Owlet (OWLT) AI Stock Analysis

• Market Cap: $124.42M
• Dividend Yield: N/A
• Average Volume (3M): 83.65K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.40
• Revenue Growth: 36.81%
• EPS Growth: -74.26%
• Country: US
• Employees: 80
• Sector: Healthcare
• Sector Strength: 53
• Industry: Medical - Devices
• EPS (TTM): -2.37
• Shares Outstanding: 17,044,460
• 10 Day Avg. Volume: 52,864
• 30 Day Avg. Volume: 83,649
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.20
• Enterprise Value/Revenue: 1.67
• Enterprise Value/Gross Profit: 3.17
• Enterprise Value/Ebitda: -14.20
• 1Y Price Target: $13.20
• Price Target Upside: 87.77% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 46 Neutral
• Price Target: $7.00 ▼(-0.43% Downside)

Owlet's overall stock score reflects significant financial challenges, with negative profitability and high leverage being major concerns. While recent earnings and corporate events show strategic progress, the technical and valuation aspects remain weak, limiting the stock's attractiveness.

Positive Factors

Financial Performance

Owlet Inc. beat the second quarter estimates and raised its 2025 revenue guidance, indicating strong performance.

Investor Sentiment

Investor sentiment and interest in Owlet Inc are growing as execution is playing out.

Management Strategy

Management is eager to get in front of investors, which is a testament to the company's strong belief in its products, strategy, stellar execution, and value of the business.

Negative Factors

Gross Margin

Guidance was raised even amidst a negative tariff environment.

Tariff Concerns

Management lowered the gross margin guide due to tariff concerns.

Trading Liquidity

Lack of trading liquidity is a major hurdle for some interested investors to enter the name.

Owlet Business Overview & Revenue Model

Company Description

Owlet, Inc. (OWLT) is a technology company focused on developing innovative products for infant health monitoring. Primarily operating in the consumer electronics and healthcare sectors, Owlet's flagship product is the Owlet Smart Sock, a wearable device designed to track a baby's heart rate, oxygen levels, and sleep patterns. The company aims to provide parents with peace of mind by offering real-time data and insights into their baby's well-being through its user-friendly app.

How the Company Makes Money

Owlet makes money primarily through the sale of its Smart Sock and other related products, such as the Owlet Cam, which provides HD video streaming and audio monitoring for parents. The company generates revenue by selling these products directly through its website and through various retail partners. Owlet also offers subscription services that provide users with enhanced features, such as historical data tracking and personalized insights. Significant partnerships with distributors and retailers help expand its market reach, contributing to its revenue streams. Additionally, Owlet invests in research and development to continually innovate and introduce new products, which supports ongoing sales growth.

Owlet Financial Statement Overview

Summary

Owlet's financial performance is weak, with significant challenges in profitability and financial stability. Despite some revenue growth, negative net profit margins, high leverage, and negative cash flows highlight ongoing financial risks.

Income Statement

Owlet's income statement shows mixed results. The company has experienced revenue growth, with a 6.35% increase in the TTM period. However, profitability remains a concern, as evidenced by negative net profit margins and EBIT margins. The gross profit margin is relatively healthy at 52.63%, indicating efficient cost management, but the overall negative profitability metrics highlight ongoing challenges in achieving sustainable profitability.

Balance Sheet

The balance sheet reveals significant financial instability. The company has negative stockholders' equity, resulting in a negative debt-to-equity ratio, which is a red flag for financial health. Return on equity is also negative, indicating that the company is not generating positive returns for its shareholders. The equity ratio is negative, reflecting a high level of leverage and potential risk in the company's capital structure.

Cash Flow

Owlet's cash flow statement shows challenges in cash generation, with negative operating and free cash flows. The free cash flow to net income ratio is slightly above 1, suggesting that the company is managing to convert its net income into cash flow, albeit from a negative base. However, the negative free cash flow growth rate indicates a decline in cash flow generation capabilities, which could impact future operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	89.79M	78.06M	54.01M	69.20M	75.80M	75.40M
Gross Profit	47.25M	39.31M	22.59M	23.30M	35.00M	35.88M
EBITDA	-10.55M	-9.47M	-27.49M	-75.53M	-42.71M	-8.25M
Net Income	-47.98M	-12.54M	-32.90M	-79.29M	-71.70M	-10.52M
Balance Sheet
Total Assets	63.54M	49.52M	44.12M	58.10M	140.00M	40.12M
Cash, Cash Equivalents and Short-Term Investments	21.83M	20.25M	16.56M	11.20M	95.10M	17.01M
Total Debt	17.16M	11.70M	15.22M	16.20M	16.50M	28.84M
Total Liabilities	108.02M	66.33M	73.80M	68.70M	84.80M	60.94M
Stockholders Equity	-44.48M	-16.81M	-29.68M	-10.60M	55.20M	-20.82M
Cash Flow
Free Cash Flow	-13.52M	-11.97M	-23.59M	-82.97M	-42.62M	-1.19M
Operating Cash Flow	-12.71M	-11.21M	-23.53M	-81.40M	-40.60M	-129.00K
Investing Cash Flow	-839.00K	-761.00K	-59.00K	-1.60M	-2.00M	-1.06M
Financing Cash Flow	20.31M	16.04M	28.91M	-900.00K	120.60M	6.46M

Owlet Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.03
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 7.03 is below the 20-day moving average (MA) of 7.67, below the 50-day MA of 7.94, and above the 200-day MA of 5.50, indicating a neutral trend. The MACD of -0.14 indicates Positive momentum. The RSI at 43.68 is Neutral, neither overbought nor oversold. The STOCH value of 43.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OWLT.

Owlet Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ICAD	60 Neutral		―		―	-4.15%	3.49%
HYPR	57 Neutral	$88.01M	―	-77.26%	―	-9.59%	8.78%
XTNT	55 Neutral	$79.51M	―	-9.80%	―	15.16%	-39.18%
Sector *	51 Neutral	$7.92B	-0.43	-41.67%	2.21%	22.29%	-1.85%
BFLY	49 Neutral	$385.16M	―	-29.42%	―	23.13%	46.62%
OWLT	46 Neutral	$124.42M	―	60.56%	―	36.81%	-74.26%
CTSO	46 Neutral	$61.22M	―	-68.84%	―	-7.81%	65.39%

Owlet Corporate Events

Owlet Enters Exchange Agreement with Warrant Holders

On August 7, 2025, Owlet, Inc. entered into an Exchange Agreement with certain holders of its Series A and Series B Warrants to exchange these warrants for newly issued shares of Common Stock. This agreement, which involves exchanging warrants for over 9 million shares for approximately 5.4 million new shares, is subject to stockholder approval and customary closing conditions. The transaction aims to streamline the company’s capital structure and involves significant stakeholders, including Eclipse Ventures LLC and Trilogy Equity Partners, who have agreed to support the proposal at the 2025 Annual Meeting. The agreement includes a lock-up period for the exchanged shares and provisions for registration rights, indicating a strategic move to enhance shareholder value and align interests among key investors.

Owlet Announces CEO Transition Effective October 2025

Owlet, Inc. announced the resignation of CEO Kurt Workman, effective October 1, 2025, who will transition to Executive Chairman, with Jonathan Harris succeeding him as CEO. The company reported strong financial results for Q2 2025, with a 25.9% increase in revenue year-over-year and improvements in gross margin and adjusted EBITDA, positioning Owlet for continued growth in the pediatric health market.

Owlet Amends Credit Agreement to Boost Flexibility

On June 11, 2025, Owlet, Inc. and its subsidiary Owlet Baby Care, Inc. entered into a First Amendment to their Credit and Security Agreement with financial institutions and ABL OPCO LLC. This amendment modifies financial covenants, increases allowable capital expenditures, and expands borrowing eligibility against certain accounts receivable, potentially enhancing the company’s financial flexibility and operational capacity.