Owlet 2025 Q3 Earnings Record Revenue and 173.7% Net Income Turnaround

Owlet (OWLT) reported record Q3 2025 results, surpassing expectations with 44.6% revenue growth and a net income turnaround. The company raised full-year revenue guidance to $103–$106 million and announced its first quarterly operating profit in history, driven by the Dream Sock launch and international expansion.

Revenue

Owlet’s total revenue surged 44.6% year-over-year to $31.99 million in Q3 2025, reflecting strong demand for its Dream Sock and Dream Sight camera. The company also reported a 171% year-over-year increase in international revenue, fueled by new market entries and regulatory clearances.

Earnings/Net Income

Owlet returned to profitability with EPS of $0.17, reversing a 2024 Q3 loss of $0.61 per share. Net income reached $4.13 million, a 173.7% improvement from a $5.61 million loss in 2024 Q3. This marks the company’s first quarterly operating profit in its history.

Price Action

The stock price declined 7.26% during the latest trading day but gained 18.28% over the most recent full week and 17.89% month-to-date, reflecting mixed short-term investor sentiment.

Post-Earnings Price Action Review

Despite a post-earnings dip, Owlet’s shares demonstrated resilience, surging 18.28% weekly amid optimism over its revenue growth and profitability. The stock’s month-to-date gain of 17.89% underscores investor confidence in its strategic initiatives, including global expansion and subscription growth, even as short-term volatility persists.

CEO Commentary

CEO Jonathan Harris highlighted Q3 2025 as Owlet’s best quarter ever, driven by the Dream Sight camera launch and core business momentum. He emphasized the FDA’s safety communication as a pivotal moment, solidifying the Dream Sock’s position as the only FDA-cleared OTC infant monitor. Strategic priorities include scaling international markets, expanding the Owlet360 subscription platform, and advancing healthcare partnerships.

Guidance

Owlet raised 2025 revenue guidance to $103–$106 million (32–36% YoY growth) and narrowed gross margin expectations to 48–50%. Adjusted EBITDA is projected at $1.25–$2 million, marking its first full year of profitability. CFO Amanda Crawford noted the $4.1 million net income and $32 million equity raise to fund growth.

Additional News

Owlet announced a $32 million equity raise to support expansion, including new regulatory clearances in India for 2026. The company also secured its first consignment agreement with Children’s Hospital of the King’s Daughters and deployed Owlet Connect with Rhapsody Health. CEO Harris highlighted the Dream Sock’s FDA clearance as a competitive advantage, positioning Owlet as the market leader in infant monitoring.