Revenue accelerated 29.9% YoY to $33.8M in Q2 2026 with gross margin expanding to 64.6%, yet net income remained negative at -$2.2M, indicating operating leverage is emerging but GAAP profitability is still elusive.
Owlet, Inc. (OWLT) annual income statement — 7-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 |
|---|
| Sales/Revenue | 114.9M | 105.71M | 78.06M | 54.01M | 69.2M | 75.84M | 75.4M | 49.8M |
| Revenue Growth % | 27.96% | 35.43% | 44.52% | -21.95% | -8.76% | 0.58% | 51.41% | - |
| Cost of Goods Sold | 52.03M | 52.17M | 38.75M | 31.42M | 45.89M | 40.78M | 39.53M | 26.9M |
| COGS % of Revenue | - | 49.36% | 49.64% | 58.18% | 66.31% | 53.77% | 52.42% | 54.01% |
| Gross Profit | 62.87M | 53.53M | 39.31M | 22.59M | 23.31M | 35.06M | 35.88M | 22.9M |
| Gross Margin % | 54.72% | 50.64% | 50.36% | 41.82% | 33.69% | 46.23% | 47.58% | 45.99% |
| Gross Profit Growth % | - | 36.19% | 74.03% | -3.11% | -33.5% | -2.28% | 56.64% | - |
| Operating Expenses | 70.33M | 61.79M | 59.53M | 51.22M | 107.93M | 90.85M | 42.87M | 39.95M |
| OpEx % of Revenue | - | 58.46% | 76.26% | 94.83% | 155.97% | 119.79% | 56.85% | 80.23% |
| Selling, General & Admin | 54.45M | 47.72M | 49.73M | 40.87M | 80.04M | 69.42M | 32.4M | 28.49M |
| SG&A % of Revenue | - | 45.14% | 63.71% | 75.67% | 115.66% | 91.54% | 42.97% | 57.21% |
| Research & Development | 15.98M | 14.08M | 9.8M | 10.35M | 27.9M | 21.43M | 10.46M | 10.61M |
| R&D % of Revenue | - | 13.32% | 12.56% | 19.16% | 40.31% | 28.25% | 13.88% | 21.31% |
| Other Operating Expenses | -100K | 0 | 0 | 0 | 0 | 0 | 0 | 850K |
| Operating Income | -7.41M | -8.26M | -20.22M | -28.63M | -84.62M | -55.79M | -6.99M | -17.05M |
| Operating Margin % | -6.45% | -7.81% | -25.9% | -53.01% | -122.28% | -73.56% | -9.27% | -34.24% |
| Operating Income Growth % | - | 59.14% | 29.38% | 66.16% | -51.67% | -698.05% | 59% | - |
| EBITDA | -8.51M | -7.67M | -18.84M | -26.42M | -81.95M | -54.66M | -6.12M | -16.51M |
| EBITDA Margin % | -7.4% | -7.26% | -24.14% | -48.92% | -118.42% | -72.07% | -8.11% | -33.14% |
| EBITDA Growth % | 46.81% | 59.28% | 28.7% | 67.76% | -49.93% | -793.41% | 62.93% | - |
| D&A (Non-Cash Add-back) | 505K | 590K | 1.38M | 2.21M | 2.67M | 1.13M | 873K | 544K |
| EBIT | -6.17M | -36.23M | -10.85M | -29.7M | -78.2M | -43.84M | -9.12M | -17.05M |
| Net Interest Income | -2.83M | -3.42M | -1.63M | -3.19M | -1.1M | -27.83M | -1.38M | 694K |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 694K |
| Interest Expense | 2.83M | 3.42M | 1.63M | 3.19M | 1.1M | 27.83M | 1.38M | 0 |
| Other Income/Expense | -1.59M | -31.39M | 7.74M | -4.26M | 5.31M | -15.88M | -3.51M | -801K |
| Pretax Income | -9M | -39.65M | -12.48M | -32.89M | -79.31M | -71.67M | -10.5M | -17.85M |
| Pretax Margin % | -7.83% | -37.51% | -15.99% | -60.9% | -114.6% | -94.5% | -13.93% | -35.84% |
| Income Tax | -10K | 28K | 54K | 10K | 29K | 31K | 20K | 0 |
| Effective Tax Rate % | 0.11% | -0.07% | -0.43% | -0.03% | -0.04% | -0.04% | -0.19% | 0% |
| Net Income | -8.99M | -39.68M | -12.54M | -32.9M | -79.34M | -71.7M | -10.52M | -17.85M |
| Net Margin % | -7.83% | -37.54% | -16.06% | -60.92% | -114.64% | -94.54% | -13.95% | -35.84% |
| Net Income Growth % | 81.76% | -216.51% | 61.9% | 58.53% | -10.64% | -581.53% | 41.06% | - |
| Net Income (Continuing) | -8.99M | -39.68M | -12.54M | -32.9M | -79.34M | -71.7M | -10.52M | -17.85M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.32 | -2.24 | -1.55 | -4.53 | -9.98 | -15.88 | -5.12 | -23.36 |
| EPS Growth % | 86.55% | -44.52% | 65.78% | 54.61% | 37.15% | -210.16% | 78.08% | - |
| EPS (Basic) | - | -2.24 | -1.55 | -4.53 | -9.98 | -15.88 | -5.12 | -23.36 |
| Diluted Shares Outstanding | 28.51M | 18.66M | 11.12M | 8.28M | 7.95M | 4.52M | 2.05M | 764.22K |
| Basic Shares Outstanding | 28.51M | 18.66M | 11.12M | 8.28M | 7.95M | 4.52M | 2.05M | 764.22K |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying OWLT stock.
For fiscal year 2025, Owlet, Inc. (OWLT) reported total revenue of $105.7M. This represents a 112.3% increase compared to $49.8M in 2019.
Owlet, Inc. (OWLT) reported a net loss of $39.7M for the fiscal year ending 2025.
Owlet, Inc. (OWLT) reported an operating income of $-8.3M, resulting in an operating profit margin of -7.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Owlet, Inc. (OWLT) generated $53.5M in gross profit for the year, representing a gross profit margin of 50.6%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Cash burn and dilution risk
Metrics are mathematically derived from official filings.
Revenue Inflection on Medical Transition
Revenue surged 29.9% year-over-year to $33.8M in Q2 2026, the highest quarterly level in the dataset, according to the latest income statement data, suggesting the FDA-cleared Dream Sock is gaining traction.
The 29.9% growth in Q2 2026 marks an acceleration from the 6.4% growth in Q1 2026 and the 25.9% in Q2 2025, indicating a re-acceleration after a temporary slowdown. The sequential jump from $22.5M to $33.8M (50.2% quarter-over-quarter) is particularly notable, likely driven by the medical device positioning and international expansion. However, the sustainability of this growth depends on whether it reflects one-time channel fill or durable demand, especially given the baby product's inherently limited lifecycle.
Gross Margin Expansion Signals Pricing Power
Gross margin reached 64.6% in Q2 2026, up from 51.3% a year earlier, as reported in the income statement, indicating improved product mix and pricing power from the medical-grade Dream Sock.
The 13.3 percentage point year-over-year gross margin expansion is a significant positive, suggesting the company is successfully shifting toward higher-margin FDA-cleared products and possibly benefiting from lower component costs or better manufacturing efficiency. This margin level now approaches the 59-62% range of peers like Sleep Number and Masimo, though it remains below IRadimed's 76.7%. The key question is whether this margin is sustainable as the company scales and faces potential competitive pricing pressure from Masimo's Stork.
Operating Leverage Emerges in Q2 2026
Operating income turned positive at $1.7M in Q2 2026, a swing from -$5.4M in Q1 2026, according to the income statement, demonstrating that revenue growth is finally outpacing fixed cost growth.
The operating margin of 5.1% in Q2 2026 is the first positive reading in the dataset, and it came despite a 29.9% revenue increase, indicating that SG&A and R&D costs did not grow proportionally. SG&A as a percentage of revenue dropped to 45.6% from 61.3% in Q1 2026, while R&D remained relatively stable at 13.3% of revenue. This suggests the company is achieving operating leverage as it scales, but the sustainability is uncertain given the historical volatility in quarterly operating margins, which have ranged from -39.0% to +5.1%.
GAAP Losses Mask Underlying Profitability
Despite positive operating income of $1.7M in Q2 2026, net income was -$2.2M, with a diluted EPS of $0.84, according to the income statement, suggesting non-operating items are absorbing operating gains.
The divergence between operating income and net income in Q2 2026 points to significant non-operating expenses, likely including interest expense, taxes, or other charges. The negative net margin of -6.4% contrasts sharply with the positive operating margin, indicating that the company's capital structure or one-time items are weighing on the bottom line. Additionally, the reported diluted EPS of $0.84 is inconsistent with the net loss, suggesting a complex share count or preferred stock treatment that warrants further investigation. Investors should monitor the quality of earnings, especially given the prior quarter's net loss of -$37.6M, which may have included a non-cash impairment or similar charge.
SG&A Efficiency Drives Margin Improvement
SG&A expense as a percentage of revenue fell to 45.6% in Q2 2026 from 61.3% in Q1 2026, based on the income statement, indicating improved cost discipline despite ongoing investment in growth.
The absolute SG&A of $15.4M in Q2 2026 is only slightly higher than the $13.8M in Q1 2026, despite a 50% revenue increase, demonstrating that the company is leveraging its fixed cost base. R&D spending also increased modestly to $4.5M, reflecting continued investment in product development, but as a percentage of revenue it declined to 13.3% from 17.8%. This cost structure suggests that the company is approaching a scalable model, but the sustainability of this discipline is unproven, especially if the company needs to increase marketing spend to sustain growth.
Q2 2026 Marks Operational Turning Point
Q2 2026 stands out as the first quarter with positive operating income ($1.7M) and record gross margin (64.6%) in the dataset, according to the income statement, signaling a potential inflection in the company's path to profitability.
The combination of record revenue, gross margin, and operating income in Q2 2026 suggests that the company's strategic pivot to FDA-cleared medical devices is beginning to pay off. This inflection is particularly notable given the prior quarter's operating loss of -$5.4M and the negative operating margins throughout 2024 and 2025. The company's ability to maintain this trajectory will depend on whether it can continue to grow revenue while keeping costs in check, and whether the positive operating leverage is durable or a one-time benefit from seasonal demand.
What Could Invalidate the Base Case
Despite record revenue and gross margin in Q2 2026, the company still reported a net loss of -$2.2M and negative operating margin of -7.8% for the trailing year, according to the income statement, suggesting profitability remains elusive.
The headline growth and margin expansion mask persistent bottom-line losses, with net income swinging from -$37.6M in Q2 2025 to -$2.2M in Q2 2026, but still negative. The negative ROE of -556.8% and cash balance of $35.5M against ongoing losses raise concerns about the need for dilutive capital raises. Furthermore, the EPS miss of $-0.05 versus $-0.04 estimate in the latest quarter suggests that even with record revenue, cost or non-operating items are absorbing gains, and the path to sustained profitability may require a higher subscription mix or further cost discipline.