OWLT

Image source: The Motley Fool. Tuesday, Aug. 11, 2026 at 4:30 p.m. ET Investor Relations - Jay Gentzkow President, Chief Executive Officer, and Co-Founder - Kurt Workman Chief Financial Officer - Amanda Twede Crawford Operator: Hello, everyone. Thank you for joining us, and welcome to the Owlet Q2 2026 Earnings Conference Call. [Operator Instructions] I will now hand the conference over to Jay Gentzkow, Investor Relations. Jay, please go ahead. Jay Gentzkow: Good afternoon, everyone, and thank you for joining us. Earlier today, Owlet released financial results for the second quarter ended June 30, 2026. I'm pleased to be joined today by Kurt Workman, Owlet's President, CEO and Co-Founder; and Amanda Twede Crawford, Owlet's CFO. Before we begin, please note that our financial results press release and presentation slides referred to on this call are available under the Events and Presentations section of our Investor Relations website at investors.owletcare.com. This call is also being webcast live with a link at the same website. The webcast and accompanying slides will be available for replay for 12 months following this call. The content of today's call is the property of Owlet. It cannot be reproduced or transcribed without our prior consent. Before we begin, I'd like to refer you to our safe harbor disclaimer on Slide 3 of the presentation. Today's discussion will contain forward-looking statements based on the company's current views and expectations as of today's date. These statements are only predictions and are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. These risks and uncertainties include, but are not limited to, those described in our most recent filings with the SEC and in the Risk Factors section of our annual report on Form 10-K as updated in the company's quarterly reports on Form 10-Q and other filings with the SEC. Please note that the company assumes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. With that, it's my pleasure to hand it off to Kurt. Kurt Workman: Thanks, Jay, and good afternoon, everyone. Thank you for joining us. Before we get to our record Q2 results, I want to step back and discuss where we are taking this business, the platform we're building to support the parenting journey and the opportunity we see over the coming years. Every day, Owlet is evolving more and more into a data and services platform for the earliest years of a child's life. Our products capture meaningful and unique information about a baby's sleep and health, turning that data into insights, guidance and peace of mind for parents. Our vision is to bring together the best of what parents use today into a single Owlet experience, sleep, health monitoring, camera and telehealth for a fraction of what separate apps and devices cost today. Over time, we want all of our customers to get the best of what Owlet's platform has to offer because engaging with Owlet increasingly means engaging with the service, not just the device. That leads to how we're thinking about the opportunity, and I want to keep our objectives simple. First, firmly position Owlet as a data and services platform through subscription. Second, win roughly 1 million new customers per year; and third, keep those families with us for at least 2 years. Put those together, and it points towards a recurring base over time of over 1 million subscribers. This is the evolution from a onetime hardware-centric sale into a durable multiyear subscription relationship, and it's what the entire company is now organized around. Let me give some more color to each. First, firmly position Owlet as a data and services platform through subscription. Subscription is how we're positioning Owlet from a device families buy into a platform they rely on. We've clearly validated the subscription opportunity since launch early last year. Today, over 30% of new U.S. customers subscribed to Owlet 360 in the first year. This is an ideal category for a multiyear relationship since the intensity of parenting lasts for years, not just months. Our goal is to make subscription the obvious choice. So we're expanding where parents can enroll, moving beyond in-app sign-up and toward the point of sale and testing offers and bundles that make enrolling in subscription at purchase a no-brainer. Another lever in subscription value proposition is inside Owlet 360 itself. Every new feature we add to sleep insights, camera intelligence and telehealth enables us to partner with families for longer and is designed to extend our lifetime value. Second, win roughly 1 million new customers per year. This year alone, Owlet will sell to 600,000 to 700,000 new customers. Owlet's competitive moat gives us a dominant and secure position in our category. We're the first and only FDA-cleared baby monitor on the market. We're consistently the market leader in dollars spent in the category, and we've built a brand that parents deeply trust in a pediatric health and wellness market that's still early. Given the size of our funnel, the consideration for Owlet is already massive. Each year, we see roughly 4 million unique visitors to owletcare.com and over 1 million baby registry additions. The opportunity isn't to invent demand, it's to convert more of the demand that already exists into new customers. Millions of parents are already considering Owlet, and our job is to move more of them from consideration to purchase. Subscription is what makes this possible because the subscriber's lifetime value is designed to extend well beyond the initial sale, we're creating offerings that increase overall value, save families money upfront and still grows the economics of each customer over time. That is a winning funnel to drive conversion and LTV simultaneously. And finally, keeping families with us for at least 2 years. Today, the average subscriber length of use is about 1 year. Our goal is to continue to make Owlet more valuable the longer a family uses it, carrying them past the newborn window when safety is top of mind into years 1 and 2 when sleep, health and wellness take focus. Owlet 360 subscription is the vehicle, a digital translator that turns real-time data from our products into insights for parents. Many already use the camera well beyond 24 months, so delivering the best of Owlet to every family naturally extends lifetime value. Underneath it all is what we believe is the largest pediatric health data set in the world. That foundation enables us to build increasingly personalized experiences across sleep, health and wellness using AI to turn data into meaningful insights and guidance throughout the parenting journey. That's a very hard thing to walk away from. Our long-term objective is to build toward a recurring base of more than 1 million subscribers by expanding our customer base, increasing subscription adoption and extending subscriber relationships. Now turning to the second quarter update on Slide 7, where we set records on many metrics, a record-breaking total revenue for the second quarter of $33.9 million, which represents a 29.9% increase year-over-year. In the second quarter, Owlet received approximately $4 million in tariff refunds following the U.S. Supreme Court's February decision invalidating tariffs imposed under the IEEPA. Of that $4 million, we recognized a onetime $3.5 million benefit to COGS and a onetime $3.75 million benefit to adjusted EBITDA, with the remaining balance going to inventory. Q2 gross margin, excluding the tariff refund was 54%, expanding 270 basis points versus Q2 2025. Including the tariff refund, gross margins were 64.4% in Q2. Adjusting EBITDA, excluding the onetime tariff refund, was also a record for Owlet, $2.9 million, a $2.4 million increase compared to prior year. Including tariff refunds, adjusted EBITDA was $6.7 million. Owlet 360 subscription continues to thrive. We ended Q2 with 130,000 paying subscribers, generating $3.2 million in revenue, up $2.4 million year-over-year. Subscription MRR increased sequentially, surpassing $1.1 million to end Q2 and penetration rate for Dream Sock in the U.S. increased to 36%. I'm really proud of the team's execution in Q2 and excited about our category leadership, which continues to deepen. I want to address that with the recent development in our category that highlights our competitive differentiation. As you remember, in September of last year, the FDA issued a safety communication warning consumers against using over-the-counter infant monitors, making unsubstantiated claims without having been reviewed for safety and effectiveness. In early June, we received a letter from Amazon, and we're confident other companies in the baby monitor category did as well. The letter notified sellers of baby monitoring products that measure and monitor vital signs that any such product lacking FDA clearance would be deactivated on Amazon's platform effective August 10, 2026, which was yesterday. For Owlet, no additional action was required. Dream Sock has been and continues to be FDA cleared and Amazon already had our clearance documentation on file. To our knowledge, no other baby monitor on the market today has secured the same clearance. If Amazon continues to enforce this requirement, we believe it could provide a longer-term competitive benefit for Owlet as any company wishing to measure and monitor vital signs would need to go through the same rigor we underwent to secure FDA clearance in order to sell on Amazon's platform. Following the letter, we observed aggressive discounting by several competitors, including products that we understand are subject to the new requirement ahead of the August 10 deadline. This pattern continued through Prime Day and after. As a result, Owlet's units sold during Prime Day were down 8% versus last year's event, underperforming our expectations. Despite losing some units to the competition during Prime Day, we were still #1 in baby monitoring and in the baby safety category. We don't yet have full visibility into competitor pricing behavior post August 10 deadline, but we anticipate Amazon's enforcement to be a long-term tailwind for the business. Continuing with the quarterly review, consistent with last quarter, I'd like to provide updates on our 2 core growth drivers: driving adoption of Dream Sock and Dream Duo in our core global markets and expanding the subscription platform with Owlet 360 and Owlet -- on Call. In the U.S., when adjusting for the shift in Prime Day, total sell-through units grew by 12%, including a 16.5% increase in Dream Sock and a 16% increase in Duo. Excluding Prime Day, Q2 total sell-through units grew by 20% year-over-year with Dream Sock and Duo growth of 21% and 29%, respectively. This gives us confidence that general sell-through is growing at a healthy rate, but Prime Day dynamics weighed on the quarter as mentioned above. Owlet Dream Sock also remains a registry priority for expecting parents with year-over-year registry additions growing 40%. Finally, international was a standout in the quarter with revenue growing 214% year-over-year. Recall that last year, we had an expected timing shift in orders from Q2 to Q3, driven by the Dream Sight camera and Duo launch and the associated load-in to our distributors, positioning Q2 2025 as a favorable year-over-year comparable. However, we also saw significant global momentum in the quarter. Excluding the Q3 2025 quarter that benefited from the significant load-in for the new camera, Q2 2026 was the highest international revenue quarter in Owlet history at $5.7 million. This is further supported by strong international sell-through. Total sell-through unit growth was 38% year-over-year and Prime Day sell-through outside of the U.S. grew over 100% year-over-year. Turning to Owlet 360 and Owlet -- on Call. We made real progress on the subscription platform this quarter. We launched Owlet 360 subscription in a number of new non-English-speaking international markets, now reaching an additional 5% to 10% of our user base that previously could not subscribe. We also began testing Web Pay, moving subscription enrollment and billing onto our own web-based checkout. We will be rolling Web Pay out in Q3 and expect over time to improve our subscription margins by reducing the third-party payment fees we pay on in-app purchases, and it gives us more flexibility to enroll subscribers right at the point of purchase. Related, we began rolling out upfront subscription, the ability to sign up for Owlet 360 at the moment of purchase rather than later in the app. It's already live on our own website and will be going live with Babylist soon. We also expect to offer subscription bundles to retail partners in the second half. Our goal is to continually optimize the LTV per customer. Turning to Owlet -- on Call. This remains a deliberate test and learn year to explore how Owlet can best bring our unique position in the category to pediatric telehealth. We launched with around 5% of users with access to on-call service. And now in Q3, we have begun to carefully expand access more broadly. Where we are taking Owlet OnCall is toward a more seamless and proactive experience that can help parents connect with clinical resources when appropriate. We are being intentional here, learning from real usage before we expand and begin to automate the offering. We'll share more as we go as we continue to believe this year's learnings set up for a meaningful new revenue stream as we move into next year. It's an exciting time to be part of Owlet. We are executing across our strategic growth areas, and it is showing up in our results, record revenue, standout international growth and ongoing Owlet 360 momentum. We believe our biggest opportunity from here is growing subscribers, and that is exactly where we are focusing the company. I'll now turn the call over to Amanda and walk through our Q2 financials. Amanda, take it away. Amanda Crawford: Thanks, Kurt. Turning to our second quarter 2026 financial performance on Slide 11. Unless noted otherwise, I will be comparing Q2 2026 to the results of Q2 2025. Q2 total revenue was a record of $33.9 million, up 29.9% year-over-year. Growth was broad-based with strength in Dream Sock and Duo and strong international performance and continued momentum in subscription. Subscription revenue grew to a record $3.2 million, up $2.4 million year-over-year as our Owlet360 base continued to expand. Q2 overall gross margin was 54%, including the tariff refund, up approximately 270 basis points versus the prior year. Including the onetime $3.5 million tariff refund allocated to COGS, Q2 overall gross margin was 64.4%. Subscription gross margin expanded again sequentially to 68.4%. Total operating expenses for the second quarter were $20.1 million compared to $15.1 million in the prior period or approximately 59% of revenue. The year-over-year increase was primarily driven by higher marketing spend as Prime Day promotional timing shifted from Q3 to Q2 as well as severance costs, including stock-based compensation. We remain committed to raising our level of operational efficiency and financial discipline through the balance of 2026. Excluding the tariff refund, we experienced an operating loss of $1.8 million. Including the tariff refund, we saw operating income of $1.7 million. Adjusted EBITDA, excluding the onetime tariff refund was a record $2.9 million compared to $0.5 million in the prior year. Including the tariff refund, adjusted EBITDA was $6.7 million. I want to note that our financial statements will include routine immaterial revisions to prior year amounts across certain line items, including revenue and operating expenses. I want to emphasize that these immaterial adjustments have no impact on our cash balance or cash flows. Complete details will be provided in our upcoming Form 10-Q filing. During the quarter, we entered into a new $25 million asset-based revolving credit facility with Wells Fargo that refinances and replaces both our prior asset-based facility and term loan. The new facility significantly reduces our cost of capital, lowering our interest rate margin to SOFR plus 2% to 2.25%, down from SOFR plus 7.5% to 8.5% under the prior asset-based facility, a reduction of at least 525 basis points. We expect this to meaningfully lower our annual interest expense going forward, including no minimum interest requirement. These improved terms reduce our cost of capital and provide additional flexibility to continue investing in our strategic priorities while maintaining a disciplined approach to capital allocation. Turning to our balance sheet. Cash and cash equivalents, excluding restricted cash, were $30.9 million as of June 30, 2026, versus $35.5 million in the prior quarter March 31, 2026. The change in cash was primarily due to $2.7 million in debt payoff, CapEx investments and working capital timing. Combined with $7.5 million of availability under our new credit facility, total available liquidity was approximately $38.5 million. Turning to our guidance. We are pleased with our first half performance, including a strong second quarter. At the same time, we are taking a deliberately measured view of the second half given the aggressive competitor discounting prior to the August 10 Amazon deadline and not having full visibility into competitor behavior post deadline. In addition, we are observing some broader macro signals we want to be cautious about. Prime Day's baby monitor category was down versus last year with consumers appearing to spend more cautiously and prioritizing everyday essentials. This is in line with what we've recently observed with the category being roughly flat or down versus prior year for the last several large Amazon promotional events. For those reasons, rather than extrapolate our second quarter outperformance across the year, we believe it is prudent to absorb that near-term pressure within our existing range. For the full year 2026, we are reaffirming our revenue outlook of $118 million to $122 million. For Q3, we expect to decline both sequentially and versus Q3 2025, reflecting that deep competitor discounting discussed, together with a challenging comparison against last year's Dream Sight camera and Duo launch. For Q4, we have 2 large events and given our caution regarding the promotional event dynamics, we are maintaining our Q4 forecast. On gross margin, we are raising our full year outlook to a range of 53% to 55% from 50% to 52%, which reflects only the onetime $3.5 million reduction in COGS in the second quarter as a result of the tariff refund. The tariff rate assumed in our second half guidance is 12.5%. We are not forecasting additional tariff refunds for 2026 nor repayment risk of the Q2 tariff refunds at this time. Finally, we are raising our full year adjusted EBITDA outlook to a range of $10.75 million to $12.75 million from $7 million to $9 million. This increase reflects only the onetime $3.75 million tariff refund recognized in the second quarter. Excluding the tariff refund, our underlying expectations for the year are essentially unchanged as we remain focused on driving operational efficiency and profitable growth. With that, we will now take your questions. Operator: Your first question comes from the line of Jonna Kim with TD Cowen. Julia Shelanski: This is Julia Shelanski on for Jonna Kim. We have 2 questions this afternoon. First, we'd love to hear what has been the sell-through trends quarter-to-date? And how is the gap between sell-in and sell-through at this point? And second, could you update us on the attachment rates for subscription? And what does retention look like as you continue to observe new cohorts? Amanda Crawford: Thanks Julia. Just a quick clarification on that question. Are you asking about Q3 quarter-to-date sell-in specifically or sell? Julia Shelanski: Yes, that's correct. Yes, 3Q quarter-to-date. Amanda Crawford: Okay. First, I'll take the other question while I pull up the data regarding Q3 sell-through. So from an attach perspective, so far, what we're seeing with the subscription offering is that around 30% of parents are ultimately subscribing within that first year. We've shared as far as retention goes that we're seeing an average life of about 12 months for our subscribers. Just a reminder that we launched about 18 months ago, so we're just starting to see the cohorts mature. Kurt Workman: I think what I would add to that, too, is that -- we're now seeing nearly 30% of new users in the trial period elect the annual plan, which is really exciting for us from an LTV perspective. We're seeing decent renewal rates on that plan, which is exciting. 36% of our whole Sock customer base now has subscription, and we're just getting started. I mean if you think about the Cam feature rollout the second half, really exciting. That's more than half of our user base, and we're just starting on those features and AI capabilities. They use the camera twice as long as they use the Sock. So it's half of the customer base using it twice as long. It just represents a really big opportunity. Telehealth is expanding. That's an exciting new position for us. And the integration with AI and new AI features that are going into sleep and health and overall parenting guidance is creating a stickier and stickier product. And I think the second half, you'll see more and more value released to the consumer. So we're really excited about where we're at, and there's a lot of potential moving forward. Amanda Crawford: Yes. And then just regarding sell-through compared to last year, it's a little bit nuanced, especially if you're going back. I know that Jonah publishes the Nielsen data. There's just a reminder that Prime Day shifted from Q3 to Q2 this year. So making year-over-year comparisons at this point is a little bit muddy in the quarter just because Prime Day last year was such a large quarter-to-date relative proportion of the quarter. Operator: Your next question comes from the line of Steve Lichtman with William Blair. Steven Lichtman: Congratulations on the quarter. Kurt, I'm wondering, as telehealth continues to expand and you ratably grow that opportunity, how will this merge into 360 ultimately and be an additional driver of that subscription model? Just trying to think of -- I know they're separate now, but how are you thinking about that over the longer term? Kurt Workman: Yes, that's a great question. I think we -- when we think about telehealth, we think about it in tiers. There's an element of telehealth and 360 today, obviously, not connected to a doctor, but it gives parents additional health trends and health information. It allows them to share information with their doctor. And so we're building out kind of the AI capabilities and automated features within 360. There will be another tier that gives access to physicians. Right now, it's on call. That will morph and evolve as we test and learn this year. It's the purpose of this year to make that more accessible, more affordable and ultimately something that we want a majority of our users to be able to have access to. When you look at the challenges with care for a newborn, so much of that is just a communication gap. And when you chat with a pediatrician today without any data or context and you tell them that your baby is congested, you're worried about their breathing, 100% of those visits turn into an ER visit if it's after hours or an extra pediatrician visit. And now that we have FDA-cleared data at home that physicians can actually review and make decisions based on. We think it just totally changes the paradigm for at-home care and creates a new level of care, which is continued monitoring, routine data collection and a check-in with the doctor from the comfort of your home, you're not exposing baby to more sickness. So there will be multiple tiers of telehealth. You have Owlet 360 and likely an Owlet 360 plus the telehealth offering. Steven Lichtman: That's helpful. And then just following up on the international strength. Where are you seeing the most momentum today? And what do you see as the most ripe opportunities internationally looking out over the next few years? Kurt Workman: I'm really excited about Europe. Europe continues to grow. It's really very close to the pace that we set in the U.S. if you look at year-by-year growth and penetration. Germany is expanding really well. Everybody told us when we went into France, it would take a few years and then you kind of see it spike. That's exactly what's happening. We're seeing incredible growth in France. Eastern Europe is actually doing really well. The Czech Republic and the countries around there actually have the highest penetration in terms of percent of parents that use monitoring. It's very similar to the U.S. now. So that's really taken off. Those are probably the areas that we're most excited about. And some of the more -- the longer-term markets like the U.K. and Australia and the Nordics continue to grow really well for us. So there's more babies born in Europe than the United States. And I just can't imagine a world where as we say it all the time for the United States, every baby will have access to some sort of health sensing technology when they leave the hospital. That's going to be just as true for Europe as it is for the U.S. Operator: Your next question comes from the line of Owen Rickert with Northland Capital Markets. Owen Rickert: Congrats on a pretty awesome quarter. First for me, can you describe that AI parenting copilot offering for us? What does the product road map look like there? How are you thinking about monetization? I guess, is this a feature within Outlet 360? Is it separate or something else? Just anything there would be great. Kurt Workman: Yes. I think the unique thing about Owlet is we're pulling together the most comprehensive and contextualized data set of infant health that's ever existed. So we've got, obviously, the largest set of biometrics. We're bringing in access through the telehealth, the health records and health interaction, parent logging and parent context, other device data, cross-device data between the Sock, the camera, other devices potentially in the future. That becomes a very rich data set that has a lot of context about your baby. And the more parents use it, the more context it has to help guide them. I can't imagine a world where Owlet has all of this rich context, and I'm going to ChatGPT for answers about my baby, if that makes sense. So it's going to evolve over time. We're going to take the low-hanging fruits in AI and implement those quickly. We have right now an AI morning report that takes all of your baby's sleep data. And just like a digital sleep coach -- or just like a sleep Coach would, it prepares a summary and gives recommendations for your child for that next day. It's really powerful. 85% of parents who use it, engage with that daily and report that, that's a really strong, powerful feature. That's just one example of taking this contextualized data set and integrating it. We see it as a component of Owlet360. Owlet360 may increase in price over time as we're able to grow the value. But we essentially want everybody on Owlet 360, and we want them to have an incredible experience that's very sticky over time that goes well beyond that first year. Owen Rickert: Got it. Got it. Super helpful. And then secondly for me, -- you mentioned Babylist as an upcoming channel for that upfront subscription enrollment. Are there any other retail or registry partners in the pipeline? And how important is the D2C channel versus third-party retail to the long-term subscription conversion strategy? Kurt Workman: Yes. Babylist is unique because it's a gifting platform. That's the registry platform. So people are going on to get Owlet Duos. We generally see higher order values on Baby list than we see on our other platforms because gift givers are at a different stage of life. And so we're selling annual memberships to 360. We'll bundle those memberships to Owlet 360 with the product so that parents have -- or grandparents can gift that to their kids. You'll see that roll out across all of our retail channels, smart bundles like that, 360 being sold. It gives us a lot of flexibility and in creating really smart offerings based on the consumer segment. So I think you'll see that continue to expand across all retail and especially on our website, and we'll get smarter and smarter about optimizing that kind of lift percentage versus LTV to drive growth for the business. But we want to meet parents where they're at. Registry is a big part of the parenting journey and parents shop across all those retail channels. So that's where we want subscription to be. We want parents to think of Owlet as a service, not just as a product. And I think we're seeing that more and more come to reality. Operator: Your next question comes from the line of Ben Haynor with Lake Street Capital Markets. Benjamin Haynor: First off for me, just thinking about the international subscription opportunities. I guess, are there any bigger countries that you're missing right now? I know you mentioned additional international subscribers were up 5% to 10%. The availability, I guess, it was there. Maybe if you could just talk about that a little bit. Kurt Workman: Yes. We just completed the majority of our language translation and rollout for subscription across the majority of our kind of our biggest markets and biggest countries. So we feel like we're there in terms of availability. Most of that rolled out at the end of the quarter. So we should see some of those benefits in Q3 and beyond. Benjamin Haynor: Okay. Fair enough. And then just curious on how much of guidance embeds or what subscriber count, call it, at year-end does guidance embed or a range? Anything that would be taking up what there would be. Amanda Crawford: Yes, we're not sharing a specific range as far as subscriber count goes. But what we are considering is how we've been trending this year, and we built that into our guidance in terms of subscribers. So said a different way, if you look at the run rate and how many additional adds we've been seeing, essentially, that's what we're modeling in the guide through the end of the year. Benjamin Haynor: Okay. Fair enough. And then lastly, on the Web Pay, does that take kind of the gross margin on subscriptions from kind of the 70% that you're able to get with or a little bit less out of the app stores to kind of mid- to high 90s? Or what's the difference there? Is it just credit card fees and that's it? Or is there more to it? Amanda Crawford: Yes. Essentially, with the App Store for the first 12 months of the subscriber life, we pay about 30% in fees. So what the Web Pay allows for is for us to bypass those fees. There's some small immaterial credit card charges that are much more affordable in comparison. And then we have a small amount of like software amortization for development costs, but it truly is something that would be significant to the margin. But I do have to remind though, that a lot of our customers have already signed up through the App Store. So it will take time for that subscriber mix to move from like an App Store purchase to web pay. So this is something that will improve over time. Operator: The next question comes from the line of Alim Kanaka with Freedom Broker. Unknown Analyst: I have one question left, and you have touched upon that quite slightly, and it's about Web Pay. Web Pay and Up-front subscription at the point of purchase went live this quarter and got one line in the presentation that you put. From where I sit, those look like the most significantly -- economically significant since you announced. Is that a fair way? Or how are the early results tracking in that way? Kurt Workman: Yes, that's a great point and a great call out. Actually, it is significant. It may not be significant on this year's P&L because of what Amanda shared. It's going to take some time for the blend of our customer base to move towards direct Web Pay with Owlet. But it's significant for a few reasons. Over time, it expands our margin. It also allows us to essentially get the credit card at the point of purchase as people enroll in Owlet 360, they're pulling out their credit card once, not twice. And so it has the ability to not only help us lift the overall percentage of our users that get Owlet 360, but increases the margin on Owlet 360, which is substantial and definitely substantial over time. So that's right. Operator: There are no further questions at this time. I will now turn the call back to Kurt for closing remarks. Kurt Workman: Yes. Thanks again, everyone, for joining us. Just to wrap up, I'll leave you with the bigger picture. Owlet has multiple clear pathways for sustainable growth, continuing to reach new families, expanding our recurring revenue through Owlet360, scaling into our existing international markets and growing the pediatric telehealth opportunity. We're well positioned for the road ahead, and we're excited about our momentum, very grateful for the continued partnership as we set the standard in pediatric care technology. So thank you, everybody, for being with us today. Operator: This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in Owlet, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Owlet wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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This article first appeared on GuruFocus. Release Date: August 11, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Record Q2 total revenue of $33.9 million, up 29.9% year-over-year. Gross margin expanded to 54% (excluding tariff refund), up 270 basis points year-over-year. Adjusted EBITDA (excluding tariff refund) hit a record $2.9 million, up $2.4 million year-over-year. Subscription revenue grew to a record $3.2 million, with 130,000 paying subscribers and 36% DreamSock penetration in the US. International revenue surged 214% year-over-year, with Q2 2026 being the highest international revenue quarter in company history. New $25 million credit facility with Wells Fargo significantly reduces interest rate margin by at least 525 basis points. Amazon's enforcement of FDA clearance for vital sign monitors is expected to be a long-term competitive tailwind for Owlet Inc (NYSE:OWLT). Prime Day units sold were down 8% year-over-year due to aggressive competitor discounting. Q3 revenue is expected to decline sequentially and versus Q3 2025 due to competitor discounting and a challenging comparison. The company is cautious about the second half due to broader macro signals and consumer spending trends. Average subscriber length of use is only about one year, below the goal of two years. Operating expenses increased to $20.1 million from $15.1 million, driven by higher marketing spend and severance costs. Cash and cash equivalents decreased to $30.9 million from $35.5 million in the prior quarter. The company is not forecasting additional tariff refunds for 2026, and there is potential repayment risk for Q2 refunds. Warning! GuruFocus has detected 5 Warning Signs with OWLT. Is OWLT fairly valued? Test your thesis with our free DCF calculator. Q: Can you describe the AI parenting Copilot offering, its product roadmap, and how you plan to monetize itis it a feature within Owlet 360 or a separate product?A: Kurt Workman, President, CEO, and Co-Founder: Owlet is pulling together the most comprehensive and contextualized data set of infant health that has ever existed, including the largest set of biometrics, health records, parent logging, and cross-device data. This rich data set allows us to build increasingly personalized experiences. We are taking the low-hanging fruit in AI and implementing it quickly, such as our AI morning report that acts as a digital sleep coach, preparing a daily summary and recommendations for the child. 85% of parents who use it engage with it daily. We see this as a component of Owlet 360, and it may increase in price over time as we grow the value, but our goal is to get everyone on Owlet 360 and make the experience very sticky beyond the first year. Q: As telehealth continues to expand, how will it merge into Owlet 360 and become an additional driver of the subscription model over the long term?A: Kurt Workman, President, CEO, and Co-Founder: We think about telehealth in tiers. There is an element of telehealth in 360 today that gives parents health trends and information without connecting to a doctor. There will be another tier that gives access to physicians, which is currently Owlet OnCall. This will morph and evolve as we test and learn this year, with the goal of making it more accessible and affordable for the majority of our users. With FDA-cleared data at home that physicians can review, we can change the paradigm for at-home care, creating a new level of care with continued monitoring and check-ins with a doctor from home. There will be multiple tiers, likely Owlet 360 and an Owlet 360+ with the telehealth offering. Q: What has been the sell-through trend quarter-to-date, and how is the gap between sell-in and sell-through? Also, can you update us on subscription attachment rates and retention as you observe new cohorts?A: Amanda Tweed-Crawford, CFO: From an attachment perspective, around 30% of parents subscribe within the first year, and we are seeing an average subscriber life of about 12 months. Kurt Workman, President, CEO, and Co-Founder: We are now seeing nearly 30% of new users in the trial period elect the annual plan, which is exciting for LTV. 36% of our DreamSock customer base now has subscription. With the camera feature rollout in the second half, which represents more than half of our user base, and the fact that users use the camera twice as long as the socks, this represents a big opportunity. Regarding sell-through, comparisons are nuanced because Prime Day shifted from Q3 to Q2 this year, making year-over-year comparisons muddy. Q: How much of the full-year guidance embeds a specific year-end subscriber count, or can you provide a range?A: Amanda Tweed-Crawford, CFO: We are not sharing a specific range for subscriber count, but we have considered how we have been trending this year and built that into our guidance. Essentially, if you look at the run rate and how many additional adds we have been seeing, that is what we are modeling through the end of the year. Q: With the new web pay option, does that take subscription gross margin from around 70% to mid-to-high 90s, or what is the difference?A: Amanda Tweed-Crawford, CFO: With the app store, for the first 12 months of the subscriber life, we pay about 30% in fees. Web pay allows us to bypass those fees, with only small immaterial credit card charges and a small amount of software amortization. However, since many customers have already signed up through the App Store, it will take time for the subscriber mix to change from App Store purchases to web pay, so this will improve over time. Q: You mentioned Babylist as an upcoming channel for upfront subscription enrollment. Are there other retail or registry partners in the pipeline, and how important is D2C versus third-party retail to the long-term subscription conversion strategy?A: Kurt Workman, President, CEO, and Co-Founder: Babylist is unique because it is a gifting and registry platform, where we generally see higher order values. We are selling annual memberships to 360 and bundling them with the product so parents or grandparents can gift them. You will see this rollout across all of our retail channels with smart bundles. We want to meet parents where they are, and registry is a big part of the parenting journey. We want parents to think of Owlet as a service, not just a product, and we are seeing that become more of a reality. Q: Regarding international subscription opportunities, are there any bigger countries you are missing right now, given the additional 5% to 10% of users that can now subscribe?A: Kurt Workman, President, CEO, and Co-Founder: We just completed the majority of our language translation and rollout for subscription across our biggest markets and countries. We feel we are there in terms of availability. Most of that rolled out at the end of the quarter, so we should see some benefits in Q3 and beyond. Q: WebPay and upfront subscription at the point of purchase went live this quarter. From where I sit, these look like the most economically significant things you announced. Is that a fair read, and how are early results tracking?A: Kurt Workman, President, CEO, and Co-Founder: It is significant, though it may not be significant on this year's P&L because it will take time for the blend of our customer base to move toward direct web pay. It expands our margin over time and allows us to get the credit card at the point of purchase, so people pull out their credit card once, not twice. This not only helps lift the overall percentage of users that get Owlet 360 but also increases the margin on Owlet 360, which is substantial over time. Q: Where are you seeing the most momentum internationally, and what do you see as the most ripe opportunities over the next few years?A: Kurt Workman, President, CEO, and Co-Founder: Europe continues to grow very close to the pace we set in the US. Germany is expanding really well, and France is seeing incredible growth as expected. Eastern Europe, including the Czech For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management is transitioning Owlet from a hardware-centric model to a data and services platform, targeting a recurring base of over 1 million subscribers by extending the customer relationship beyond the newborn window. Record Q2 revenue growth of 29.9% was driven by strong international performance and the continued expansion of the Owlet 360 subscription base, which now includes 130,000 paying members. The company anticipates a significant competitive tailwind following Amazon's decision to deactivate non-FDA-cleared baby monitors that measure vital signs, a requirement only Owlet currently meets. International revenue surged 214% year-over-year, supported by strong momentum in Germany, France, and Eastern Europe, where penetration rates are beginning to mirror U.S. levels. Operational efficiency improved with gross margins reaching 54% (excluding one-time tariff refunds), aided by a new $25 million credit facility that reduced the cost of capital by over 525 basis points. Management attributed a slight underperformance during Prime Day to aggressive, pre-deadline discounting by competitors whose products faced deactivation on Amazon's platform. Full-year revenue guidance remains at $118 million to $122 million, reflecting a cautious stance due to uncertain competitor pricing behavior post-Amazon enforcement and broader macro consumer softness. Q3 outlook assumes a sequential and year-over-year decline due to deep competitor discounting and a challenging comparison against the prior year's major product launches. The rollout of 'Web Pay' and upfront subscription enrollment is expected to improve long-term subscription margins by bypassing third-party app store fees and capturing payment details at the initial point of sale. Management is treating 2026 as a 'test and learn' year for pediatric telehealth, with plans to automate and expand the 'Owlet OnCall' service into a meaningful revenue stream by 2027. Future product development will focus on AI-driven features, such as the 'AI morning report,' to increase platform stickiness and justify potential price increases for the Owlet 360 tier. Recognized a one-time $3.75 million benefit to adjusted EBITDA following a U.S. Supreme Court decision invalidating certain tariffs, though no further refunds are forecasted for 2026. Management flagged a shift in consumer behavior during recent promotional events, with parents appearing to prioritize everyday essentials over discretionary baby monitoring technology. The company noted routine, immaterial revisions to prior-year financial statements across revenue and operating expenses, emphasizing no impact on cash flows or balances. Execution risk remains regarding the transition of the subscriber mix from app-store billing to the higher-margin Web Pay system, which management expects will take time to materialize. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Approximately 30% of new U.S. customers subscribe within the first year, with an average retention length currently tracking at 12 months as cohorts mature. Management noted that 30% of new users in trial periods are electing the annual plan, which significantly enhances customer lifetime value (LTV). Telehealth will eventually be offered in tiers, with basic health trends in the standard 360 plan and a premium tier providing direct access to physicians. The strategy leverages FDA-cleared data to reduce unnecessary ER visits by providing clinicians with remote biometric context. Partnerships with platforms like Babylist are critical because gift-givers typically drive higher order values and are receptive to bundling annual subscriptions. Management intends to roll out 'smart bundles' across all retail channels to position Owlet as a service at the moment of initial purchase.

Interested in Owlet, Inc.? Here are five stocks we like better. Record Q2 performance: Revenue rose 29.9% year over year to $33.9 million, while subscription revenue reached $3.2 million and Owlet360 subscribers totaled 130,000. Excluding a one-time $4 million tariff refund, adjusted EBITDA still increased to a record $2.9 million. Subscription and international growth remain priorities: Dream Sock subscription penetration reached 36% in the U.S., and international revenue surged 214% year over year to $5.7 million. Owlet is expanding web-based enrollment, retail subscription bundles and its Owlet OnCall telehealth service. Outlook was reaffirmed but near-term sales face pressure: The company maintained full-year revenue guidance of $118 million to $122 million and raised margin and adjusted EBITDA guidance largely because of the tariff refund. Management expects third-quarter revenue to decline sequentially and year over year amid competitor discounting and tough comparisons. Owlet Stock Giving a Bargain Opportunity Owlet (NYSE:OWLT) reported record second-quarter revenue as growth in its connected baby-monitoring products, international markets and subscription business helped offset promotional pressure in the category. Revenue for the quarter ended June 30 rose 29.9% year over year to $33.9 million, according to CFO Amanda Twede Crawford. Subscription revenue reached $3.2 million, up $2.4 million from a year earlier, while the company ended the quarter with 130,000 paying Owlet360 subscribers. Monthly recurring revenue exceeded $1.1 million at quarter-end. → SoundHound AI Sends a Loud Signal After Its Q2 Earnings Beat The company said it received about $4 million in tariff refunds during the quarter following a U.S. Supreme Court decision in February that invalidated tariffs imposed under the International Emergency Economic Powers Act. Owlet recognized a one-time $3.5 million benefit to cost of goods sold and a $3.75 million benefit to adjusted EBITDA, with the remaining amount reflected in inventory. Excluding the tariff refund, gross margin was 54%, up about 270 basis points from the prior-year quarter, while adjusted EBITDA was a record $2.9 million, compared with $0.5 million a year earlier. Including the refund, gross margin was 64.4% and adjusted EBITDA was $6.7 million. The company reported an operating loss of $1.8 million excluding the refund and operating income of $1.7 million including it. → 3 Dividend Champion Utilities for a Market That Can't Sit Still President, CEO and Co-Founder Kurt Workman said Owlet is seeking to evolve from a hardware-focused company into a data and services platform spanning sleep, health monitoring, cameras and telehealth. The company’s long-term objectives are to attract roughly 1 million new customers annually, increase subscription adoption and retain families for at least two years, ultimately building a recurring base of more than 1 million subscribers. More than 30% of new U.S. customers subscribe to Owlet360 in their first year, Workman said. Dream Sock subscription penetration in the U.S. increased to 36% during the second quarter. The average subscriber currently uses the service for about 12 months, although management said the subscription offering launched about 18 months ago and customer cohorts are still maturing. → Is Wingstop's Growth Story Losing Steam? Workman said nearly 30% of new users in the trial period are choosing an annual plan, and the company is seeing what he described as “decent renewal rates.” Owlet plans to expand subscription enrollment from in-app purchases to the point of sale, including through product bundles and retail partners. The company began testing web-based payment and enrollment during the quarter and expects a broader rollout in the third quarter. Crawford said app-store fees represent about 30% of subscription revenue during a subscriber’s first 12 months, while web payments would carry much lower credit-card processing costs. She said the financial benefit will emerge over time as more subscribers enroll through Owlet’s own payment channel. Owlet360 upfront enrollment is already available on Owlet’s website and is expected to launch with Babylist. Workman said the company also expects to offer subscription bundles through retail partners during the second half of the year. Workman said Amazon notified sellers in June that baby-monitoring products measuring and monitoring vital signs without FDA clearance would be deactivated from the platform effective Aug. 10. Owlet’s Dream Sock is FDA cleared, and no additional action was required by the company, he said. Management said it believes Amazon enforcement could become a longer-term competitive benefit, since companies seeking to sell vital-sign monitoring products on Amazon would need to obtain similar FDA clearance. However, Owlet said several competitors discounted aggressively before the deadline, including during Prime Day. Owlet’s Prime Day units sold were down 8% from the prior year and below its expectations, although the company remained the top seller in baby monitoring and the baby-safety category, according to Workman. The company said it does not yet have full visibility into competitors’ pricing actions following the Aug. 10 deadline. Adjusted for the shift of Prime Day from the third quarter last year to the second quarter this year, U.S. sell-through unit growth was 12%, including gains of 16.5% for Dream Sock and 16% for Dream Duo. Excluding Prime Day, total sell-through increased 20%, with Dream Sock up 21% and Dream Duo up 29%. Dream Sock registry additions rose 40% year over year. International revenue increased 214% year over year. Owlet noted that the comparison benefited from a timing shift in distributor orders during the prior year, but said second-quarter international revenue of $5.7 million was its highest international revenue quarter excluding the third quarter of 2025, which benefited from camera and Duo product load-in. International sell-through units rose 38%, while Prime Day sell-through outside the U.S. grew more than 100%. Workman cited growth in Germany, France, Eastern Europe, the U.K., Australia and Nordic markets. The company also expanded Owlet360 into additional non-English-speaking markets, making subscriptions available to an additional 5% to 10% of its user base. Owlet is continuing a test-and-learn approach with its Owlet OnCall pediatric telehealth service. Workman said access initially covered about 5% of users and has begun expanding more broadly in the third quarter. He said the company expects telehealth to evolve into multiple service tiers, including a potential offering that combines Owlet360 with physician access. Owlet reaffirmed its full-year revenue outlook of $118 million to $122 million. The company expects third-quarter revenue to decline both sequentially and year over year, citing competitor discounting and a difficult comparison with the prior year’s Dream Sight camera and Dream Duo launch. The company raised its full-year gross-margin outlook to 53% to 55% from 50% to 52% and increased adjusted EBITDA guidance to $10.75 million to $12.75 million from $7 million to $9 million. Crawford said both increases reflect the one-time tariff refund; excluding that item, the company’s underlying full-year expectations were essentially unchanged. Owlet ended the quarter with $30.9 million in cash and cash equivalents, excluding restricted cash. It also entered a new $25 million asset-based revolving credit facility with Wells Fargo, replacing its prior asset-based facility and term loan. The new borrowing rate is SOFR plus 2% to 2.25%, compared with SOFR plus 7.5% to 8.5% under the prior asset-based facility. Including $7.5 million of available borrowing capacity, total liquidity was approximately $38.5 million at quarter-end. Owlet Baby Care, Inc is a consumer health technology company specializing in the design and manufacture of smart baby monitoring products. The company’s flagship device, the Owlet Smart Sock, is a wearable monitor that tracks a newborn’s heart rate and oxygen saturation levels and transmits real-time data to a mobile app. Owlet has since expanded its product suite to include the Owlet Cam, an HD video monitor with audio and motion alerts, and the Dream Sock, a non-wearable device that collects sleep metrics to help parents understand and improve their baby’s rest patterns. Founded in 2013 by engineer and father Kurt Workman, Owlet is headquartered in Lehi, Utah. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Owlet Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Owlet, Inc. (OWLT) came out with quarterly earnings of $0.2 per share, beating the Zacks Consensus Estimate of $0.05 per share. This compares to a loss of $0.05 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +300.00%. A quarter ago, it was expected that this company would post a loss of $0.18 per share when it actually produced a loss of $0.09, delivering a surprise of +50%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Owlet, which belongs to the Zacks Electronics - Miscellaneous Products industry, posted revenues of $33.9 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 8.31%. This compares to year-ago revenues of $26.1 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Owlet shares have lost about 66.5% since the beginning of the year versus the S&P 500's gain of 13.3%. While Owlet has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Owlet was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.07 on $31 million in revenues for the coming quarter and $0.13 on $118.55 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Electronics - Miscellaneous Products is currently in the top 21% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Kimball Electronics (KE), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 12. This electronics manufacturing services company is expected to post quarterly earnings of $0.40 per share in its upcoming report, which represents a year-over-year change of +17.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Kimball Electronics' revenues are expected to be $373.87 million, down 1.7% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Owlet, Inc. (OWLT) : Free Stock Analysis Report Kimball Electronics, Inc. (KE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

LEHI, Utah, August 11, 2026--(BUSINESS WIRE)--Owlet, Inc. ("Owlet" or the "Company") (NYSE: OWLT), the pioneer of smart infant monitoring, today reports financial results for the second quarter ended June 30, 2026. Owlet’s President, Chief Executive Officer, and Co-Founder, Kurt Workman, and Chief Financial Officer, Amanda Twede Crawford, will host a conference call to review the Company’s results and provide a business update today, August 11, 2026, at 4:30 p.m. ET. Q2 2026 Financial Highlights: Record Q2 Revenue of $33.9 million, up 29.9% from Q2 2025 Record Q2 Subscription Revenue of $3.2 million, up $2.4 million from Q2 2025 Q2 Gross Margin of 64.4%. Excluding $3.5 million in tariff refund impact, gross margin of 54.0%, up 270 basis points from Q2 2025 Q2 Net Loss of $0.6 million. Excluding $3.75 million in tariff refund impact, net loss of $4.4 million, compared to net loss of $37.4 million in Q2 2025 Record Q2 Adjusted EBITDA (non-GAAP) of $2.9 million excluding $3.75 million in tariff refund impact, compared to $0.5 million in Q2 2025; $6.7 million of Adjusted EBITDA including tariff refund impact "Owlet delivered an exceptional second quarter, with record quarterly revenue, gross profit, and adjusted EBITDA," said Kurt Workman, Owlet’s President, Chief Executive Officer, and Co-Founder. "We are executing across each of our strategic growth areas, and it is showing up in our results – strong topline growth, standout international momentum, and continued Owlet360 subscription platform growth. We believe our biggest opportunity from here is growing subscribers, and that is exactly where the company is focused." "We believe our competitive position has never been stronger," Workman continued. "We have the first and only FDA-cleared baby monitor on the market, and we set another record for market share in the quarter. Owlet has numerous growth levers – winning new families, building the subscription platform with Owlet360, expanding the opportunity in pediatric telehealth, and scaling internationally – all anchored by our unique pediatric dataset." "Our strategy from here is straightforward: firmly position Owlet as a data and services platform through subscription, win approximately one million new customers per year, and keep those families with us for at least two years. Over time, we believe executing that framework points toward a recurring base of more than one million subscribers, and a more durable, higher-value Owlet." Financial Results for the Second Quarter Ended June 30, 2026 Revenue for the second quarter of 2026 was $33.9 million, compared to revenue in the second quarter of 2025 of $26.1 million, an increase of 29.9%. The increase was due to broad-based growth and continued momentum in subscription. Subscription revenue for the second quarter of 2026 was $3.2 million, compared to subscription revenue in the second quarter of 2025 of $0.9 million, an increase of $2.4 million. Cost of revenue for the second quarter of 2026 was $12.0 million with a GAAP gross margin of 64.4%, compared to cost of revenue of $12.7 million with a GAAP gross margin of 51.3% for the second quarter of 2025. Overall gross margin was 54.0%, excluding $3.5 million in tariff refund impacts, increasing approximately 270 basis points year-over-year, primarily reflecting growth in revenue from our Owlet360 subscription service as well as favorable product mix and fixed cost absorption. Subscription gross margin for the second quarter of 2026 was 68.4%. Operating expenses, including stock-based compensation, were $20.1 million for the second quarter of 2026, compared to $15.1 million for the same period in 2025. Operating costs increased year-over-year primarily due to higher marketing spend as Prime Day promotional timing shifted from Q3 into Q2, as well as severance costs, including stock-based compensation. Operating income was $1.7 million for the second quarter of 2026, compared to operating loss of $1.7 million for the second quarter of 2025. Net loss was $0.6 million for the second quarter of 2026, compared to net loss of $37.4 million for the second quarter of 2025. Adjusted EBITDA (non-GAAP) was $6.7 million for the second quarter of 2026, compared to $0.5 million for the second quarter of 2025. Excluding $3.75 million in tariff refund impact, Adjusted EBITDA (non-GAAP) was $2.9 million. Net loss per share was $0.05 for the second quarter of 2026, compared to net loss per share of $2.35 for the second quarter of 2025. Adjusted net income per share (non-GAAP) was $0.20 for the second quarter of 2026, compared to adjusted net loss per share of $0.04 for the same period in 2025. Updated 2026 Financial Outlook Our updated full year 2026 financial outlook below reflects the one-time IEEPA tariff refund recognized in the second quarter of 2026 and a measured view of the second half. Excluding the refund, our underlying expectations for the year are essentially unchanged. Total Revenue is expected to be in the range of $118 to $122 million, unchanged from our previous guidance. Gross Margin is expected to be in the range of 53% to 55%, compared to our previous guidance of 50% to 52%. The increase reflects only the one-time $3.5 million tariff refund benefit to COGS recognized in the second quarter. Adjusted EBITDA is expected to be in the range of $10.75 to $12.75 million, compared to our previous guidance of $7 to $9 million. The increase reflects only the one-time $3.75 million tariff refund benefit to Adjusted EBITDA recognized in the second quarter. The outlook provided above constitutes forward-looking information within the meaning of applicable securities laws and is based on a number of assumptions and subject to a number of risks. See cautionary note regarding "Forward-looking Statements" below. 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 presentation 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, the timing, scope, and potential impact of global regulatory clearances, approvals, certifications and/or classifications, growth prospects, future operational efficiencies or results, the Company’s product, subscription, telehealth and artificial intelligence strategies, initiatives, and development plans, expectations regarding customer acquisition, retention, subscriber base targets, and long-term business model positioning, and changes in senior management. 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 commercial success of Owlet’s products, including its subscription services, and the Company’s ability to support, scale and maintain its subscription services; (ii) 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; (iii) Owlet’s competition and the Company’s ability to profitably grow and manage growth; (iv) Owlet's ability to successfully develop, launch, support and scale new products and services, including subscription, telehealth and artificial intelligence-enabled offerings; (v) the Company’s ability to enhance future operating and financial results or obtain additional financing to continue as a going concern; (vi) Owlet’s ability to obtain additional financing in the future, as well as 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; (vii) the ability of Owlet to implement strategic initiatives, reduce costs, grow revenues, develop and launch new products, innovate and enhance existing products, meet customer demands and adapt to changes in consumer preferences, promotional timing and retail trends; (viii) Owlet’s ability to acquire, defend and protect its intellectual property, transition and manage payment checkout channels, 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; (ix) Owlet’s ability to maintain relationships with customers, manufacturers and suppliers and retain Owlet’s management and key employees; (x) Owlet’s ability to upgrade and maintain its information technology systems; (xi) changes in applicable laws or regulations in the United States and other jurisdictions; (xii) the impact of and disruption to Owlet’s business, financial condition, operations, supply chain and logistics due to economic and other conditions beyond the Company’s control, such as health epidemics or pandemics, macro-economic uncertainties, tariffs, duties, trade restrictions, the timing and outcome of tariff refund requests or administrative decisions, social unrest, hostilities, natural disasters or other catastrophic events; (xiii) the possibility that Owlet may be adversely affected by other economic, business, regulatory, competitive or other factors, such as changes in discretionary consumer spending and consumer preferences; and (xiv) other risks and uncertainties set forth in the Company’s other releases, public statements and filings with the U.S. Securities and Exchange Commission ("SEC"), including those identified in the "Risk Factors" section of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, as updated in the Company’s quarterly reports on Form 10-Q, as any such factors may be updated from time to time in the Company’s other filings with the SEC. All such forward-looking statements attributable to the Company or any person acting on the Company’s behalf are expressly qualified in their entirety by the cautionary statements contained or referred to above. Moreover, the Company operates in an evolving environment. Except as required by law, the Company assumes no obligation to update any forward-looking statements after the date of this press release, whether because of new information, future events or otherwise, although Owlet may do so from time to time. The Company does not endorse any projections regarding future performance that may be made by third parties. Revision of Previously Issued Financial Statements In connection with the preparation of the consolidated financial statements as of and for the three and six months ended June 30, 2026, management identified errors impacting historical interim and annual financial statements, which we determined not to be material, individually or in the aggregate, to any previously issued financial statements. These errors primarily relate to the overstatement of stock-based compensation expense due to valuation miscalculations underlying the employee stock purchase plan. We assessed the materiality of the errors on prior period interim and annual consolidated financial statements in accordance with the Securities and Exchange Commission ("SEC") Staff Accounting Bulletin No. 99, "Materiality," and No. 108, codified in ASC 250, Accounting Changes and Error Corrections ("ASC 250"). Based on this assessment, in consideration of both quantitative and qualitative factors, we determined that the related impacts were not material, individually or in the aggregate, to any previously issued interim or annual financial statements. However, if the corrections were recorded in the three months ended June 30, 2026, they would be material to that period. As such, we will revise the previously issued consolidated financial statements for the three-month period ended March 31, 2026, in addition to quarterly and year-to-date periods for 2025 and for the annual periods ended December 31, 2025 and 2024. In conjunction with the revision, we will also correct certain other errors that were previously identified and disclosed and concluded to be immaterial, individually and in the aggregate, to the Company’s consolidated financial statements as of and for the relevant periods. This press release reflects revised prior period financial information for the periods presented herein to correct for these errors. The additional impacted periods noted above will be revised in our Form 10-Q for the quarterly period ended June 30, 2026, expected to be filed by August 14, 2026. Disclosure Regarding Non-GAAP Financial Measures In addition to the financial measures presented in this release in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"), the Company has included certain non-GAAP financial measures in this release, including adjusted EBITDA, adjusted net income (loss) and adjusted net income (loss) per share. The Company uses such non-GAAP financial measures as internal measures of business operating performance and as performance measures for benchmarking against the Company’s peers and competitors. The Company believes its presentation of adjusted EBITDA, adjusted net income (loss) and adjusted net income (loss) per share provides a meaningful perspective of the underlying operating performance of the Company’s current business and enables investors to better understand and evaluate its historical and prospective operating performance. The Company believes that this non-GAAP financial measure is an important supplemental measure of operating performance because it facilitates period-to-period comparisons of our operating performance by excluding certain items that management believes are not reflective of our core operating performance, highlighting trends in our business that may not otherwise be apparent when relying solely on GAAP financial measures. These non-GAAP financial measures should not be construed as indicative of our future operating results. The Company believes investors, analysts and other interested parties use adjusted EBITDA, adjusted net income (loss) and adjusted net income (loss) per share in evaluating issuers, and the presentation of these measures facilitates a comparative assessment of the Company’s operating performance in addition to the Company’s performance based on GAAP results. The Company’s non-GAAP financial measures should not be considered as an alternative to net income (loss) or net income (loss) per share as a measure of financial performance or any other performance measure derived in accordance with GAAP and should not be construed as an inference that the Company’s future results will be unaffected by unusual or non-recurring items. Adjusted EBITDA is defined as net income (loss) adjusted for income tax provision, interest expense, net, depreciation and amortization, impairment of intangible assets, common stock warrant liability adjustment, stock-based compensation, charges related to certain legal matters, restructuring costs, and loss on debt extinguishment. Adjusted net income (loss) is defined as net income (loss) adjusted for impairment of intangible assets, common stock warrant liability adjustment, stock-based compensation, charges related to certain legal matters, restructuring costs, and loss on debt extinguishment. Adjusted net income (loss) per share is defined as adjusted net income (loss) divided by the basic weighted-average number of shares of common stock outstanding. Adjusted EBITDA, adjusted net income (loss) and adjusted net income (loss) per share are not recognized terms under GAAP, and the Company’s presentation of these non-GAAP measures does not replace the presentation of the Company’s financial results in accordance with GAAP. Because all companies do not use adjusted EBITDA, adjusted net income (loss) and adjusted net income (loss) per share (and similarly titled financial measures) in the same way, those measures as used by other companies may not be consistent with the way the Company calculates such measures. The non-GAAP financial measures included in this release should not be construed as substitutes for or better indicators of the Company’s performance than the most directly comparable GAAP financial measures. See the reconciliation tables that accompany this release for additional information regarding certain of the non-GAAP financial measures included herein. A reconciliation of the Company's guidance contained in this press release with respect to non-GAAP financial measures to the most directly comparable GAAP financial measure cannot be provided without unreasonable efforts and is not provided herein because of the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations, the amounts of which could be material. Conference Call and Webcast Information Owlet will host a conference call and webcast today, August 11, 2026, at 4:30 p.m. ET to discuss these results and provide a business update. Participants may access the call at 833-461-5787 (domestic) or 585-542-9983 (international) and reference Meeting ID 883284960. A simultaneous webcast may be accessed online at the Events section of Owlet’s Investor Relations website at investors.owletcare.com. A replay will be available on the Investor Relations website shortly after the webcast concludes. About Owlet, Inc. Owlet, Inc. (NYSE: OWLT), a leading pediatric health platform, is the only company in the world to offer U.S. FDA-cleared and internationally medically-certified wearable pediatric monitors, delivering hospital-grade technology directly in the home. Our award-winning pediatric products and innovative software combine clinically tested monitoring systems, an integrated video platform, and a simple, easy-to-use app, providing parents with real-time health insights to stay informed on their child’s well-being, support restful sleep, and provide peace of mind anywhere. Since 2012, more than 2.5 million parents have trusted Owlet to monitor their children's well-being and sleep. This adoption has fueled one of the largest collections of pediatric health and sleep data in the world, powering innovations that bridge the critical gap between hospital and home. Owlet is driving a new standard in pediatric wellness by pairing advanced medical technology with consumer-friendly design. Our mission is simple yet ambitious: to give every baby and every family the best possible start in life. Learn more at www.owletcare.com and follow us on LinkedIn and Instagram for company news and updates. View source version on businesswire.com: https://www.businesswire.com/news/home/20260811059604/en/ Contacts Owlet Media Contacts: [email protected] [email protected] Owlet Investor Contact: [email protected]

Arrow Electronics (ARW) came out with quarterly earnings of $5.45 per share, beating the Zacks Consensus Estimate of $4.45 per share. This compares to earnings of $2.43 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +22.47%. A quarter ago, it was expected that this electronics maker would post earnings of $2.81 per share when it actually produced earnings of $5.22, delivering a surprise of +85.77%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Arrow Electronics, which belongs to the Zacks Electronics - Parts Distribution industry, posted revenues of $9.99 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 5.74%. This compares to year-ago revenues of $7.58 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Arrow Electronics shares have added about 105.9% since the beginning of the year versus the S&P 500's gain of 12.8%. While Arrow Electronics has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Arrow Electronics was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $3.94 on $8.76 billion in revenues for the coming quarter and $19.15 on $37.06 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Electronics - Parts Distribution is currently in the top 4% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the broader Zacks Computer and Technology sector, Owlet, Inc. (OWLT), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 11. This company is expected to post quarterly earnings of $0.05 per share in its upcoming report, which represents a year-over-year change of +200%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Owlet, Inc.'s revenues are expected to be $31.3 million, up 19.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Arrow Electronics, Inc. (ARW) : Free Stock Analysis Report Owlet, Inc. (OWLT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Hayward Holdings, Inc. (HAYW) came out with quarterly earnings of $0.26 per share, beating the Zacks Consensus Estimate of $0.24 per share. This compares to earnings of $0.24 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +8.33%. A quarter ago, it was expected that this company would post earnings of $0.11 per share when it actually produced earnings of $0.13, delivering a surprise of +18.18%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Hayward Holdings, which belongs to the Zacks Electronics - Miscellaneous Products industry, posted revenues of $318.38 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.88%. This compares to year-ago revenues of $299.6 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Hayward Holdings shares have lost about 2.2% since the beginning of the year versus the S&P 500's gain of 8.5%. While Hayward Holdings has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Hayward Holdings was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.16 on $255 million in revenues for the coming quarter and $0.85 on $1.18 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Electronics - Miscellaneous Products is currently in the top 23% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Owlet, Inc. (OWLT), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 11. This company is expected to post quarterly earnings of $0.05 per share in its upcoming report, which represents a year-over-year change of +200%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Owlet, Inc.'s revenues are expected to be $30.5 million, up 16.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Hayward Holdings, Inc. (HAYW) : Free Stock Analysis Report Owlet, Inc. (OWLT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Owlet, Inc.? Here are five stocks we like better. Owlet beat first-quarter revenue expectations with $22.5 million in sales, but it also cut its full-year revenue outlook to $118 million to $122 million as it exits lower-margin non-core channels and delays some international expansion. The company raised its full-year adjusted EBITDA forecast to $7 million to $9 million from $3 million to $5 million, signaling a shift toward higher profitability and tighter operating discipline despite slower top-line growth. Owlet is leaning harder into a subscription-first strategy, with more than 115,000 paying subscribers, record subscription revenue of $2.7 million in Q1, and plans to expand Owlet360, camera add-ons, and telehealth offerings like OnCall. Owlet Stock Giving a Bargain Opportunity Owlet (NYSE:OWLT) reported first-quarter 2026 revenue above its own guidance while lowering its full-year sales outlook and raising its profitability forecast, as the baby monitoring and pediatric health technology company said it is narrowing its focus to subscriptions, core markets and operational efficiency. President, CEO and Co-founder Kurt Workman, who returned to the CEO role in April, opened the call by acknowledging the company’s leadership transition and thanking former CEO Jonathan Harris for his role in guiding Owlet after FDA clearances. Workman said Owlet is entering “this next phase of scale and development in pediatric health” with a sharper focus on execution and higher-value opportunities. → Rocket Lab Just Hit a New All-Time High—Time to Buy or Let It Breathe? Workman outlined three priorities for the company: expanding the Owlet360 subscription and telehealth opportunity, increasing penetration in existing core markets and improving financial discipline. Owlet lowered its full-year 2026 revenue guidance to $118 million to $122 million, representing 12% to 15% year-over-year growth. The company had previously expected revenue of $126 million to $130 million. → MP Materials Is Quietly Building a Rare Earth Powerhouse Workman said the revised outlook reflects a decision to exit “lower-margin, high-burden revenue streams in non-core geographies and new channels,” along with a more conservative view of sell-through for the rest of the year. As part of that shift, Owlet has deferred planned entries into India, Hong Kong and Singapore for the current year and redirected investment toward existing markets with higher near-term return potential. At the same time, Owlet raised its full-year adjusted EBITDA forecast to $7 million to $9 million, up from prior guidance of $3 million to $5 million. Workman described the lower revenue outlook and higher profitability target as “a purposeful trade-off designed to improve operating leverage and profitability.” → Micron Investors Face a High-Stakes Moment After the Latest Rally CFO Amanda Twede Crawford said Owlet expects full-year gross margin of 50% to 52%. She also said the company is now estimating a 15% tariff rate as its baseline for the rest of the year, down from earlier rates attributed to Thailand and Vietnam, while noting that the trade environment remains dynamic. For the first quarter ended March 31, 2026, Owlet reported total revenue of $22.5 million, up 6.4% from the prior year and above its guidance range of $20 million to $21 million. Twede Crawford said Q1 results were affected by a one-time inventory “right sizing” at a large retail partner, which reduced weeks of supply from 8 to 10 weeks to 4 to 6 weeks. She said the action negatively affected sell-in revenue during what is typically Owlet’s lowest seasonal revenue quarter. Overall gross margin was 54.5%, above Owlet’s guidance range of 50% to 52% and up 80 basis points from the prior year, despite a 480-basis-point impact from tariffs. Twede Crawford said the margin performance was helped by a greater mix of subscription revenue and favorable product mix between Sock and Cam products. Operating expenses rose to $17.7 million from $14 million a year earlier, driven primarily by higher compensation costs, including stock-based compensation. Operating loss was $5.5 million, compared with $2.7 million in the prior-year period. Net loss was $3.3 million, and adjusted EBITDA was negative $1.5 million, at the high end of the company’s guidance range. Owlet ended the quarter with $35.5 million in cash and cash equivalents, excluding restricted cash, and total liquidity of $39.4 million, including $3.9 million of undrawn line-of-credit availability. Workman said Owlet is increasingly operating with a “subscription-first approach,” with its product roadmap, marketing and channel partnerships aligned around increasing subscription penetration. The company said it now has more than 115,000 paying subscribers and ended Q1 with $1 million in monthly recurring revenue. Subscription revenue reached a record $2.7 million in Q1, with subscription gross margin of 67.4%. Owlet360 achieved a 34% penetration rate among U.S. Dream Sock users during the quarter. Workman said Owlet’s goal is to extend its relationship with families beyond a single hardware purchase, potentially covering the first two years of a child’s life and multiple children in a family. He said the average family grows to just over two children, creating what Owlet views as a possible four-year subscription window. The company’s subscription priorities for the year include adding new Dream Sock features and AI integrations, launching camera subscription features for Dream Sight users and expanding subscription access outside the United States. Owlet recently launched extended camera clips for Dream Sight, including AI-assisted event detection and subscriber benefits such as a 14-day cloud archive and longer 60-second recordings. Workman said Owlet also plans to launch built-in white noise as a Dream Sight subscription feature in the coming weeks. In the U.S., Workman said Q1 domestic sell-through units for Sock and Duo grew 10.5% year over year, led by a 45% increase in Duo and a 3% increase in Dream Sock. He said Owlet was the only brand in its category to grow during a period of broader decline, with the baby monitoring category down 19% in dollars excluding Owlet, while Owlet dollars grew 11%. Workman said Q1 had low promotional activity following the holidays and that some customers may be delaying purchases ahead of events such as Mother’s Day and Prime Day. He said Q2 quarter-to-date sell-through had increased to more than 30% for both Duo and Dream Sock versus the prior year, though the company has not incorporated that performance into its full-year outlook. Owlet reported strong brand metrics, including a Dream Sock Net Promoter Score of 77% and a blended product NPS of 71% at the end of Q1. Workman also said customer service contact volumes for the Dream Sight camera have declined 74% compared with Owlet’s second-generation camera. International revenue grew 22% year over year in Q1, while international sell-through grew 37%. Workman pointed to the Czech Republic, where he said nearly 9% of babies born are using an Owlet, and said markets including the U.K., Germany, France and Australia are following a similar market penetration trajectory to the U.S. Owlet OnCall, the company’s telehealth offering, is now live in the app for select participants, Workman said. The feature allows parents to communicate directly with a pediatrician inside the Owlet app. He said the company will expand access gradually while testing and learning, and expects the initiative to inform future platform expansion and revenue opportunities. During the Q&A session, Workman said monetization of OnCall this year will focus on testing and improving the customer experience rather than near-term revenue contribution. He said Owlet expects OnCall to become a “meaningful contributor in future years.” Asked about subscription retention, Workman said churn has improved sequentially since launch and is in a “monthly single-digit range.” He said Owlet’s product roadmap is designed to support multi-year engagement, including telehealth and new camera features. Workman also said BabySat revenue grew nearly 100% year over year in Q1, though it remains a small part of the business. He said hospital partnerships are progressing but take time to develop, and Owlet will provide more detail when the business reaches a scale more relevant to earnings calls. Owlet Baby Care, Inc is a consumer health technology company specializing in the design and manufacture of smart baby monitoring products. The company’s flagship device, the Owlet Smart Sock, is a wearable monitor that tracks a newborn’s heart rate and oxygen saturation levels and transmits real-time data to a mobile app. Owlet has since expanded its product suite to include the Owlet Cam, an HD video monitor with audio and motion alerts, and the Dream Sock, a non-wearable device that collects sleep metrics to help parents understand and improve their baby’s rest patterns. Founded in 2013 by engineer and father Kurt Workman, Owlet is headquartered in Lehi, Utah. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Owlet Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.