Revenue growth remains highly inconsistent, decelerating from a 140.9% peak in 2024Q3 to 6.4% in 2026Q1, while operating margins remain deeply negative at -24.2%.
| Sales/Revenue | 107.06M | 105.71M | 78.06M | 54.01M | 69.2M | 75.84M | 75.4M | 49.8M |
| Revenue Growth % | 26.81% | 35.43% | 44.52% | -21.95% | -8.76% | 0.58% | 51.41% | - |
| Cost of Goods Sold | 52.67M | 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 | 54.39M | 53.53M | 39.31M | 22.59M | 23.31M | 35.06M | 35.88M | 22.9M |
| Gross Margin % | 50.81% | 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 | 65.42M | 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 | 50.3M | 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 | 15.13M | 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 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 850K |
| Operating Income | -11.03M | -8.26M | -20.22M | -28.63M | -84.62M | -55.79M | -6.99M | -17.05M |
| Operating Margin % | -10.3% | -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 | -10.4M | -7.67M | -18.84M | -26.42M | -81.95M | -54.66M | -6.12M | -16.51M |
| EBITDA Margin % | -9.72% | -7.26% | -24.14% | -48.92% | -118.42% | -72.07% | -8.11% | -33.14% |
| EBITDA Growth % | 34.86% | 59.28% | 28.7% | 67.76% | -49.93% | -793.41% | 62.93% | - |
| D&A (Non-Cash Add-back) | 627K | 590K | 1.38M | 2.21M | 2.67M | 1.13M | 873K | 544K |
| EBIT | -14.77M | -36.23M | -10.85M | -29.7M | -78.2M | -43.84M | -9.12M | -17.05M |
| Net Interest Income | -2.13M | -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 | 2.13M | 3.42M | 1.63M | 3.19M | 1.1M | 27.83M | 1.38M | 0 |
| Other Income/Expense | -34.98M | -31.39M | 7.74M | -4.26M | 5.31M | -15.88M | -3.51M | -801K |
| Pretax Income | -46.02M | -39.65M | -12.48M | -32.89M | -79.31M | -71.67M | -10.5M | -17.85M |
| Pretax Margin % | -42.98% | -37.51% | -15.99% | -60.9% | -114.6% | -94.5% | -13.93% | -35.84% |
| Income Tax | 23K | 28K | 54K | 10K | 29K | 31K | 20K | 0 |
| Effective Tax Rate % | -0.05% | -0.07% | -0.43% | -0.03% | -0.04% | -0.04% | -0.19% | 0% |
| Net Income | -46.04M | -39.68M | -12.54M | -32.9M | -79.34M | -71.7M | -10.52M | -17.85M |
| Net Margin % | -43% | -37.54% | -16.06% | -60.92% | -114.64% | -94.54% | -13.95% | -35.84% |
| Net Income Growth % | -260.1% | -216.51% | 61.9% | 58.53% | -10.64% | -581.53% | 41.06% | - |
| Net Income (Continuing) | -46.04M | -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) | -12.67 | -2.24 | -0.83 | -4.53 | -9.97 | -12.47 | -5.12 | -23.36 |
| EPS Growth % | -134.72% | -169.88% | 81.68% | 54.56% | 20.05% | -143.55% | 78.08% | - |
| EPS (Basic) | - | -2.24 | -0.83 | -4.53 | -9.97 | -12.47 | -5.12 | -23.36 |
| Diluted Shares Outstanding | 3.63M | 562.5M | 15.11M | 8.28M | 7.95M | 7.87M | 2.05M | 764.22K |
| Basic Shares Outstanding | 3.63M | 562.5M | 15.11M | 8.28M | 7.95M | 7.87M | 2.05M | 764.22K |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
Regulatory and liquidity constraints
As reported in recent quarterly filings, OWLT's revenue growth has fluctuated wildly, peaking at 140.9% in 2024Q3 before decelerating to 6.4% by 2026Q1, suggesting that the company's reliance on transactional hardware sales creates an inconsistent top-line trajectory that remains highly sensitive to seasonal and promotional cycles.
The erratic growth pattern indicates that the company has yet to establish a predictable recurring revenue base, leaving it vulnerable to shifts in consumer discretionary spending. Investors should monitor whether the transition to FDA-cleared products can eventually smooth out these lumpy quarterly results through more stable, medical-channel demand.
Based on the provided financial data, OWLT has maintained a gross margin hovering around the 50% level, with the most recent 2026Q1 figure of 54.3% suggesting that the company is successfully managing its hardware production costs despite the inherent complexities of manufacturing medical-grade wearable devices.
While a 50% gross margin is respectable for a consumer-facing hardware firm, it remains significantly below the 76.7% margin achieved by specialized medical device peers like IRadimed. This gap implies that Owlet's current cost structure is heavily burdened by the physical components of its Dream Sock and Cam systems.
According to the income statement history, OWLT has struggled to achieve positive operating leverage, as evidenced by the 2026Q1 operating margin of -24.2%, which highlights that SG&A and R&D expenses continue to outpace the gross profit generated by the company's current hardware-centric business model.
The persistent inability to scale operating income suggests that the company is still in a heavy investment phase, likely prioritizing market share and regulatory compliance over immediate profitability. Without a meaningful shift toward high-margin software services, the company may continue to face significant pressure on its bottom line.
Financial statements reveal that net income has been highly erratic, swinging from a $37.6M loss in 2025Q2 to a $4.1M profit in 2025Q3, which suggests that reported earnings are frequently distorted by non-operating items and significant fluctuations in stock-based compensation expenses across various reporting periods.
The lack of consistency in net income makes it difficult to assess the underlying profitability of the core business, as these swings often mask the true operational performance. Investors should look past the headline net income figures and focus on the company's ability to generate sustainable cash flow from its primary operations.
Based on the reported figures, the company's persistent negative net margins and a cash position of $35.5M raise concerns regarding the long-term sustainability of its current burn rate, potentially necessitating future dilutive financing to support ongoing operations and the necessary R&D for its medical-grade product pipeline.
Short-sellers would likely focus on the mismatch between the company's high growth ambitions and its limited liquidity, arguing that the current business model is not yet self-sustaining. The risk remains that without a rapid pivot to profitability, the company may be forced to raise capital under unfavorable market conditions.
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.