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.