Owlet Q1 revenue rises 6%, lowers 2026 outlook

Owlet

07/05/2026 22:21

Overview

Smart infant monitoring firm's Q1 revenue grew 6% yr/yr, beating analyst expectations

Adjusted EPS and adjusted EBITDA for Q1 beat analyst expectations

Company lowered 2026 revenue outlook but raised adjusted EBITDA guidance

Outlook

Owlet now expects 2026 revenue of $118 mln to $122 mln, down from prior $126 mln to $130 mln

Company raises 2026 adjusted EBITDA outlook to $7 mln to $9 mln from prior $3 mln to $5 mln

Owlet sees 2026 gross margin at 50% to 52%, slightly above prior lower-end guidance of 49%

Result Drivers

SUBSCRIPTION GROWTH - Increased demand for Owlet360 service drove revenue growth and record subscription revenue, with over 115,000 paying subscribers

GROSS MARGIN IMPROVEMENT - Gross margin rose 80 basis points yr/yr, helped by favorable product mix, lower direct and fulfillment costs, and subscription revenue growth, offsetting tariff impacts

HIGHER OPERATING EXPENSES - Operating costs rose due to increased headcount-related expenses, including stock-based compensation, salaries, and benefits

Company press release: ID:nBw4ntPRga

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$22.50 mln
$20.84 mln (5 Analysts)
Q1 Adjusted EPS
Beat
-$0.09
-$0.19 (3 Analysts)
Q1 EPS
-$0.15
Q1 Adjusted EBITDA
Beat
-$1.50 mln
-$2.04 mln (4 Analysts)
Q1 Gross Margin
54.50%
Q1 Operating Expenses
$17.70 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the advanced medical equipment & technology peer group is "buy"

Wall Street's median 12-month price target for Owlet Inc is $14.50, about 178.8% above its May 6 closing price of $5.20

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)