Owlet's Data Flywheel Grows: Can AI Boost Lifetime Value?

Owlet, Inc. OWLT is steadily transforming from a connected baby monitor brand into a data-driven pediatric health platform, and its growing data flywheel is becoming central to that strategy. With more than 650,000 active devices globally and over 85,000 paying Owlet360 subscribers, the company is now generating a deep and expanding pool of longitudinal infant health and sleep data.

This growing dataset strengthens Owlet’s flywheel in two ways. First, higher device adoption feeds more biometric and behavioral data into the platform, improving insights and feature development. Second, richer insights increase the value of Owlet360, supporting higher subscription attach rates, stronger retention and longer customer lifetimes. Subscription attach rates have already moved past 25%, signaling early traction in monetizing this data advantage.

Artificial intelligence is the next lever. Owlet plans to layer AI-driven insights across its ecosystem, combining biometric data from Dream Sock with computer vision from the new Dream Sight camera. These capabilities are designed to deliver more personalized guidance around infant sleep, wellness and routines. Management has also outlined plans to pilot generative AI features in early 2026, including tailored sleep coaching based on a child’s unique patterns. If executed well, these features could meaningfully increase engagement and extend subscriptions beyond the infant stage.

The data flywheel also supports Owlet’s longer-term healthcare ambitions. Remote patient monitoring, hospital partnerships and telehealth initiatives benefit from validated data streams and clinical-grade insights, potentially opening higher-value channels than consumer hardware alone.

While execution risk remains, Owlet’s expanding dataset, improving profitability and disciplined cost structure position AI as a credible driver of higher lifetime value. As AI features roll out and subscriptions scale globally, the data flywheel may become one of Owlet’s most durable competitive assets.

Competitive Landscape: Masimo & Dexcom

In the race to turn biometric data into higher lifetime value, Masimo and Dexcom stand out as relevant comparables to Owlet’s expanding data flywheel. Masimo MASI has built its franchise around clinically validated sensors and algorithms, using continuous physiological data to drive decision support across hospitals and home settings. Masimo’s long-standing emphasis on data accuracy, regulatory credibility and AI-assisted insights mirrors Owlet’s push to elevate infant monitoring beyond basic hardware into a trusted health platform. Masimo’s experience shows how proprietary datasets can reinforce switching costs and extend customer relationships over time.

Dexcom DXCM offers another instructive parallel. Dexcom’s CGM ecosystem demonstrates how continuous data streams can be monetized through recurring revenue, software upgrades and analytics-driven insights. Dexcom has successfully used data and algorithms to improve outcomes, increase engagement and justify premium pricing. Together, Masimo and Dexcom highlight how data scale and AI integration can meaningfully expand lifetime value—an outcome that Owlet is increasingly targeting as its dataset and AI capabilities deepen.

OWLT’s Price Performance, Valuation & Estimates

Shares of Owlet have gained 73.3% in the past six months, outperforming the Zacks Electronics - Miscellaneous Products industry’s 20.6% growth and the Zacks Computer and Technology sector’s 19.1% rise.

OWLT 6-Month Price Performance

The Zacks Consensus Estimate for OWLT’s 2026 loss has narrowed to 25 cents from 88 cents in the past 30 days. The company is expected to report 12 cents loss per share in 2025.
 

OWLT currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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