Owlet, Inc. (NYSE:OWLT) shares fell on Monday, extending Friday’s decline after the company issued a disappointing first-quarter revenue outlook.

Earnings Snapshot

Owlet reported revenue of $26.6 million, a 29.6% year-over-year (Y/Y) increase, beating the Street view of $26.008 million.

The company’s gross profit also rose to $12.6 million from $11.0 million a year ago quarter. However, gross margin decreased 596 basis points Y/Y to 47.6% due to tariff impacts.

Adjusted EBITDA stood at $0.1 million, versus $0.5 million in the year-ago quarter.

Jonathan Harris, Owlet’s President and CEO, stated, “By delivering $105.7 million in revenue, the strongest in our history, alongside record gross margin and adjusted EBITDA results, we believe we have proven the scalability and resilience of our business model.”

“The launch of Owlet360 subscription service has been a paradigm shift, deepening our relationship with parents and diversifying our long-term revenue streams. Surpassing 110,000 paying subscribers validates the value and trust families place in our connected ecosystem. When paired with the rollout of our AI-enabled Dream Sight camera, Owlet is much more than just a baby monitor brand — it is a sophisticated data platform establishing the gold standard for accurate infant biometric baselines from the first night.”

Outlook

For the first quarter of 2026, the company expects revenue of $20 million to $21 million (versus consensus of $26.204 million), gross margins of 50% to 52%, and adjusted EBITDA of $(2.5) to $(1.5) million.

For 2026, the company projects revenue of $126 to $130 million (versus the Street view of $128.073 million), gross margins of 49% to 52% (including the impact of tariffs), and adjusted EBITDA of $3 to $5 million.

OWLT Price Action: Owlet shares were down 12.95% at $7.27 at the time of publication on Monday, according to Benzinga Pro data.

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