Owlet — Third Quarter 2026 Earnings Summary

Owlet reported third-quarter 2026 revenue of $30.4 million, a 4.9% decrease from the prior year, driven by lower hardware sales but offset by a 140% increase in subscription revenue to $3.6 million. The company achieved a gross margin of 53.8% and reported a net income of $1.4 million for the quarter. However, Owlet withdrew its full-year 2026 financial outlook following a safety incident involving exposed camera cables, which necessitates a free replacement program for all camera owners. Anticipated remediation expenses, potential retailer returns, and near-term demand uncertainty are expected to impact the fourth quarter results.