Owlet Q2 revenue beats analyst estimates on subscription growth

Owlet

11/08/2026 21:17

Overview
Smart infant monitoring firm's Q2 revenue rose 29.9%, beating analyst expectations
Adjusted EPS and adjusted EBITDA for Q2 both beat analyst expectations
Company attributed results to broad-based growth and expansion of subscription platform

Outlook
Owlet sees 2026 revenue between $118 mln and $122 mln, unchanged from prior guidance
Company raises 2026 gross margin outlook to 53%-55% from 50%-52%, citing one-time tariff refund
Owlet lifts 2026 adjusted EBITDA forecast to $10.75 mln-$12.75 mln on one-time refund benefit

Result Drivers
SUBSCRIPTION GROWTH - Co said increased revenue from Owlet360 subscription service was a key driver of higher gross margin and overall revenue
INTERNATIONAL MOMENTUM - Co cited standout international momentum as a contributor to topline growth
FAVORABLE PRODUCT MIX - Co said improved gross margin was partly due to favorable product mix and fixed cost absorption

Company press release: ID:nBwy0kZRa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$33.90 mln
$31.71 mln (5 Analysts)
Q2 Adjusted EPS
Beat
$0.20
-$0.05 (3 Analysts)
Q2 Loss Per Share
 
$0.05
 
Q2 Adjusted EBITDA (Excluding Tariff Refund)
Beat
$2.90 mln
$2.15 mln (4 Analysts)
Q2 Gross Margin
 
64.40%
 
Q2 Operating Expenses
 
$20.10 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 $13.50, about 149.1% above its August 10 closing price of $5.42

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)