Owlet (NYSE:OWLT) Posts Earnings Results

Owlet (NYSE:OWLT) posted its quarterly earnings results on Friday. The company reported $0.11 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 business had revenue of $30.40 million for the quarter, compared to analysts’ expectations 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

NYSE:OWLT traded down $1.09 during trading hours on Friday, hitting $3.52. 2,065,386 shares of the company’s stock traded hands, compared to its average volume of 247,162. The firm has a market cap of $103.00 million, a P/E ratio of -4.72 and a beta of 2.17. The stock’s fifty day moving average price is $4.63 and its two-hundred day moving average price is $6.06. Owlet has a twelve month low of $2.75 and a twelve month high of $16.94.

Analyst Upgrades and Downgrades

Several equities analysts have recently weighed in on the stock. Weiss Ratings raised shares of Owlet from a “sell (e+)” rating to a “sell (d-)” rating in a report on Friday, September 25th. Wall Street Zen upgraded Owlet from a “sell” rating to a “hold” rating in a research report on Saturday, August 15th. Three 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. According to MarketBeat, the stock currently has an average 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.