Owlet Reports 25.9% Revenue Growth in Q2 2025 Despite Net Loss

Owlet, Inc. reported its financial results for the second quarter of 2025, revealing a revenue increase of 25.9% year-over-year, reaching $26.1 million compared to $20.7 million in the same period of 2024. For the first half of 2025, revenues totaled $47.2 million, a 33.1% increase from $35.4 million in the prior year. The growth was primarily driven by increased sales of the Dream Sock and Dream Duo products, alongside a rise in revenue from the newly launched Owlet360 subscription service. Despite the revenue growth, the company continues to face challenges, reporting a net loss of $37.6 million for the quarter, compared to a loss of $1.1 million in Q2 2024.

The company's operating expenses also rose, totaling $15.3 million for the second quarter, up from $12.5 million a year earlier. This increase was attributed to higher general and administrative costs, sales and marketing expenses, and significant investments in research and development, which surged by 59.4% to $3.8 million. The overall operating loss for the quarter was $1.9 million, an improvement from the $2.2 million loss reported in the same quarter of the previous year.

Owlet's balance sheet showed total assets of $63.5 million as of June 30, 2025, up from $49.5 million at the end of 2024. The increase in assets was driven by higher cash and accounts receivable, which rose to $21.8 million and $24.4 million, respectively. However, the company also reported a significant increase in liabilities, which totaled $108 million, compared to $66.3 million at the end of 2024. This rise was largely due to increased borrowings under its credit facilities, including a $7.5 million drawdown from the WTI Loan Facility.

In terms of operational metrics, Owlet's customer base and product adoption rates have shown positive trends, with a notable increase in engagement with its mobile applications. The company continues to rely heavily on a limited number of retailers for a substantial portion of its sales, with one customer accounting for 64% of net revenues in the latest quarter. The company has also been actively working on improving its internal controls and addressing identified weaknesses in its financial reporting processes.

Looking ahead, Owlet's management expressed cautious optimism about future growth, emphasizing the need for continued investment in product development and marketing to drive sales. However, the company acknowledged ongoing challenges, including the need for additional capital to support its operations and the potential impact of market conditions on consumer demand. The company has indicated that it may need to raise further capital to execute its strategic plans, which could lead to dilution for existing shareholders.