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what it is
Owlet sells baby monitors and wearables that let parents track a baby's sleep and vital signs from home.
how it gets paid
Last year Owlet made $106M in revenue.
why it's growing
Revenue grew 35.4% last year. Revenue jumped hard, and gross margin came in at 51.7%.
what just happened
Owlet posted $79M in quarterly revenue, up 147% vs. prior year.
At a glance
C++ balance sheet — some cracks in the foundation
-$2.16 fy2025 eps est
$6M fy2024 rev est
7.8% operating margin
1.5 beta
xvary composite: 38/100 — weak
What they do
Owlet sells baby monitors and wearables that let parents track a baby's sleep and vital signs from home.
Since 2012, over 2 million parents have used Owlet's platform. That is 2 million families tied to one app, one alert system, and one camera feed. If your baby monitor becomes your night shift, leaving is painful.
How they make money
$106M
annual revenue · their business grew +35.4% last year
total revenue
$106M
+35.4%
The products that matter
FDA-cleared baby wearable
Dream Sock
$299 list price
it tracks infant heart rate and oxygen levels. the clearance is the key detail because it separates this from a generic nursery gadget and gives retailers something easier to stand behind.
FDA-cleared
sock + camera bundle
Dream Duo (Gen 3)
$300+ bundle
it pairs the sock with a 2K HD camera and pushes up average order value. in human-speak: one family purchase gets meaningfully bigger when Owlet sells peace of mind as a package.
higher basket
recurring monitoring revenue
Subscriptions & services
~$21M revenue
this is the part investors want to see scale because recurring revenue is stickier than one-time hardware. right now it is still the smaller piece by a wide margin, which is why the stock trades like a small hardware story with compliance risk attached.
~20% of sales
Key numbers
-$2.16
fy2025 eps est
$6M
fy2024 rev est
51.7%
gross margin
Gross profit kept about 51.7% of each revenue dollar.
n/a
dividend yield
Financial health
C++
strength
- balance sheet grade C++ — below average — limited financial resources
- risk rank 5 — safer than 5% of stocks
- price stability 5 / 100
- long-term debt $2M (2% of capital)
C++ — below average. watch for debt servicing and cash burn.
Total return vs. market
Return history isn't available for OWLT right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Owlet posted $79M in quarterly revenue, up 147% vs. prior year.
Revenue jumped hard, and gross margin came in at 51.7%. That leaves the company with more breathing room, but not profit.
$27M
revenue
-$2.03
eps
51.7%
gross margin
the number that mattered
$79M mattered because it was 147% above last year and still came with a loss. The business is growing fast, but the red ink is still there.
source: company earnings report, 2026
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What could go wrong
Owlet's risk stack is unusually concentrated: the same FDA-cleared product that gives the story credibility also concentrates the legal, regulatory, and execution downside in one place.
high
FDA and legal overhang
Owlet already operates in a category where product language matters almost as much as product design. more FDA friction or added lawsuit costs could slow launches, raise compliance expense, or make retail partners more cautious.
the same FDA clearance that helps Dream Sock sell is also where the downside clusters.
high
profitability still has not arrived
Q4 still showed a $4.9M operating loss, and analysts still expect fy2025 EPS of -$2.16. 50.6% gross margin sounds healthy until operating expenses take their turn.
if revenue growth slows, the path from decent gross margin to actual earnings gets much harder to believe.
med
guidance credibility
Q1 2026 guidance of $20M–$21M came in about 20% below the $26.2M consensus. once management misses the street by that much, investors start discounting the full-year guide too.
the $126M–$130M 2026 target matters less if the first quarter starts from a weaker base.
med
product and channel concentration
Dream Sock and Dream Duo are the names that matter, and retailers like Best Buy, Target, and Walmart shape how far those products travel. this is not a business with ten independent growth engines.
a stumble in one flagship line can hit a large share of the $106M revenue base.
all four risks hit the same equation: Owlet needs to turn a $106M revenue base and roughly 50% gross margin into durable earnings while staying on the right side of regulators and retailers. if one piece slips, the whole multiple resets fast.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
Q1 2026 earnings report
scheduled for May 14, 2026. the simple test: did revenue land closer to $20M or closer to the $26.2M the street had modeled before guidance reset the story.
full-year guide
2026 revenue target
management is guiding to $126M–$130M. if that starts moving down after one soft quarter, your rerating case weakens quickly.
margin
gross margin near 47.6%–50.6%
fy2025 gross margin was 50.6% and Q4 printed 47.6%. you want that range holding while scale improves, not sliding lower to buy revenue.
regulatory
FDA and lawsuit updates
this part of the story can move sentiment without changing demand. when a product promise depends on medical language, regulatory headlines hit valuation faster than most consumer brands.
Analyst rankings
coverage depth
thin
there is not enough broad sell-side coverage here to give you consensus comfort. thin coverage is part of the stock's risk, not a footnote.
earnings visibility
low
in human-speak, analysts do not have much room for error when one quarter can reset the whole year.
volatility profile
high
a 1.5 beta and 5 / 100 price stability tell you this trades like a story stock, not a sleep-well-at-night holding.
source: institutional data
Institutional activity
institutional ownership data for OWLT is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$6
current price
n/a
target midpoint · n/a from current
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