Owlet Inc (OWLT)
NYSE:OWLT
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Owlet
(NYSE:OWLT)
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Rating:45Neutral
Price Target:
$5.50
▲(7.00% Upside)
Action:Reiterated
Date:06/19/26
The score is held down primarily by weak financial performance (ongoing losses and negative free cash flow) and a technically weak trend (below major moving averages, negative MACD). The earnings call provides a partial offset with improved EBITDA guidance and strong subscription momentum, but the lower revenue outlook and continued expense pressure keep the overall risk profile elevated.
Positive Factors
Subscription traction and unit economics
A growing base of 115k+ paying subscribers and $1.0M MRR creates durable recurring revenue with high unit economics (67%+ subscription gross margin). This supports predictable cash flow, higher lifetime value, and a path to operating leverage as subscriber scale offsets hardware cyclicality.
Negative Factors
Persistent negative operating and free cash flow
Sustained negative operating and free cash flow increases reliance on external financing or equity raises to fund growth and working capital. Even with improved burn versus 2021–2022, persistent outflows elevate liquidity and dilution risk if subscriber monetization or profitability inflection is delayed.
Read all positive and negative factors
Positive Factors
Negative Factors
Subscription traction and unit economics
A growing base of 115k+ paying subscribers and $1.0M MRR creates durable recurring revenue with high unit economics (67%+ subscription gross margin). This supports predictable cash flow, higher lifetime value, and a path to operating leverage as subscriber scale offsets hardware cyclicality.
Read all positive factors
Owlet (OWLT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$154.87M
Dividend YieldN/A
Average Volume (3M)253.18K
Price to Earnings (P/E)―
Beta (1Y)1.95
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. Volume269,214
30 Day Avg. Volume253,179
Financial Highlights & Ratios
PEG Ratio-0.04
Price to Book (P/B)257.26
Price to Sales (P/S)86.15
P/FCF Ratio-823.03
Enterprise Value/Market Cap0.40
Enterprise Value/Revenue0.58
Enterprise Value/Gross Profit1.14
Enterprise Value/Ebitda-1.44
Forecast
1Y Price Target
$12.33Price Target Upside139.95% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)-0.37
Revenue Forecast (FY)$120.12M
Owlet Business Overview & Revenue Model
Company Description
Owlet, Inc. is a U.S.-based company that provides a digital platform specifically designed to support parents. Its primary objective is to equip families with immediate, valuable data and insights concerning their children. The company's product p...
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 | -43.26M | -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 | -10.76M | -11.06M | -11.97M | -23.59M | -82.94M | -42.58M |
| Operating Cash Flow | -9.92M | -10.80M | -11.21M | -23.53M | -81.38M | -40.56M |
| Investing Cash Flow | -1.25M | -943.00K | -761.00K | -59.00K | -1.56M | -2.02M |
| Financing Cash Flow | 35.56M | 32.10M | 16.04M | 28.91M | -878.00K | 120.62M |
Owlet Technical Analysis
Positive
5.14
Price Trends
5.28
Positive
6.72
Negative
9.04
Negative
Market Momentum
-0.05
Negative
53.89
Neutral
81.65
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 5.14 is above the 20-day moving average (MA) of 5.02, below the 50-day MA of 5.28, and below the 200-day MA of 9.04, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 53.89 is Neutral, neither overbought nor oversold. The STOCH value of 81.65 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
61 Neutral | $167.77M | -4.09 | -101.28% | ― | 30.66% | 25.64% | |
53 Neutral | $297.08M | -7.71 | -59.10% | ― | 1.85% | 27.73% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | $52.80M | -0.96 | -82.79% | ― | 1.23% | 10.65% | |
49 Neutral | $74.32M | 6.27 | -514.92% | ― | 1.12% | ― | |
45 Neutral | $154.87M | -1.53 | 1136.06% | ― | 26.87% | -85.65% | |
44 Neutral | $84.70M | -1.53 | -131.52% | ― | 15.99% | -8.91% |
* Healthcare Sector Average
OWLT
Owlet
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Owlet Corporate Events
Regulatory Filings and ComplianceShareholder Meetings
Owlet Reschedules 2026 Virtual Annual Stockholders Meeting
Neutral
Jun 5, 2026
On June 2, 2026, Owlet, Inc.’s board of directors postponed the company’s 2026 annual meeting of stockholders, moving it from July 10, 2026 to August 12, 2026 at 1:00 p.m. Eastern Time, to be held via remote communication. The board al...
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.