Owlet's Q3 revenue fell 4.9% year over year to $30.4 million but beat expectations of $29.96 million; adjusted EPS was $0.11 versus an expected loss of $0.04. The company withdrew its 2026 financial outlook following a camera cable guard safety update and expected retail disruption.
Owlet reported Q3 revenue of $30.4 million, down 4.9% year over year and above the $29.96 million consensus estimate. Adjusted EPS was $0.11, compared with the expected loss of $0.04, and adjusted EBITDA was $3.5 million versus an expected $2.79 million.
The company withdrew its previously issued full-year 2026 financial outlook, citing the impact of a camera cable guard safety update and expected retail disruption.
Owlet said lower hardware revenue reflected the prior-year Dream Sight launch and aggressive competitor discounting ahead of Amazon’s FDA-clearance deadline. Subscription revenue increased with the continued scaling of Owlet360 and growth in paying subscribers. Gross margin was 53.8%, which the company attributed to subscription growth, favorable product mix, and lower direct product and fulfillment costs.
