Owlet Inc. Reports Strong Q1 2025 Growth

Owlet Inc ( (OWLT) ) has released its Q1 earnings. Here is a breakdown of the information Owlet Inc presented to its investors.

Owlet Inc., a leader in smart infant monitoring, operates in the healthcare sector, providing innovative pediatric wearables and monitoring solutions. In its first quarter of 2025, Owlet reported a significant revenue increase of 43.1% year-over-year, reaching $21.1 million, driven by strong sales of its Dream Sock and Dream Duo products. The company also achieved a gross margin of 53.7%, an improvement of 930 basis points compared to the previous year.

Key financial metrics for the quarter included a net income of $3.0 million and an adjusted EBITDA of $0.0 million, marking a $3.1 million improvement from the first quarter of 2024. Owlet’s strategic initiatives, such as international expansion and the launch of the Owlet360 subscription service, have contributed to its growth momentum, positioning the company as a comprehensive pediatric health platform.

Despite an operating loss of $2.7 million, Owlet’s financial performance reflects its ability to manage costs effectively, with operating expenses rising primarily due to increased compensation and legal charges. The company’s forward-looking strategy includes leveraging its FDA- and CE-cleared products to expand into medical and healthcare channels.

Looking ahead, Owlet anticipates continued growth, projecting a revenue increase of 17% to 22% for the full year 2025. The company remains focused on achieving adjusted EBITDA profitability, despite potential challenges from new tariff costs and macroeconomic uncertainties.