Owlet Inc. Reports Record Financial Results for 2025 and Outlines Ambitious 2026 Guidance

For the fourth quarter of 2025, Owlet generated revenue of $26.6 million, marking a 29.6% increase compared to the same period in 2024. This impressive growth is attributed to increased sales of its Dream product suite and the newly launched Owlet360 subscription service. Owlet’s President and CEO Jonathan Harris emphasized the significance of this milestone, stating, "By delivering $105.7 million in revenue, the strongest in our history, we believe we have proven the scalability and resilience of our business model."

Despite facing challenges from tariff impacts, Owlet achieved a gross profit of $12.6 million in Q4, translating to a gross margin of 47.6%. The operating loss for the quarter was reduced to $4.9 million, a notable improvement from the $7.4 million loss reported in Q4 2024. However, the net loss slightly widened to $9.2 million compared to $9.1 million in the previous year.

Owlet's full-year results were equally impressive, with a record revenue of $105.7 million, a substantial 35.4% increase from FY 2024. The company's gross profit for the year reached $53.5 million, achieving a gross margin of 50.6%. Although the company reported a net loss of $39.7 million for the year, this figure included a significant $26.6 million non-cash adjustment related to common stock warrant liabilities, contrasting with a net loss of $12.5 million in FY 2024.

Adjusted EBITDA for the year improved to $2.0 million, a positive turnaround from a previous loss of $1.8 million, showcasing the company's operational resilience and strategic growth initiatives.

Harris remarked on the transformative year Owlet experienced, emphasizing the launch of the Owlet360™ subscription service, which has garnered over 110,000 paying subscribers. This service is seen as a crucial element in deepening customer relationships and diversifying revenue streams. He noted, "When paired with the rollout of our AI-enabled Dream Sight™ camera, Owlet is much more than just a baby monitor brand — it is a sophisticated data platform establishing the gold standard for accurate infant biometric baselines from the first night."

Looking ahead, Owlet is optimistic about its growth potential. For Q1 2026, the company anticipates revenue between $20 million to $21 million and expects gross margins to range from 50% to 52%. For the full year, Owlet projects revenue of $126 million to $130 million, representing growth of 19% to 23% over 2025. Additionally, the company forecasts adjusted EBITDA between $3 million to $5 million, reflecting an increase of 50% to 150% compared to the previous year.

Owlet Inc. has established a strong financial foundation, underscored by record revenues and a commitment to innovation in pediatric health monitoring. With a clear strategy and an expanding customer base, the company is well-positioned to continue its growth trajectory in 2026 and redefine modern parenting through advanced wellness technology. As Owlet navigates the challenges of a dynamic market, stakeholders can expect to see the fruits of its strategic initiatives in the months and years to come.