Owlet Q3 net income falls 67% to $1.4 million
OWLT•Owlet’s third-quarter 2026 net income fell 67% year over year to $1.4 million, while revenue declined to $30.4 million and subscription revenue more than doubled to $3.6 million. The company withdrew its 2026 outlook, citing anticipated remediation costs, retail disruption and demand uncertainty following a camera cable guard safety update.
1. Results and outlook
Owlet reported third-quarter 2026 net income of $1.4 million, down 67% year over year, and revenue of $30.4 million. Subscription revenue more than doubled to $3.6 million, and gross margin rose to 53.8%, primarily reflecting subscription growth, favorable product mix and lower direct product and fulfillment costs. The company offered camera owners a free replacement enclosed cable guard system upon request and withdrew its full-year 2026 outlook, citing anticipated remediation costs, retail disruption and demand uncertainty following the safety update.
