Owlet (OWLT) Earnings Date & Reports

Key Takeaways

• Fourth quarter 2025 revenue reached $26.6 million, up 29.6% year over year, capping a record full-year total of $105.7 million.
• Full-year 2025 gross margin hit a record 50.6%, even as tariff costs weighed on the fourth quarter margin of 47.6%.
• Full-year 2025 adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) was a record $2.0 million, though fourth-quarter adjusted EBITDA slipped to $0.1 million from $0.5 million a year earlier.
• Owlet initiated 2026 guidance calling for revenue of $126 million to $130 million and adjusted EBITDA of $3 million to $5 million.
• The company ended the period with more than 110,000 paying Owlet 360 subscribers, up from 85,000 reported in the prior quarter.
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Earnings Context and Why It Matters

Owlet, the maker of the first FDA-cleared over-the-counter wearable infant monitor, has been transforming from a hardware maker into a pediatric health platform built around recurring subscription revenue. This quarterly earnings release mattered because it tested whether the company could sustain record growth while absorbing the first full quarter of higher import tariffs. Owlet's fourth quarter also captured the crucial holiday selling period, making it a key barometer of consumer demand for its Dream Sock, Dream Duo, and newly launched DreamSight camera products. With the company crossing into adjusted EBITDA profitability for the first full year, investors were watching closely for evidence that the business can scale profitably into 2026.

Reported Results

Owlet reported fourth quarter 2025 revenue of $26.6 million, a 29.6% increase over the prior-year period, bringing full-year 2025 revenue to $105.7 million, up 35.4% year over year. The fourth-quarter figure came in modestly ahead of the roughly $26.0 million consensus estimate. On the bottom line, however, GAAP results fell short of expectations, with a reported net loss per share of $0.39 versus a consensus loss of roughly $0.14, reflecting non-cash items including warrant liability adjustments.

Fourth quarter gross margin was 47.6%, pressured by higher tariff costs, while full-year gross margin reached a record 50.6%. Fourth quarter adjusted EBITDA was $0.1 million, down from $0.5 million a year earlier, while full-year adjusted EBITDA was a record $2.0 million, a $3.8 million improvement over 2024. Management noted that tariffs reduced full-year gross margin by 270 basis points.

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Market Reaction and Investor Sentiment

Heading into the release, sentiment reflected optimism around Owlet's momentum but caution over tariff exposure. The company's record full-year revenue and gross margin provided a positive backdrop, while fourth-quarter adjusted EBITDA of just $0.1 million—well below the prior year—highlighted how tariff costs are compressing near-term profitability. The initiation of 2026 guidance with a projected rebound in adjusted EBITDA signaled management's confidence that top-line growth and subscription scaling can offset import cost pressures. Investors weighed the record results against the softer fourth-quarter margin and the modestly lower-than-expected GAAP EPS figure, keeping attention on whether the 2026 ramp materializes as guided.

Forward Outlook and Key Factors to Monitor

Owlet's 2026 guidance is the central reference point for the quarters ahead. For the first quarter of 2026, the company expects revenue of $20 million to $21 million, gross margins of 50% to 52%, and adjusted EBITDA of negative $2.5 million to negative $1.5 million. For the full year, it projects revenue of $126 million to $130 million, representing 19% to 23% growth, with gross margins of 49% to 52% including tariff costs and adjusted EBITDA of $3 million to $5 million.

Several factors will shape whether the company meets these targets. Tariff policy remains the most visible near-term risk, since import costs directly pressure gross margin. Investors should also track the growth of the Owlet 360 subscription base, which surpassed 110,000 paying subscribers and is now expanding into international markets. A planned commercial launch in India in 2026, following regulatory clearance, represents a meaningful new revenue opportunity.

Finally, the healthcare channel is an emerging growth vector worth monitoring. Owlet's partnership with the Children's Hospital of the King's Daughters and its remote patient monitoring integration point toward a larger, insurance-reimbursed market for its medical-grade BabySat device. Progress on hospital partnerships, subscription attach rates, and margin recovery in the face of tariffs will be the key signals to watch in upcoming quarters.

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