OWLT · Owlet, Inc.

Owlet, Inc. announced first quarter 2026 financial results showing revenue growth to $22.5 million, a 6.4% increase from $21.1 million in Q1 2025, primarily driven by rising demand for its Owlet360 subscription service, which hit a record $2.7 million in revenue. Gross margin expanded to 54.5%, up 80 basis points year-over-year, supported by higher subscription mix, favorable product mix, and reduced direct and fulfillment costs, though partially offset by tariff impacts. Subscription gross margin stood at a strong 67.4%. Operating expenses rose to $17.7 million from $14.0 million, reflecting higher headcount, salaries, benefits, and stock-based compensation, leading to an operating loss of $5.5 million versus $2.7 million last year. The net loss of $3.3 million reversed prior-year net income of $3.0 million, with Adjusted EBITDA at $(1.5) million compared to breakeven. CEO Kurt Workman, reassuming the role, emphasized prioritizing high-value opportunities, business execution, and operating efficiency to drive long-term stakeholder value. Key developments include scaling Owlet360 to over 115,000 paying subscribers and launching the OnCall pediatric telehealth service in the app, aiming to extend customer relationships through integrated insights and consultations. The company updated its 2026 outlook to focus on profitable growth, narrowing revenue guidance to $118-122 million (12-15% growth over 2025, down from prior $126-130 million), maintaining gross margins at 50-52%, and significantly raising Adjusted EBITDA to $7-9 million (from $3-5 million prior), signaling a strategic shift toward higher-margin revenue streams and cost discipline amid tariff pressures.