Owlet (OWLT) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue grew 43.1% year-over-year to $21.1 million, driven by strong Dream Sock and Dream Duo sales and expansion as the only FDA- and CE-cleared infant health monitor.

• Gross margin improved to 53.7%, up 930 basis points year-over-year, reflecting favorable product mix and cost efficiencies.

• Adjusted EBITDA reached breakeven for the fourth consecutive quarter, a $3.1 million improvement year-over-year.

• Net income was $3.0 million, including a $6.7 million gain on warrant mark-to-market, while net income attributable to common stockholders was $1.7 million.

• Company transitioned to a pediatric health platform, highlighted by Owlet360 subscription growth and new hospital distribution partnerships.

Financial highlights

• Q1 2025 revenue was $21.1 million, up 43.1% year-over-year, with gross profit of $11.3 million and gross margin of 53.7%.

• Operating loss narrowed to $2.7 million from $5.7 million a year ago.

• Net income was $3.0 million, with EPS of $0.11 (basic and diluted).

• Cash and cash equivalents at quarter-end were $16.3 million.

• Operating expenses were $14 million, including $1.7 million stock-based compensation and $0.9 million one-time litigation settlement.

Outlook and guidance

• Raised full-year 2025 revenue guidance to $91–$95 million, representing 17%–22% year-over-year growth.

• Gross margin guidance revised to 46%–50% due to new 10% tariffs on imports from Thailand and Vietnam.

• Adjusted EBITDA guidance unchanged; company targets full-year profitability.

• Sequential quarterly revenue growth expected, with Q4 anticipated as the largest quarter due to holiday seasonality.

• Management highlights substantial doubt about ability to continue as a going concern without additional financing.