Owlet Inc (OWLT)
NYSE:OWLT
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Owlet
(NYSE:OWLT)
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Rating:44Neutral
Price Target:
$5.50
▲(7.00% Upside)
Action:Reiterated
Date:05/09/26
The score is held down primarily by weak financial performance (ongoing losses and negative free cash flow) and poor valuation optics from a deeply negative P/E. The latest earnings call provides a partial offset via improved adjusted EBITDA guidance and strong subscription momentum, but technicals remain mixed with the stock still below key longer-term moving averages.
Positive Factors
Subscription model & unit economics
Strong subscription traction creates recurring revenue with materially higher gross margins versus hardware. A 115k+ paying base and $1.0M MRR improve revenue predictability, raise LTV per customer, and enable operating leverage over time as acquisition costs amortize and subscription attach grows.
Negative Factors
Persistent negative cash flow
Ongoing negative operating and free cash flow is a structural funding pressure. Persistent cash burn increases the likelihood of future financing needs, constrains strategic flexibility, and elevates dilution or credit risk if profitability and cash conversion don’t improve as subscription scale and margin expansion materialize.
Read all positive and negative factors
Positive Factors
Negative Factors
Subscription model & unit economics
Strong subscription traction creates recurring revenue with materially higher gross margins versus hardware. A 115k+ paying base and $1.0M MRR improve revenue predictability, raise LTV per customer, and enable operating leverage over time as acquisition costs amortize and subscription attach grows.
Read all positive factors
Owlet (OWLT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$152.26M
Dividend YieldN/A
Average Volume (3M)211.08K
Price to Earnings (P/E)―
Beta (1Y)1.89
Revenue Growth26.87%
EPS Growth-85.65%
CountryUS
Employees80
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)-3.48
Shares Outstanding29,001,167
10 Day Avg. Volume255,716
30 Day Avg. Volume211,079
Financial Highlights & Ratios
PEG Ratio-1.35
Price to Book (P/B)257.26
Price to Sales (P/S)86.15
P/FCF Ratio-823.03
Enterprise Value/Market Cap0.51
Enterprise Value/Revenue0.73
Enterprise Value/Gross Profit1.43
Enterprise Value/Ebitda-5.50
Forecast
1Y Price Target
$13.33Price Target Upside159.40% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)-0.37
Revenue Forecast (FY)$120.94M
Owlet Business Overview & Revenue Model
Company Description
Owlet, Inc. operates as a digital parenting platform in the United States. The company's platform focuses on giving real-time data and insights to parents. Its products include Smart Sock, a baby monitor to track an infant's oxygen levels, heart r...
How the Company Makes Money
Owlet primarily makes money by selling smart baby monitoring hardware (e.g., wearable infant monitors and camera-based monitors) through retail and direct-to-consumer channels; revenue is recognized from product sales, net of returns, allowances, ...
Owlet Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call emphasized strong subscription momentum, product-led improvements, international growth, and a materially improved adjusted EBITDA outlook driven by a strategic focus on high-value markets and subscription monetization. These positives were balanced by near-term headwinds: a reduced full-year revenue guide (driven by exiting lower-margin channels and conservative sell-through assumptions), elevated operating expenses that produced an operating loss in Q1, tariff-related cost pressure, and a one-time retail inventory disruption. Management framed the trade-offs as deliberate investments to improve long-term profitability and scale the recurring revenue base.Positive Updates
Subscription Traction and Economics
Owlet scaled to over 115,000 paying Owlet360 subscribers in Q1 and reported monthly recurring revenue (MRR) of $1.0M at quarter-end. Subscription revenue reached a record $2.7M in Q1 and subscription gross margin expanded to 67.4%, validating the subscription-first strategy and demonstrating strong unit economics.
Negative Updates
Full-Year Revenue Guidance Reduced
Full-year 2026 revenue guidance was lowered to $118M–$122M (growth of 12%–15% year-over-year) from prior guidance of $126M–$130M. The midpoint reduction (~$8M prior midpoint to $120M new midpoint, ~‑6.25% versus the prior midpoint) reflects exiting lower-margin noncore geographies and a more conservative view on sell-through.
Read all updates
Q1-2026 Updates
Positive
Negative
Subscription Traction and Economics
Owlet scaled to over 115,000 paying Owlet360 subscribers in Q1 and reported monthly recurring revenue (MRR) of $1.0M at quarter-end. Subscription revenue reached a record $2.7M in Q1 and subscription gross margin expanded to 67.4%, validating the subscription-first strategy and demonstrating strong unit economics.
Read all positive updates
Company Guidance
Owlet narrowed and re‑cast 2026 guidance to revenue of $118.0M–$122.0M (up 12%–15% YoY, versus prior guidance of $126M–$130M) while raising full‑year adjusted EBITDA to $7M–$9M (up ~250%–350% YoY versus 2025 and versus prior $3M–$5M guidance), with expected full‑year gross margins of 50%–52% and a tariff baseline of ~15% (down from prior 19%/20% impacts). Management pointed to Q1 as supporting the new stance: Q1 revenue $22.5M (+6.4% YoY, above Q1 guide of $20M–$21M), subscription revenue $2.7M (MRR $1M at quarter end) with >115K paying subscribers and 34% Dream Sock penetration in the U.S., Q1 gross margin 54.5% (+80 bps YoY; subscription gross margin 67.4%; tariff headwind ~480 bps), Q1 adjusted EBITDA of –$1.5M (at the high end of the Q1 guide), operating loss $5.5M, net loss $3.3M, OpEx $17.7M (79% of revenue), and quarter‑end cash $35.5M (total liquidity $39.4M, term loan $6.3M). They also reiterated seasonal expectations (Q2 up, slight Q3 dip, peak Q4), the strategic trade‑off of exiting noncore geographies to favor higher margin subscription growth, and long‑term targets to scale subscribers into the millions and drive >1M new customers annually over time.Owlet Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
45
Neutral
Cash Flow
34
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 107.06M | 105.71M | 78.06M | 54.01M | 69.20M | 75.84M |
| Gross Profit | 54.45M | 53.53M | 39.31M | 22.59M | 23.31M | 35.06M |
| EBITDA | -14.15M | -35.64M | -9.47M | -27.49M | -75.53M | -42.71M |
| Net Income | -46.04M | -39.68M | -12.54M | -32.90M | -79.34M | -71.70M |
Balance Sheet | ||||||
| Total Assets | 86.76M | 85.60M | 49.52M | 44.12M | 58.10M | 140.05M |
| Cash, Cash Equivalents and Short-Term Investments | 41.01M | 35.50M | 20.25M | 16.56M | 11.23M | 95.05M |
| Total Debt | 18.77M | 13.03M | 11.87M | 16.39M | 18.30M | 16.53M |
| Total Liabilities | 50.91M | 50.20M | 70.66M | 73.80M | 68.74M | 84.86M |
| Stockholders Equity | 35.85M | 35.40M | -21.15M | -29.68M | -10.63M | 55.19M |
Cash Flow | ||||||
| Free Cash Flow | -5.70M | -11.06M | -11.97M | -23.59M | -82.94M | -42.58M |
| Operating Cash Flow | -9.87M | -10.80M | -11.21M | -23.53M | -81.38M | -40.56M |
| Investing Cash Flow | -1.23M | -943.00K | -761.00K | -59.00K | -1.56M | -2.02M |
| Financing Cash Flow | 35.60M | 32.10M | 16.04M | 28.91M | -878.00K | 120.62M |
Owlet Technical Analysis
Negative
5.14
Price Trends
5.34
Negative
8.04
Negative
9.23
Negative
Market Momentum
-0.05
Positive
39.21
Neutral
22.38
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OWLT, the sentiment is Negative. The current price of 5.14 is below the 20-day moving average (MA) of 5.58, below the 50-day MA of 5.34, and below the 200-day MA of 9.23, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 39.21 is Neutral, neither overbought nor oversold. The STOCH value of 22.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OWLT.
Owlet Risk Analysis
Owlet disclosed 73 risk factors in its most recent earnings report. Owlet reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Owlet Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
55 Neutral | $148.91M | ― | -101.28% | ― | 30.66% | 25.64% | |
54 Neutral | $236.14M | -6.28 | -59.10% | ― | 1.85% | 27.73% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | $69.48M | 2.37 | -514.92% | ― | 1.12% | ― | |
48 Neutral | $68.00M | -1.20 | -82.79% | ― | 1.23% | 10.65% | |
44 Neutral | $152.26M | -0.39 | 1136.06% | ― | 26.87% | -85.65% | |
44 Neutral | $90.49M | -1.78 | -131.52% | ― | 15.99% | -8.91% |
* Healthcare Sector Average
OWLT
Owlet
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Owlet Corporate Events
Executive/Board Changes
Owlet Reinstates Co‑Founder Kurt Workman as CEO
Neutral
Apr 6, 2026
On April 3, 2026, Owlet’s board appointed co-founder Kurt Workman as president and chief executive officer effective April 6, 2026, succeeding Jonathan Harris and shifting Workman from his prior role as executive chairman to a continuing sea...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.