Owlet Inc (OWLT)
NYSE:OWLT
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Owlet
(NYSE:OWLT)
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Rating:43Neutral
Price Target:
$4.50
▼(-12.45% Downside)
Action:ReiteratedDate:03/13/26
The score is held down primarily by weak financial quality (continued GAAP losses and negative free cash flow) and very bearish technicals (sharp downtrend with deeply weak momentum). These are partially offset by constructive earnings-call signals, including upbeat 2026 growth/EBITDA guidance and subscription traction, but valuation provides limited support given a non-meaningful negative P/E and no dividend.
Positive Factors
Revenue growth and record gross margin
Sustained top-line acceleration and a ~50% gross margin indicate strong product economics and pricing power. These fundamentals support scalable unit economics over the next several quarters, improving the company’s ability to invest in product, marketing and subscription expansion without immediate margin erosion.
Negative Factors
Persistent GAAP losses and negative cash flow
Sustained negative operating and free cash flow requires ongoing external financing if losses persist, constraining strategic flexibility. Until adjusted EBITDA and subscription conversion consistently translate to positive operating cash flow, the company remains dependent on capital markets or credit availability to fund growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth and record gross margin
Sustained top-line acceleration and a ~50% gross margin indicate strong product economics and pricing power. These fundamentals support scalable unit economics over the next several quarters, improving the company’s ability to invest in product, marketing and subscription expansion without immediate margin erosion.
Read all positive factors
Owlet (OWLT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$135.17M
Dividend YieldN/A
Average Volume (3M)449.36K
Price to Earnings (P/E)―
Beta (1Y)1.81
Revenue Growth35.46%
EPS Growth-71.33%
CountryUS
Employees80
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)-2.24
Shares Outstanding28,160,467
10 Day Avg. Volume256,871
30 Day Avg. Volume449,357
Financial Highlights & Ratios
PEG Ratio-1.28
Price to Book (P/B)257.26
Price to Sales (P/S)86.16
P/FCF Ratio-823.03
Enterprise Value/Market Cap0.50
Enterprise Value/Revenue0.64
Enterprise Value/Gross Profit1.26
Enterprise Value/Ebitda-8.63
Forecast
1Y Price Target
$14.00Price Target Upside172.37% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)-0.4
Revenue Forecast (FY)$127.49M
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:Mar 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call emphasized multiple material achievements — record annual revenue, record full-year gross margin and adjusted EBITDA, strong product launches (Dream Sight) and subscription momentum (110k+ paying subscribers), significant market share gains and international regulatory progress — and management provided a confident 2026 growth outlook. Near-term headwinds include meaningful tariff-related margin pressure, Q4 adjusted EBITDA softness relative to the prior year, a light Q1 guide due to seasonality and tough comps, and ongoing external uncertainties (tariffs, geopolitical risk, regulatory). On balance, the positive operating and financial momentum (record full-year results, subscription and market-share traction, improved operating efficiency and strengthened liquidity) outweigh the near-term challenges and risks.Positive Updates
Record Revenue and Strong Top-Line Growth
Q4 2025 revenue of $26.6M, up 29.6% year-over-year; full year 2025 revenue of $105.7M, up 35.4% versus 2024 and at the high end of guidance.
Negative Updates
Tariff Headwinds Impacting Margins and Profitability
Q4 2025 gross margin included a 510 basis point impact from tariffs; full year 2025 gross margin was impacted by tariffs by ~270 basis points; tariffs cited as the primary drag on Q4 adjusted EBITDA versus prior year.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Revenue and Strong Top-Line Growth
Q4 2025 revenue of $26.6M, up 29.6% year-over-year; full year 2025 revenue of $105.7M, up 35.4% versus 2024 and at the high end of guidance.
Read all positive updates
Company Guidance
Owlet guided Q1 2026 revenue of $20.0–$21.0 million, gross margins of 50%–52% and adjusted EBITDA of negative $2.5–$1.5 million (noting Q1 is seasonally the weakest quarter and lapping an unusually strong Q1 2025 driven by RSV/flu); for full-year 2026 they expect revenue of $126–$130 million (growth of 19%–23% vs. 2025’s $105.7M), gross margins of 49%–52% and adjusted EBITDA of $3–$5 million (up 50%–150% vs. 2025’s $2.0M), with revenue weighted roughly 40% in H1 and 60% in H2 as subscription becomes a larger portion of revenue; the outlook assumes continued tariff headwinds (~510 basis points per quarter) and does not bake in material contribution from new international markets or the OnCall telehealth rollout (both treated as upside).Owlet Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
45
Neutral
Cash Flow
30
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 105.70M | 78.06M | 54.01M | 69.20M | 75.84M |
| Gross Profit | 53.50M | 39.31M | 22.59M | 23.31M | 35.06M |
| EBITDA | -7.80M | -9.47M | -27.49M | -75.53M | -42.71M |
| Net Income | -41.90M | -12.54M | -32.90M | -79.34M | -71.70M |
Balance Sheet | |||||
| Total Assets | 85.60M | 49.52M | 44.12M | 58.10M | 140.05M |
| Cash, Cash Equivalents and Short-Term Investments | 35.50M | 20.25M | 16.56M | 11.23M | 95.05M |
| Total Debt | 13.03M | 11.87M | 16.39M | 18.30M | 16.53M |
| Total Liabilities | 50.20M | 70.66M | 73.80M | 68.74M | 84.86M |
| Stockholders Equity | 35.40M | -21.15M | -29.68M | -10.63M | 55.19M |
Cash Flow | |||||
| Free Cash Flow | -11.06M | -11.97M | -23.59M | -82.94M | -42.58M |
| Operating Cash Flow | -10.80M | -11.21M | -23.53M | -81.38M | -40.56M |
| Investing Cash Flow | -943.00K | -761.00K | -59.00K | -1.56M | -2.02M |
| Financing Cash Flow | 32.10M | 16.04M | 28.91M | -878.00K | 120.62M |
Owlet Technical Analysis
Negative
5.14
Price Trends
7.77
Negative
10.87
Negative
9.66
Negative
Market Momentum
-0.56
Negative
46.49
Neutral
91.75
Negative
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 5.17, below the 50-day MA of 7.77, and below the 200-day MA of 9.66, indicating a neutral trend. The MACD of -0.56 indicates Negative momentum. The RSI at 46.49 is Neutral, neither overbought nor oversold. The STOCH value of 91.75 is Negative, 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 | $178.32M | -3.90 | -97.38% | ― | 5.22% | 20.85% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
47 Neutral | $113.96M | -2.59 | -68.83% | ― | 19.74% | 1.76% | |
46 Neutral | $227.91M | -25.28 | -55.72% | ― | -3.13% | 27.99% | |
45 Neutral | $67.30M | -24.07 | 197.15% | ― | 9.24% | -6.71% | |
43 Neutral | $135.17M | -247.47 | 239.66% | ― | 35.46% | -71.33% | |
43 Neutral | $56.18M | -0.99 | -82.79% | ― | 1.23% | 10.65% |
* Healthcare Sector Average
OWLT
Owlet
4.80
0.88
22.45%
LUNG
Pulmonx
1.33
-2.11
-61.34%
LNSR
LENSAR
5.56
-8.29
-59.86%
HYPR
Hyperfine
1.81
1.14
168.95%
SGHT
Sight Sciences
4.22
1.41
50.18%
RPID
Rapid Micro Biosystems
2.49
0.20
8.73%
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...
Legal Proceedings
Owlet Awaits Court Decision on Derivative Settlement
Negative
Feb 5, 2026
Owlet has notified investors that the U.S. District Court for the Central District of California has rescheduled the hearing to consider a proposed settlement of consolidated shareholder derivative litigation, In re Owlet, Inc. Shareholder Derivat...
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.