Sleep Cycle AB (publ) (SLEEP) Q2 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning, everyone, and welcome to Sleep Cycle's Second Quarter Earnings Call. I'm Georg Gidemeich. I'm the CEO, and I'm joined by Elisabeth Hiedmann, our CFO and Head of Relations Investor Relations. So, q two was a demanding quarter for the consumer business, but it was also a quarter where the strategic shift we have been building towards became increasingly, tangible. So today, I want to spend most of my time on that shift. What is changing in our market? How we are broadening the business beyond the app? And the progress we're seeing across the three growth pillars. But first, our mission, it has not changed. We want to improve global health by helping people to take control over their sleep. What is changing though is how we scale that mission. We're moving beyond App Stores. So Sleep Cycle starts from a position that is difficult to replicate. We have analyzed more than 4,000,000,000 nights of sleep. We reached more than 82,000,000 installs, and we built a large active user base over more than a decade. And importantly, this was built largely through organic growth and also with a very efficient operating model. So when we talk about moving beyond the app, we're not starting a new business from scratch. We're taking technology, we're taking data distribution and and also our sleep expertise that already exists and we apply that in more ways. And thereby, we're taking control of our own destiny. So this chart explains where we are in the journey. From 2021 to 2025, we built a highly profitable consumer business. Revenue grew, margins expanded and B2B gradually became a larger part of the mix. 2026 is different. We are deliberately investing more heavily in new growth areas while the consumer business is under pressure. But we're funding that transformation ...