Owlet Inc (NYSE:OWLT) Q2 2025 Earnings: Revenue Surpasses Estimates, Adjusted EBITDA Turns Positive Amid CEO Transition

Owlet Inc (NYSE:OWLT) Reports Q2 2025 Earnings: Revenue Beats Estimates, Adjusted EBITDA Turns Positive

Owlet Inc, the digital infant health monitoring company, reported its second-quarter 2025 financial results, delivering revenue growth that exceeded analyst expectations while narrowing its adjusted EBITDA loss. The company also announced a CEO transition plan, with current President Jonathan Harris set to take over from co-founder Kurt Workman on October 1, 2025.

Key Financial Highlights

• Revenue: $26.1 million, up 25.9% year-over-year, surpassing the analyst estimate of $22.6 million.
• Adjusted EPS: Loss of $0.05 per share, better than the estimated loss of $0.22.
• Gross Margin: Improved to 51.3%, up 180 basis points from Q2 2024.
• Net Loss: $37.6 million, primarily due to a $34.8 million non-cash mark-to-market adjustment for common stock warrants. Excluding this, operating performance showed improvement.
• Adjusted EBITDA: $0.3 million, marking a $0.2 million improvement from the prior year.

Market Reaction

Following the earnings release, Owlet’s stock declined nearly 4% in after-hours trading, suggesting a mixed reaction despite the revenue beat. Investors may be weighing the impact of the CEO transition, ongoing net losses, and the company’s debt position against its improving operational metrics.

Business Performance & Outlook

Owlet highlighted strong demand for its Dream Sock and Dream Duo products, driving the revenue increase. The company’s Owlet360 subscription service also showed momentum, surpassing 66,000 paying subscribers with improving retention rates.

For the full year 2025, Owlet raised its guidance, now expecting:

• Revenue: $97–100 million (24–28% growth YoY), compared to analyst estimates of $95.2 million.
• Gross Margin: 46–50%, factoring in expected tariff costs.
• Adjusted EBITDA Profitability: The company now expects to be profitable on this metric for the full year.

CEO Transition & Strategic Shift

Founder Kurt Workman will transition to Executive Chairman, while Jonathan Harris, who has led global expansion and subscription growth, will assume the CEO role. Workman emphasized Harris’s role in transforming Owlet from a hardware company into a comprehensive pediatric health platform.

Conclusion

Owlet’s Q2 results reflect strong revenue growth and margin expansion, though profitability remains a challenge. The market’s muted reaction could stem from concerns over debt levels and the leadership transition.

For more detailed earnings estimates and historical performance, view Owlet’s full earnings data here.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research before making any financial decisions.