Owlet Reports 29.9% Revenue Growth to $33.9 Million in Latest Quarter

Owlet, Inc. reported significant financial performance improvements in its latest quarterly filing, with total revenue reaching $33.9 million for the three months ended June 30, 2026, a 29.9% increase from $26.1 million in the same period last year. The growth was driven by a 21.6% rise in hardware sales, which totaled $30.6 million, and a substantial 273.1% increase in subscription revenue, which reached $3.2 million. For the first half of 2026, total revenue was $56.3 million, up 18.3% from $47.6 million in the prior year. Despite these gains, the company reported a net loss of $620,000 for the quarter, a significant reduction from a loss of $37.4 million in the same quarter of 2025.

The company’s operational metrics also showed positive trends, with gross profit increasing to $21.8 million for the second quarter, compared to $13.4 million a year earlier. This improvement in gross profit was attributed to a decrease in the cost of revenue, particularly in hardware, which fell by 11.5% year-over-year. The gross margin for hardware improved to 64.0%, up from 50.6% in the previous year, reflecting better product mix and cost absorption. However, total operating expenses rose to $20.1 million, primarily due to increased general and administrative costs associated with stock-based compensation and restructuring efforts related to the recent CEO transition.

In terms of strategic developments, Owlet has made significant changes to its financing structure. On June 26, 2026, the company entered into a new asset-based revolving credit facility with Wells Fargo, providing up to $25 million in funding. This move allowed Owlet to repay and extinguish previous debt obligations, including the WTI Loan Facility and ABL Line of Credit, which were terminated as part of the refinancing. As of June 30, 2026, the company had $17.1 million in borrowings under the new facility, with an additional $7.5 million available for future use.

Customer engagement metrics also reflected growth, with an increase in subscribers for the Owlet360 service contributing to the rise in subscription revenue. The company reported a notable increase in average revenue per user, indicating successful monetization of its subscription offerings. Geographic expansion continues, with the United States accounting for the majority of revenue, while international sales, particularly in the United Kingdom, also showed growth.

Looking ahead, Owlet's management expressed cautious optimism about future performance, emphasizing the importance of maintaining liquidity and managing operational costs effectively. The company believes that its existing cash reserves, combined with the new credit facility, will be sufficient to support its operations and strategic initiatives over the next 12 months. However, management acknowledged potential risks, including market conditions and the need for ongoing improvements in internal controls, which could impact financial performance.