Owlet's Q4 Loss Narrower Than Expected, Revenues Rise Y/Y

Owlet, Inc. OWLT reported a fourth-quarter fiscal 2025 loss per share that was narrower than the Zacks Consensus Estimate and improved year over year. Quarterly revenues topped the consensus mark and grew year over year.

Although revenue growth remained robust, profitability continued to reflect ongoing investments and external cost pressures, including tariff impacts on product costs. Nevertheless, the company delivered improved operating performance compared with the prior-year period.

Management highlighted that Owlet’s transition toward a comprehensive pediatric health and monitoring platform is gaining traction, supported by growth in connected devices, subscription adoption and expanding datasets that power its digital ecosystem. With more than 110,000 paying Owlet360 subscribers, the company believes its recurring revenue model is strengthening long-term growth visibility.

Following the news, shares of OWLT declined 23.4% in the after-hours yesterday.

Q4 Earnings & Revenues of Owlet

For the fourth quarter, the company reported adjusted loss per share of 3 cents, which was narrower than the Zacks Consensus Estimate of a loss of 13 cents by 76.9%. In the year-ago quarter, the company reported adjusted loss per share of 7 cents.

Owlet, Inc. Price, Consensus and EPS Surprise

Owlet, Inc. price-consensus-eps-surprise-chart | Owlet, Inc. Quote

Quarterly revenues of $26.6 million topped the consensus mark of $25 million by 4.6%. and increased 29.6% year over year. The top-line growth was driven by strong demand for the Dream product suite and the continued expansion of the Owlet360 subscription service.

Operating Highlights of OWLT

Gross profit totaled $12.6 million, up 14.5% from $11 million reported in the year-ago quarter. However, gross margin declined 596 basis points (bps) year over year to 47.6%, primarily reflecting tariff-related cost pressures, partially offset by favorable product mix, improved fixed cost absorption, and lower direct and fulfillment costs.

Total operating expenses (including stock-based compensation) were $17.5 million, down from $18.4 million in the year-ago quarter. This improvement was largely backed by decreased legal expenditures, which helped offset higher headcount-related costs, including salaries, benefits and stock-based compensation.

Operating loss improved to $4.9 million compared with an operating loss of $7.4 million in the fourth quarter of 2024. Adjusted EBITDA was $0.1 million, down from $0.5 million reported in the year-ago quarter.

Owlet’s FY25 Highlights

In fiscal 2025, Owlet reported revenues of $105.7 million, up 35.4% from the fiscal 2024 level.

The annual gross profit was $53.5 million, up from $39.3 million reported in the prior year, while gross margin expanded 20 basis points year over year to 50.6%.

The adjusted EBITDA of $2 million compared with a loss of $1.8 million in fiscal 2024, marking an improvement of $3.8 million year over year.

Operating loss for 2025 was $8.3 million compared with $20.2 million reported in fiscal 2024.

Balance Sheet of OWLT

As of Dec. 31, 2025, cash and cash equivalents were $35.5 million compared with $20.2 million as of Dec. 31, 2024. Restricted cash increased to $5.6 million from $0.4 million at the end of 2024.

Inventory at the fourth-quarter end reached $15.3 million, up 45.7% year over year. Net long-term debt stood at $2.5 million, down from $4.3 million reported at the end of 2024.

OWLT’s Q1 & FY26 Guidance

For the first quarter of fiscal 2026, the company expects revenues in the range of $20 million to $21 million, compared with $21.1 million reported a year ago. Gross margin is projected between 50% and 52%, compared with 53.7% reported in the prior-year quarter. Adjusted EBITDA is anticipated to range from a loss of $2.5 million to $1.5 million, compared with break-even results reported in the first quarter of fiscal 2025.

For fiscal 2026, Owlet expects revenues in the range of $126 million to $130 million, representing growth of approximately 19% to 23% from 2025 levels.

The company anticipates a gross margin of 49% to 52%, including the impact of tariff costs. Adjusted EBITDA is projected to be between $3 million and $5 million, reflecting growth of roughly 50% to 150% compared with 2025.

OWLT’s Zacks Rank & Recent Computer and Technology Releases

Owlet currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Opendoor Technologies Inc.'s OPEN fourth-quarter 2025 results suggest the early stages of an operating inflection, even as headline numbers remain pressured. Opendoor reported an adjusted EBITDA loss of $43 million, narrower than the $49 million loss in the prior-year period.

Opendoor’s turnaround blueprint is centered on three pillars: scaling acquisitions, improving unit economics and resale velocity, and building operating leverage. Fourth-quarter acquisitions rose 46% sequentially, while homes on the market for more than 120 days declined sharply, supporting faster inventory turns and healthier contribution dynamics. Looking ahead, Opendoor guided to a first-quarter 2026 adjusted EBITDA loss in the low to mid-$30 million range, implying continued sequential improvement. 

SoundHound AI, Inc. SOUN reported fourth-quarter 2025 results, wherein earnings came in line with the Zacks Consensus Estimate, but revenues surpassed the same.

SoundHound AI is gaining momentum as businesses move away from traditional software and adopt AI-first solutions. This shift is creating favorable conditions for the company, reflected in stronger profitability metrics and a record number of customer deals in the latest quarter. Growing demand for enterprise-grade AI continues to support SoundHound’s expansion. The company also advanced voice commerce with initial large-scale rollouts, new vehicle brands and smart TV partners, and expanded use cases such as travel and ticket bookings.

Garmin Ltd. GRMN reported fourth-quarter 2025 pro forma earnings of $2.79 per share, beating the Zacks Consensus Estimate by 16.6%. The bottom line improved 16% on a year-over-year basis. 

Garmin’s year-over-year growth in the top line was attributed to the solid momentum across the Outdoor, Fitness, Aviation, and Marine segments, partially offset by the Auto OEM segment. Garmin now expects full-year 2026 revenues of $7.9 billion, reflecting continued growth momentum. The Zacks Consensus Estimate for the same has been pegged at $7.54 billion, indicating year-over-year growth of 13.3%. It also expects a gross margin of 58.5%, an operating margin of 25.5%, and a pro forma effective tax rate of 16.0%.

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