LEHI, Utah--(BUSINESS WIRE)--March 05, 2026-- 

Owlet, Inc. ("Owlet" or the "Company") $(OWLT)$, the pioneer of smart infant monitoring, today reports financial results for the fourth quarter and full year ended December 31, 2025. Owlet's President and Chief Executive Officer, Jonathan Harris, and Chief Financial Officer, Amanda Twede Crawford, will host a conference call to review the Company's results and provide a business update today, March 5, 2026, at 4:30 p.m. ET.

Q4 2025 Financial Highlights:

   --  Q4 Revenue of $26.6 million, up 29.6% from Q4 2024 
 
   --  Q4 Gross Profit of $12.6 million, up $1.7 million from Q4 2024 despite 
      tariff cost impacts; Q4 Gross Margin of 47.6% 
 
   --  Q4 Operating Loss of $4.9 million, compared to operating loss of $7.4 
      million in Q4 2024 
 
   --  Q4 Net Loss of $9.2 million, compared to net loss of $9.1 million in Q4 
      2024 
 
   --  Q4 Adjusted EBITDA (non-GAAP) of $0.1 million, compared to $0.5 million 
      in Q4 2024 

Full Year 2025 Financial Highlights:

   --  Record FY 2025 Revenue of $105.7 million, up 35.4% from FY 2024 
 
   --  Record FY 2025 Gross Profit of $53.5 million, up $14.2 million from FY 
      2024 despite tariff cost impacts; Record FY 2025 Gross Margin of 50.6% 
 
   --  FY 2025 Operating Loss of $8.3 million, compared to operating loss of 
      $20.2 million in FY 2024 
 
   --  FY 2025 Net Loss of $39.7 million including a $26.6 million non-cash, 
      mark-to-market common stock warrant liability adjustment, compared to net 
      loss of $12.5 million in FY 2024 
 
   --  Record FY 2025 Adjusted EBITDA (non-GAAP) of $2.0 million, improving 
      $3.8 million compared to FY 2024 

"2025 was a defining chapter for Owlet, marked by record-breaking financial performance and a fundamental evolution into a comprehensive pediatric health, safety, and sleep platform," said Jonathan Harris, Owlet's President and CEO. "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. Owlet's financial and operational strength is the foundation enabling the next phase of our global growth, and long-term value creation for all of our stakeholders."

Harris continued, "The launch of Owlet360$(TM)$ 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(TM) 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."

Harris concluded, "We enter 2026 ready to build on our momentum, and execute on our long-term growth opportunity. Owlet is well-positioned to leverage our unique pediatric dataset to redefine modern parenting and become the go-to wellness technology for families around the world."

Financial Results for the Fourth Quarter and Full Year Ended December 31, 2025

Fourth Quarter 2025 Results

Revenue for the fourth quarter of 2025 was $26.6 million compared to revenue in the fourth quarter of 2024 of $20.5 million, an increase of 29.6%. The increase was primarily due to higher sales of Dream product suite and Owlet360 subscription service.

Cost of revenue for the fourth quarter of 2025 was $13.9 million with a gross margin of 47.6%, compared to cost of revenue of $9.5 million with a gross margin of 53.5% for the fourth quarter of 2024. Gross margin decreased 596 basis points year-over-year, primarily reflecting tariff impacts, partially offset by favorable product mix, improved fixed cost absorption, lower direct and fulfillment costs, and growth in revenue for our Owlet360 subscription service.

Operating expenses, including stock-based compensation, were $17.5 million for the fourth quarter of 2025, compared to $18.4 million for the same period in 2024. Operating costs decreased year-over-year primarily due to a decrease in legal expenses, partially offset by increases in headcount related expenses, including salaries, bonus, benefits, and stock-based compensation.

Operating loss was $4.9 million for the fourth quarter of 2025, compared to operating loss of $7.4 million for the fourth quarter of 2024.

Net loss was $9.2 million for the fourth quarter of 2025, compared to net loss of $9.1 million for the fourth quarter of 2024.

Adjusted EBITDA (non-GAAP) was $0.1 million for the fourth quarter of 2025, compared to $0.5 million for the fourth quarter of 2024.

Net loss per share was $0.39 for the fourth quarter of 2025, compared to net loss per share of $0.63 for the fourth quarter of 2024. Adjusted net loss per share (non-GAAP) was $0.03 for the fourth quarter of 2025, compared to $0.07 for the same period in 2024.

Full Year 2025 Results

For fiscal year 2025, revenue was $105.7 million, compared to $78.1 million for fiscal year 2024, an increase of 35.4%.

Cost of revenue for the fiscal year 2025 was $52.2 million with a gross margin of 50.6%, compared to cost of revenue of $38.7 million with a gross margin of 50.4% for fiscal year 2024.

Operating expenses, including stock-based compensation, were $61.8 million for the fiscal year 2025, compared to $59.5 million for the same period in 2024.

Operating loss was $8.3 million for the fiscal year 2025, compared to operating loss of $20.2 million for the fiscal year 2024.

Net loss was $39.7 million for the fiscal year 2025, compared to net loss of $12.5 million for the fiscal year 2024.

Adjusted EBITDA (non-GAAP) was $2.0 million for the fiscal year 2025, compared to a loss of $1.8 million for the fiscal year 2024, an improvement of $3.8 million.

Net loss per share was $2.31 for the fiscal year 2025, compared to net loss per share of $1.57 for the fiscal year 2024. Adjusted net loss per share (non-GAAP) was $0.11 for the fiscal year 2025, compared to $0.36 for the same period in 2024.

2026 Financial Outlook

For the first quarter of 2026, we expect revenue in the range of $20 to $21 million, gross margins of 50% to 52%, and Adjusted EBITDA of $(2.5) to $(1.5) million.

For the full year 2026, we expect revenue in the range of $126 to $130 million, representing 19% to 23% growth over 2025, gross margins of 49% to 52% including the impact of tariff costs, and Adjusted EBITDA of $3 to $5 million, representing 50% to 150% growth over 2025.

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, and expected market opportunity and acceptance. 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 the United States, as well as Owlet's ability to obtain and maintain regulatory approval or certification for our products and other regulatory requirements and legal proceedings; (ii) Owlet's competition and the Company's ability to achieve future growth and sustain its growth rate; (iii) Owlet's ability to attract and retain customers and increase sales to its customers; (iv) Owlet's ability to obtain additional financing in the future, as well risks associated with the Company's current loan and debt agreements, including compliance with debt covenants, restrictions on the Company's access to capital, the impact of the Company's overall debt levels and the Company's ability to generate sufficient future cash flows to meet Owlet's debt service obligations and operate Owlet's business; (v) the ability of Owlet to implement strategic initiatives, reduce costs, develop and launch new products, innovate and enhance existing products, scale its platform, meet customer demands and adapt to changes in consumer preferences and retail trends; (vi) Owlet's ability to acquire, defend and protect its intellectual property and satisfy regulatory requirements, including but not limited to requirements concerning privacy and data protection, breaches and loss, as well as other risks associated with Owlet's digital platforms and technologies; (vii) Owlet's ability to maintain relationships with manufacturers and

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March 05, 2026 16:05 ET (21:05 GMT)