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Owlet
(NYSE:OWLT)
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Rating:52Neutral
Price Target:
$6.50
▲(23.81% Upside)
Action:Reiterated
Date:08/17/26
The score is held back primarily by ongoing losses and continued cash burn despite improving revenue and margins, with the balance sheet improving but not yet translating into self-funding operations. Technicals add support via positive momentum, while valuation remains challenged due to negative earnings and no dividend. The earnings call was constructive on guidance and liquidity, but much of the profitability uplift was tied to a one-time tariff refund alongside cautious near-term demand and competitive pressures.
Positive Factors
Revenue Growth and Margin Expansion
Owlet is demonstrating improving product economics alongside renewed top-line growth. Higher gross margins can support progress toward breakeven, while strong quarterly revenue growth indicates continued adoption of its infant-monitoring portfolio.
Negative Factors
Persistent Losses and Negative Cash Flow
Despite narrower losses, Owlet still consumes cash and has not reached sustainable profitability. Continued operating and capital needs could require additional financing if improvement stalls, limiting flexibility and making execution toward breakeven critical.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth and Margin Expansion
Owlet is demonstrating improving product economics alongside renewed top-line growth. Higher gross margins can support progress toward breakeven, while strong quarterly revenue growth indicates continued adoption of its infant-monitoring portfolio.
Read all positive factors
Owlet (OWLT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$193.57M
Dividend YieldN/A
Average Volume (3M)197.70K
Price to Earnings (P/E)―
Beta (1Y)2.00
Revenue Growth27.98%
EPS Growth87.35%
CountryUS
Employees111
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)-0.43
Shares Outstanding29,063,953
10 Day Avg. Volume140,903
30 Day Avg. Volume197,697
Financial Highlights & Ratios
PEG Ratio-0.16
Price to Book (P/B)8.53
Price to Sales (P/S)2.86
P/FCF Ratio-27.30
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$12.33Price Target Upside134.92% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)-0.37
Revenue Forecast (FY)$119.87M
Owlet Business Overview & Revenue Model
Company Description
Owlet, Inc. is a U.S.-based company that provides a digital platform specifically designed to support parents. Its primary objective is to equip families with immediate, valuable data and insights concerning their children. The company's product p...
How the Company Makes Money
Owlet primarily makes money by selling physical consumer products directly to end customers and through retail/channel partners. Its core revenue stream is product revenue from connected infant-monitoring hardware (e.g., smart wearables and relate...
Owlet Earnings Call Summary
Earnings Call Date:Aug 11, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 16, 2026
Earnings Call Sentiment Positive
The call highlighted strong underlying business momentum: record revenue, robust subscription and international growth, expanding margins (partly from a one-time tariff refund), product and subscription monetization advances, and improved capital structure. Offsetting these positives were near-term headwinds from aggressive competitor discounting around Prime Day and uncertainty about post-Amazon enforcement behavior, elevated operating expenses, an operating loss when excluding the one-time refund, and the gradual nature of margin improvement from Web Pay. Management reaffirmed full-year revenue guidance while raising margin and adjusted EBITDA outlooks driven by the one-time refund and emphasized a cautious, measured view of the second half.Positive Updates
Improved Capital Structure and Liquidity
Entered new $25 million asset-based revolving credit facility lowering interest margin to SOFR + 2%–2.25% (from SOFR + 7.5%–8.5%), reducing cost of capital by at least 525 basis points. Cash and equivalents were $30.9 million with total available liquidity ~ $38.5 million including $7.5 million availability on the new facility.
Negative Updates
Prime Day and Competitor Discounting Impact
Aggressive competitor discounting ahead of Amazon's August 10 enforcement led to Owlet units sold during Prime Day down 8% versus last year's event and contributed to missing some unit expectations during that promotional period.
Read all updates
Q2-2026 Updates
Positive
Negative
Improved Capital Structure and Liquidity
Entered new $25 million asset-based revolving credit facility lowering interest margin to SOFR + 2%–2.25% (from SOFR + 7.5%–8.5%), reducing cost of capital by at least 525 basis points. Cash and equivalents were $30.9 million with total available liquidity ~ $38.5 million including $7.5 million availability on the new facility.
Read all positive updates
Company Guidance
Owlet reaffirmed full‑year 2026 revenue of $118.0M–$122.0M while warning Q3 is expected to decline both sequentially and year‑over‑year and Q4 guidance is being maintained given promotional uncertainty; full‑year gross margin was raised to 53%–55% (from 50%–52%) reflecting a one‑time $3.5M COGS benefit from an ~ $4M tariff refund (total refund ~ $4M, $3.75M recognized to adjusted EBITDA in Q2), and adjusted EBITDA guidance was increased to $10.75M–$12.75M (from $7M–$9M) driven solely by that $3.75M refund — the company says underlying expectations excluding the refund are essentially unchanged and it is not forecasting additional refunds or repayment risk. Management cited competitive discounting (notably around Prime Day) and broader macro caution as reasons to “absorb near‑term pressure within our existing range,” said Q2 adjusted EBITDA excluding the refund was $2.9M and Q2 subscription/MRR tailwinds were included in modeling, and noted they baked current subscriber trends into the guide without disclosing a year‑end subscriber target. Balance sheet and liquidity assumptions: cash of $30.9M (6/30/26) plus $7.5M available under a new $25M Wells Fargo ABL (total available liquidity ≈ $38.5M) and a lower borrowing spread of SOFR +2.0%–2.25% (vs prior SOFR +7.5%–8.5%), which management expects will meaningfully reduce interest expense.Owlet Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
62
Positive
Cash Flow
38
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 114.90M | 105.71M | 78.06M | 54.01M | 69.20M | 75.84M |
| Gross Profit | 62.87M | 53.53M | 39.31M | 22.59M | 23.31M | 35.06M |
| EBITDA | -5.67M | -35.64M | -9.47M | -27.49M | -75.53M | -42.71M |
| Net Income | -8.99M | -39.68M | -12.54M | -32.90M | -79.34M | -71.70M |
Balance Sheet | ||||||
| Total Assets | 93.60M | 85.60M | 49.52M | 44.12M | 58.10M | 140.05M |
| Cash, Cash Equivalents and Short-Term Investments | 30.90M | 35.50M | 20.25M | 16.56M | 11.23M | 95.05M |
| Total Debt | 3.60M | 13.03M | 11.87M | 16.39M | 18.30M | 16.53M |
| Total Liabilities | 54.70M | 50.20M | 70.66M | 73.80M | 68.74M | 84.86M |
| Stockholders Equity | 38.90M | 35.40M | -21.15M | -29.68M | -10.63M | 55.19M |
Cash Flow | ||||||
| Free Cash Flow | -9.46M | -11.06M | -11.97M | -23.59M | -82.94M | -42.58M |
| Operating Cash Flow | -7.76M | -10.80M | -11.21M | -23.53M | -81.38M | -40.56M |
| Investing Cash Flow | -2.10M | -943.00K | -761.00K | -59.00K | -1.56M | -2.02M |
| Financing Cash Flow | 24.28M | 32.10M | 16.04M | 28.91M | -878.00K | 120.62M |
Owlet Technical Analysis
Neutral
5.25
Price Trends
5.46
Positive
5.40
Positive
8.52
Negative
Market Momentum
0.15
Negative
53.38
Neutral
60.94
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OWLT, the sentiment is Neutral. The current price of 5.25 is below the 20-day moving average (MA) of 5.52, below the 50-day MA of 5.46, and below the 200-day MA of 8.52, indicating a neutral trend. The MACD of 0.15 indicates Negative momentum. The RSI at 53.38 is Neutral, neither overbought nor oversold. The STOCH value of 60.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for OWLT.
Owlet Risk Analysis
Owlet disclosed 73 risk factors in its most recent earnings report. Owlet reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Owlet Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | $100.74M | 6.37 | 9999.00% | ― | 3.26% | ― | |
58 Neutral | $448.42M | -14.76 | -50.64% | ― | 9.27% | 41.98% | |
52 Neutral | $193.57M | -14.21 | -50.27% | ― | 27.98% | 87.35% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | $103.93M | -1.94 | -96.66% | ― | -3.43% | 19.16% | |
49 Neutral | $94.69M | -2.34 | -100.30% | ― | 53.16% | 27.17% | |
45 Neutral | $84.27M | -1.40 | -177.04% | ― | 16.13% | -11.56% |
* Healthcare Sector Average
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Owlet Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Owlet Stockholders Approve 2026 Governance and Incentive Plans
Positive
Aug 14, 2026
On August 12, 2026, Owlet, Inc. held its 2026 annual meeting of stockholders, with voting power drawn from its Class A common stock and Series A and B preferred shares as of the June 15, 2026 record date. Stockholders elected two Class II director...
Business Operations and StrategyPrivate Placements and Financing
Owlet Secures New Revolving Credit Facility to Expand
Positive
Jul 1, 2026
On June 26, 2026, Owlet, Inc. and its subsidiary Owlet Baby Care, Inc. entered into a new asset-based revolving credit facility with Wells Fargo Bank, replacing an existing line of credit and term loan. The facility provides up to $25 million in b...
Regulatory Filings and ComplianceShareholder Meetings
Owlet Reschedules 2026 Virtual Annual Stockholders Meeting
Neutral
Jun 5, 2026
On June 2, 2026, Owlet, Inc.’s board of directors postponed the company’s 2026 annual meeting of stockholders, moving it from July 10, 2026 to August 12, 2026 at 1:00 p.m. Eastern Time, to be held via remote communication. The board al...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.