Owlet’s 2025 Revenue Jumps 35% to $105.7M, Gross Margin Hits 50.6%
Owlet posted record fiscal 2025 revenue of $105.7 million, up 35.4% year-over-year, with gross profit rising $14.2 million to a record $53.5 million and gross margin expanding to 50.6%. Fourth-quarter revenue grew 29.6% to $26.6 million, and adjusted EBITDA was $0.1 million despite higher tariffs.
1. Financial Performance in Q4 and FY 2025
Revenue for fiscal 2025 reached $105.7 million, a 35.4% increase from $78.1 million in fiscal 2024. Fourth-quarter revenue was $26.6 million, up 29.6% year-over-year, driven by higher sales of the Dream product suite and Owlet360 subscription service.
2. Profitability, Margins and Earnings
Full-year gross profit rose $14.2 million to $53.5 million, lifting gross margin to 50.6%, while Q4 gross margin was 47.6% due to tariff headwinds. Operating loss improved to $8.3 million for the year and adjusted EBITDA turned positive at $2.0 million, with net loss totaling $39.7 million including a $26.6 million non-cash warrant liability adjustment.
3. Owlet360 Subscription Growth and Product Launch
Owlet360 subscription service surpassed 110,000 paying subscribers, diversifying recurring revenue streams and deepening customer engagement. The company also rolled out its AI-enabled Dream Sight camera, enhancing biometric monitoring within its connected infant safety ecosystem.
4. Leadership Commentary and Outlook
Management highlighted the scalability and resilience of its business model demonstrated by record revenues and margins. The company plans to leverage its pediatric data platform in 2026 to expand globally and position Owlet as a leading parental wellness technology provider.