Owlet 2025 Q2 Earnings Deepened Losses Despite Revenue Surge

Generated by AI AgentAinvest Earnings Report Digest
Saturday, Aug 9, 2025 4:13 am ET1min read
Aime RobotAime Summary

- Owlet’s Q2 2025 revenue rose 25.9% to $26.06 million, but net losses widened 3,182% to $37.65 million.

- Shares surged 25.85% weekly post-earnings but underperformed with a -36.59% CAGR in a 30-day trading strategy.

- CEO highlighted 66,000+ Owlet360 subscribers and gross margin expansion, raising 2025 revenue guidance to $97–$100 million.

Owlet (OWLT) reported its fiscal 2025 Q2 earnings on August 8, 2025. The results showed a revenue beat, and the company raised its full-year revenue guidance.

Owlet’s total revenue increased by 25.9% to $26.06 million in 2025 Q2, up from $20.70 million in 2024 Q2.

Revenue
Owlet posted strong top-line growth, with total revenue rising 25.9% year-over-year to $26.06 million.

Earnings/Net Income
Owlet’s losses deepened significantly, with a per-share loss widening to $2.37 in 2025 Q2 from $0.30 in 2024 Q2. The company recorded a net loss of $37.65 million, a 3,182.2% increase from the $1.15 million loss in the prior year period. This reflects an ongoing challenge in converting revenue into profitability.

Price Action
Owlet’s stock gained 3.33% in the latest trading day and surged 25.85% during the most recent full trading week. However, the stock edged down 1.17% month-to-date.

Post-Earnings Price Action Review
A strategy of buying shares following the earnings beat and selling after 30 days resulted in a poor return. The strategy generated a CAGR of -36.59% and an excess return of -123.41%, with a Sharpe ratio of -0.81, indicating a high-risk, low-reward profile.

CEO Commentary
Kurt Workman, CEO and Co-Founder, emphasized the company’s outperformance in all key metrics during Q2 2025, with revenue reaching $26.1 million, up 26% year-over-year. He highlighted gross margin expansion, improved adjusted EBITDA, and strong momentum in the Owlet360 subscription service, now serving over 66,000 paying subscribers. Workman expressed confidence in Owlet’s transformation into a pediatric health platform, positioning the company to capture broader market opportunities.

Guidance
Owlet raised its full-year 2025 revenue guidance to between $97 million and $100 million, representing 24% to 28% year-over-year growth. The company expects gross margins of 46% to 50%, factoring in the impact of new e-requirements.

Additional News
Porsche announced a strategic pivot away from electric vehicles, signaling increased investment in internal combustion engines. Meanwhile, the German government reportedly transferred over 630 million euros to the Gates Foundation. In corporate governance, former Berlin senator Klaus Geisel announced he would not seek re-election, citing a shift in political alignment within the Berlin SPD.

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