Sleep Cycle Community

Update Q1 2025 (updated 250510) The latest user‐growth data suggest headwinds for top-line revenue, but management’s active repricing initiatives should help offset this. By combining modest user gains with targeted price increases, the company can still drive overall revenue growth.

Sleep Cycle AB — Investment Narrative, Update Q1 2025 Executive Summary Sleep Cycle AB (Nasdaq Stockholm: SLEEP) is the category-leading sleep-tracking app with ~904 000 paying subscribers and a decade-long proprietary data set exceeding three billion recorded nights. The asset-light subscription model generates robust profitability (average EBIT margin ≈ 26 % over 2022-2024) while free cash flow and a net-cash balance (≈ 157 m) support an ordinary plus special dividend.

Key Takeaways Diversifying revenue through high-margin partnerships and AI-driven health products is strengthening margins and expanding global market opportunities across both consumer and business channels. Proprietary AI capabilities and interoperable health data position Sleep Cycle for premium pricing, long-term user retention, and attractive partnerships amid growing wellness trends.

Key Takeaways Proprietary AI, organic user growth, and medical certification position Sleep Cycle for leading B2B partnerships and rapid adoption in expanding health and wellness markets. Strong cash reserves and disciplined costs enable substantial product investment, boosting earning power and resilience against competition.

Key Takeaways Deep integration of free health tracking by major platforms and bundled offerings threatens user growth, retention, and the relevance of standalone sleep apps. Rising compliance costs and the shift toward medical-grade solutions will squeeze margins and challenge Sleep Cycle's long-term profitability.