Owlet, Inc. reported significant financial performance improvements in its latest quarterly filing, with revenues reaching $31.99 million for the three months ended September 30, 2025, a 44.6% increase from $22.12 million in the same period last year. For the nine months ending September 30, 2025, revenues totaled $79.16 million, up 37.5% from $57.57 million in the prior year. The company attributed this growth primarily to increased sales of its Dream Sock and Dream Duo products, alongside a growing contribution from its Owlet360 subscription service, which launched in January 2025.
The company also reported a gross profit of $16.20 million for the third quarter, translating to a gross margin of 50.6%, slightly down from 52.2% a year earlier. The increase in cost of revenues, which rose by 49.3% to $15.79 million, was primarily driven by higher product sales. For the nine-month period, gross margin improved to 51.7% from 49.2% in the previous year, reflecting better fixed cost absorption and a favorable product mix, despite challenges from tariffs.
Owlet's operational metrics showed a decrease in general and administrative expenses, which fell by 35.9% to $6.27 million in the third quarter, largely due to the absence of impairment charges and lower stock-based compensation. Research and development expenses increased by 47.9% to $3.79 million, reflecting the company's commitment to product innovation. The company reported a net income of $4.13 million for the third quarter, a significant turnaround from a net loss of $5.61 million in the same quarter of 2024.
In terms of strategic developments, Owlet has been active in financing and capital management. The company completed a public offering in October 2025, raising approximately $32.11 million from the sale of 4.83 million shares. This follows a series of financing activities, including a loan facility agreement with WTI Fund X and XI, which has provided additional capital to support operations. As of September 30, 2025, Owlet had $23.76 million in cash and cash equivalents, reflecting a cautious approach to liquidity amid ongoing operational challenges.
Looking ahead, Owlet's management expressed optimism about sustaining revenue growth and improving profitability, although they acknowledged the ongoing risks associated with market conditions and operational execution. The company continues to focus on enhancing its product offerings and expanding its customer base, while also addressing identified weaknesses in its internal controls over financial reporting.
About Owlet, Inc.
Owlet designs and markets connected infant health monitoring devices, including wearable sensors and video monitors, to empower parents with real-time health data and sleep insights. Its products serve families globally, combining consumer electronics with medical device features, supported by FDA clearances. The company leverages extensive pediatric data, digital platforms, and retail and healthcare partnerships to enhance child safety, health outcomes, and parental confidence.
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