Earnings call transcript: Sleep Cycle Q2 2026 sales fall as stock slips 2.4%

Sleep Cycle reported a sharp decline in second-quarter 2026 sales, falling about 20% year-over-year to just under 50 million Swedish kronor. The company's EBIT was a loss of 7.5 million kronor after accounting for one-time transaction and reorganization costs, but the adjusted EBIT was positive at 3.4 million kronor. The stock price dropped 2.4% to $24.35 in early trading, marking a 22.8% decrease from its 52-week high of $31.60.

Subscriber losses and lower sales indicate weak acquisition at the top of the funnel, while pricing, engagement, and download share have improved. B2B revenue, which now accounts for about 15% of total revenue, saw a 30% increase year-over-year. However, the company's sleep apnea program still requires a larger study to meet FDA approval requirements.

Overall, Sleep Cycle's transition from a consumer-focused app to a B2B licensing and medical technology provider is evident in the numbers, with the consumer business under pressure while B2B revenue grows.