Owlet (OWLT) AI Stock Analysis

• Market Cap: $146.00M
• Dividend Yield: N/A
• Average Volume (3M): 77.94K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.41
• Revenue Growth: 36.81%
• EPS Growth: -74.26%
• Country: US
• Employees: 80
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): -2.37
• Shares Outstanding: 17,075,586
• 10 Day Avg. Volume: 108,989
• 30 Day Avg. Volume: 77,945
• 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: 1.03
• Enterprise Value/Revenue: 1.67
• Enterprise Value/Gross Profit: 3.17
• Enterprise Value/Ebitda: -14.20
• 1Y Price Target: $13.20
• Price Target Upside: 56.40% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 48 Neutral
• Price Target: $7.50 ▼(-11.14% Downside)

Owlet's overall stock score is primarily impacted by its weak financial performance, characterized by negative profitability and high leverage. While the earnings call provided some positive insights with record revenue growth and strategic progress, the valuation remains unattractive due to a negative P/E ratio. Technical analysis shows mixed signals, adding to the cautious outlook.

Positive Factors

Revenue Growth

Owlet's robust revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion and stability.

Gross Margin Improvement

Improved gross margins suggest better cost management and pricing power, enhancing profitability and financial health over the long term.

Strategic Initiatives

Strategic initiatives in subscriptions and global expansion position Owlet for sustained growth and diversification of revenue streams.

Negative Factors

High Leverage

High leverage and negative equity indicate financial vulnerability, limiting flexibility and increasing risk in economic downturns.

Cash Flow Challenges

Struggles in cash generation could hinder future operations and investments, impacting long-term growth and sustainability.

International Revenue Decline

A significant drop in international revenue suggests challenges in global market penetration, affecting overall revenue diversification.

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 rates, and sleep trends; Dream Sock, an app to assist children for better sleep; Cam, a video streaming app to hear and see baby from anywhere; and Dream Lab, an interactive online platform that assists families in building healthy sleep habits. The company also offers Dream Duo, a monitoring system for baby's sleeping habits and includes wearable sock monitor, HD video, and digital sleep coach. Owlet, Inc. was founded in 2012 and is based in Lehi, Utah.

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: Positive
• Last Price: 8.44
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OWLT, the sentiment is Positive. The current price of 8.44 is above the 20-day moving average (MA) of 7.67, above the 50-day MA of 7.74, and above the 200-day MA of 5.73, indicating a bullish trend. The MACD of 0.28 indicates Negative momentum. The RSI at 63.97 is Neutral, neither overbought nor oversold. The STOCH value of 84.95 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OWLT.

Owlet Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HYPR	57 Neutral	118.66M	-2.87	-83.03%	―	-9.59%	8.78%
BFLY	55 Neutral	506.00M	-7.19	-42.94%	―	23.13%	46.62%
XTNT	52 Neutral	83.58M	-17.96	-9.44%	―	15.16%	-39.18%
OWLT	48 Neutral	$146.00M	―	60.56%	―	36.81%	-74.26%
CTSO	46 Neutral	58.59M	-5.12	-84.14%	―	-7.81%	65.39%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

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.

The most recent analyst rating on (OWLT) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Owlet stock, see the OWLT Stock Forecast page.