Owlet Inc Q2 2025 Revenue Beats Estimates at $26.1M, EPS at a Net Loss of $2.37

Owlet Inc reported Q2 2025 revenue of $26.1 million, beating estimates, and a net loss of $2.37. The company's gross margin improved to 51.3%, and operating expenses rose to $15.3 million. However, the net loss was significantly impacted by a $34.8 million non-cash, mark-to-market common stock warrant liability adjustment. Owlet Inc's balance sheet shows total assets of $63.5 million, up from $49.5 million at the end of 2024.

Owlet Inc (OWLT) reported its second-quarter (Q2) 2025 financial results, showcasing a mixed performance with revenue growth and a significant increase in net loss. The company's Q2 revenue reached $26.1 million, surpassing the Zacks Consensus Estimate of $22.4 million, marking a 25.9% year-over-year (YoY) increase [1]. This performance was driven by higher sales of Dream Sock and Dream Duo products.

Despite the revenue growth, Owlet Inc reported a net loss of $2.37 per share, significantly higher than the previous quarter's net loss of $0.30 per share. The net loss was primarily due to a $34.8 million non-cash, mark-to-market common stock warrant liability adjustment, which had a substantial impact on the company's financials. Adjusted net loss per share was $0.05, compared to adjusted net income per share of $0.00 in the same period last year [2].

Owlet Inc's gross margin improved to 51.3%, up from 49.5% in the same quarter last year, reflecting a higher revenue mix and lower direct product and fulfillment costs. Operating expenses increased to $15.3 million, up from $12.5 million, driven by higher compensation expense, including accrued bonuses.

The company's balance sheet shows total assets of $63.5 million, up from $49.5 million at the end of 2024. Owlet Inc's management highlighted the company's momentum and growth, particularly in its Owlet360 subscription service, which has surpassed 66,000 paying subscribers. The company expects full-year 2025 revenue to range between $97 million and $100 million, with gross margins between 46% and 50% [2].

Owlet Inc's stock has added approximately 59.6% year-to-date (YTD), outperforming the S&P 500's gain of 7.9%. However, the stock's future performance will depend on how the market reacts to the earnings report and the company's updated financial outlook.

References:
[1] https://www.nasdaq.com/articles/owlet-inc-owlt-reports-q2-loss-beats-revenue-estimates
[2] https://finance.yahoo.com/news/owlet-reports-second-quarter-2025-200500349.html