Owlet Reports $39.7 Million Net Loss for 2025, Achieves Positive Adjusted EBITDA

Owlet, Inc., a pediatric health platform specializing in FDA-cleared and medically certified wearable monitors, reported a net loss of $39.7 million for the year ended December 31, 2025. This compares to a net loss of $12.5 million in the prior fiscal year. Despite the net loss, the company achieved its first full year of positive Adjusted EBITDA, reporting $2.0 million. Revenue for 2025 reached $105.7 million, a 35.4% increase compared to the $78.1 million reported in 2024.

The company's gross profit also saw significant growth, increasing to $53.5 million in 2025 from $39.3 million in 2024. The gross margin remained relatively stable at 50.6%, a slight increase of 20 basis points year-over-year, despite global trade headwinds. Operating expenses increased to $61.8 million in 2025 from $59.5 million in 2024, with notable changes in general and administrative, sales and marketing, and research and development costs. General and administrative expenses decreased by 13.9%, while sales and marketing and research and development expenses increased by 17.2% and 43.6%, respectively.

Strategic developments in 2025 included the successful launch of the Owlet360 subscription service, which exceeded expectations with over 98,000 subscribers by year-end. The company also received regulatory clearance in India, paving the way for commercial launch in early 2026. Owlet continued to expand its healthcare distribution channels, including a new partnership with 1 Natural Way and a collaboration with Children's Hospital of The King's Daughters. These efforts are aimed at increasing accessibility and affordability of Owlet products while improving margins.

Operationally, Owlet has focused on scaling its digital services and data platform, with the Owlet360 subscription service reaching over 110,000 subscribers. The company has also expanded its international presence, obtaining regulatory clearances for Dream Sock in seven international markets, including the European Union, United Kingdom, Australia, New Zealand, South Africa, India, and Israel. As of December 31, 2025, Owlet had 108 full-time employees and 6 part-time employees. The company anticipates introducing additional features, enhancements, and international expansion for Owlet360.

Looking ahead, Owlet is dedicated to its mission of providing parents with the tools they need to keep their children safe. The company is focused on driving domestic and international adoption of its products, expanding the Owlet360 subscription platform, and growing its healthcare channels. Owlet believes it is well-positioned as a sustainable, data-driven leader in the pediatric health space, with a goal to deliver long-term value to its shareholders and life-changing technology to families worldwide. The company also acknowledges existing material weaknesses in internal control over financial reporting and is actively working on remediation plans.