Sleep Cycle AB (publ) (SLEEP) Q4 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning, everyone, and thank you for joining us for Sleep Cycle's year-end report. Today, we will take you through the quarter, but also we will take a step back and explain where we are in our transformation. This is an important moment for the company, and we want to be clear about both what we're seeing in the market and the deliberate choices we're making to capture the opportunities ahead. I'm Erik Imark, I'm the CEO of SleepCycle, and I'm joined today by our CFO and Head of Investor Relations, Elisabeth Hedman. So Sleep Cycle's mission is to improve global health by empowering people to take control of their sleep. We do this by turning high quality sleep into an accessible daily habit at scale. Today, Sleep Cycle is used and loved by millions of people across more than 180 markets. Importantly, we are more than an app. We reach users through our own consumer product, through integrations with partners, and increasingly through technology licensing. That breadth is central to where we're heading and also something that I will come back to later. But first, I will hand over to Elisabeth to walk you through the financials for the quarter and also for the full year. Elisabeth. Thank you, Erik. So starting with the fourth quarter, Q4 was characterized by continued pressure in the consumer sleep app market, which impacted both new customer acquisition and hotline growth. The number of paying subscribers was 768,000 and ARPI was 269 SEK. Adjusted for FX effects, ARPU was 279 SEK on par with last year. Reported ARPU is still impacted by revenue recognition timing, but underlying pricing actions and testing support long-term value per customer. Net sales declined by 13% year over year, or 9.8% adjusted for these effects, while EBIT amounted to 14 million SEK, corr...