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Sleep Cycle AB (SE:SLEEP)
:SLEEP

Sleep Cycle AB (SLEEP) AI Stock Analysis

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SE:SLEEP

Sleep Cycle AB

(SLEEP)

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Outperform 72 (OpenAI - 4o)
Rating:72Outperform
Price Target:
kr28.00
▲(12.00% Upside)
The overall stock score of 72 reflects a strong valuation with a low P/E ratio and high dividend yield, indicating potential undervaluation. Technical indicators are moderately positive, though the stock faces challenges in revenue growth and cash flow sustainability.
Positive Factors
Subscription Model
The subscription-based model provides a steady and predictable revenue stream, enhancing financial stability and allowing for strategic planning.
Profitability
Strong profitability indicates effective cost management and operational efficiency, supporting long-term business sustainability.
Balance Sheet Health
A strong balance sheet with low leverage enhances financial flexibility and reduces risk, supporting long-term growth and stability.
Negative Factors
Revenue Growth Challenges
Negative revenue growth suggests difficulties in market expansion, which could impact future profitability and competitive positioning.
Cash Flow Sustainability
Negative cash flow growth can strain operations and limit the company's ability to invest in growth opportunities, affecting long-term viability.
Revenue Growth Concerns
Ongoing revenue growth challenges may hinder the company's ability to scale and compete effectively, impacting its market position.

Sleep Cycle AB (SLEEP) vs. iShares MSCI Sweden ETF (EWD)

Sleep Cycle AB Business Overview & Revenue Model

Company DescriptionSleep Cycle AB (SLEEP) is a technology company specializing in sleep tracking and improvement solutions. The company operates primarily in the health and wellness sector, offering a mobile application that analyzes users' sleep patterns and provides personalized insights to enhance sleep quality. Its core products include a sleep tracking app that utilizes advanced algorithms and data analytics to deliver real-time feedback and recommendations, helping users to optimize their sleep habits.
How the Company Makes MoneySleep Cycle AB generates revenue primarily through a subscription-based model for its mobile application. Users can access basic features for free, but the company offers premium subscriptions that unlock advanced functionalities, such as detailed sleep analysis, personalized coaching, and integration with wearable devices. Key revenue streams include monthly and yearly subscription fees from users who opt for the premium service. Additionally, Sleep Cycle may have partnerships with health and wellness organizations, sleep researchers, or fitness brands, which could provide further revenue opportunities through collaborations or cross-promotional efforts. The company also potentially monetizes anonymized user data insights, contributing to research in sleep health and wellness, although specific details on this aspect are not provided.

Sleep Cycle AB Financial Statement Overview

Summary
Sleep Cycle AB presents a mixed financial picture with strong profitability and efficient use of equity, but challenges in revenue growth and cash flow sustainability. The balance sheet remains stable, but negative revenue and cash flow growth rates require strategic focus.
Income Statement
65
Positive
Sleep Cycle AB shows a mixed performance in its income statement. The company has maintained a healthy gross profit margin, but recent revenue growth has been negative, indicating potential challenges in expanding its market share. The net profit margin remains strong, suggesting effective cost management. However, the decline in revenue growth is a concern that needs addressing.
Balance Sheet
70
Positive
The balance sheet of Sleep Cycle AB is relatively stable. The debt-to-equity ratio is low, indicating conservative leverage and a strong equity base. Return on equity is high, reflecting efficient use of shareholder funds. However, the equity ratio suggests a moderate reliance on debt, which could pose risks if not managed carefully.
Cash Flow
60
Neutral
Cash flow analysis reveals some areas of concern. While the company has a strong free cash flow to net income ratio, indicating good cash generation relative to profits, the free cash flow growth rate is negative, suggesting potential issues in sustaining cash flow levels. The operating cash flow to net income ratio is moderate, indicating room for improvement in cash flow efficiency.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue253.72M261.53M236.15M213.27M182.94M159.45M
Gross Profit169.09M201.87M128.55M156.65M141.62M136.87M
EBITDA82.17M88.45M64.05M46.27M12.37M56.87M
Net Income59.35M62.64M46.14M33.94M8.11M44.04M
Balance Sheet
Total Assets194.31M236.49M230.54M301.37M227.76M104.74M
Cash, Cash Equivalents and Short-Term Investments114.64M144.82M133.47M232.86M165.51M53.14M
Total Debt8.15M11.74M15.92M4.20M2.49M912.00K
Total Liabilities133.86M157.04M169.55M140.54M118.86M104.62M
Stockholders Equity60.45M79.46M61.00M160.83M108.90M127.00K
Cash Flow
Free Cash Flow51.27M59.73M51.00M53.76M14.15M46.15M
Operating Cash Flow59.44M63.66M52.72M61.53M20.09M46.15M
Investing Cash Flow-10.74M-3.92M-6.81M-7.77M-5.93M-16.00K
Financing Cash Flow-64.48M-48.36M-145.30M14.01M98.22M-51.34M

Sleep Cycle AB Technical Analysis

Technical Analysis Sentiment
Positive
Last Price25.00
Price Trends
50DMA
23.83
Positive
100DMA
26.06
Negative
200DMA
30.25
Negative
Market Momentum
MACD
0.24
Negative
RSI
65.40
Neutral
STOCH
60.37
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:SLEEP, the sentiment is Positive. The current price of 25 is above the 20-day moving average (MA) of 23.39, above the 50-day MA of 23.83, and below the 200-day MA of 30.25, indicating a neutral trend. The MACD of 0.24 indicates Negative momentum. The RSI at 65.40 is Neutral, neither overbought nor oversold. The STOCH value of 60.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:SLEEP.

Sleep Cycle AB Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
kr520.12M8.7696.69%7.21%0.29%6.80%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
52
Neutral
kr156.01M-7.79-10.28%-18.26%-109.47%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SE:SLEEP
Sleep Cycle AB
25.65
-8.59
-25.08%
SE:CHECK
Checkin.com Group AB
5.22
-9.13
-63.62%
SE:FLOWS
Flowscape Technology AB
2.77
-0.17
-5.78%
SE:GENI
Generic Sweden AB
45.20
-5.55
-10.94%
SE:MOBA
M.O.B.A. Network AB
0.25
-7.20
-96.64%
SE:BUSER
Bambuser AB
0.41
-0.18
-30.82%

Sleep Cycle AB Corporate Events

Sleep Cycle Launches Luma: An AI-Powered Health Coach
Dec 3, 2025

Sleep Cycle has launched Luma, an AI-powered health coach that extends beyond traditional sleep tracking to offer personalized guidance connecting sleep to various life goals such as mental health, stress, and productivity. Luma represents a significant expansion in Sleep Cycle’s role, positioning the company as a leader at the intersection of sleep science, AI, and personal guidance, with its availability starting for iOS users and a broader rollout planned for early 2026.

Sleep Cycle Partners with Urban Sports Club for Holistic Wellness Experience
Nov 20, 2025

Sleep Cycle has announced a new partnership with Urban Sports Club, a leading sports and wellness platform, to offer an integrated wellness experience by combining sleep insights with fitness goals. This collaboration aims to enhance user health by integrating sleep intelligence into broader wellness ecosystems, potentially driving subscriber and revenue growth for Sleep Cycle.

Sleep Cycle Elects New Board Member at Extraordinary General Meeting
Oct 28, 2025

At the Extraordinary General Meeting of Sleep Cycle AB on October 28, 2025, Christian Kanstrup was elected as a new member of the Board of Directors. The meeting resolved to increase the Board by one member, with Kanstrup serving until the next Annual General Meeting. The annual fees for Board members will continue to apply, with the new member receiving fees pro rata for their duty period.

Sleep Cycle Partners with Ultrahuman in Strategic Licensing Pilot
Oct 27, 2025

Sleep Cycle has announced a pilot collaboration with Ultrahuman, a global health and wellness company, to license its ‘Sleep SDK’ technology. This partnership aims to integrate Sleep Cycle’s technology into Ultrahuman’s ecosystem to enhance user health optimization. The collaboration is part of Sleep Cycle’s strategy to grow through partnerships and licensing, marking a significant step in expanding its reach and creating new revenue streams.

Sleep Cycle Reports Decline in Q3 2025 Sales Amid Strategic Innovations
Oct 24, 2025

Sleep Cycle AB reported a 6.6% decrease in net sales for the third quarter of 2025, with a decline in operating profit and a reduction in the number of paying subscribers. Despite these challenges, the company is focusing on innovation and partnerships, launching a new Liquid Glass design and an AI sleep coach, as well as strengthening its ‘Powered by Sleep Cycle’ strategy with a new Sleep SDK.

Sleep Cycle AB Announces Nominating Committee for 2026 AGM
Oct 13, 2025

Sleep Cycle AB has appointed its nominating committee for the 2026 Annual General Meeting, consisting of representatives from the three largest shareholders and the Chairperson of the Board. This committee, which represents 66.1% of the company’s votes, will prepare resolutions for the meeting, including board member appointments and auditor fees, in accordance with the Swedish Companies Act and Corporate Governance Code.

Sleep Cycle AB to Present Q3 2025 Interim Report
Oct 10, 2025

Sleep Cycle AB is set to present its third-quarter 2025 interim report on October 24, with a webcast featuring CEO Erik Jivmark and CFO Elisabeth Hedman. The presentation will provide insights into the company’s performance and allow stakeholders to engage through a Q&A session, reflecting Sleep Cycle’s commitment to transparency and stakeholder engagement.

Sleep Cycle AB Announces Extraordinary General Meeting
Oct 2, 2025

Sleep Cycle AB has announced an Extraordinary General Meeting (EGM) scheduled for October 28, 2025, in Gothenburg, Sweden. The meeting will address key issues such as the election of a new Board member and determination of Board fees, which could impact the company’s governance and strategic direction.

Sleep Cycle Proposes New Board Member to Strengthen Global Position
Oct 1, 2025

Sleep Cycle’s Nomination Committee has proposed Christian Kanstrup as a new member of the Board of Directors, prompting the company to plan an Extraordinary General Meeting. Kanstrup, with a strong background in the medtech sector and experience in the US market, is expected to bring strategic value to Sleep Cycle as it aims to reinforce its position as a global leader in digital sleep health.

Sleep Cycle Launches SDK to Expand Technology Licensing
Sep 30, 2025

Sleep Cycle has launched its Sleep Software Development Kit (SDK) as part of its strategy to expand its technology licensing under the ‘Powered by Sleep Cycle’ concept. This SDK allows partners to integrate Sleep Cycle’s sleep analysis and tracking features into their own products, enhancing the company’s B2B offerings and opening new revenue streams. The SDK is designed for easy integration with mobile applications and connected devices, positioning Sleep Cycle as a key technology partner in the sleep and health industry.

Sleep Cycle Unveils Liquid Glass Design and Plans AI Sleep Coach
Sep 15, 2025

Sleep Cycle, a leading sleep analysis app, has launched its new Liquid Glass design with the release of Apple’s iOS 26, enhancing user experience with smoother navigation and intuitive interactions. Additionally, the company is developing an AI sleep coach to provide personalized insights and recommendations, aiming to expand its market reach and reinforce its commitment to global health.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Dec 19, 2025