newsfilter
← Earnings
Earnings Releases·

Owlet — Third Quarter 2026 Earnings Summary

  • Q3 2026 revenue declined 4.9% year-over-year to $30.4 million, driven by a 12.1% drop in hardware sales to $26.8 million, while subscription revenue surged 140% to $3.6 million, contributing to a 315 basis point expansion in gross margin to 53.8%.
  • The Company withdrew its full-year 2026 financial guidance due to anticipated remediation expenses, Q4 retail sales interruptions, retailer returns, and demand uncertainty stemming from a safety update regarding camera cable guards.
  • Despite the guidance withdrawal, the nine-month period ended September 30, 2026, showed significant improvement with total revenue rising to $86.7 million and net loss narrowing to $2.4 million from $29.7 million in the prior year.
  • Management initiated a free replacement program for the camera cable guard accessory following safety incident reports and corrected historical financial statement errors related to stock-based compensation valuation.
Company
OWLET INC
Sector
Healthcare
Industry
Health Information Services