Owlet Raises 2025 Guidance After Q2 Revenue Growth of 26%

Owlet Inc (OWLT) reported a 26% YoY increase in Q2 revenue to $26.1 million, its strongest first half to date. The company raised its full-year revenue guidance to $97-$100 million, anticipating 24-28% growth. Gross margins expanded for the ninth consecutive quarter, and analysts set an average target price of $12.30 with a potential upside of 31.97%.

Owlet Inc. (OWLT) reported a 26% year-over-year (YoY) increase in Q2 revenue to $26.1 million, marking its strongest first half to date. The Utah-based company, which specializes in pediatric health monitoring, attributed the growth primarily to increased sales of its FDA-cleared and CE Marked Dream Sock and baby sleep monitoring system Dream Duo [1].

The company's net loss for the quarter was $37.6 million, which included a $34.8 million non-cash, mark-to-market common stock warrant liability adjustment. This compares to a net loss of $1.1 million in the same period last year. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) improved to $0.3 million, up $0.2 million compared to Q2 2024 [1].

Owlet has also raised its full-year revenue guidance to $97 million to $100 million, anticipating 24% to 28% growth for the year. Gross margins expanded for the ninth consecutive quarter, with the company expecting gross margins to range from 46% to 50% for the year. This includes the impact of new expected tariff costs [1].

The company announced a strategic leadership change, with Jonathan Harris, the current president, succeeding Kurt Workman as CEO, effective October 1. Workman will transition to executive chairman of the board of directors. The change aims to accelerate the company's transition from a hardware-centric business to a comprehensive pediatric health platform [1].

Owlet's stock (NYSE: OWLT) rose following the announcement and is currently trading at $9.41 per share. Analysts have set an average target price of $12.30 with a potential upside of 31.97%, reflecting the market's positive outlook on the company's growth prospects [1].

References:
[1] https://www.mobihealthnews.com/news/owlet-reports-29-q2-yoy-revenue-increase-announces-new-ceo
[2] https://www.ainvest.com/news/owlet-2025-revenue-surge-pediatric-digital-health-expansion-strategic-play-booming-2508/