Sleep Cycle AB (SLEEP) AI Stock Analysis

• Market Cap: kr531.27M
• Dividend Yield: 7.64%
• Average Volume (3M): 46.23K
• Price to Earnings (P/E): 9.0
• Beta (1Y): 0.26
• Revenue Growth: 0.29%
• EPS Growth: 6.80%
• Country: SE
• Employees: 33
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.70
• Shares Outstanding: 20,277,563
• 10 Day Avg. Volume: 28,513
• 30 Day Avg. Volume: 46,232
• PEG Ratio: 0.34
• Price to Book (P/B): 9.60
• Price to Sales (P/S): 2.92
• P/FCF Ratio: 12.76
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• 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 Business Overview & Revenue Model

Company Description

Sleep 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 Money

Sleep 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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	253.72M	261.53M	236.15M	213.27M	182.94M	159.45M
Gross Profit	169.09M	201.87M	128.55M	156.65M	141.62M	136.87M
EBITDA	82.17M	88.45M	64.05M	46.27M	12.37M	56.87M
Net Income	59.35M	62.64M	46.14M	33.94M	8.11M	44.04M
Balance Sheet
Total Assets	194.31M	236.49M	230.54M	301.37M	227.76M	104.74M
Cash, Cash Equivalents and Short-Term Investments	114.64M	144.82M	133.47M	232.86M	165.51M	53.14M
Total Debt	8.15M	11.74M	15.92M	4.20M	2.49M	912.00K
Total Liabilities	133.86M	157.04M	169.55M	140.54M	118.86M	104.62M
Stockholders Equity	60.45M	79.46M	61.00M	160.83M	108.90M	127.00K
Cash Flow
Free Cash Flow	51.27M	59.73M	51.00M	53.76M	14.15M	46.15M
Operating Cash Flow	59.44M	63.66M	52.72M	61.53M	20.09M	46.15M
Investing Cash Flow	-10.74M	-3.92M	-6.81M	-7.77M	-5.93M	-16.00K
Financing Cash Flow	-64.48M	-48.36M	-145.30M	14.01M	98.22M	-51.34M

Sleep Cycle AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 25.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 24.62, above the 50-day MA of 23.72, and below the 200-day MA of 29.48, indicating a neutral trend. The MACD of 0.76 indicates Negative momentum. The RSI at 58.04 is Neutral, neither overbought nor oversold. The STOCH value of 64.34 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GENI	77 Outperform	kr585.71M	18.18	―	3.48%	―	―
SLEEP	72 Outperform	kr531.27M	8.95	96.69%	7.64%	0.29%	6.80%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CHECK	52 Neutral	kr138.67M	-6.92	-10.28%	―	-18.26%	-109.47%
FLOWS	52 Neutral	kr55.05M	46.22	―	―	―	―
BUSER	47 Neutral	kr91.39M	-0.79	―	―	―	―

Sleep Cycle AB Corporate Events

Sleep Cycle strikes multi-year IoT licensing deal to expand beyond mobile sleep tracking

Sleep Cycle has signed a strategic multi-year SDK licensing agreement with a global IoT and smart home device brand, allowing the customer to embed Sleep Cycle’s patented audio-based sleep-tracking analysis directly into its hardware products. The deal advances Sleep Cycle’s ‘Powered by Sleep Cycle’ strategy by extending its technology beyond mobile phones into connected devices, bolstering its technology licensing business and diversifying revenue streams. Management frames the agreement as a key step in scaling the company’s AI-driven sleep technology to broader audiences and positioning Sleep Cycle within the fast-growing market for ambient AI-powered hardware that adapts to health-related biological indicators such as sleep and respiration, with implications for stronger industry positioning and new partnership-driven growth.

The most recent analyst rating on (SE:SLEEP) stock is a Hold with a SEK24.50 price target. To see the full list of analyst forecasts on Sleep Cycle AB stock, see the SE:SLEEP Stock Forecast page.

Sleep Cycle Launches Luma: An AI-Powered Health Coach

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.

The most recent analyst rating on (SE:SLEEP) stock is a Hold with a SEK24.50 price target. To see the full list of analyst forecasts on Sleep Cycle AB stock, see the SE:SLEEP Stock Forecast page.

Sleep Cycle Partners with Urban Sports Club for Holistic Wellness Experience

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.

The most recent analyst rating on (SE:SLEEP) stock is a Hold with a SEK24.50 price target. To see the full list of analyst forecasts on Sleep Cycle AB stock, see the SE:SLEEP Stock Forecast page.

Sleep Cycle Elects New Board Member at Extraordinary General Meeting

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.

The most recent analyst rating on (SE:SLEEP) stock is a Hold with a SEK24.50 price target. To see the full list of analyst forecasts on Sleep Cycle AB stock, see the SE:SLEEP Stock Forecast page.

Sleep Cycle Partners with Ultrahuman in Strategic Licensing Pilot

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.

The most recent analyst rating on (SE:SLEEP) stock is a Hold with a SEK24.50 price target. To see the full list of analyst forecasts on Sleep Cycle AB stock, see the SE:SLEEP Stock Forecast page.

Sleep Cycle Reports Decline in Q3 2025 Sales Amid Strategic Innovations

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.

The most recent analyst rating on (SE:SLEEP) stock is a Hold with a SEK28.00 price target. To see the full list of analyst forecasts on Sleep Cycle AB stock, see the SE:SLEEP Stock Forecast page.

Sleep Cycle AB Announces Nominating Committee for 2026 AGM

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.

The most recent analyst rating on (SE:SLEEP) stock is a Hold with a SEK28.00 price target. To see the full list of analyst forecasts on Sleep Cycle AB stock, see the SE:SLEEP Stock Forecast page.