Sweden · Delayed Price · Currency is SEK Sleep Cycle AB Earnings Call Transcripts
Fiscal Year 2026
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Revenue declined 20% year-over-year, but B2B revenue grew nearly 30% and now forms 15% of total revenue. Strategic focus is shifting toward B2B and tech licensing, with sleep apnea regulatory approval targeted for 2027. Adjusted EBIT margin was nearly 7%.
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Q1 2026 saw a planned revenue dip as investments in new growth pillars and platform expansion accelerated. B2B revenue surged 42% year-over-year, now nearly 15% of total revenue, while the sleep apnea solution advances toward a 2027 launch.
Fiscal Year 2025
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Net sales declined amid a soft consumer market, but profitability and cash flow remained strong. Rapid B2B growth and MedTech initiatives are driving a strategic transformation, with 2026 set as an investment year and growth expected to resume in 2027.
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Q3 saw revenue decline and subscriber softness, but partnership revenue surged 55% year-over-year, now 11% of total revenue. Price increases and product innovation aim to offset headwinds, while the Powered by Sleep SDK and sleep apnea screening initiative drive future growth.
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Q2 2025 saw a slight decline in subscribers and net sales due to softer D2C market conditions, but partnership revenue grew over 60% year-over-year and now represents nearly 10% of total revenue. Profitability remains strong, and the company is advancing its sleep apnea screening project.
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Net revenue grew 2.3% year-over-year to SEK 64.9 million, with subscriber base up 1.2% but down sequentially. EBIT margin remained strong at 26.3% despite higher marketing costs, and market share increased amid industry headwinds.
Fiscal Year 2024
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Q4 saw 9% revenue growth and a 32.3% EBIT margin, with subscriber and ARPU increases driven by product innovation and partnerships. The company is investing in medical-grade certification and new revenue streams, while maintaining a strong dividend policy and updated EBIT margin target of at least 25%.
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Subscriber base grew to 915,000, driving 8.4% revenue growth and a 31.3% EBIT margin in Q3. Strategic partnerships and revenue management initiatives supported strong financials, with 2024 EBIT margin now expected at 28%.
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Q2 saw 13% net revenue growth and a 32% EBIT margin, with subscriber numbers and ARPU both rising. Strategic focus remains on user growth, cost control, and new product features, while partnerships and pricing initiatives are expected to drive future gains.