Owlet (NYSE:OWLT) Posts Earnings Results

Key Points

• Owlet reported quarterly EPS of $0.11 and revenue of $30.4 million, above the $29.97 million consensus estimate. Revenue fell 4.9% year over year, but gross margin reached 53.8%, with positive operating income and cash flow.
• A safety update involving the Cable Guard accessory led to a temporary retail stop-sale of Dream Sight and Dream Duo. Owlet expects $7–$10 million in direct costs plus $9–$12 million in retailer returns, and withdrew its 2026 outlook amid uncertainty.
• Demand indicators were strong despite the revenue decline: U.S. sell-through grew 14%, Dream Sock sales rose 23%, and Owlet360 subscribers increased 83% to 142,000, generating record subscription revenue of $3.6 million.

Owlet (NYSE:OWLT - Get Free Report) posted its quarterly earnings data on Friday. The company reported $0.11 earnings per share (EPS) for the quarter, FiscalAI reports. Owlet had a negative return on equity of 601.24% and a negative net margin of 8.61%. The firm had revenue of $30.40 million for the quarter, compared to the consensus estimate of $29.97 million.

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

• Owlet reported Q3 revenue of $30.4 million, down 4.9% year over year, but gross margin rose to 53.8%, operating income was $1.2 million, and adjusted EBITDA reached $3.5 million. Operating cash flow was positive at $2.2 million.
• A safety update for the camera Cable Guard accessory—not Dream Sock itself—prompted a temporary stop-sale of Dream Sight and Dream Duo at retailers and free replacement guards for qualified owners. Owlet estimates $7–$10 million in direct costs and $9–$12 million in retailer returns, and withdrew its 2026 outlook because replenishment timing and holiday demand remain uncertain.
• Demand indicators were strong in key markets: U.S. sell-through grew 14% year over year after adjusting for Prime Day timing, Dream Sock sales rose 23%, and Dream Sock sell-through during October’s Amazon event increased 48%. International sell-through grew 23%, despite reported international revenue falling 18% amid a tough comparison.
• Owlet360 ended the quarter with 142,000 paying subscribers, up 83% year over year, and record subscription revenue of $3.6 million. Management also highlighted the new Smart Thermometer and early Owlet One testing, which it said is converting at about four times Dream Sock’s non-promotional rate, while noting the bundle remains in a test-and-learn phase.

Owlet Stock Performance

Shares of OWLT traded down $1.09 during mid-day trading on Friday, reaching $3.52. 2,065,386 shares of the company were exchanged, compared to its average volume of 247,162. The stock has a market capitalization of $103.00 million, a PE ratio of -4.72 and a beta of 2.17. The business has a 50 day simple moving average of $4.63 and a two-hundred day simple moving average of $6.06. Owlet has a 52 week low of $2.75 and a 52 week high of $16.94.

Analyst Ratings Changes

A number of research analysts have commented on the company. Wall Street Zen raised Owlet from a "sell" rating to a "hold" rating in a report on Saturday, August 15th. Weiss Ratings upgraded Owlet from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Friday, September 25th. Three investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus price target of $15.00.

Owlet Company Profile

Owlet develops connected baby-monitoring products designed to give parents information about an infant's sleep and well-being. Its offerings include the Dream Sock, a wearable monitor that tracks sleep-related readings, and Owlet Cam cameras, which provide video and audio monitoring through the company's app. The company's products combine wearable sensors, cameras and mobile software to help families monitor their babies at home. The Dream Sock has FDA clearance to monitor pulse rate and oxygen saturation in infants from 1 to 18 months of age.

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