driving organic growth through our unique AI-based technology in the field of sleep and the aggregation of large amounts of data. We are a world leader in the field of sleep analysis As awareness of the importance of sleep for health grows, the company is well-positioned to assume a leading role in the global sleep tech market. Against this backdrop, Sleep Cycle estimates its total addressable market (TAM) to be approximately SEK 47 billion. With a scalable solution suitable for virtually all smartphone users, the company is well-positioned to gradually capture a larger share of this market. The company is a global leader in AI-based sleep analysis, with a technology platform grounded in scientific research and backed by strong patent protection. Close collaboration with leading universities in the field of sleep research ensures a continued high level of innovation and scientific rigor. Multiple revenue streams Our technical platform combines: • A stable and cash flow generating consumer business • A scalable licensing model with high margins and global potential • Long-term growth in Med Tech and digital health The company is well positioned for sustainable growth and improved margins. The market for tech licensing is estimated at approximately SEK 20 billion, with significant potential in our partnership strategy Growing potential in Med Tech and detection of sleep apnea Sleep Cycle is currently developing a medical solution for the detection of sleep apnea based on our proprietary technology. The sleep apnea market is in a growth phase, and is estimated to be worth approximately SEK 25 billion. Our ongoing clinical trial is a milestone toward certification and commercialization. This initiative positions Sleep Cycle at the intersection of consumer health and medical diagnostics. A core business with high profitability The Sleep Cycle app is our flagship product, providing a solid foundation of recurring revenue and valuable user data. With stable ARPU, a high renewal rate, and positive cash flow, the core business is funding future growth initiatives. Going forward, the focus will be on increasing user value through innovation, optimized pricing, and an improved user experience. The app provides our platform with data every day, making it continuously smarter and more powerful. +27% Q2 2026 vs Q2 2025 7.6 Q1 2026 7.5 Q2 Revenue from B2B 10Sleep Cycle Interim report Apr-Jun 2026
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Sales and earnings The second quarter was marked by continued implementation of the strategy to develop Sleep Cycle into a broader sleep tech platform, in a quarter that was also marked by Snark BidCo’s (Altor Fund V) public cash offer to the company’s shareholders. The transformation means that costs are taken today while revenues are realized later, which in the short term squeezes the margin but strengthens long-term scalability. The Group’s net sales amounted to tSEK 49,904 (63,559), a decrease of 21.5% (2.9%) compared with the previous year. Currency-adjusted net sales growth amounted to -15.4% (-0.6%). The decline is driven primarily by lower sales to new customers in the consumer business, where performance in the Apple App Store has been weaker, while online sales are increasing, albeit from modest levels. The number of paying subscribers at the end of the period was 665k (878k), of which 640k (840k) in B2C and 25k (38k) in B2B, due to lower new sales. The user base remains strong with approximately 1.5 million monthly active users. ARPU amounted to SEK 257 (269). Adjusted for currency effects, ARPU amounted to SEK 280, an effect of price adjustments and continued improvement in renewal rates. Revenue from B2B customers amounted to tSEK 7,541 (5,942), an increase of 26.9 percent, corresponding to 15.1 percent (9.3) of total revenue, of which tSEK 7,005 recurring. The fact that B2B revenue was slightly lower than in the first quarter is explained by the fact that revenue from Ultrahuman was temporarily paused while the pilot collaboration was renegotiated into a commercial SDK licensing agreement. Based on signed agreements, B2B revenue is expected to exceed SEK 9 million in the third quarter – a growth of over 30 percent compared to the previous year. Operating profit (EBIT) amounted to tSEK -7,536 (18,019), corresponding to an operating margin of -15.1% (28.4%). Adjusted operating profit amounted to tSEK 3,377 (18,019), corresponding to an adjusted operating margin of 6.8% (28.4%), which shows continued underlying profitability. The quarter was charged with items affecting comparability of tSEK 10,913, of which tSEK 8,615 relates to other external costs, mainly transaction-related costs in connection with the public cash offer, and tSEK 2,298 relates to personnel costs related to the reorganization completed during the quarter. EBITDA amounted to tSEK -5,987 (19,366) and adjusted EBITDA to tSEK 4,926 (19,366). As all significant operations in the Group are conducted in the Parent Company, the comments below refer to both the Parent Company and the Group. For profit and cash flow, comparative figures refer to the corresponding period for prior year. For financial position, comparative figures refer to the balance sheet item as of December 31, 2025. The margin trend, adjusted for items affecting comparability, is explained by the transformation to a broader sleep tech platform, where the cost base is expanded before revenue. Excluding items affecting comparability, other external costs increased to tSEK 22,304 (16,125) and personnel costs to tSEK 15,725 (13,698), driven by investments in AI-based detection of the risk of sleep apnea, strengthening the technology platform and building the partnership business. Revenue from these ventures is expected gradually as business scales up. In addition, a significant part of the development work is capitalized in the balance sheet: during the quarter, development expenditure of tSEK 12,237 (2,971) was capitalized, which thus does not affect net profit for the period. As these assets are being put into use, depreciation will increase. Personnel costs amounted to tSEK 18,023 (13,698), of which tSEK 2,298 is related to the reorganization. The average number of employees amounted to 38 (35). Profit/loss for the quarter amounted to tSEK -5,957 (14,488) and earnings per share before and after dilution to SEK -0.29 (0.71). Cash flow and financial position Cash flow from operating activities amounted to tSEK 7,594 (19,917), primarily due to lower operating profit. Changes in working capital contributed positively with tSEK 14,355 (4,741). Cash flow from investment activities amounted to tSEK -12,237 (-2,971) and primarily relates to capitalized development costs associated with strategic initiatives in the detection of sleep apnea risk and the SDK. The investments support the company’s long- term scalable growth and are expected to continue during the second half of the year. Cash flow from financing activities totaled tSEK -11,537 (-61,585), of which dividend to shareholders tSEK -10,747 (-60,833) and amortization of leasing liabilities tSEK -790 (-753). Cash flow for the quarter totaled tSEK -16,180 (-44,639). The Group’s cash and cash equivalents amounted to tSEK 99,087 (112,431) at the end of the period, which continues to provide the financial flexibility needed to carry out planned investments. Consolidated equity amounted to tSEK 60,635 on June 30, 2026, (tSEK 71,833 on December 31, 2025). The change is explained by loss for the period of tSEK -451 and dividend paid of tSEK 10,747. The Group's performance January – June 2026 Second quarter April – June 2026 Financial overview 11Sleep Cycle Interim report Apr-Jun 2026
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The changes in sales, earnings, cash flow, and financial position for the period compared with the previous year are mainly explained by the same factors as in the second quarter. Below is a summary of developments for the six-month period, with comments where other factors have been significant. Sales and earnings The Group’s net sales amounted to tSEK 102,483 (128,484), a decrease of 20.2% (0.3%) compared with the previous year. The currency-adjusted net sales growth amounted to -14.2% (0.5%). Revenue from the B2B-sector amounted to tSEK 15,175 (11,312), an increase of 34.2%, corresponding to 14.8% (8.8%) of total revenues. ARPU for the period amounted to SEK 254 (271); adjusted for currency effects SEK 277. Operating profit amounted to tSEK -805 (35,110), corresponding to an operating margin of -0.8% (27.3%). Adjusted operating profit totaled tSEK 10,107 (35,110) and adjusted operating margin was 9.9% (27.3%). The period was charged with items affecting comparability of tSEK 10,913, which are entirely attributable to the second quarter. EBITDA amounted to tSEK 2,222 (37,725) and adjusted EBITDA to tSEK 13,134 (37,725). Just like for the quarter, the margin development is explained by the fact that the costs of building the platform are taken today while revenues from the new business areas are realized later on; in addition, development expenses of tSEK 24,218 (6,774) were capitalized during the period, which are not charged to the profit and loss account for the period. Personnel costs amounted to tSEK 34,966 (27,448) and the average number of employees to 39 (34), with the increase primarily related to product development, partnerships and health technology. Loss for the period amounted to tSEK -451 (28,280) and earnings per share before and after dilution to SEK -0.02 (1.39). Cash flow and financial position Cash flow from operating activities amounted to tSEK 14,778 (36,629), primarily due to lower operating profit. Cash flow from investment activities amounted to tSEK -24,218 (-6,774) and primarily relates to capitalized development costs in the detection of sleep apnea risk and Sleep SDK. Capitalized expenditure for development work amounted to tSEK 38,729 on June 30 (15,602 on December 31, 2025). Cash flow from financing activities totaled tSEK -12,318 (-62,658), of which dividend tSEK -10,747 (-60,833) and amortization of leasing liabilities tSEK -1,571 (-1,826). Cash flow for the period amounted to tSEK -21,759 (-32,803) and cash and cash equivalents at the end of the period to tSEK 99,087 (112,431). Consolidated equity totaled tSEK 60,635 on June 30, 2026. The opening balance on January 1, 2026, was tSEK 71,833. Period January – June 2026 Financial overview 12 Sleep Cycle Interim report Apr-Jun 2026
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Other information Parent Company The parent company, Sleep Cycle AB (publ), is headquartered in Gothenburg. The Group's operations are essentially conducted in the parent company; refer to Group information below. Risks and uncertainties The group’s over-arching risk management aims to minimize negative effects on profit and position. Significant risks and uncertainties are described in the annual report for 2025. During the period, the risk picture has changed in one respect: the risk related to the clinical study in sleep apnea has increased, as the study needs to be expanded to achieve the required statistical data. The expansion entails a significantly increased investment and a delayed timeline, and the decision on its scope is being prepared by the Board of Directors — see the sections Clinical study and Statement by the CEO. Global macroeconomic and geopolitical developments continue to be marked by uncertainty, which could potentially affect Sleep Cycle’s operations both directly and indirectly. Factors such as inflation, changes in interest rates, currency fluctuations, and shifts in consumer behavior can affect demand for the company’s products and services, particularly in the consumer business. Sleep Cycle closely monitors developments and is continuously working to adapt its operations to manage these risks, in part through geographic diversification, a flexible business model, and a continued focus on cost efficiency and long-term value-creating growth. Market data and estimates The market data and estimates presented in this report are based on publicly available information, third-party sources and internal assessments. Although Sleep Cycle considers these sources to be reliable, no guarantee is provided as to their accuracy or completeness. All estimates and forward-looking statements are subject to uncertainty and may differ materially as a result of factors such as market developments, regulatory changes and commercial implementation. Financial goals Sleep Cycle’s financial goal is to double revenue over the medium term and to achieve an annual EBIT margin of at least 25 percent. Related party transactions There have been no related-party transactions aside from transactions with senior executives in their capacity as such. Other information Dividend policy Sleep Cycle has a history of solid profitability and strong cash generation. At the same time, the company is in a phase where investments in new business areas, technology licensing, and medical technology are prioritized to create long-term revenue growth and shareholder value. In light of this, the Board proposed a lower dividend for the 2025 financial year, with the aim of enabling continued reinvestment in the business. The goal is for the dividend to amount to between 40 percent and 60 percent of annual net income after tax over time. At Sleep Cycle AB’s annual general meeting on April 13, 2026, a dividend of SEK 0.53 per share was approved for the 2025 fiscal year. Significant events during the period • On April 13, the resolutions adopted at Sleep Cycle’s 2026 Annual General Meeting were published, whereby the Board members and CEO were granted discharge from liability for the 2025 fiscal year. • April 20, the payment date of the dividend for 2025 via Euroclear. • On May 11, 2026, Snark BidCo AB, a company controlled by Altor Fund V (No.1) and Altor Fund V (No.2), announced a public offer to the shareholders of Sleep Cycle to transfer all shares for SEK 24.50 in cash per share; on May 22, 2026, the independent members of the Board at the time unanimously recommended that the shareholders not accept the offer, the offer document was made public on May 25, 2026, and the acceptance period began on May 26, 2026. • On June 18, 2026, Snark BidCo announced that at the end of the initial acceptance period, the Offer had been accepted by shareholders representing 74.6 percent of the share capital and votes in Sleep Cycle, that the consideration would not be increased, that the necessary regulatory approvals had been obtained and that the acceptance period had been extended until July 2, 2026. Significant events after the end of the period • On July 3, 2026, Snark BidCo announced that the offer is being completed and thus declared unconditional and that Snark BidCo thereby controlled 78.2 percent of the shares and votes in Sleep Cycle. At the same time, the acceptance period was extended until July 17, 2026, in order to allow shareholders of Sleep Cycle who had not yet tendered their shares additional time to accept the Offer. 13 Sleep Cycle Interim report Apr-Jun 2026
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Other information • On July 3, 2026, the company announced that a commercial SDK license agreement with Ultrahuman had been signed following a successful pilot project. • On July 10, 2026, the Board, at the request of Snark BidCo, convened an Extraordinary General Meeting on August 5, 2026, to, among other things, elect a new Board. The Meeting resolved that the Board shall consist of five members without deputies; Andreas Källström Säfweräng, Matilda Elfving Hauan, Anna Bäck, Henrik Torstensson and Steve Savoca were elected as Board members and Andreas Källström Säfweräng was elected Chairman of the Board. • On July 20, 2026, Snark BidCo publicized the final outcome of the offer and announced that Snark BidCo thereby controls 79.2 percent of the shares and votes in Sleep Cycle. • On July 23, 2026, the company announced that a one-year SDK pilot license agreement had been signed with Ant Group. Board of Directors The Board of Sleep Cycle, up to August 5, 2026, consisted of Chairwoman Anne Broeng and Board members Christian Kanstrup, Mathias Høyer and Maciej Drejak. As of August 5, the Board consisted of Chairman Andreas Källström Säfweräng and Board members Matilda Elfving Hauan, Anna Bäck, Henrik Torstensson and Steve Savoca. Management Team The company's management team consists of CEO Erik Jivmark, CFO & Head of IR Elisabeth Hedman, CCO Peter Alsterberg, CTPO Mikael Kågebäck, and CGO Kajsa Lernestål. Employees The average number of employees in the Group for the quarter was 38 (35) and for the period January to June 39 (34). Annual General Meeting 2026 The Annual General Meeting of Sleep Cycle AB (publ) was held on April 13, 2026, at 09:30 a.m. at Jacy'z Hotel, floor 4, Drakegatan 10, 412 50 Gothenburg, Sweden. All information from the meeting is available on the company website. Review This report has not been reviewed by the Company's auditors. This is a translation of the original Swedish Sleep Cycle interim report April–June 2026. In the event of any discrepancies between the two versions, the original Swedish version shall prevail. The share Sleep Cycle went public on June 8, 2021, on the Nasdaq Stockholm Small Cap market. Share capital on the balance sheet date totaled tSEK 563. The stock trades under the ticker symbol SLEEP, and its ISIN code is SE0015961404. On June 30, 2026, the total number of shares was 20,277,563. The closing price on June 30, 2026, was SEK 24.55, and the number of shareholders was 2,388. Shareholders Main shareholders in Sleep Cycle AB (publ) on June 30, 2026* Owner Number of shares Votes and capital Maciej Drejak through company 8,707,984 42.9% Pierre Siri through company 4,047,686 20.0% Avanza Pension 1,050,602 5.2% Lancelot Asset Management AB 650,000 3.2% Cancerfonden - The Swedish Cancer Society 339,993 1.7% Nordnet Pensionsförsäkring 258,911 1.3% Storebrand Asset Management 148,373 0.7% SEB Funds 120,876 0.6% Handelsbanken Fonder 113,500 0.6% Bengt Walerud 100,000 0.5% Other 4,739,638 23.4% Total 20,277,563 100% *The table shows the ownership structure as of June 30, 2026, before the completion of Snark BidCo’s public offer. The ownership structure as of the date of this report therefore differs materially from the table above. Snark BidCo AB, a company controlled by Altor Fund V, announced on July 3, 2026 that the offer had been completed and, as of July 20, 2026, controlled 79.2 percent of the shares and votes in Sleep Cycle. Snark BidCo continues to strive to own more than 90 percent of the shares in Sleep Cycle and thereafter intends to initiate compulsory redemption proceedings in accordance with the Swedish Companies Act (2005:551). 14 Sleep Cycle Interim report Apr-Jun 2026
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Andreas Källström Säfweräng Chairman of the Board Henrik Torstensson Board member Erik Jivmark CEO Matilda Elfving Hauan Board member Anna Bäck Board member Statement by the Board of Directors and CEO Other information The Board of Directors and CEO assure that the interim report provides a fair and accurate overview of the operations, financial position and earnings of the parent company and group and describes significant risks and uncertainties that the parent company and the companies included in the group face. Gothenburg, August 26, 2026 Presentation for investors, analysts, and the media For more information, please contact Erik Jivmark, CEO email: erik.jivmark@sleepcycle.com Elisabeth Hedman, CFO and Head of Investor Relations Tel: +46 76-282 89 58 Email: elisabeth.hedman@sleepcycle.com Sleep Cycle AB (publ) will publish its interim report for April – June 2026 on August 26 at 7:30 a.m. At 9:30 a.m. the same day, company CEO Erik Jivmark and CFO & Head of IR Elisabeth Hedman will present the report to shareholders, the media, and other stakeholders via webcast. The presentation will be held in English and will be followed by a Q&A session. Questions can be submitted during the webcast. To participate, use the link https://sleep-cycle.events.inderes.com/ q2-report-2026 This information is information that Sleep Cycle AB is required to disclose under the EU Market Abuse Regulation. The information was submitted for publication through the contact persons set out above, at 07:30 CET on August 26, 2026. Sleep Cycle AB (publ) Business reg. No. 556614-7368, 10 Drakegatan, 412 50 Gothenburg, Sweden Ticker: SLEEP UPCOMING REPORTING DATES October 23, 2026 Interim report July-September 2026 Steve Savoca Board member 15 Sleep Cycle Interim report Apr-Jun 2026
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Consolidated statement of comprehensive income Apr - Jun Jan - Jun Jan – Dec tSEK Note 2026 2025 2026 2025 2025 Operating income Net sales 4 49,904 63,559 102,483 128,484 247,879 Other operating income 1,007 47 1,635 253 335 Operating expenses Capitalized work for own account 1,444 916 2,833 1,316 3,020 Distribution costs -8,885 -13,301 -18,548 -27,194 -50,816 Other external expenses -30,919 -16,125 -49,716 -34,055 -68,569 Personnel expenses -18,023 -13,698 -34,966 -27,448 -54,878 Depreciation and impairment of tangible and intangible assets -1,549 -1,347 -3,027 -2,615 -6,089 Other operating expenses -515 -2,033 -1,500 -3,631 -4,922 Operating profit/loss -7,536 18,019 -805 35,110 65,960 Financial items Financial income 207 354 513 786 1,575 Financial expenses -70 -108 -151 -233 -420 Profit before tax -7,399 18,265 -444 35,663 67,115 Tax on profit for the period 1,443 -3,777 -7 -7,383 -13,906 Profit for the period attributable to the parent company's shareholders -5,957 14,488 -451 28,280 53,209 Other comprehensive income - - - - - Comprehensive income for the period attributable to the parent company's shareholders -5,957 14,488 -451 28,280 53,209 Earnings per share before dilution, SEK -0.29 0.71 -0.02 1.39 2.62 Earnings per share after dilution, SEK -0.29 0.71 -0.02 1.39 2.62 Average number of shares outstanding for the period before dilution 20,277,563 20,277,563 20,277,563 20,277,563 20,277,563 Average number of shares outstanding for the period after dilution 20,277,563 20,277,563 20,277,563 20,277,563 20,277,563 16 Sleep Cycle Interim report Apr-Jun 2026
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Consolidated statement of financial position tSEK Note 06/30/2026 06/30/2025 12/31/2025 Assets Intangible fixed assets Capitalized development expenditures 38,729 10,788 15,602 Patent - - - Total intangible fixed assets 38,729 10,788 15,602 Tangible fixed assets Right-of-use assets 5,379 8,453 6,916 Cost of improvement on other’s property 480 771 626 Equipment and computers 533 1,013 785 Total tangible fixed assets 6,392 10,238 8,327 Financial assets Other long-term receivables - 24 - Total financial assets - 24 - Deferred tax Deferred prepaid tax 184 143 191 Total deferred tax 184 143 191 Current assets Accounts receivable 22,168 28,785 29,427 Other receivables 1,758 1,314 1,724 Current tax assets 1,526 1,318 - Prepaid expenses and accrued income 24,618 29,620 24,031 Cash and cash equivalents 99,087 112,431 120,846 Total current assets 149,157 173,468 176,027 Total assets 194,462 194,661 200,148 Equity and liabilities Equity Share capital 563 563 563 Other contributed capital 2,744 2,744 2,744 Retained earnings, including profit for the year 57,328 43,597 68,526 Total equity attributable to the parent company's shareholders 60,635 46,904 71,833 Long-term liabilities Leasing liabilities 2,550 5,808 4,199 Total long-term liabilities 2,550 5,808 4,199 Current liabilities Leasing liabilities 3,259 3,104 3,180 Accounts payable 19,273 11,868 14,425 Current tax liabilities - - 524 Other liabilities 3,730 5,111 2,984 Accrued expenses and deferred income 105,015 121,865 103,002 Total current liabilities 6 131,277 141,948 124,116 Total equity and liabilities 194,462 194,661 200,148 17 Sleep Cycle Interim report Apr-Jun 2026
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Consolidated statement of changes in equity Consolidated cash flow statement Attributable to the parent company's shareholders tSEK 06/30/2026 06/30/2025 12/31/2025 Opening balance 71,833 79,457 79,457 Comprehensive income for the period -451 28,280 53,209 Dividend -10,747 -60,833 -60,833 Closing balance 60,635 46,904 71,833 Apr - Jun Jan - Jun Jan – Dec tSEK Note 2026 2025 2026 2025 2025 Cash flow from operating activities Operating profit/loss -7,536 18,019 -805 35,110 65,960 Adjustments for items not included in cash flow: Depreciation and impairment 1,549 1,347 3,027 2,615 6,089 Other items not affecting cash flow - -1 - -52 -52 Interest received 207 354 513 786 1,575 Interest paid -70 -108 -151 -233 -420 Tax paid -911 -4,435 -2,050 -9,214 -13,943 Cash flow from operating activities before changes in working capital -6,761 15,175 533 29,012 59,209 Change in working capital Change in operating receivables 8,638 16,802 6,637 13,548 18,086 Change in operating liabilities 5,717 -12,061 7,607 -5,932 -24,364 Cash flow from operating activities 7,594 19,917 14,778 36,629 52,931 Investment activities Capitalization of development expenses -12,237 -2,971 -24,218 -6,774 -13,104 Acquisition of tangible fixed assets - - - - -48 Cash flow from investment activities -12,237 -2,971 -24,218 -6,774 -13,153 Financing activities Amortization of leasing liabilities -790 -753 -1,571 -1,826 -3,359 Dividend -10,747 -60,833 -10,747 -60,833 -60,833 Cash flow from financing activities -11,537 -61,585 -12,318 -62,658 -64,192 Cash flow for the period -16,180 -44,639 -21,759 -32,803 -24,413 Liquid funds at the beginning of the period 115,267 157,071 120,846 145,234 145,234 Reclassification of cash and cash equivalents - - - - 24 Liquid funds at the end of the period 99,087 112,431 99,087 112,431 120,846 18 Sleep Cycle Interim report Apr-Jun 2026
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Parent company income statement Apr - Jun Jan - Jun Jan – Dec tSEK Note 2026 2025 2026 2025 2025 Operating income Net sales 49,904 63,559 102,483 128,484 247,879 Other operating income 1,007 47 1,635 200 283 Capitalized work for own account 1,444 916 2,833 1,316 3,020 Operating expenses Distribution costs -8,885 -13,301 -18,548 -27,194 -50,816 Other external expenses -31,779 -16,985 -51,433 -35,643 -71,877 Personnel expenses -18,023 -13,698 -34,966 -27,448 -54,878 Depreciation and impairment of tangible and intangible assets -781 -578 -1,490 -1,222 -3,159 Other operating expenses -515 -2,033 -1,500 -3,631 -4,922 Operating profit/loss -7,627 17,928 -985 34,863 65,530 Profit from financial items Interest income and similar income 207 354 513 786 1,575 Interest expenses and similar expenses - - -2 - - Profit after financial items -7,420 18,281 -474 35,649 67,105 APPROPRIATIONS Group contributions - - - - -10 Profit before tax -7,420 18,281 -474 35,649 67,095 Tax on profit for the period 1,447 -3,780 - -7,378 -13,902 Profit/loss for the period -5,973 14,501 -474 28,270 53,193 Comprehensive income for the period -5,973 14,501 -474 28,270 53,193 Since the parent company has no items recognized as other comprehensive income, total comprehensive income for the period is equal to profit for the period. 19 Sleep Cycle Interim report Apr-Jun 2026
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Parent company balance sheet tSEK Note 06/30/2026 06/30/2025 12/31/2025 Assets Intangible fixed assets Capitalized development expenditures 38,729 10,788 15,602 Patent - - - Total intangible fixed assets 38,729 10,788 15,602 Tangible fixed assets Cost of improvement on other’s property 480 771 626 Equipment and computers 533 1,013 785 Total tangible fixed assets 1,013 1,784 1,411 Financial assets Participations in group companies 50 50 50 Deferred prepaid tax 96 49 96 Other long-term receivables - 24 - Total financial assets 146 123 146 Total fixed assets 39,887 12,695 17,159 Current receivables Accounts receivable 22,168 28,785 29,427 Other receivables 1,758 1,314 1,724 Current tax assets 1,526 1,318 - Prepaid expenses and accrued income 24,618 29,620 24,031 Total current receivables 50,070 61,037 55,182 Short-term investments Other short-term investments 50,000 80,000 80,000 Total short-term investments 50,000 80,000 80,000 Cash and bank balances 48,943 32,292 40,707 Total current assets 149,013 173,329 175,889 Total assets 188,900 186,024 193,048 Equity and liabilities Restricted equity Share capital 563 563 563 Fund for development expenditures 38,729 10,788 15,602 Total restricted equity 39,292 11,351 16,166 Unrestricted equity Share premium fund 2,744 2,744 2,744 Retained earnings 19,319 4,815 - Profit/loss for the period -474 28,270 53,193 Total unrestricted equity 21,589 35,829 55,937 Total equity 60,881 47,180 72,102 Current liabilities Accounts payable 19,273 11,868 14,425 Liabilities to group companies - - 10 Current tax liabilities - - 524 Other liabilities 3,730 5,111 2,984 Accrued expenses and deferred income 105,015 121,865 103,002 Total current liabilities 128,019 138,844 120,946 Total equity and liabilities 188,900 186,024 193,048 20 Sleep Cycle Interim report Apr-Jun 2026
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Notes Note 1 General information The address of the company’s registered office is Drakegatan 10, 412 50 Gothenburg, Sweden. Sleep Cycle is developing one of the world's most widely used sleep platforms. Sleep Cycle’s sleep solutions help users fall asleep more easily, measure sleep habits and improve sleep and with the extensive sleep database contribute to improved sleep habits and increased sleep awareness worldwide. The business is essentially conducted in the parent company. Parent company’s holdings in affiliated companies on June 30, 2026, consist of the wholly-owned subsidiary Sleep Cycle Sverige AB (559278-9688). Note 2 Accounting principles The consolidated financial statement for Sleep Cycle AB has been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU, the Swedish Annual Accounts Act (ÅRL) and the Swedish Financial Reporting Board’s RFR 1 "Supplementary accounting rules for groups". The parent company’s financial statements are prepared in accordance with the Annual Accounts Act and RFR 2, “Accounting for Legal Note 4 Distribution of net sales Apr - Jun Jan - Jun Jan – Dec tSEK 2026 2025 2026 2025 2025 Revenue from B2C 42,363 57,617 87,307 117,172 222,616 Subscription revenue, B2C 42,363 57,617 87,307 117,172 222,616 Revenue from B2B 7,541 5,942 15,175 11,312 25,263 Recurring revenue, B2B 7,005 5,639 13,597 10,788 23,358 Other income 536 302 1,578 524 1,905 Total 49,904 63,559 102,483 128,484 247,879 The presentation has been adjusted to increase transparency and clarify the composition of revenue. Comparative figures have been reclassified to ensure comparability between periods. Note 5 Financial instruments tSEK 06/30/2026 06/30/2025 12/31/2025 Financial assets valued at amortized cost Accounts receivable 22,168 28,785 29,427 Other receivables - 25 6 Accrued income 1,505 774 1,237 Cash and cash equivalents 99,087 112,431 120,846 Total financial assets 122,760 142,016 151,515 Financial liabilities valued at amortized cost Accounts payable 19,273 11,868 14,425 Accrued expenses 12,947 5,919 3,396 Total financial liabilities 32,220 17,788 17,821 Sleep Cycle does not hold any financial instruments that are valued and reported at fair value. For all financial assets and liabilities, the carrying amount is considered as above to be a reasonable approximation of fair value. Note 6 Accrued expenses and deferred income tSEK 06/30/2026 06/30/2025 12/31/2025 Contractual liabilities (deferred income) 79,820 108,036 88,413 Accrued staff-related costs 11,812 9,451 10,699 Other items 13,383 4,377 3,890 Total 105,015 121,865 103,002 Entities.” This interim report has been prepared in accordance with IAS 34 ”Interim reporting”. Disclosures in accordance with IAS 34 are provided in notes as well as elsewhere in the interim report. The accounting principles and calculation methods applied are in accordance with those described in the annual report for 2025. New standards and interpretations that came into force on January 1, 2026 have not had any effect on the group's or the parent company's financial statements for the interim period. Note 3 Segment information Sleep Cycle’s CEO, as the most senior executive decision-maker, monitors and analyses profit and loss and the financial position of the group in its entirety. The CEO does not track results at a level lower than the Group as a whole. The CEO thereby also decides on allocation of resources, and makes strategic decisions based on the Group as a whole. Based on the above analysis, which is itself based on IFRS 8, it is concluded that the Sleep Cycle group consists of a single reporting segment. 21 Sleep Cycle Interim report Apr-Jun 2026
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Definitions of key performance indicators and calculations Sleep Cycle applies the guidelines for alternative key performance indicators issued by ESMA. This report presents certain financial key performance ratios, including alternative key performance indicators which are not defined under IFRS. The Company considers these key performance indicators an important complement, as they facilitate a better evaluation of the Company's financial trends. These financial indicators should not be assessed independently or considered substitutes for performance indicators calculated in accordance with IFRS. In addition, such key performance indicators, as defined by Sleep Cycle, should not be compared with other key performance indicators with similar names utilized by other companies. This is because the key performance indicators below are not always defined in the same way, and other companies may calculate them differently than Sleep Cycle. Key performance indicators Definition Background of the use of the key performance indicator Net sales growth Change in net sales compared with the same period of prior year. The measure shows the company's growth in net sales compared with the same period of prior year. Currency-adjusted net sales growth Defined as the net sales for the current year, converted to the prior year's average exchange rates, divided by the prior year's net sales. Used to measure the company's underlying net sales growth adjusted for currency effects. EBITDA EBITDA is defined as operating profit before depreciation and amortization. This metric is used to describe the company's operating profit before depreciation and amortization and to compare profitability over time. EBITDA margin EBITDA as a percentage of net sales. The EBITDA margin is used to show the company’s operating profitability before depreciation, amortization, and impairment charges relative to net sales. EBIT (Operating profit/loss) Operating profit before interest and tax. Operating profit is used to understand the company's earning capacity. EBIT margin (Operating margin) Operating profit as a percentage of the company's net sales. Operating margin is an indication of the company's earning capacity in relation to net sales. Items affecting comparability Items of a non-recurring nature that are not part of normal business and therefore affect comparison between different periods. Refers to costs related to IPO in 2021, public cash offer in 2022, cost savings in 2023, reorganization in 2024, public cash offer in 2026, and reorganization in 2026. The measure is used to understand the company's development and comparison between the years. Adjusted EBIT/ operating profit/loss Operating profit adjusted for items affecting comparability. Adjusted operating profit is used to understand the company's earning capacity adjusted for items affecting comparability. Adjusted EBIT margin/ operating margin Adjusted operating profit as a percentage of the company's net sales. Adjusted operating margin is used to understand the company's earning capacity adjusted for items affecting comparability. Total subscriptions Total number of subscriptions at the end of the period. The measure indicates how many subscribers the company has at the end of the period. Subscriptions, B2C The number of direct-to-consumer subscriptions at the end of the period. This metric indicates the number of consumer subscribers the company has at the end of the period. Subscriptions, B2B Number of subscriptions for which revenue is paid by a B2B partner at the end of the period. This metric indicates the volume of subscriptions distributed through partners. Subscription revenue, B2C Revenue attributable to a subscription paid directly by the consumer. Subscription revenue, B2C is used to measure the company’s revenue generated from consumer subscribers. Recurring revenue, B2B Revenue from B2B agreements that are recurring in nature, such as subscription or license revenue. This metric is used to show the portion of B2B revenue that is recurring in nature and thus contributes to greater predictability and stability in the revenue base. Other income, B2B Non-recurring revenue from B2B customers, such as one-time revenue. This metric is used to distinguish non-recurring B2B revenue and thus provide a more accurate picture of the quality and composition of revenue. ARPU Average annual subscription revenue per paying B2C-subscriber during the period, annualized. This metric is used to measure revenue per subscription in the consumer business. Currency-adjusted ARPU Average annual subscription revenue per paying B2C- subscription, converted using the prior year’s exchange rates and extrapolated to a full year. This metric indicates the company's average consumer subscription revenue per consumer subscription, adjusted for currency effects. 22 Sleep Cycle Interim report Apr-Jun 2026
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Reconciliation of alternative key performance indicators The table below derives from the calculation of alternative key performance indicators not defined in accordance with IFRS or where the calculation is not shown in another table in this report. Net sales growth and currency-adjusted net sales growth Apr - Jun Jan - Jun Jan – Dec tSEK 2026 2025 2026 2025 2025 Net sales prior period 63,559 65,442 128,484 128,899 261,529 Net sales current period 49,904 63,559 102,483 128,484 247,879 Net sales growth -21.5% -2.9% -20.2% -0.3% -5.2% Net sales prior period 63,559 65,442 128,484 128,899 261,529 Currency-adjusted net sales for the current period 53,746 65,051 110,183 129,547 252,734 Currency-adjusted net sales growth -15.4% -0.6% -14.2% 0.5% -3.4% EBITDA, EBITDA margin, EBIT , and EBITmargin Apr - Jun Jan - Jun Jan – Dec tSEK 2026 2025 2026 2025 2025 Net sales 49,904 63,559 102,483 128,484 247,879 Other operating income 1,007 47 1,635 253 335 Capitalized work for own account 1,444 916 2,833 1,316 3,020 Distribution costs -8,885 -13,301 -18,548 -27,194 -50,816 Other external expenses -30,919 -16,125 -49,716 -34,055 -68,569 Personnel expenses -18,023 -13,698 -34,966 -27,448 -54,878 Depreciation and impairment of tangible and intangible assets -1,549 -1,347 -3,027 -2,615 -6,089 Other operating expenses -515 -2,033 -1,500 -3,631 -4,922 EBIT -7,536 18,019 -805 35,110 65,960 EBIT margin -15.1% 28.4% -0.8% 27.3% 26.6% Depreciation and impairment of tangible and intangible assets 1,549 1,347 3,027 2,615 6,089 EBITDA -5,987 19,366 2,222 37,725 72,049 EBITDA margin -12.0% 30.5% 2.2% 29.4% 29.1% AdjustedEBIT and adjusted EBITmargin Apr - Jun Jan - Jun Jan – Dec tSEK 2026 2025 2026 2025 2025 EBITDA -5,987 19,366 2,222 37,725 72,049 EBIT -7,536 18,019 -805 35,110 65,960 Items affecting comparability Other external expenses -8,615 - -8,615 - - Personnel expenses -2,298 - -2,298 - - Total items affecting comparability -10,913 - -10,913 - - Adjusted EBITDA 4,926 19,366 13,134 37,725 72,049 Adjusted EBITDA margin 9.9% 30.5% 12.8% 29.4% 29.1% Adjusted EBIT 3,377 18,019 10,107 35,110 65,960 Adjusted EBIT margin 6.8% 28.4% 9.9% 27.3% 26.6% ARPU and currency-adjusted ARPU Apr - Jun Jan - Jun Jan – Dec tSEK 2026 2025 2026 2025 2025 Subscription revenue, B2C 42,363 57,617 87,307 117,172 222,616 Currency-adjusted subscription revenue, B2C 46,192 58,819 94,996 118,837 227,750 Number of B2C subscriptions, previous period (thousands) 677 874 732 892 892 Number of B2C subscriptions, current period (thousands) 640 840 640 840 732 ARPU (SEK) 257 269 254 271 274 Currency-adjusted ARPU (SEK) 280 274 277 274 280 23 Sleep Cycle Interim report Apr-Jun 2026
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ARPU Definition of ARPU, clarified As of the previous quarter, the company has updated its definition of ARPU in order to more accurately reflect trends in the consumer business. The new definition applies only to revenue from consumer subscriptions and excludes revenue from partnerships. The former definition included, in addition to consumer revenue, certain partnership revenue as well, which meant that ARPU was affected by changes in the revenue mix rather than solely by underlying trends in the consumer business. The updated definition thus provides a more transparent and relevant picture of actual monetization per user. The tables below show the difference between the definitions on a quarterly basis, including adjustments for currency effects. ARPU Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 SEK 2024 2024 2024 2024 2025 2025 2025 2025 2026 ARPU, new definition 275 282 279 278 270 269 269 266 255 ARPU, former definition 276 282 280 279 272 271 271 269 259 Difference -1 0 -1 -1 -2 -2 -2 -3 -4 Currency-adjusted ARPU Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 SEK 2024 2024 2024 2024 2025 2025 2025 2025 2026 Currency-adjusted ARPU, new definition 270 276 282 283 272 274 276 277 277 ARPU, former definition 271 277 284 276 270 277 276 279 280 Difference -1 -1 -2 7 2 -3 0 -2 -3 24 Sleep Cycle Interim report Apr-Jun 2026