The first quarter in summary (January-March 2025)

• Net sales totaled tSEK 64,925 (63,457) and increased by 2.3% (13.0%). Currency-adjusted net sales growth amounted to 1.6% (11.1%).
• Operating profit amounted to tSEK 17,091 (13,843), with an operating margin of 26.3% (21.8%). The quarter has not been affected by any costs affecting comparability. The previous year was affected by costs of tSEK 5,756 and the adjusted operating margin was 30.9%.
• The total number of paying subscribers at end of period was 904k (893k). New customer sales were impacted by tougher market conditions, and the number of paying subscribers decreased by 14k compared to the end of the previous quarter.
• ARPU in the quarter totaled SEK 272 (276). Currency-adjusted ARPU amounted to SEK 270.
• Earnings per share before and after dilution for the quarter amounted to SEK 0.68 (0.57).

Important events during the reporting period

• On March 5, the Sleep Around the World report was presented. This report demonstrates the value of Sleep Cycle's data and reinforces our position as a leader in sleep analysis.
• On March 13, a new video series was launched together with sleep researcher Dr. Mike Gradisar, Head of Sleep Science at Sleep Cycle. The initiative strengthens user value and helps differentiate Sleep Cycle's offering in the field of digital health.
• Sleep Cycle’s CTO Mikael Kågebäck spoke at Cambridge AI Health on March 13 about how Sleep Cycle uses real-time audio data to generate insights into global health trends and thereby strengthen the potential of AI in health monitoring.

Important events after the period end

• At Sleep Cycle's Annual General Meeting on April 8, all Board members, including the Chairman of the Board, were re-elected. The Annual General Meeting also adopted updated guidelines for remuneration to senior executives, as well as an ordinary dividend of SEK 1.85 per share and an extraordinary dividend of SEK 1.15 per share for 2024.

Commenting on the quarter, CEO Erik Jivmark says:

"Sleep Cycle is a stable company in a volatile time. It is our ability to act and focus that makes a difference – and what will carry us into the next phase of long-term growth.”

"We remain committed to our medium-term financial targets – to double revenues and reach an EBIT margin of at least 25 percent, as evidenced by our 26.3 percent margin for the quarter. At the same time, we are fully aware that the journey there will not be linear and we are working proactively to adapt our operations accordingly."

The full interim report is available on https://investors.sleepcycle.com

Sleep Cycles CEO Erik Jivmark and CFO & Head of IR Elisabeth Hedman will give a presentation on Friday 25 April at 9:30 CET. The presentation can be followed on https://sleep-cycle.events.inderes.com/q1-report-2025

Written questions can be sent in the webcast.

For more information please contact:
Elisabeth Hedman | CFO & Head of IR
elisabeth.hedman@sleepcycle.com

Erik Jivmark | CEO
erik.jivmark@sleepcycle.com

Jonna Grenfeldt | PR & Communications
press@sleepcycle.com | +46 70 735 7539

About Sleep Cycle
Sleep Cycle is dedicated to making healthy sleep accessible to everyone. Our app helps users to build hero habits, identify potential sleep issues, and gain valuable insights into their sleep patterns. Leveraging patented sound technology and over 3 billion analyzed sleep sessions, Sleep Cycle provides unparalleled accuracy and personalized guidance. Sleep Cycle is listed on Nasdaq Stockholm under the ticker SLEEP, with its headquarters in Gothenburg, Sweden.