Owlet Reports Third Quarter 2025 Financial Results
Q3 2025 Financial Highlights:
-
Record Q3 Revenue of
$32.0 million 44.6% from Q3 2024 -
Record Q3 Gross Profit of
$16.2 million 50.6% , down 150 basis points from Q3 2024 driven primarily by tariff impact -
Record Q3 Operating Income of
$1.2 million $4.8 million -
Record Q3 Net Income of
$4.1 million $5.6 million -
Record Q3 Adjusted EBITDA (non-GAAP) of
$1.6 million $1.0 million
“Q3 was another outstanding quarter, we believe the best in Owlet history,” said Jonathan Harris, Owlet’s President and CEO. “Owlet set quarterly records for revenue, gross profit, operating income, and adjusted EBITDA, reflecting the momentum of the business as we leverage the first and only FDA-cleared baby monitor currently on the market and the differentiated Dream product platform to expand our market leadership.”
Harris continued, “Looking ahead, we are just beginning to layer in additional growth drivers to the core business that we believe will propel the long-term opportunity for Owlet. International expansion remains strong with approximately
Harris concluded, “In October, we also successfully completed a warrant exchange and follow-on equity offering, strengthening the business and positioning us to pursue long-term growth opportunities. The future is bright for Owlet as we execute on our strategic growth initiatives, maintain strong financial discipline, and continue to drive our transition to a comprehensive pediatric health platform led by our data and digital services.”
Financial Results for the Third Quarter Ended September 30, 2025
Revenue for the third quarter of 2025 was
Cost of revenue for the third quarter of 2025 was
Operating expenses, including stock-based compensation, were
Operating income was
Net income was
Adjusted EBITDA (non-GAAP) was
Net income (non-GAAP) per share was
Updated 2025 Financial Outlook
For the full year 2025, we now expect revenue in the range of
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Reform Act”). All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding the Company’s expected financial performance, including the Company’s financial outlook, outlook based upon global regulatory clearances, approvals, certifications, and/or classifications, product enhancements, growth prospects, future operational efficiencies or results, expected market opportunity and acceptance, and changes in senior management. In some cases, you can identify forward-looking statements by terms such as “estimate,” “may,” “believes,” “plans,” “expects,” “anticipates,” “intends,” “goal,” “potential,” “upcoming,” “outlook,” “guidance,” the negation thereof, or similar expressions, although not all forward-looking statements contain these identifying words. Forward-looking statements are based on the Company’s expectations at the time such statements are made, speak only as of the dates they are made and are susceptible to a number of risks, uncertainties and other factors. For all such forward-looking statements, the Company claims the protection of the safe harbor for forward-looking statements contained in the Reform Act. The Company’s actual results, performance or achievements may differ materially from any future results, performance or achievements expressed or implied by our forward-looking statements. Many important factors could affect the Company’s future results and cause those results to differ materially from those expressed in or implied by the Company’s forward-looking statements. Such factors include, but are not limited to, (i) the regulatory pathway for Owlet’s products, including submissions to, actions taken by and decisions and responses from regulators, such as the FDA and similar regulators outside of
Disclosure Regarding Non-GAAP Financial Measures
In addition to the financial measures presented in this release in accordance with
The Company uses such non-GAAP financial measures as internal measures of business operating performance and as performance measures for benchmarking against the Company’s peers and competitors. The Company believes its presentation of adjusted EBITDA, adjusted net income (loss) and adjusted net income (loss) per share provides a meaningful perspective of the underlying operating performance of the Company’s current business and enables investors to better understand and evaluate its historical and prospective operating performance. The Company believes that these non-GAAP financial measures are important supplemental measures of operating performance because they exclude items that vary from period to period without correlation to the Company’s core operating performance and highlight trends in its business that may not otherwise be apparent when relying solely on GAAP financial measures. Due to the nature of the items being excluded, such items do not reflect future gains, losses, expenses or benefits and are not indicative of the Company’s future operating performance. The Company believes investors, analysts and other interested parties use adjusted EBITDA, adjusted net income (loss) and adjusted net income (loss) per share in evaluating issuers, and the presentation of these measures facilitates a comparative assessment of the Company’s operating performance in addition to the Company’s performance based on GAAP results.
The Company’s non-GAAP financial measures should not be considered as an alternative to net income (loss) or net income (loss) per share as a measure of financial performance or any other performance measure derived in accordance with GAAP and should not be construed as an inference that the Company’s future results will be unaffected by unusual or non-recurring items.
Adjusted EBITDA is defined as net income (loss) adjusted for income tax provision, interest expense, net, depreciation and amortization, impairment of intangible assets, common stock warrant liability adjustment, stock-based compensation, transaction costs, insurance loss recovery related to certain legal matters, net of charges related to certain legal matters, and restructuring costs.
Adjusted net income (loss) is defined as net income (loss) adjusted for impairment of intangible assets, common stock warrant liability adjustment, stock-based compensation, transaction costs, insurance loss recovery related to certain legal matters, net of charges related to certain legal matters, and restructuring. Adjusted net income (loss) per share is defined as adjusted net income (loss) divided by the basic weighted-average number of shares of common stock outstanding.
Adjusted EBITDA, adjusted net income (loss) and adjusted net income (loss) per share are not recognized terms under GAAP, and the Company’s presentation of these non-GAAP measures does not replace the presentation of the Company’s financial results in accordance with GAAP. Because all companies do not use adjusted EBITDA, adjusted net income (loss) and adjusted net income (loss) per share (and similarly titled financial measures) in the same way, those measures as used by other companies may not be consistent with the way the Company calculates such measures. The non-GAAP financial measures included in this release should not be construed as substitutes for or better indicators of the Company’s performance than the most directly comparable GAAP financial measures. See the reconciliation tables that accompany this release for additional information regarding certain of the non-GAAP financial measures included herein.
A reconciliation of the Company's guidance with respect to non-GAAP financial measures to the most directly comparable GAAP financial measure cannot be provided without unreasonable efforts and is not provided herein because of the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations, the amounts of which could be material.
Conference Call and Webcast Information
Owlet will host a conference call and webcast today, November 13, 2025, at 4:30 p.m. ET to discuss these results and provide a business and corporate update.
Participants may access the call at 833-470-1428 (domestic) or 646-844-6383 (international) and reference Access Code 428622. A simultaneous webcast may be accessed online at the Events section of Owlet’s Investor Relations website at investors.owletcare.com. A replay will be available shortly after the webcast concludes.
About Owlet, Inc.
Owlet, Inc. (NYSE: OWLT), a leading pediatric health platform, is the only company in the world to offer
Owlet, Inc. Condensed Consolidated Balance Sheets - Preliminary, Unaudited1 (in millions) |
||||||||
Assets |
|
September 30, 2025 |
|
December 31, 2024 |
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
23.8 |
|
|
$ |
20.3 |
|
Restricted cash |
|
|
0.3 |
|
|
|
0.3 |
|
Accounts receivable, net |
|
|
28.6 |
|
|
|
12.1 |
|
Inventory |
|
|
14.5 |
|
|
|
10.5 |
|
Prepaid expenses and other current assets |
|
|
4.5 |
|
|
|
2.8 |
|
Total current assets |
|
|
71.6 |
|
|
|
46.1 |
|
Property and equipment, net |
|
|
0.3 |
|
|
|
0.1 |
|
Right of use assets, net |
|
|
0.1 |
|
|
|
0.1 |
|
Intangible assets, net |
|
|
1.2 |
|
|
|
1.0 |
|
Other assets |
|
|
1.6 |
|
|
|
2.2 |
|
Total assets |
|
$ |
74.9 |
|
|
$ |
49.5 |
|
Liabilities, Mezzanine Equity, and Stockholders’ Deficit |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
17.7 |
|
|
$ |
11.3 |
|
Accrued and other expenses |
|
|
21.1 |
|
|
|
16.4 |
|
Current portion of deferred revenues |
|
|
2.1 |
|
|
|
1.4 |
|
Line of credit |
|
|
18.6 |
|
|
|
6.3 |
|
Current portion of long-term and other debt |
|
|
3.4 |
|
|
|
1.1 |
|
Total current liabilities |
|
|
62.9 |
|
|
|
36.4 |
|
Long-term debt, net |
|
|
2.9 |
|
|
|
4.3 |
|
Common stock warrant liabilities |
|
|
47.4 |
|
|
|
25.3 |
|
Other long-term liabilities |
|
|
0.2 |
|
|
|
0.2 |
|
Total liabilities |
|
|
113.5 |
|
|
|
66.3 |
|
Total mezzanine equity |
|
|
15.5 |
|
|
|
12.9 |
|
Total stockholders’ deficit |
|
|
(54.1 |
) |
|
|
(29.8 |
) |
Total liabilities, mezzanine equity, and stockholders' deficit |
|
$ |
74.9 |
|
|
$ |
49.5 |
|
1 Amounts may not sum due to rounding |
||||||||
Owlet, Inc. Condensed Consolidated Statements of Cash Flows - Preliminary, Unaudited1 (in millions) |
|||||||
|
|||||||
|
Nine Months Ended
|
||||||
|
|
2025 |
|
|
|
2024 |
|
Net cash used in operating activities |
$ |
(10.3 |
) |
|
$ |
(14.2 |
) |
Net cash used in investing activities |
|
(0.5 |
) |
|
|
(0.6 |
) |
Net cash provided by financing activities |
|
14.2 |
|
|
|
20.1 |
|
Net change in cash, cash equivalents, and restricted cash |
$ |
3.4 |
|
|
$ |
5.3 |
|
1 Amounts may not sum due to rounding |
|||||||
Owlet, Inc. Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) - Preliminary, Unaudited1 (in millions, except share and per share amounts) |
|||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
Revenues |
$ |
32.0 |
|
|
$ |
22.1 |
|
|
$ |
79.2 |
|
|
$ |
57.6 |
|
Cost of revenues |
|
15.8 |
|
|
|
10.6 |
|
|
|
38.2 |
|
|
|
29.2 |
|
Gross profit |
|
16.2 |
|
|
|
11.5 |
|
|
|
40.9 |
|
|
|
28.3 |
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
General and administrative |
|
6.3 |
|
|
|
9.8 |
|
|
|
20.6 |
|
|
|
22.1 |
|
Sales and marketing |
|
4.9 |
|
|
|
4.0 |
|
|
|
13.2 |
|
|
|
11.8 |
|
Research and development |
|
3.8 |
|
|
|
2.6 |
|
|
|
10.4 |
|
|
|
7.3 |
|
Total operating expenses |
|
15.0 |
|
|
|
16.4 |
|
|
|
44.3 |
|
|
|
41.2 |
|
Operating income (loss) |
|
1.2 |
|
|
|
(4.8 |
) |
|
|
(3.4 |
) |
|
|
(12.8 |
) |
Other income (expense): |
|
|
|
|
|
|
|
||||||||
Interest income (expense), net |
|
(0.9 |
) |
|
|
(0.1 |
) |
|
|
(2.8 |
) |
|
|
(0.3 |
) |
Common stock warrant liability adjustment |
|
4.3 |
|
|
|
(0.7 |
) |
|
|
(23.8 |
) |
|
|
9.5 |
|
Other income (expense), net |
|
(0.5 |
) |
|
|
— |
|
|
|
(0.4 |
) |
|
|
0.1 |
|
Total other income (expense), net |
|
2.9 |
|
|
|
(0.8 |
) |
|
|
(27.1 |
) |
|
|
9.4 |
|
Income (loss) before income tax provision |
|
4.1 |
|
|
|
(5.6 |
) |
|
|
(30.4 |
) |
|
|
(3.5 |
) |
Income tax provision |
|
— |
|
|
|
— |
|
|
|
(0.1 |
) |
|
|
— |
|
Net income (loss) and comprehensive income (loss) |
$ |
4.1 |
|
|
$ |
(5.6 |
) |
|
$ |
(30.5 |
) |
|
$ |
(3.5 |
) |
Accretion on convertible preferred stock |
|
(0.8 |
) |
|
|
(1.2 |
) |
|
|
(2.5 |
) |
|
|
(4.1 |
) |
Allocation of net income to participating securities |
|
(0.5 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Allocation of accretion on convertible preferred stock to redeemable common stock |
|
— |
|
|
|
— |
|
|
|
0.1 |
|
|
|
— |
|
Accretion on redeemable common stock |
|
— |
|
|
|
— |
|
|
|
(0.1 |
) |
|
|
— |
|
Allocation of net income to participating securities to redeemable common stockholders |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Allocation of net income (loss) attributable to redeemable common stockholders |
|
(0.1 |
) |
|
|
0.1 |
|
|
|
1.1 |
|
|
|
— |
|
Net income (loss) attributable to redeemable common stockholders |
|
0.1 |
|
|
|
(0.1 |
) |
|
|
(1.1 |
) |
|
|
— |
|
Net income (loss) attributable to common stockholders |
$ |
2.7 |
|
|
$ |
(6.8 |
) |
|
$ |
(32.0 |
) |
|
$ |
(7.5 |
) |
Net income (loss) per share attributable to redeemable common stockholders |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
0.20 |
|
|
$ |
(0.57 |
) |
|
$ |
(1.91 |
) |
|
$ |
(0.66 |
) |
Diluted |
$ |
0.19 |
|
|
$ |
(0.57 |
) |
|
$ |
(1.91 |
) |
|
$ |
(0.66 |
) |
Weighted-average number of shares outstanding used to compute net income (loss) per share attributable to redeemable common stockholders |
|
|
|
|
|
|
|
||||||||
Basic |
|
562,500 |
|
|
|
122,283 |
|
|
|
562,500 |
|
|
|
41,058 |
|
Diluted |
|
687,500 |
|
|
|
122,283 |
|
|
|
562,500 |
|
|
|
41,058 |
|
Net income (loss) per share attributable to common stockholders |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
0.17 |
|
|
$ |
(0.61 |
) |
|
$ |
(2.03 |
) |
|
$ |
(0.79 |
) |
Diluted |
$ |
(0.06 |
) |
|
$ |
(0.61 |
) |
|
$ |
(2.03 |
) |
|
$ |
(0.79 |
) |
Weighted-average number of shares outstanding used to compute net income (loss) per share attributable to common stockholders |
|
|
|
|
|
|
|
||||||||
Basic |
|
16,198,439 |
|
|
|
11,042,602 |
|
|
|
15,769,020 |
|
|
|
9,555,467 |
|
Diluted |
|
19,313,512 |
|
|
|
11,042,602 |
|
|
|
15,769,020 |
|
|
|
9,555,467 |
|
1 Amounts may not sum due to rounding |
|||||||||||||||
Owlet, Inc. Reconciliation of GAAP to Non-GAAP Measures - Preliminary, Unaudited1 (in millions, except share and per share amounts) |
|||||||||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
GAAP net income (loss) |
$ |
4.1 |
|
|
$ |
(5.6 |
) |
|
$ |
(30.5 |
) |
|
$ |
(3.5 |
) |
Income tax provision |
|
— |
|
|
|
— |
|
|
|
0.1 |
|
|
|
— |
|
Interest expense, net |
|
0.9 |
|
|
|
0.1 |
|
|
|
2.8 |
|
|
|
0.3 |
|
Depreciation and amortization |
|
0.1 |
|
|
|
0.1 |
|
|
|
0.4 |
|
|
|
0.3 |
|
Impairment of intangible assets |
|
— |
|
|
|
1.9 |
|
|
|
— |
|
|
|
1.9 |
|
Common stock warrant liability adjustment |
|
(4.3 |
) |
|
|
0.7 |
|
|
|
23.8 |
|
|
|
(9.5 |
) |
Stock-based compensation |
|
1.3 |
|
|
|
2.7 |
|
|
|
4.5 |
|
|
|
7.0 |
|
Transaction costs |
|
0.5 |
|
|
|
— |
|
|
|
0.5 |
|
|
|
0.4 |
|
Insurance loss recovery related to certain legal matters, net of charges related to certain legal matters |
|
(1.1 |
) |
|
|
— |
|
|
|
0.3 |
|
|
|
— |
|
Restructuring costs |
|
— |
|
|
|
0.7 |
|
|
|
— |
|
|
|
0.7 |
|
Non-GAAP Adjusted EBITDA |
$ |
1.6 |
|
|
$ |
0.6 |
|
|
$ |
1.9 |
|
|
$ |
(2.4 |
) |
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
GAAP net income (loss) |
$ |
4.1 |
|
|
$ |
(5.6 |
) |
|
$ |
(30.5 |
) |
|
$ |
(3.5 |
) |
Non-GAAP adjustments: |
|
|
|
|
|
|
|
||||||||
Impairment of intangible assets |
|
— |
|
|
|
1.9 |
|
|
|
— |
|
|
|
1.9 |
|
Common stock warrant liability adjustment |
|
(4.3 |
) |
|
|
0.7 |
|
|
|
23.8 |
|
|
|
(9.5 |
) |
Stock-based compensation |
|
1.3 |
|
|
|
2.7 |
|
|
|
4.5 |
|
|
|
7.0 |
|
Transaction costs |
|
0.5 |
|
|
|
— |
|
|
|
0.5 |
|
|
|
0.4 |
|
Insurance loss recovery related to certain legal matters, net of charges related to certain legal matters |
|
(1.1 |
) |
|
|
— |
|
|
|
0.3 |
|
|
|
— |
|
Restructuring costs |
|
— |
|
|
|
0.7 |
|
|
|
— |
|
|
|
0.7 |
|
Non-GAAP adjusted net income (loss) |
$ |
0.5 |
|
|
$ |
0.4 |
|
|
$ |
(1.4 |
) |
|
$ |
(3.0 |
) |
Non-GAAP adjusted net income (loss) per share |
$ |
0.03 |
|
|
$ |
0.03 |
|
|
$ |
(0.09 |
) |
|
$ |
(0.31 |
) |
Weighted-average number of shares outstanding attributable to common stockholders, basic |
|
16,198,439 |
|
|
|
11,042,602 |
|
|
|
15,769,020 |
|
|
|
9,555,467 |
|
1 Amounts may not sum due to rounding |
|||||||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20251113609258/en/
Owlet Media Contact:
pr@owletcare.com
Owlet Investor Contact:
ir@owletcare.com
Source: Owlet, Inc.
