10-Q · May 11, 2026
Owlet, Inc. reported Q1 2026 revenue of $22.5 million, exceeding estimates of $20.7 million, with an EPS loss of -$0.09 compared to an expected loss of -$0.20. The mixed financial outlook highlights substantial growth…
Earnings analysis · 10-Q
OWLT earnings analysis
Filed August 14, 2026 · Our reading of the company's report
The latest report
Owlet delivered a strong Q2, with revenue of $33.9 million versus $22 million in Q1 2026 and $26 million in Q2 2025, while adjusted EPS improved to $0.20 from $(0.25) and $(2.37), respectively. Gross-margin and Adjusted…
Read full summary
Owlet delivered a strong Q2, with revenue of $33.9 million versus $22 million in Q1 2026 and $26 million in Q2 2025, while adjusted EPS improved to $0.20 from $(0.25) and $(2.37), respectively. Gross-margin and Adjusted EBITDA outlooks were raised, although the increases primarily reflect one-time tariff refund benefits of $3.5 million and $3.75 million. The key offset is that disclosure controls remained ineffective as of June 30, 2026, with remediation of several accounting-control weaknesses still in progress.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.2
- Gross margin
- 54.0%
What stood out
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Revenue Accelerated
Q2 revenue was $33.9 million, up from $22 million in Q1 2026 and $26 million in Q2 2025, indicating strong sequential and year-over-year growth.
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EPS Improved Sharply
Adjusted EPS was $0.20 versus $(0.25) in Q1 2026 and $(2.37) in Q2 2025, a substantial improvement in profitability.
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Gross Margin Above Prior Year
Underlying gross margin improved to 54.0%, versus 54.5% in Q1 2026 and 51.3% in Q2 2025; the year-over-year trend was positive despite a modest sequential decline.
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Subscription Revenue Growth
Subscription revenue increased to $3.2 million, providing a recurring-revenue contribution alongside the quarter's product revenue growth.
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Margin and EBITDA Outlook Raised
Full-year revenue guidance remained $118 million-$122 million, while gross-margin guidance increased to 53%-55% from 50%-52% and Adjusted EBITDA guidance increased to $10.75 million-$12.75 million from $7 million-$9 million.
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Prior Control Weaknesses Remediated
Previously identified weaknesses related to debt and equity accounting and IT general controls were remediated as of June 30, 2026, according to management.
What to watch
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Financial Reporting Controls Ineffective
Disclosure controls were not effective as of June 30, 2026 because of material weaknesses in the control environment, journal-entry segregation of duties, inventory accounting, and accrued-liability controls. The filing states these weaknesses could result in a material misstatement that is not prevented or detected.
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Remediation Costs and Execution
Remediation of the accrued-liabilities and journal-entry control weaknesses remains ongoing, and management expects remediation measures—including additional personnel, policies, procedures, and controls—to result in future costs.
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One-Time Tariff Benefits
The $3.5 million tariff refund benefit supporting gross-margin guidance and the $3.75 million benefit supporting Adjusted EBITDA guidance are one-time items, creating a risk that reported outlook benefits are not repeatable.
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Potential Insider Share Sales
The CFO entered a Rule 10b5-1 plan providing for potential sales of up to 162,288 shares beginning September 14, 2026 and ending no later than December 31, 2027, which could add selling pressure or investor concern.
Management's outlook
Full-year revenue guidance was maintained at $118 million-$122 million. Gross-margin guidance was raised to 53%-55% from 50%-52%, and Adjusted EBITDA guidance was raised to $10.75 million-$12.75 million from $7 million-$9 million, primarily reflecting one-time tariff refund benefits of $3.5 million and $3.75 million, respectively.
Earlier filings 4
10-K · April 30, 2026
Owlet, Inc. reported significant operational challenges during 2025, exemplified by fluctuating revenues and margins. Despite a slight recovery in Q4 with revenues rising to $26.6 million, the company faced losses and a…
10-K · March 9, 2026
Owlet reported a record 2025 with $105.7 million in revenue (≈35.4% YoY), a 50.6% gross margin (up 20 bps) and its first full year of positive Adjusted EBITDA (~$2.0 million), while recording a net loss of $39.7…
10-Q · November 13, 2025
Owlet reported a strong Q3 2025 with revenue of $31,988,000 and a return to operating profitability (operating income $1,216,000) and net income of $4,134,000 for the quarter. Gross margin compressed vs. prior-year…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.