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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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Neutral 69 (OpenAI - 5.2)
Rating:69Neutral
Price Target:
kr18.00
▼(-28.00% Downside)
Action:ReiteratedDate:02/07/26
The score is supported by solid fundamentals (profitability, cash flow, and low leverage) and very attractive valuation (low P/E and high dividend yield). These positives are tempered by weak technicals (downtrend and very low momentum) and the recent revenue slowdown/decline with margin volatility.
Positive Factors
Recurring subscription model
A subscription-first business drives predictable recurring revenue and higher lifetime value versus one-time purchases. This model supports steady cashflow, facilitates retention and upsell, and enables planning for product investment and marketing over a multi-quarter horizon.
Strong cash generation
High free cash flow that tracks reported earnings indicates durable cash quality and internal funding for operations, capex, or distributions. Reliable FCF reduces reliance on external financing and supports strategic flexibility over several quarters.
Low leverage and healthy equity
A low debt load and solid equity base provide financial flexibility to absorb shocks, invest in product development, or pursue partnerships. This balance-sheet health supports sustainability of operations and long-term strategic choices without material refinancing risk.
Negative Factors
Revenue slowdown
A top-line deceleration interrupts the company’s growth trajectory and challenges the subscription flywheel. Slower user acquisition or conversion can pressure recurring revenue inflows, reduce scale benefits, and constrain reinvestment capacity across ensuing quarters.
Margin volatility
Sharply fluctuating gross and operating margins reduce predictability of profitability and free cash flow. Persistent margin compression may indicate pricing pressure, adverse mix shifts, or rising costs that could erode durable earnings power over the medium term.
Platform dependency
Heavy reliance on app-store ecosystems concentrates distribution and payment risk with third parties. Policy, fee, or technical changes by platform owners can materially affect pricing, margins, or customer payment flows and limit the company's control over monetization long term.

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
Strong profitability and cash generation with low leverage. Offsets are the 2025 revenue decline and notable margin volatility (including sharp gross margin compression vs 2024), which reduce confidence in near-term durability.
Income Statement
74
Positive
Profitability is strong for a software business, with 2025 gross margin ~49% and EBIT/EBITDA margins ~27%/~30% and net margin ~21%. Revenue growth has cooled meaningfully: after ~11–17% growth in 2022–2024, 2025 shows a modest decline (~-2%). Earnings remain solid (2025 net income ~53m), but the sharp gross margin compression versus 2024 (and volatility across years) suggests either mix/price pressure or cost headwinds that bears monitoring.
Balance Sheet
72
Positive
Leverage is low and improving versus 2023, with 2025 debt-to-equity ~0.16 (and total debt ~11.6m) supporting financial flexibility. Equity levels are healthy (2025 ~71.8m), though down from 2022, which reduces the buffer versus prior years. Returns on equity are exceptionally high (2023–2025), which is a strength, but the historical swings in equity/returns (notably the extreme 2020 figure) point to structural volatility in the capital base that slightly tempers the otherwise solid balance-sheet profile.
Cash Flow
79
Positive
Cash generation is a clear strength: 2025 operating cash flow (~52.9m) closely matches net income, and free cash flow (~52.9m) is essentially one-for-one with earnings, indicating good cash quality. Free cash flow has generally trended up over time (despite a dip in 2023), and 2025 shows positive growth again. A watch item is that operating cash flow remains well below reported EBITDA in each year, implying meaningful non-cash items and/or working-capital/headwind effects that can create period-to-period volatility.
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue247.88M261.53M236.15M213.27M182.94M
Gross Profit121.36M201.87M128.55M156.65M141.62M
EBITDA73.62M88.45M64.05M46.27M12.37M
Net Income53.21M62.64M46.14M33.94M8.11M
Balance Sheet
Total Assets200.15M236.49M230.54M301.37M227.76M
Cash, Cash Equivalents and Short-Term Investments120.85M144.82M133.47M232.86M165.51M
Total Debt7.38M11.74M15.92M4.20M2.49M
Total Liabilities128.31M157.04M169.55M140.54M118.86M
Stockholders Equity71.83M79.46M61.00M160.83M108.90M
Cash Flow
Free Cash Flow52.88M59.73M51.00M53.76M14.15M
Operating Cash Flow52.93M63.66M52.72M61.53M20.09M
Investing Cash Flow-13.15M-3.92M-6.81M-7.77M-5.93M
Financing Cash Flow-64.19M-48.36M-145.30M14.01M98.22M

Sleep Cycle AB Technical Analysis

Technical Analysis Sentiment
Negative
Last Price25.00
Price Trends
50DMA
21.80
Negative
100DMA
22.97
Negative
200DMA
26.43
Negative
Market Momentum
MACD
-1.78
Negative
RSI
37.56
Neutral
STOCH
59.80
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:SLEEP, the sentiment is Negative. The current price of 25 is above the 20-day moving average (MA) of 16.98, above the 50-day MA of 21.80, and below the 200-day MA of 26.43, indicating a bearish trend. The MACD of -1.78 indicates Negative momentum. The RSI at 37.56 is Neutral, neither overbought nor oversold. The STOCH value of 59.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
75
Outperform
kr462.79M14.913.48%
69
Neutral
kr337.01M6.3396.69%7.64%0.29%6.80%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
52
Neutral
kr57.60M26.39
47
Neutral
kr108.64M-0.84
43
Neutral
kr71.73M-0.55-10.28%-18.26%-109.47%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SE:SLEEP
Sleep Cycle AB
16.62
-25.41
-60.46%
SE:CHECK
Checkin.com Group AB
2.40
-9.05
-79.04%
SE:FLOWS
Flowscape Technology AB
2.94
-0.44
-13.02%
SE:GENI
Generic Sweden AB
37.65
-20.30
-35.03%
SE:MOBA
M.O.B.A. Network AB
0.75
-6.96
-90.32%
SE:BUSER
Bambuser AB
13.50
-7.20
-34.78%

Sleep Cycle AB Corporate Events

Sleep Cycle leans on health-tech tie-ups as revenue softens
Feb 4, 2026

Sleep Cycle’s 2025 year-end report shows a tightened focus on SDK licensing and health-tech partnerships—highlighted by collaborations with Ultrahuman, a global IoT player, and a CRO-backed AI sleep apnea validation study—even as subscriber attrition pulled net sales down 5.2% and trimmed operating margin to 26.6%, prompting a proposed dividend of SEK 0.53 per share to reassure investors.

The most recent analyst rating on (SE:SLEEP) stock is a Buy 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.

UKHSA Taps Sleep Cycle Data in Bid to Improve Early Detection of Respiratory Outbreaks
Jan 28, 2026

The UK Health Security Agency (UKHSA) and Sleep Cycle have launched a 12-week research collaboration to assess whether anonymised, privacy-preserved data from the Sleep Cycle app and its Cough Radar tool can complement traditional respiratory disease surveillance in England. By comparing sleep-based signals, such as nighttime coughing intensity, against existing hospital and surveillance data for respiratory viruses including influenza, RSV and Covid-19, UKHSA aims to determine if sleep app data can provide earlier warning of rising infection rates. The project marks UKHSA’s first systematic evaluation of sleep app data for national epidemiological monitoring and underscores Sleep Cycle’s strategic evolution from a consumer-focused app to a contributor to population-level health research, potentially enhancing early-warning capabilities and demonstrating the value of responsibly used digital health data for public benefit.

The most recent analyst rating on (SE:SLEEP) stock is a Buy 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 Moves Sleep Apnea AI Study Validation to US to Bolster Market Push
Jan 23, 2026

Sleep Cycle has signed an agreement with a leading US clinical research organization to run the validation phase of its clinical study for an AI-based sleep apnea screening tool, as the development phase, based on roughly 300 recorded nights, nears completion in the first quarter of 2026 and the full study is scheduled to conclude in September 2026. By shifting validation to the US, the company aims to build a robust, single-country clinical dataset to support regulatory approval, accelerate commercialization and strengthen its positioning in both consumer health and B2B partnerships in a market where sleep apnea is widely underdiagnosed and home-based sleep testing already exceeds SEK 10 billion, with the SEK 30 million validation investment to be capitalized as a development cost and detailed further in the upcoming year-end report.

The most recent analyst rating on (SE:SLEEP) stock is a Buy 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 Schedules Webcast to Present 2025 Year-End Report
Jan 21, 2026

Sleep Cycle AB will present its year-end report for 2025 via an English-language webcast on 4 February at 09:30 CET, with CEO Erik Jivmark and CFO & Head of IR Elisabeth Hedman leading the presentation followed by a Q&A session for shareholders, media and other stakeholders. The company will publish the interim year-end report earlier that morning at 07:30 CET on its investor website, underscoring its efforts to maintain transparent communication with the market and provide investors and partners with timely insight into its financial performance and strategic progress in the fast-growing sleep technology space.

The most recent analyst rating on (SE:SLEEP) stock is a Buy 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 strikes multi-year IoT licensing deal to expand beyond mobile sleep tracking
Dec 18, 2025

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
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.

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
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.

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.

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: Feb 07, 2026