Owlet reports 26% revenue growth in Q2, announces CEO transition

Published 07/08/2025, 21:30
Owlet reports 26% revenue growth in Q2, announces CEO transition

LEHI, Utah - Owlet, Inc. (NYSE:OWLT), a provider of smart infant monitoring technology, reported second quarter revenue of $26.1 million, up 25.9% compared to the same period last year, according to a press release statement issued Thursday. The company, currently valued at $129 million, has maintained strong momentum with a trailing twelve-month revenue growth of 45.47%. InvestingPro analysis indicates the stock is currently trading near its Fair Value, with analysts setting price targets between $8.50 and $15.00.

The company’s gross margin improved to 51.3%, an increase of 180 basis points from Q2 2024. Despite the revenue growth, Owlet posted a net loss of $37.6 million for the quarter, which included a $34.8 million non-cash adjustment related to common stock warrant liability. Adjusted EBITDA was $0.3 million, showing a $0.2 million improvement from the prior year. According to InvestingPro data, the company maintains a moderate debt level with a current ratio of 1.19, indicating adequate liquidity. Get access to 8 more exclusive InvestingPro Tips and comprehensive financial analysis through the Pro Research Report.

Owlet also announced a leadership transition, with current President Jonathan Harris set to succeed Kurt Workman as Chief Executive Officer effective October 1, 2025. Workman, who founded the company in 2012, will transition to Executive Chairman of the Board of Directors. The announcement comes as the stock has shown remarkable strength, delivering a 72.33% return over the past year despite its higher-than-market volatility (Beta of 1.75).

"Our exceptional team continues to execute at a high level as Q2 outperformed expectations across all key metrics," said Workman in the press release. He noted that the company’s Owlet360 subscription service has surpassed 66,000 paying subscribers. InvestingPro’s Financial Health Score of 2.5 (GOOD) supports the company’s operational progress, though analysts do not expect profitability this year.

The company updated its 2025 financial outlook, now expecting full-year revenue between $97 million and $100 million, representing 24% to 28% growth year-over-year. Owlet anticipates gross margins in the range of 46% to 50%, including the impact of new expected tariff costs, and expects to be adjusted EBITDA profitable for the full year 2025.

Operating expenses for Q2 2025 were $15.3 million, compared to $12.5 million for the same period in 2024, with the increase primarily attributed to higher compensation expenses, including accrued bonuses.

In other recent news, Owlet Inc. reported a strong financial performance for the first quarter of 2025, with significant revenue growth and a positive net income. This performance has contributed to a positive sentiment among investors. Although specific earnings per share forecasts were not disclosed, the company’s strategic operational improvements were noted as a contributing factor to its success. Additionally, Freedom Broker has initiated coverage on Owlet with a Buy rating and set a price target of $11.00. The research firm emphasized Owlet’s competitive advantage as the provider of the first and only FDA-cleared infant health monitoring device. These developments highlight the company’s strong position in the market.

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