Owlet Q3 revenue falls 4.9% but beats expectations

Overview

• Smart infant monitor maker's Q3 revenue fell 4.9% yr/yr but beat analyst expectations

• Adjusted EPS beat analyst expectations

• Company withdrew 2026 outlook after camera cable guard safety update and expected retail disruption

Outlook

• Company withdraws previously issued full-year 2026 financial outlook due to safety update impact

Result Drivers

• HARDWARE REVENUE DECLINE - Co said lower hardware revenue was due to the prior-year Dream Sight launch and aggressive competitor discounting ahead of Amazon’s FDA-clearance deadline

• SUBSCRIPTION GROWTH - Co said subscription revenue rose due to continued scaling of Owlet360 service and increase in paying subscribers

• GROSS MARGIN IMPROVEMENT - Co attributed higher gross margin to growth in subscription revenue, favorable product mix, and lower direct product and fulfillment costs

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the advanced medical equipment & technology peer group is "buy"

• Wall Street's median 12-month price target for Owlet Inc is $13.50, about 192.2% above its November 12 closing price of $4.62

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)