Owlet (OWLT) AI Stock Analysis

• Market Cap: $387.51M
• Dividend Yield: N/A
• Average Volume (3M): 285.55K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.45
• Revenue Growth: 26.83%
• EPS Growth: -52.47%
• Country: US
• Employees: 80
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 0.03
• Shares Outstanding: 27,580,606
• 10 Day Avg. Volume: 385,816
• 30 Day Avg. Volume: 285,551
• PEG Ratio: 0.07
• Price to Book (P/B): -3.18
• Price to Sales (P/S): 0.86
• P/FCF Ratio: -5.62
• Enterprise Value/Market Cap: 0.48
• Enterprise Value/Revenue: 1.86
• Enterprise Value/Gross Profit: 3.58
• Enterprise Value/Ebitda: -5.36
• 1Y Price Target: $14.50
• Price Target Upside: 9.60% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): -3.09
• Revenue Forecast (FY): $104.67M

• Rating: 56 Neutral
• Price Target: $15.00 ▲(13.38% Upside)

Owlet's overall stock score is primarily driven by its strong earnings call performance, which highlights significant growth and strategic advancements. However, financial performance remains a major concern due to high leverage and negative cash flow. Technical analysis shows positive momentum, but valuation metrics are weak due to ongoing losses.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust market demand and effective sales strategies, supporting long-term business expansion.

FDA Clearance

FDA clearance provides a significant competitive advantage, enhancing product credibility and marketability in the health tech sector.

Global Expansion

Successful global expansion diversifies revenue streams and reduces reliance on domestic markets, strengthening long-term growth prospects.

Negative Factors

High Leverage

High leverage poses financial risk, limiting flexibility and increasing vulnerability to economic downturns, impacting long-term stability.

Negative Cash Flow

Negative cash flow challenges the company's ability to fund operations and growth initiatives, potentially hindering future expansion.

Profitability Challenges

Ongoing profitability issues highlight operational inefficiencies, which could impede sustainable growth and shareholder value creation.

Owlet Business Overview & Revenue Model

Company Description

Owlet (OWLT) is a health technology company focused on providing innovative products that empower parents to monitor their children's health and well-being. Primarily operating in the infant health sector, Owlet is best known for its smart baby monitor, the Owlet Smart Sock, which tracks a baby's heart rate and oxygen levels, sending notifications to parents through a connected app. The company's portfolio also includes the Owlet Cam, a high-definition video monitor, and other related health monitoring products aimed at enhancing parental peace of mind.

How the Company Makes Money

Owlet generates revenue through the sale of its core products, including the Smart Sock and Owlet Cam, which are priced at a premium due to their innovative technology and brand positioning. In addition to direct product sales, the company has a subscription model that offers parents ongoing access to data analytics and enhanced features through its mobile app. This subscription service creates a recurring revenue stream. Furthermore, Owlet may also engage in partnerships with healthcare providers, hospitals, and insurance companies, which can lead to additional revenue opportunities through bulk sales or co-marketing initiatives aimed at promoting infant health monitoring.

Owlet Financial Statement Overview

Summary

Owlet shows revenue growth but struggles with profitability and cash flow. High leverage poses financial risks, and negative cash flow trends highlight operational inefficiencies. Positive signs include revenue growth and a strong gross profit margin.

Income Statement

Owlet's income statement shows a mixed performance. The company has achieved a revenue growth rate of 10.99% in the TTM period, indicating positive sales momentum. However, profitability remains a challenge with negative net profit margins at -41.14% and EBIT margins at -40.39%, reflecting ongoing operational inefficiencies. The gross profit margin of 52.09% is relatively strong, suggesting effective cost management at the production level.

Balance Sheet

The balance sheet presents a concerning picture with a high debt-to-equity ratio of 1.42, indicating significant leverage and potential financial risk. The return on equity is positive at 2.84%, but this is primarily due to the low equity base. The equity ratio is not favorable, suggesting a reliance on debt financing.

Cash Flow

Cash flow analysis reveals challenges with negative operating cash flow and free cash flow. The free cash flow growth rate is negative at -46.35%, indicating deteriorating cash generation capabilities. However, the free cash flow to net income ratio is slightly above 1, suggesting that the company is managing to convert its earnings into cash, albeit at a minimal level.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	99.66M	78.06M	54.01M	69.20M	75.84M	75.40M
Gross Profit	51.88M	39.31M	22.59M	23.31M	35.06M	35.88M
EBITDA	-34.64M	-9.47M	-27.49M	-75.53M	-42.71M	-8.25M
Net Income	-38.23M	-12.54M	-32.90M	-79.34M	-71.70M	-10.52M
Balance Sheet
Total Assets	74.86M	49.52M	44.12M	58.10M	140.05M	40.12M
Cash, Cash Equivalents and Short-Term Investments	23.76M	20.25M	16.56M	11.23M	95.05M	17.01M
Total Debt	24.95M	11.87M	16.39M	18.30M	16.53M	28.84M
Total Liabilities	113.46M	70.66M	73.80M	68.74M	84.86M	60.94M
Stockholders Equity	-38.60M	-21.15M	-29.68M	-10.63M	55.19M	-20.82M
Cash Flow
Free Cash Flow	-7.51M	-11.97M	-23.59M	-82.94M	-42.58M	-1.19M
Operating Cash Flow	-7.02M	-11.21M	-23.53M	-81.38M	-40.56M	-129.00K
Investing Cash Flow	-493.00K	-761.00K	-59.00K	-1.56M	-2.02M	-1.06M
Financing Cash Flow	9.69M	16.04M	28.91M	-878.00K	120.62M	6.46M

Owlet Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.23
• 50DMA: Positive
• 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 Positive. The current price of 13.23 is below the 20-day moving average (MA) of 13.52, above the 50-day MA of 11.12, and above the 200-day MA of 7.53, indicating a bullish trend. The MACD of 0.68 indicates Positive momentum. The RSI at 58.31 is Neutral, neither overbought nor oversold. The STOCH value of 27.62 is Neutral, 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
SGHT	58 Neutral	$446.77M	-9.44	-57.91%	―	-4.39%	11.70%
OWLT	56 Neutral	$387.51M	-5.26	―	―	26.83%	-52.47%
RPID	56 Neutral	$139.62M	-3.16	-68.83%	―	16.63%	10.43%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
LUNG	51 Neutral	$107.24M	-1.84	-73.73%	―	15.59%	4.13%
HYPR	50 Neutral	$106.89M	-2.10	-94.03%	―	-20.10%	7.87%
LNSR	49 Neutral	$143.45M	-2.74	-422.35%	―	21.02%	-200.88%

Owlet Corporate Events

Owlet Announces Underwriting Agreement for Stock Sale

On October 21, 2025, Owlet entered into an underwriting agreement with William Blair & Company, L.L.C. and TD Securities (USA) LLC to issue and sell 4,196,000 shares of its Class A common stock at $7.15 per share. The company plans to use the proceeds to support commercialization, research and development, and general corporate purposes. The agreement includes a 30-day option for underwriters to purchase an additional 629,400 shares. Directors, executive officers, and certain stockholders have agreed to a 90-day lock-up period for selling or transferring stock.

Owlet Approves Key Amendments at Stockholders Meeting

On October 8, 2025, Owlet, Inc. held its annual stockholders meeting where several key amendments were approved. The stockholders approved an increase of 375,000 shares of Class A common stock under the 2021 Incentive Award Plan and an amendment to the company’s charter to allow for officer exculpation as per Delaware law. Additionally, the election of directors and the ratification of PricewaterhouseCoopers LLP as the independent auditor for 2025 were confirmed. Furthermore, an Exchange Agreement was executed, resulting in the issuance of 5,426,429 new shares of common stock, bringing the total to 22,788,420 shares outstanding as of October 10, 2025.

Owlet Appoints Jonathan Harris as New CEO

On October 1, 2025, Kurt Workman resigned as CEO of Owlet, Inc., transitioning to Executive Chair of the Board, while Jonathan Harris was appointed as the new President and CEO. The transition included compensatory arrangements for both executives, with Workman receiving vested stock units and a cash bonus, and Harris receiving an increased salary and bonus eligibility, reflecting strategic leadership changes aimed at strengthening the company’s market position.

Owlet Settlement Approved in Derivative Action Case

On September 11, 2025, the United States District Court for the Central District of California preliminarily approved a settlement involving Owlet, Inc. and its directors to resolve a derivative action concerning statements about the Smart Sock. The settlement includes changes to corporate governance practices and a release of claims without any admission of wrongdoing. The settlement’s approval will lead to the dismissal of all claims with prejudice, and Owlet will cover attorney fees, though the amount is yet to be determined.