Sleep Cycle AB (SLEEP) AI Stock Analysis

• Market Cap: €469.43M
• Dividend Yield: 7.99%
• Average Volume (3M): 46.23K
• Price to Earnings (P/E): 7.9
• Beta (1Y): 0.25
• 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: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 61 Neutral
• Price Target: kr24.50 ▲(1.24% Upside)

The overall stock score for Sleep Cycle AB is driven primarily by its strong financial performance and attractive valuation. The company shows robust profitability and efficient cost management, though negative revenue growth and moderate cash flow ratios are concerns. The stock's valuation is appealing with a low P/E ratio and high dividend yield. However, technical analysis indicates bearish momentum, which tempers the overall score.

Sleep Cycle AB Business Overview & Revenue Model

Company Description

Sleep Cycle AB (publ) provides sleep tracking applications in Sweden. The company develops sleep and health-related tracking devices. It offers Sleep Cycle, an autonomous sleep tracking tool that tracks and analyzes sleep patterns. The company was incorporated in 2001 and is headquartered in Gothenburg, Sweden.

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 demonstrates strong profitability with healthy margins and high return on equity. The balance sheet is stable with low leverage, reducing financial risk. However, the negative revenue growth rate and moderate cash flow ratios highlight areas for improvement.

Income Statement

Sleep Cycle AB shows a mixed performance in its income statement. The company has a strong gross profit margin of 67% in TTM, indicating efficient cost management. However, the revenue growth rate is negative, suggesting a decline in sales. The net profit margin is healthy at 25.2%, and the EBIT and EBITDA margins are robust, reflecting good operational efficiency. The negative revenue growth is a concern, but overall profitability remains strong.

Balance Sheet

The balance sheet of Sleep Cycle AB is stable with a low debt-to-equity ratio of 0.10, indicating low financial leverage and reduced risk. The return on equity is exceptionally high at 92.8%, reflecting strong profitability relative to shareholder investments. The equity ratio is not provided, but the low debt levels suggest a solid financial position. The company appears to be managing its resources effectively.

Cash Flow

Cash flow analysis reveals a positive trend with a 3% growth in free cash flow. The operating cash flow to net income ratio is moderate, indicating that the company generates sufficient cash from operations relative to its net income. The free cash flow to net income ratio is strong at 87.9%, suggesting effective cash management. However, the operating cash flow coverage ratio is relatively low, which could indicate potential liquidity concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	255.63M	261.53M	236.15M	213.27M	182.94M	159.45M
Gross Profit	174.62M	201.87M	128.55M	156.65M	141.62M	136.87M
EBITDA	86.39M	88.45M	64.05M	46.27M	12.37M	56.87M
Net Income	62.44M	62.64M	46.14M	33.94M	8.11M	44.04M
Balance Sheet
Total Assets	194.66M	236.49M	230.54M	301.37M	227.76M	104.74M
Cash, Cash Equivalents and Short-Term Investments	112.43M	144.82M	133.47M	232.86M	165.51M	53.14M
Total Debt	8.91M	11.74M	15.92M	4.20M	2.49M	912.00K
Total Liabilities	147.76M	157.04M	169.55M	140.54M	118.86M	104.62M
Stockholders Equity	46.90M	79.46M	61.00M	160.83M	108.90M	127.00K
Cash Flow
Free Cash Flow	56.19M	59.73M	51.00M	53.76M	14.15M	46.15M
Operating Cash Flow	65.79M	63.66M	52.72M	61.53M	20.09M	46.15M
Investing Cash Flow	-9.60M	-3.92M	-6.81M	-7.77M	-5.93M	-16.00K
Financing Cash Flow	-64.61M	-48.36M	-145.30M	14.01M	98.22M	-51.34M

Sleep Cycle AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 24.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 24.2 is below the 20-day moving average (MA) of 26.43, below the 50-day MA of 27.37, and below the 200-day MA of 33.40, indicating a bearish trend. The MACD of -0.66 indicates Positive momentum. The RSI at 40.97 is Neutral, neither overbought nor oversold. The STOCH value of 22.70 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SLEEP	61 Neutral	€469.43M	7.91	96.69%	7.99%	0.29%	6.80%
CHECK	46 Neutral	kr158.40M	―	-11.22%	―	-26.39%	-2046.11%

Sleep Cycle AB Corporate Events

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.

Sleep Cycle AB to Present Q3 2025 Interim Report

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.

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 Extraordinary General Meeting

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.

The most recent analyst rating on (SE:SLEEP) stock is a Hold with a SEK31.00 price target. To see the full list of analyst forecasts on Sleep Cycle AB stock, see the SE:SLEEP Stock Forecast page.

Sleep Cycle Proposes New Board Member to Strengthen Global Position

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.

The most recent analyst rating on (SE:SLEEP) stock is a Hold with a SEK29.00 price target. To see the full list of analyst forecasts on Sleep Cycle AB stock, see the SE:SLEEP Stock Forecast page.

Sleep Cycle Launches SDK to Expand Technology Licensing

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.

The most recent analyst rating on (SE:SLEEP) stock is a Hold with a SEK29.00 price target. To see the full list of analyst forecasts on Sleep Cycle AB stock, see the SE:SLEEP Stock Forecast page.

Sleep Cycle Unveils Liquid Glass Design and Plans AI Sleep Coach

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.

The most recent analyst rating on (SE:SLEEP) stock is a Hold with a SEK29.00 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 Reports Q2 2025 Results Amid Strategic Expansion

Sleep Cycle AB reported a slight decline in net sales and operating profit for the second quarter of 2025, with a decrease in the number of paying subscribers. Despite these challenges, the company is expanding its market presence by initiating a clinical trial for AI-based sleep apnea screening and launching collaborations with food delivery services. These strategic moves aim to enhance Sleep Cycle’s industry positioning and tap into new market opportunities.

The most recent analyst rating on (SE:SLEEP) stock is a Hold with a SEK32.00 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 to Present Q2 2025 Interim Report

Sleep Cycle AB has announced a presentation of its second-quarter 2025 interim report, scheduled for August 22. The presentation, led by CEO Erik Jivmark and CFO Elisabeth Hedman, will be available via webcast and will include a Q&A session. This event is significant for stakeholders as it provides insights into the company’s performance and strategic direction.