Owlet Inc. Achieves Record Revenue and Global Growth

Owlet Inc ((OWLT)) has held its Q3 earnings call. Read on for the main highlights of the call.

Meet Your ETF AI Analyst

• Discover how TipRanks' ETF AI Analyst can help you make smarter investment decisions
• Explore ETFs TipRanks' users love and see what insights the ETF AI Analyst reveals about the ones you follow.

Owlet Inc. Reports Record-Breaking Revenue and Global Expansion in Latest Earnings Call

The recent earnings call for Owlet Inc. was marked by a strong performance, showcasing record-breaking revenue and profitability, alongside significant achievements in global expansion. The company celebrated FDA clearance for its DreamSock product, providing a competitive edge, and highlighted a strategic partnership with Rhapsody to enhance hospital integration. Despite concerns regarding tariff impacts and consumer environment uncertainties, the positive highlights significantly outweighed the challenges.

Record-Breaking Revenue and Growth

Owlet Inc. reported a record revenue of $32 million for Q3 2025, representing a 45% increase compared to Q3 2024. The company achieved a gross profit of $16.2 million with gross margins reaching 50.6%. This quarter marked the sixth consecutive quarter of profitability, with an adjusted EBITDA of $1.6 million.

Significant Market Advantage

The FDA clearance of Owlet’s DreamSock as the first over-the-counter infant monitoring device provides a significant competitive advantage in the market, positioning the company as a leader in infant health monitoring technology.

Global Expansion Success

Owlet’s international revenue growth surged by 171% year over year, with regulatory clearance to distribute DreamSock in India, further expanding its global reach and market presence.

Strong Owlet 360 Subscription Growth

The company reported over 85,000 paying subscribers, with the subscription attach rate for DreamSock surpassing 25% by the end of Q3 2025, indicating strong consumer adoption and recurring revenue potential.

Strategic Rhapsody Partnership

The partnership with Rhapsody enhances the value proposition of BabySat, enabling real-time data access for neonatologists and hospitals, and facilitating rapid integration with hospital systems.

Successful Capital Market Activities

Owlet completed a warrant exchange and equity offering, raising approximately $32 million in net proceeds. This capital strengthens the balance sheet and supports the company’s long-term growth initiatives.

Tariff Impact on Gross Margin

Tariff costs negatively impacted the Q3 gross margin by 280 basis points, with new tariffs of 19% and 20% on imports from Thailand and Vietnam, respectively, posing a challenge to profitability.

Consumer Environment Uncertainty

Despite strong performance, Owlet faces uncertainties regarding the consumer environment, potential government shutdown aftereffects, and impacts on the critical Q4 holiday sales period.

Forward-Looking Guidance

Owlet Inc. provided robust forward-looking guidance, highlighting record-breaking financial performance. The company raised its full-year 2025 revenue expectations to between $103 million and $106 million, projecting a 32% to 36% year-over-year growth. Despite tariff impacts, gross margin guidance for 2025 was narrowed to a range of 48% to 50%, and adjusted EBITDA is expected to be between $3.1 million and $3.8 million, marking the first full year of profitability.

In summary, Owlet Inc.’s latest earnings call painted a positive picture of the company’s financial health and strategic direction. With record-breaking revenue, a significant market advantage through FDA clearance, and successful global expansion, Owlet is well-positioned for continued growth. While challenges such as tariffs and consumer uncertainties remain, the company’s strong performance and forward-looking guidance suggest a promising future.