Owlet Narrows Q4 Loss, Posts 29.6% Revenue Gain but Guides Down Q1
Owlet narrowed Q4 adjusted loss to $0.03 per share vs. $0.13 expected, while revenues rose 29.6% to $26.6M. However, Q1 revenue guidance of $20–21M and projected adjusted EBITDA loss up to $2.5M prompted a 23.4% after-hours share drop.
1. Q4 Financial Results
Owlet narrowed its adjusted Q4 loss to $0.03 per share, beating expectations by 76.9%, while quarterly revenue rose 29.6% year over year to $26.6 million. Gross profit increased 14.5% to $12.6 million, but gross margin fell 596 basis points to 47.6% due to tariff-related cost pressures.
2. FY2025 Performance
Fiscal 2025 revenue grew 35.4% to $105.7 million, with annual gross profit up to $53.5 million and gross margin expanding 20 basis points to 50.6%. Adjusted EBITDA turned positive at $2.0 million compared with a $1.8 million loss, and operating loss narrowed to $8.3 million from $20.2 million in 2024; cash rose to $35.5 million.
3. 2026 Guidance and Share Reaction
For Q1 2026, Owlet forecasts revenue of $20–21 million and adjusted EBITDA loss of $1.5–2.5 million; full-year 2026 revenue is guided at $126–130 million with $3–5 million in adjusted EBITDA. Shares plunged 23.4% after hours following the lower-than-expected outlook.