Owlet (OWLT) Q4 2025 earnings summary

Executive summary

• Achieved record FY2025 revenue of $105.7 million, gross margin of 50.6%, and adjusted EBITDA of $2.0 million, marking the strongest year in company history and setting a foundation for continued growth in 2026.

• Surpassed 110,000 paying subscribers for the Owlet360 subscription service, with strong sequential growth in MRR, attach rate, and retention, and expanded internationally with new regulatory clearances in India and Israel.

• Launched the AI-enabled Dream Sight camera and expanded the product suite, including the Owlet360 subscription service, and announced a strategic AI partnership to enhance pediatric health data insights.

• Strengthened capital structure and balance sheet through a warrant exchange and $34.5 million equity offering, supporting cash flow independence and growth investments.

• Transitioned into a comprehensive pediatric health, safety, and sleep platform, leveraging AI-enabled products and a growing data ecosystem.

Financial highlights

• FY2025 revenue reached $105.7 million, up 35.4% year-over-year; Q4 2025 revenue was $26.6 million, up 29.6%.

• FY2025 gross profit was $53.5 million with a record 50.6% gross margin; Q4 gross margin was 47.6%, impacted by tariffs.

• FY2025 adjusted EBITDA was $2.0 million, a $3.8 million improvement over FY2024; Q4 adjusted EBITDA was $0.1 million.

• FY2025 operating loss improved to $8.3 million from $20.2 million; net loss was $39.7 million, including a $26.6 million non-cash warrant liability adjustment.

• Cash and cash equivalents at year-end were $35.5 million, with total liquidity of $45.5 million.

Outlook and guidance

• FY2026 revenue guidance is $126–$130 million (19–23% growth), gross margin 49–52%, adjusted EBITDA $3–$5 million (50–150% growth).

• Q1 2026 revenue expected at $20–$21 million, gross margin 50–52%, adjusted EBITDA -$2.5 to -$1.5 million.

• Guidance includes continued tariff impacts and assumes no material contribution from new countries or telehealth, which are considered upside.