Owlet, Inc. Class A (OWLT)

Owlet, Inc. (OWLT) stock has experienced significant pressure, decreasing by 45% over the past six months and down 70% year-to-date as of May 8, 2026. Key events impacting the stock include the Q1 2026 earnings report, revised 2026 guidance, inventory adjustments, and tariff impacts. Owlet reported a 6.4% year-over-year increase in revenue to $22.5 million, surpassing its guidance. Subscription revenue reached a record $2.7 million with a gross margin of 67.4%. However, the stock closed down 6.54% following the earnings release. The company reported a net loss of $3.3 million for the quarter, compared to a net income of $3.0 million in Q1 2025, primarily due to increased operating expenses. Owlet adjusted its full-year 2026 revenue guidance downwards to $118 million to $122 million, citing a deliberate decision to exit lower-margin revenue streams in noncore geographies and new channels, and a more conservative view on sell-through. Despite this, the company raised its full-year 2026 adjusted EBITDA guidance to $7 million to $9 million, emphasizing a focus on operational efficiency and higher-margin revenue. The company faced challenges from inventory adjustments at a major retail partner, which impacted short-term revenue in Q1 2026. Tariffs have negatively impacted gross margins, with a 480-basis-point impact in Q1 2026.

Owlet's products and services exhibit demand seasonality. The first quarter is consistently the seasonally lowest revenue quarter. Customers are observed to delay purchases in anticipation of key promotional events like Mother's Day and Pride Day. The company projects Q3 to have a slight sequential decline versus Q2 before reaching an annual high in Q4.

Owlet, Inc. is a pediatric health platform specializing in smart infant monitoring and connected nursery technology, operating within the surgical and medical instrument manufacturing industry. Owlet offers FDA-cleared medical and consumer pediatric wearables, including the Dream Sock, BabySat, Owlet Cam (Dream Sight), Dream Duo, Owlet360, Dream Lab, and accessories. Since 2012, Owlet's platform has been used by over 2.5 million parents globally.

Owlet, Inc. provides digital parenting solutions in the United States, the United Kingdom, and internationally. The company has expanded its global reach to Europe and South Africa.

Owlet characterizes itself as a pioneer of smart infant monitoring and a leading pediatric health platform. Owlet's Dream Sock has a Net Promoter Score (NPS) of 77, and the blended product NPS is 71. The company is recognized as a top brand across major baby registries like Amazon, BabyList, and Target. Owlet has focused on improving its gross margins and narrowing net losses, and has seen increased registry additions for its Dream Sock and Dream Duo compared to the prior year. Customer service contacts for Dream Sight also fell versus the prior generation.

Owlet, Inc. (OWLT) stock ownership is a mix of institutional, retail, and individual investors. Approximately 10.95% of the company's stock is owned by Institutional Investors, 67.80% by Insiders, and 21.25% by Public Companies and Individual Investors. Major institutional owners include Eclipse Ventures, Llc, AWM Investment Company, Inc., and Vanguard Group Inc. Major individual owners and insiders include Eclipse Continuity GP I LLC, Kurt Workman, and Lior Susan.