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Owlet Q3 revenue falls 4.9% but beats expectations

By Reuters News


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

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$30.4 mln

$29.96 mln (5 Analysts)

Q3 Adjusted EPS

Beat

$0.11

-$0.04 (3 Analysts)

Q3 EPS

$0.01

Q3 Adjusted EBITDA

Beat

$3.5 mln

$2.79 mln (5 Analysts)

Q3 Gross Margin

53.80%

Q3 Operating Expenses

$15.2 mln


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


Reuters Recommended Reads

  • Nov 12 - Tenon Medical Q3 revenue rises as procedure volume grows

  • Nov 12 - Outdoor products maker Yeti misses Q3 sales estimates; cuts FY forecast

  • Nov 12 - Solo Brands Q3 sales fall on lower segment demand


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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