Owlet NYSE: OWLT executives said 2025 marked the strongest year in the company’s history, citing record revenue, gross margin, and Adjusted EBITDA alongside continued momentum in its connected hardware and subscription strategy. Management also outlined updated priorities for 2026 that emphasize global Dream Sock adoption, expansion of the Owlet360 subscription platform, growth in healthcare channels, and the planned launch of an Owlet-branded pediatric telehealth service.
Record 2025 results and Q4 performance
President and CEO Jonathan Harris said 2025 was a “monumental and transformative year” for Owlet, pointing to growth across the company’s Dream product suite and the early success of its subscription model. For the fourth quarter of 2025, the company reported revenue of $26.6 million, up 29.6% from the prior-year period. Full-year 2025 revenue totaled $105.7 million, up 35.4% versus 2024.
Gross margin in Q4 was 47.6%, including a 510 basis point impact from tariffs, according to management. For the full year, gross margin was a record 50.6%; CFO Amanda Twede Crawford said tariffs reduced 2025 gross margin by 270 basis points for the year.
Adjusted EBITDA was $0.1 million in Q4, compared with $0.5 million in Q4 2024, with tariff costs described as the primary driver of the year-over-year decline. Full-year 2025 Adjusted EBITDA was a record $2.0 million, a $3.8 million improvement over 2024 and at the high end of the company’s guidance.
On the expense side, Crawford said Owlet maintained discipline while scaling. Q4 operating expenses were $17.5 million, down from $18.4 million a year earlier. Operating expenses were 66% of revenue in Q4 2025 versus 90% in Q4 2024, which management attributed to operating leverage. Q4 operating loss improved to $4.9 million from $7.4 million, while net loss was $9.2 million compared with $9.1 million in the prior-year quarter.
Subscription growth, new products, and AI roadmap
Harris highlighted the January 2025 launch of the Owlet360 subscription service as a central strategic shift. The company said it had surpassed 110,000 paying subscribers as of early March, and management noted it recently launched subscription offerings internationally, which it described as opening new high-margin revenue streams.
Owlet also introduced its Dream Sight camera in September 2025, positioning it as a next-generation video monitor with improved reliability and security and “onboard AI capabilities.” Harris said the company views Dream Sight as a catalyst to extend customer lifetime value, noting that cameras can remain in use past three years of age. Management said it expects to begin rolling out camera-specific subscription features in coming quarters, with an emphasis on features that combine biometric data from the sock with camera-based computer vision.
During the Q&A session, Harris described AI as a major opportunity, including moving toward “real-time personalized AI sleep coaching” and converting data into actionable daily plans. He also referenced plans to use AI internally to streamline workflows, including regulatory submissions and financial data entry, and said a partnership with webAI is intended to accelerate development of secure, specialized intelligence built on Owlet’s pediatric dataset.
Demand indicators, market share, and international expansion
In the U.S., Harris said Dream Sock demand remained strong. The company reported domestic year-over-year sell-through of 9% for Dream Sock and 53% for the Dream Duo package, with management noting an expected shift toward the Duo bundle that it believes increases lifetime value and subscription opportunity. Owlet also cited customer satisfaction metrics, including a Dream Sock Net Promoter Score of 77 in Q4 and a blended product NPS of 72.
Owlet highlighted registry activity and market share. Management said Q4 saw a 23% year-over-year increase in Dream Sock additions across registries it tracks (including Amazon, Babylist, and Target). Citing Circana and internal data, Owlet said it reached 41% of total dollars spent on baby monitors in Q4 2025, up 24% versus Q4 2024 and a record since it began tracking Circana data. The company also said consumer spending on baby monitors in 2025 was the highest in the last five years.
Internationally, Q4 revenue was $3.9 million and full-year international revenue reached $19.2 million, up 27% year over year. Management said Q4 international revenue declined year over year primarily due to transitioning Amazon U.K. to a direct import model, which shifted revenue recognition from collection to delivery and pushed a significant portion of U.K. sell-in from Q4 into Q1 2026.
Despite that shift, Owlet cited strong Q4 international sell-through trends, including the U.K. up 58%, France up 41%, and the Nordics up 80% versus Q4 2024. The company also said it received regulatory clearance for Dream Sock sales in India, which it expects to commercially launch in the first half of 2026, and approval for distribution in Israel, which it plans to launch in the back half of 2026. Harris said Dream Sock is now sold in 31 countries with seven regulatory clearances.
Healthcare channels and telehealth plans
Owlet reported progress in healthcare channel expansion. In Q4, the company said it sent its first monitors home from Children’s Hospital of the King’s Daughters, formally launching that collaboration. Harris added that Owlet has engaged four new hospital partnerships in recent months and expects to share more information as integrations progress.
Management also pointed to reimbursement expansion. Owlet ended 2025 with Medicaid reimbursement coverage in 37 states, up from six at the end of the prior year. The company said it had 258 commercial insurance carriers in its network, up from 105, covering more than 90% of commercial U.S. births.
On telehealth, Harris said Owlet plans to launch the Owlet OnCall Telehealth platform, which would allow parents to share Dream Sock vitals—including pulse rate, heart rate, oxygen saturation, and 30-day history—during telehealth visits. He said the first half of 2026 will be focused on testing and piloting, with a broader launch planned later in the year ahead of the winter flu season. In Q&A, Harris described the offering as a separate platform and an “additional upsell, cross-sell” to Owlet360, noting the company has begun internal “friends and family” piloting.
2026 outlook: seasonality, tariffs, and growth expectations
For Q1 2026, Owlet guided to revenue of $20 million to $21 million, gross margin of 50% to 52%, and Adjusted EBITDA of negative $2.5 million to negative $1.5 million, citing typical seasonality that makes Q1 the lowest-revenue quarter. Management also noted it was lapping an “exceptionally strong” Q1 2025 driven by a heavy RSV and flu season, and said it observed some softness in consumer spending during the Q4 holiday period. Executives added that retailers have been tightening weeks of supply, which is reflected in the Q1 guide.
For full-year 2026, Owlet guided to revenue of $126 million to $130 million, representing growth of 19% to 23% over 2025. The company expects gross margin of 49% to 52% and Adjusted EBITDA of $3 million to $5 million, representing growth of 50% to 150% over 2025. Crawford said the guidance assumes tariff impacts consistent with Q4 2025 (a 510 basis point hit to margin per quarter), citing continued volatility in tariffs and noting uncertainty tied to the war in the Middle East.
In Q&A, management said its revenue guidance does not include “material contribution” from new country launches or the telehealth opportunity, which it characterized as potential upside. The company also said it plans to provide additional subscription metrics in future calls following Owlet360’s first anniversary, while noting that it has seen four consecutive quarters of sequential improvement in paying subscribers, monthly recurring revenue, attach rate, and retention.
Owlet also addressed regulatory questions, with Harris stating the company had not heard any additional follow-through from the FDA safety communication issued in September 2025.
Closing the call, Harris reiterated that Owlet is aiming to evolve beyond hardware into what he described as a comprehensive pediatric sleep, health, and wellness data platform, with an emphasis on establishing biometric baselines for infants “from the very first night.”
About Owlet NYSE: OWLT
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.
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