Owlet (NYSE:OWLT) Posts Quarterly Earnings Results, Beats Expectations By $0.10 EPS

Owlet (NYSE:OWLT) released its earnings results on Thursday. The company reported ($0.03) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.13) by $0.10, FiscalAI reports. The firm had revenue of $26.60 million for the quarter, compared to the consensus estimate of $26.01 million.

Here are the key takeaways from Owlet’s conference call:

• Owlet reported over 110,000 paying subscribers to start March and has begun international subscription rollouts, positioning subscription as a growing high?margin recurring revenue stream.
• The company delivered record 2025 results — $105.7 million revenue, a record 50.6% full?year gross margin, and a record Adjusted EBITDA of $2.0M — and strengthened liquidity after an October equity offering.
• Management cautioned that tariff headwinds remain material (approximately a 510 basis point quarterly drag baked into guidance) and gave a Q1 guide below expectations with negative Adjusted EBITDA, citing seasonality and retailer inventory tightening.
• Product momentum is strong — Dream Sock/Duo sell?through and the Dream Sight camera rollout drove higher adoption, a blended product NPS of 72, and a record category share of 41% of baby monitor dollars in Q4.
• Owlet is piloting Owlet OnCall telehealth and pursuing AI integrations (webAI partnership) to create personalized insights and upsell opportunities, but commercial scale and timing remain uncertain with a planned broader launch in H2 2026.

Owlet Trading Down 37.6%

Shares of OWLT opened at $7.33 on Friday. Owlet has a 1 year low of $2.75 and a 1 year high of $16.94. The stock has a market cap of $125.20 million, a P/E ratio of -2.70 and a beta of 1.77. The stock’s 50-day moving average price is $12.86 and its two-hundred day moving average price is $11.00.

Analyst Upgrades and Downgrades

A number of analysts recently commented on OWLT shares. Northland Securities set a $20.00 price objective on Owlet and gave the stock an “outperform” rating in a research report on Tuesday, December 30th. Wall Street Zen downgraded shares of Owlet from a “buy” rating to a “hold” rating in a research report on Friday, January 23rd. TD Cowen reaffirmed a “buy” rating on shares of Owlet in a research note on Friday. William Blair initiated coverage on shares of Owlet in a research report on Tuesday, December 9th. They set an “outperform” rating for the company. Finally, Zacks Research downgraded shares of Owlet from a “strong-buy” rating to a “hold” rating in a research note on Monday, March 2nd. Three investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Hold” and an average price target of $20.00.

Insider Activity at Owlet

In other news, CEO Jonathan Harris sold 2,311 shares of the company’s stock in a transaction dated Tuesday, January 20th. The stock was sold at an average price of $13.33, for a total value of $30,805.63. Following the completion of the sale, the chief executive officer directly owned 264,396 shares of the company’s stock, valued at $3,524,398.68. This represents a 0.87% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. 52.20% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of OWLT. Bank of America Corp DE grew its holdings in Owlet by 6,517.7% during the third quarter. Bank of America Corp DE now owns 5,228 shares of the company’s stock valued at $44,000 after purchasing an additional 5,149 shares during the period. XTX Topco Ltd acquired a new stake in Owlet in the second quarter worth $90,000. Goldman Sachs Group Inc. bought a new position in shares of Owlet during the first quarter worth $43,000. Charles Schwab Investment Management Inc. bought a new position in shares of Owlet during the fourth quarter worth $242,000. Finally, Engineers Gate Manager LP acquired a new position in shares of Owlet in the 4th quarter valued at $246,000. Institutional investors own 72.60% of the company’s stock.

Key Headlines Impacting Owlet

Here are the key news stories impacting Owlet this week:

• Positive Sentiment: Q4 beat on both EPS and revenue — Owlet reported a loss of $0.03 per share vs. a consensus loss of $0.13 and revenue of $26.6M (above estimates). Revenue grew roughly 29.6% year-over-year driven by strong demand for the Dream product and growth in Owlet360 subscriptions, showing momentum in core products and recurring revenue. Zacks: Q4 results
• Neutral Sentiment: Management highlighted strategic investments — expansion into AI, telehealth and international markets and called out record revenue and product initiatives on the earnings call, which support longer-term growth potential but carry execution risk and near-term cost implications. Seeking Alpha: Strategy & guidance
• Negative Sentiment: Weak near-term guidance drove the selloff — OWLT guided Q1 2026 revenue to $20.0M–$21.0M versus a street consensus near $26M, a sizable miss that suggests softer demand or channel timing early in 2026. The company’s full-year revenue guide ($126M–$130M) is roughly in line with consensus but the weak Q1 check and tone prompted heavy selling. MSN: Disappointing outlook
• Negative Sentiment: Market reaction: shares fell sharply in extended trading and into the next session as investors re-priced the stock for the softer quarterly outlook and higher uncertainty on near-term growth. Seeking Alpha: Market reaction

Owlet Company Profile

Owlet Baby Care, Inc is a consumer health technology company specializing in the design and manufacture of smart baby monitoring products. The company’s flagship device, the Owlet Smart Sock, is a wearable monitor that tracks a newborn’s heart rate and oxygen saturation levels and transmits real-time data to a mobile app. Owlet has since expanded its product suite to include the Owlet Cam, an HD video monitor with audio and motion alerts, and the Dream Sock, a non-wearable device that collects sleep metrics to help parents understand and improve their baby’s rest patterns.

Founded in 2013 by engineer and father Kurt Workman, Owlet is headquartered in Lehi, Utah.