[PART I. FINANCIAL INFORMATION](index=6&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) The unaudited condensed consolidated financial statements for Owlet, Inc. as of June 30, 2025, show a significant increase in total liabilities, primarily due to a rise in common stock warrant liabilities and line of credit borrowings, resulting in a net loss of $34.6 million for the first six months of 2025, and raising substantial doubt about the company's ability to continue as a going concern [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Balance Sheet Summary (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$63,543** | **$49,515** | | Total Current Assets | $60,743 | $46,113 | | **Total Liabilities** | **$108,024** | **$66,329** | | Common stock warrant liabilities | $51,652 | $25,343 | | Line of credit | $14,876 | $6,263 | | **Total Stockholders' Deficit** | **($59,156)** | **($29,751)** | - Total liabilities increased significantly from **$66.3 million** at year-end 2024 to **$108.0 million** as of June 30, 2025, widening the total stockholders' deficit to **$59.2 million**[21](index=21&type=chunk) [Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20%28Loss%29) Statement of Operations Summary (in thousands, except per share data) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Revenues** | **$47,167** | **$35,449** | | Gross Profit | $24,706 | $16,799 | | Operating Loss | ($4,590) | ($7,990) | | Common stock warrant liability adjustment | ($28,066) | $10,207 | | **Net Income (Loss)** | **($34,622)** | **$2,127** | | Net Loss Per Share | ($2.26) | ($0.08) | - Revenue grew **33%** year-over-year for the six months ended June 30, 2025, but a significant non-cash loss of **$28.1 million** from the common stock warrant liability adjustment resulted in a substantial net loss of **$34.6 million**[23](index=23&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Summary (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | ($8,170) | ($6,721) | | Net cash used in investing activities | ($199) | ($74) | | Net cash provided by financing activities | $9,865 | $5,601 | | **Net change in cash** | **$1,496** | **($1,194)** | - Cash used in operations increased to **$8.2 million** in the first half of 2025, with the company's cash position bolstered by **$9.9 million** in net cash from financing activities, primarily from short-term borrowings and warrant exercises[32](index=32&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) - The company has experienced recurring operating losses and negative cash flows, resulting in an accumulated deficit of **$302.8 million**, which raises substantial doubt about its ability to continue as a going concern[41](index=41&type=chunk)[44](index=44&type=chunk) - Customer concentration risk is high, with one customer accounting for **52%** of net revenues and **68%** of net accounts receivable for the six months ended June 30, 2025[49](index=49&type=chunk) - The company has secured a term loan facility for up to **$15.0 million** and an asset-based revolving credit facility for up to **$15.0 million** (increasing to **$20.0 million** in September 2025) to provide liquidity[76](index=76&type=chunk)[88](index=88&type=chunk) - Agreements in principle have been reached to settle class action lawsuits, recognizing expenses of **$5.25 million** in 2024 and an additional **$675 thousand** in Q1 2025 related to these matters[101](index=101&type=chunk)[104](index=104&type=chunk) - Subsequent to the quarter end, on August 7, 2025, the company entered into an agreement to exchange certain outstanding warrants for an aggregate of **5,426,429** newly issued shares of common stock, subject to stockholder approval[147](index=147&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=39&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reported a **33.1%** increase in revenue for the first six months of 2025, driven by higher sales of Dream Sock products and the new Owlet360 subscription service, with gross margin improving from **47.4%** to **52.4%**, despite rising operating expenses and ongoing liquidity concerns that raise substantial doubt about the company's ability to continue as a going concern [Results of Operations](index=41&type=section&id=Results%20of%20Operations) Revenue Performance (in thousands) | Period | 2025 | 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | **Three Months Ended June 30** | $26,063 | $20,699 | $5,364 | 25.9% | | **Six Months Ended June 30** | $47,167 | $35,449 | $11,718 | 33.1% | - Revenue growth was primarily driven by higher sales of Dream Sock and Dream Duo products and the launch of the Owlet360 subscription service in January 2025[162](index=162&type=chunk) Gross Margin Performance | Period | 2025 | 2024 | | :--- | :--- | :--- | | **Three Months Ended June 30** | 51.3% | 49.5% | | **Six Months Ended June 30** | 52.4% | 47.4% | - Operating expenses increased for the six months ended June 30, 2025, compared to the prior year: General & Administrative rose **16.0%** to **$14.3 million**, Sales & Marketing rose **7.4%** to **$8.3 million**, and Research & Development rose **41.6%** to **$6.7 million**[166](index=166&type=chunk)[168](index=168&type=chunk)[170](index=170&type=chunk) - Non-GAAP Adjusted EBITDA turned positive, reaching **$320 thousand** for the first six months of 2025, compared to a loss of **$3.0 million** in the same period of 2024[177](index=177&type=chunk) [Liquidity and Capital Resources](index=46&type=section&id=Liquidity%20and%20Capital%20Resources) - As of June 30, 2025, the company had cash and cash equivalents of **$21.8 million**[178](index=178&type=chunk) - The company has experienced recurring operating losses and negative cash flows from operations, resulting in an accumulated deficit of **$302.8 million** as of June 30, 2025, raising substantial doubt about its ability to continue as a going concern[205](index=205&type=chunk)[206](index=206&type=chunk) - Recent financing activities include a September 2024 common stock offering with net proceeds of **$10.6 million**, a **$15.0 million** term loan facility (of which **$7.5 million** was drawn), and a **$15.0 million** ABL line of credit (of which **$14.9 million** was outstanding)[183](index=183&type=chunk)[189](index=189&type=chunk)[200](index=200&type=chunk) Cash Flow Summary (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | ($8,170) | ($6,721) | | Net cash provided by financing activities | $9,865 | $5,601 | [Quantitative and Qualitative Disclosures About Market Risk](index=53&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, Owlet, Inc. is not required to provide quantitative and qualitative disclosures about market risk - As a smaller reporting company defined by Rule 12b-2 of the Exchange Act, Owlet, Inc. is not required to provide quantitative and qualitative disclosures about market risk[217](index=217&type=chunk) [Controls and Procedures](index=53&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were not effective as of June 30, 2025, due to several ongoing material weaknesses in internal control over financial reporting, despite the remediation of one previously identified material weakness related to accrued sales tax, with a remediation plan currently in progress - Management concluded that disclosure controls and procedures were not effective as of June 30, 2025, due to material weaknesses in internal control over financial reporting[220](index=220&type=chunk) - The company successfully remediated a previously identified material weakness related to the completeness and accuracy of accrued sales tax as of June 30, 2025[221](index=221&type=chunk)[223](index=223&type=chunk) - Multiple material weaknesses persist, including issues with the overall control environment, segregation of duties for journal entries, controls over inventory and accrued liabilities, accounting for complex debt and equity arrangements, and review of the statement of cash flows[224](index=224&type=chunk)[229](index=229&type=chunk) - A remediation plan is underway, which includes hiring additional accounting personnel and implementing enhanced policies, procedures, and controls[226](index=226&type=chunk) [PART II. OTHER INFORMATION](index=58&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=58&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in putative class action and derivative lawsuits alleging violations of the Securities Exchange Act of 1934, with agreements in principle to settle these claims having been reached and motions for preliminary approval currently pending - The company is involved in legal proceedings, including class action complaints filed in November 2021 alleging violations of the Securities Exchange Act related to misleading statements about the FDA's classification of its Smart Sock product[97](index=97&type=chunk)[99](index=99&type=chunk) - Following mediation, the company reached agreements in principle to settle the claims for a total of **$5.25 million**, with motions for preliminary approval of the settlements pending as of January 31, 2025[101](index=101&type=chunk) [Risk Factors](index=58&type=section&id=Item%201A.%20Risk%20Factors) The company highlights new and updated risks, including potential adverse impacts from changes in U.S. and international tax laws, such as the One Big Beautiful Bill Act of 2025 (OBBBA), and significant risk from increases in tariffs and trade restrictions on products sourced from Thailand and Vietnam - Changes in tax laws, such as the recently enacted One Big Beautiful Bill Act of 2025 (OBBBA), could adversely affect the company's financial performance[238](index=238&type=chunk) - The company faces risks from increased tariffs on its products sourced from Thailand (**19%** tariff) and Vietnam (**20%** tariff), which could increase costs, reduce profitability, and make products less competitive[240](index=240&type=chunk)[241](index=241&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=59&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities for the three months ended June 30, 2025 - There were no unregistered sales of equity securities during the three-month period ending June 30, 2025[244](index=244&type=chunk) [Other Information](index=59&type=section&id=Item%205.%20Other%20Information) The company announced that because its 2025 annual meeting will be more than 30 days after the anniversary of the 2024 meeting, the new deadline for submitting stockholder proposals under Rule 14a-8 is August 18, 2025 - The deadline for submitting stockholder proposals for the 2025 annual meeting pursuant to Rule 14a-8 has been changed to August 18, 2025[247](index=247&type=chunk)

Company Performance - Owlet, Inc. reported a quarterly loss of $0.05 per share, significantly better than the Zacks Consensus Estimate of a loss of $0.21, representing an earnings surprise of +76.19% [1] - The company posted revenues of $26.1 million for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 19.51% and up from $20.7 million a year ago [2] - Over the last four quarters, Owlet has surpassed consensus EPS estimates three times and topped revenue estimates two times [2] Stock Movement and Outlook - Owlet shares have increased approximately 59.6% since the beginning of the year, outperforming the S&P 500's gain of 7.9% [3] - The sustainability of the stock's price movement will depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is -$0.24 on revenues of $23.45 million, and for the current fiscal year, it is -$1.03 on revenues of $93.02 million [7] Industry Context - The Technology Services industry, to which Owlet belongs, is currently ranked in the top 38% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Owlet's performance [5][6]

Owlet (OWLT) Q2 2025 Earnings Call August 07, 2025 04:30 PM ET Speaker0Good afternoon. Thank you for attending today's OWLET Q2 twenty twenty five Earnings Conference Call. My name is Tamiya, and I will be your moderator for today's call. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. I would now like to pass the conference over to your host, Jay Ginsco, Investor Relations.You may proceed.Speaker1Good afternoon, everyone, and tha ...

Owlet, Inc. (NYSE: OWLT) Q2 2025 Financial Results August 7, 2025 1 March 4, 2025 Owlet, Inc. (NYSE: OWLT) | Q2 2025 Financial Results Conference Call Speakers Webcast Contacts Confidential | 2 ● Domestic Callers: (833) 470-1428 ● International Callers: (404) 975-4839; Access Code: 579904 ● Webcast Archive Available: investors.owletcare.com ● Website: investors.owletcare.com ● Email: IR@owletcare.com ● Investor Communications: Jay Gentzkow, jgentzkow@owletcare.com Disclaimer Forward-Looking Statements This ...

EX - 99.1 Owlet Reports Second Quarter 2025 Financial Results; Increases Full Year 2025 Guidance; Announces CEO Transition Plan LEHI, Utah, August 7, 2025 - Owlet, Inc. ("Owlet" or the "Company") (NYSE:OWLT), the pioneer of smart infant monitoring, today reports financial results for the second quarter ended June 30, 2025. Owlet's Chief Executive Officer and Co-Founder, Kurt Workman; President, Jonathan Harris; and Chief Financial Officer, Amanda Twede Crawford, will host a conference call to review the Com ...

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $21.1 million, representing a 43% increase compared to Q1 2024 [11][27] - Gross margin improved to 53.7%, an increase of 930 basis points year over year, marking the eighth consecutive quarter of year-over-year gross margin expansion [12][27] - Adjusted EBITDA was breakeven, an improvement of $3.1 million year over year, indicating the fourth consecutive quarter of breakeven or better adjusted EBITDA [12][29] - Operating loss decreased to $2.7 million from $5.7 million in the same period last year [28] Business Line Data and Key Metrics Changes - The DreamSoc and Dream Duo products showed strong performance, with domestic sell-through growth of 40% year over year [18] - International revenue growth for DreamSoc was up 104% year over year, with notable increases in France and Germany [19] Market Data and Key Metrics Changes - Baby registries showed a 63% year-over-year increase in DreamSoc, indicating strong market demand [18] - Brand health remains strong with a Net Promoter Score (NPS) of 73 at the end of Q1 [19] Company Strategy and Development Direction - The company is transitioning from a hardware-focused business to a comprehensive pediatric health platform through the Owlet 360 subscription service [13][59] - New distribution partnerships, such as with the Children's Hospital of the King's Daughters, are aimed at expanding market reach and enhancing product visibility [7][22] - The company is focusing on international expansion and healthcare channels to drive durable profitable growth [13][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the dynamic macro environment, despite uncertainties related to tariffs [13][30] - The company raised its 2025 revenue guidance to a range of $91 million to $95 million, reflecting strong Q1 performance and positive outlook for the remainder of the year [31] Other Important Information - The company has minimized its manufacturing exposure to China by transitioning production to Vietnam and Thailand [15][16] - The Owlet 360 subscription service has gained over 48,000 paying subscribers since its launch, indicating strong market acceptance [20] Q&A Session Summary Question: Can you explain the partnership with the Children's Hospital of the King's Daughters? - The partnership allows babies to leave the hospital with an Owlet infant health monitor, integrating Owlet data into remote patient monitoring workflows [35] Question: What is the outlook for the Owlet 360 subscription service? - Customer feedback has been overwhelmingly positive, with subscriber numbers increasing from 25,000 to over 50,000 in a few months [38] Question: How should revenue growth be expected throughout the year? - Sequential growth is expected each quarter, with Q4 anticipated to be the largest due to the holiday season [40] Question: What is the overall marketing strategy for 2025? - The strategy focuses on FDA and CE medical clearances and enhancing communication with parents through various channels [44] Question: Are there any shifts in consumer behavior due to macroeconomic conditions? - Currently, there are no significant shifts observed, and the company remains cautiously optimistic [46] Question: How is the company positioned against competitors affected by tariffs? - The company sees potential opportunities to capture additional market share as many competitors face tariff impacts [54]

Owlet (OWLT) Q1 2025 Earnings Call May 08, 2025 04:30 PM ET Speaker0 Thank you for your patience. Whilst you're waiting for the start of today's call with Outlook, I would like to remind you that it's star followed by 1 to join the queue for a question today. And if you would like to remove that request at any point, you can do so by using followed by 2. And if you need operator assistance at any point during today's call, please press then 0. Thank you. Today's host will be Jay Zenzo, investor relations of ...

(Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 ____________________________________________________________________________ FORM 10-Q ____________________________________________________________________________ ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____ t ...

EX - 99.1 Owlet Announces First Quarter 2025 Financial Results LEHI, Utah, May 8, 2025 - Owlet, Inc. ("Owlet" or the "Company") (NYSE:OWLT), the pioneer of smart infant monitoring, today reports financial results for the first quarter ended March 31, 2025. Owlet's Chief Executive Officer and Co-Founder, Kurt Workman; President, Jonathan Harris; and Chief Financial Officer, Amanda Twede Crawford, will host a conference call to review the Company's results and provide a business update today, May 8, 2025, at ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-39516 OWLET, INC. (Exact name of Registrant as specified in its Charter) Delaware 85-1615012 (State or other jurisdiction of incorpor ...