I covered Owlet, Inc. (NYSE: OWLT ) at the end of July . I thought the company was undervalued at the time and rated it a buy. Owlet had come off some regulatory issues, and with thoseAnalyst’s Disclosure:I/we have a beneficial long position in the shares of OWLT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company w ...

Core Insights - Owlet, Inc. (NYSE: OWLT) was considered undervalued at the end of July, leading to a buy rating for the stock [1] Company Overview - The company had recently resolved some regulatory issues, which may positively impact its market position [1]

LEHI, Utah--(BUSINESS WIRE)---- $owlt #babymonitor--Owlet, Inc. (NYSE: OWLT) (the "Company† or "Owlet† ), the pioneer of smart infant monitoring, today announced that on September 30, 2025, the Compensation Committee of its Board of Directors approved an equity inducement award to Jordan Thompson, the Company's Vice President and Corporate Controller. The award was made in connection with Mr. Thompson joining the Company as a material inducement to employment. The equity inducement award consists of 129,863 ...

LEHI, Utah--(BUSINESS WIRE)---- $owlt #babymonitor--Owlet, Inc. (NYSE: OWLT) (the "Company†or "Owlet†), the pioneer of smart infant monitoring, announces the launch of its new HD video baby monitor, Dream Sightâ"¢, and next-generation Dream Duoâ"¢. These products represent an important step for Owlet in the category, featuring advanced technology designed to provide clarity, connection, and peace of mind from day one. "Parents are clear about what they need in a baby monitor – more advanced features, grea ...

[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]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $26,100,000, representing a 25.9% increase year over year, contributing to the largest first half revenue performance in company history [5][14][27] - Gross margins expanded by 180 basis points to 51.3%, marking the ninth consecutive quarter of year-over-year gross margin expansion [14][28] - Adjusted EBITDA was $300,000, indicating the fifth consecutive quarter of adjusted EBITDA profitability [5][14][31] - Net loss for Q2 was $37,600,000, primarily due to a non-cash mark to market adjustment related to common stock warrant liability [29][30] Business Line Data and Key Metrics Changes - Domestic sell-through growth for DreamSoc was 37% year over year, with a 54% increase in total DreamSoc additions to registries [16][20] - International revenue decreased to $1,800,000 from $4,800,000 year over year, attributed to a timing shift of open orders to Q3 [20][21] - The Outlet 360 subscription surpassed 66,000 paying subscribers, showing strong growth in monthly recurring revenue and retention rates [22][63] Market Data and Key Metrics Changes - Owlette maintained market leadership in the baby monitor category, increasing its share of total dollars spent on baby monitors compared to the prior year [17] - The overall category for baby monitors is experiencing the highest consumer spending in five years [17] - International sell-through units in the UK increased by 144%, while France and Germany saw increases of over 200% and 100% year over year, respectively [21] Company Strategy and Development Direction - The company is focused on transforming into a comprehensive pediatric health platform, emphasizing the expansion of the Outlet 360 subscription and increasing customer lifetime value [6][24] - Plans to roll out telehealth services by the end of the year, enhancing the integration of health data with healthcare providers [24][58] - The company is exploring alternative manufacturing locations to mitigate the impact of increased tariffs [70] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued momentum into the second half of the year and raised full-year guidance based on strong Q2 performance [6][32] - The leadership transition is expected to further accelerate growth, with Jonathan Harris taking over as CEO [7][12] - Management acknowledged the fluidity of the macroeconomic environment, particularly regarding tariff policies, which could impact future guidance [32] Other Important Information - The company announced an agreement to exchange Series A and Series B warrants for common stock, simplifying its capital structure [30][73] - The company received recognition for innovation in baby care, winning awards for its DreamSoc product [19][20] Q&A Session Summary Question: Can you quantify the tariff cost impact on cost of goods sold? - The impact was about $500,000 in Q2, with expectations of a 5% impact on gross margin in Q4 due to increased tariffs [36][37] Question: What is the progress on the healthcare side with DME vendors? - Revenue from healthcare remains inconsequential, but adoption of Medicaid plans is increasing, and integration with CHKD is progressing [42] Question: What is the process for bringing another hospital on board? - The process involves committee approvals and integration into existing remote patient monitoring platforms [68] Question: Is there a strategy to bring manufacturing to the US or another country with lower tariffs? - The company is actively exploring other manufacturing sites to diversify sourcing and minimize tariff impacts [70]

Financial Performance - Owlet's Q2 2025 revenue reached $26.1 million, representing a 25.9% year-over-year growth[10, 26] - The gross margin for Q2 2025 was 51.3%, an expansion of 180 basis points year-over-year[10, 26] - Adjusted EBITDA for Q2 2025 was $0.3 million, showing a $0.2 million improvement compared to Q2 2024[10, 32] - Total operating expenses for Q2 2025 were $15.3 million, with OpEx as a percentage of revenue at 58.7%, compared to 60.4% in Q2 2024[32] Business Highlights - Owlet experienced a strong 26% year-over-year revenue growth[11] - The company achieved its 9th consecutive quarter of gross margin expansion year-over-year[11] - Owlet marked its 5th consecutive quarter of adjusted EBITDA profitability[11] - Owlet360 subscription service has over 66,000 paying subscribers[11, 17] Dream Sock Performance - Domestic Dream Sock sell-through increased by 37% year-over-year[14] - Dream Sock registry additions grew by 54% year-over-year[14] - Total sell-through units on U.S Amazon Prime Day sales increased 72% year-over-year[14] - Total sell-through units on U.K Amazon Prime Day sales increased 144% year-over-year[14] Updated Guidance - The company updated its FY 2025 revenue guidance to $97 million - $100 million, projecting a 24-28% growth year-over-year[34] - The gross margin guidance for FY 2025 remains at 46% - 50%, including new, increased tariff costs[34] - The company fully expects to be positive in Adj EBITDA, including new, increased tariff costs[34]

[Executive Summary and Strategic Updates](index=1&type=section&id=1.%20Executive%20Summary%20and%20Strategic%20Updates) Owlet reported strong Q2 2025 financial results, announced a CEO transition, and raised its full-year 2025 financial outlook, expecting adjusted EBITDA profitability [Q2 2025 Financial Highlights](index=1&type=section&id=1.1.%20Q2%202025%20Financial%20Highlights) Owlet reported strong financial results for Q2 2025, outperforming expectations with significant revenue growth, gross margin expansion, and improved adjusted EBITDA. The Owlet360 subscription service continued its positive trend, surpassing 66,000 paying subscribers Q2 2025 Key Financial Metrics (YoY Change) | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | Change (%) | Basis Points Change | | :--------------- | :----------------- | :----------------- | :--------- | :------------------ | | Revenue | $26.1 | $20.7 | 25.9% | - | | Gross Margin | 51.3% | 49.5% | - | +180 bps | | Net Loss | $(37.6) | $(1.1) | - | - | | Adjusted EBITDA | $0.3 | $0.1 | +$0.2 | - | - Owlet360 subscription service surpassed **66,000 paying subscribers**, showing steady growth in monthly recurring revenue, attach rate, retention rate, and consumer satisfaction[2](index=2&type=chunk) [CEO Transition Plan](index=1&type=section&id=1.2.%20CEO%20Transition%20Plan) Owlet announced that Jonathan Harris, current President, will succeed Kurt Workman as Chief Executive Officer, effective October 1, 2025. Kurt Workman will transition to Executive Chairman of the Board, focusing on long-term strategy and expanding access to Owlet's mission - Jonathan Harris, current President, will become CEO of Owlet, effective October 1, 2025[3](index=3&type=chunk) - Co-Founder Kurt Workman will transition from CEO to Executive Chairman of the Board of Directors[3](index=3&type=chunk) - Jonathan Harris is credited with leading global go-to-market strategies post-FDA/CE clearances, spearheading international growth, establishing Owlet360 subscription, and driving organizational streamlining[6](index=6&type=chunk) [Updated 2025 Financial Outlook](index=2&type=section&id=1.3.%20Updated%202025%20Financial%20Outlook) Owlet increased its full-year 2025 financial guidance, expecting higher revenue and gross margins, and anticipates achieving adjusted EBITDA profitability for the full year Updated Full Year 2025 Financial Outlook | Metric | Range | YoY Growth | | :----------------- | :--------------------- | :--------- | | Revenue | $97 million to $100 million | 24% to 28% | | Gross Margins | 46% to 50% | - | - The Company now fully expects to be **adjusted EBITDA profitable** for the full year 2025[12](index=12&type=chunk) [Detailed Financial Performance](index=2&type=section&id=2.%20Detailed%20Financial%20Performance) This section details Q2 and year-to-date 2025 financial performance, highlighting revenue growth, gross margin expansion, and significant net losses primarily due to warrant liability adjustments [Second Quarter Ended June 30, 2025](index=2&type=section&id=2.1.%20Second%20Quarter%20Ended%20June%2030,%202025) For Q2 2025, Owlet reported a 25.9% increase in revenue, primarily driven by Dream Sock and Dream Duo sales. Gross margin expanded by 180 basis points due to favorable product mix and cost efficiencies. Operating expenses increased, leading to a slight improvement in operating loss. However, net loss significantly widened to $37.6 million, largely due to a $34.8 million non-cash common stock warrant liability adjustment Q2 2025 Financial Performance (YoY Comparison) | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | YoY Change | | :-------------------------- | :----------------- | :----------------- | :--------- | | Revenue | $26.1 | $20.7 | +25.9% | | Cost of Revenue | $12.7 | $10.4 | +22.1% | | Gross Margin | 51.3% | 49.5% | +180 bps | | Operating Expenses | $15.3 | $12.5 | +22.4% | | Operating Loss | $(1.9) | $(2.2) | +$0.3 | | Net Loss | $(37.6) | $(1.1) | - | | Adjusted EBITDA | $0.3 | $0.1 | +$0.2 | | Net Loss per Share (GAAP) | $(2.37) | $(0.30) | - | | Adjusted Net Loss per Share | $(0.05) | $0.00 | - | - The significant increase in net loss was primarily due to a **$34.8 million non-cash, mark-to-market common stock warrant liability adjustment**[10](index=10&type=chunk) [Six Months Ended June 30, 2025](index=8&type=section&id=2.2.%20Six%20Months%20Ended%20June%2030,%202025) For the first six months of 2025, Owlet's revenue increased by 33.3% year-over-year. While operating loss improved, the net loss significantly widened to $34.6 million, primarily due to a common stock warrant liability adjustment, contrasting with a net income in the prior year period Six Months Ended June 30, 2025 Financial Performance (YoY Comparison) | Metric | 6M 2025 (Millions) | 6M 2024 (Millions) | YoY Change | | :-------------------------- | :----------------- | :----------------- | :--------- | | Revenues | $47.2 | $35.4 | +33.3% | | Gross Profit | $24.7 | $16.8 | +47.0% | | Operating Loss | $(4.6) | $(8.0) | +$3.4 | | Net Income (Loss) | $(34.6) | $2.1 | - | | Adjusted EBITDA | $0.3 | $(3.0) | +$3.3 | | Net Loss per Share (GAAP) | $(2.26) | $(0.08) | - | | Adjusted Net Loss per Share | $(0.12) | $(0.38) | +$0.26 | - The net loss for the six months ended June 30, 2025, was significantly impacted by a **$(28.1) million common stock warrant liability adjustment**, compared to a **$10.2 million positive adjustment** in the prior year[32](index=32&type=chunk)[33](index=33&type=chunk) [Financial Statements and Reconciliations](index=6&type=section&id=3.%20Financial%20Statements%20and%20Reconciliations) This section presents condensed consolidated financial statements, including balance sheets, cash flows, and statements of operations, along with reconciliations of GAAP to non-GAAP financial measures [Condensed Consolidated Balance Sheets](index=6&type=section&id=3.1.%20Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of June 30, 2025, shows an increase in total assets, primarily driven by higher accounts receivable. Total liabilities also increased significantly, largely due to a substantial rise in common stock warrant liabilities and the line of credit Condensed Consolidated Balance Sheet Highlights (Millions) | Item | June 30, 2025 | December 31, 2024 | | :-------------------------------------- | :------------ | :---------------- | | Total current assets | $60.7 | $46.1 | | Total assets | $63.5 | $49.5 | | Total current liabilities | $52.8 | $36.4 | | Common stock warrant liabilities | $51.7 | $25.3 | | Total liabilities | $108.0 | $66.3 | | Total stockholders' deficit | $(59.2) | $(29.8) | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=3.2.%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, Owlet experienced net cash outflows from operating and investing activities, which were more than offset by net cash inflows from financing activities, resulting in a positive net change in cash Condensed Consolidated Statements of Cash Flows (Millions) | Item | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------------- | :----------------------------- | :----------------------------- | | Net cash used in operating activities | $(8.2) | $(6.7) | | Net cash used in investing activities | $(0.2) | $(0.1) | | Net cash provided by financing activities | $9.9 | $5.6 | | Net change in cash, cash equivalents, and restricted cash | $1.5 | $(1.2) | [Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)](index=8&type=section&id=3.3.%20Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20(Loss)) The income statement details revenue growth for both the quarter and six-month period. Despite improved operating loss, the net loss was significantly impacted by a large non-cash common stock warrant liability adjustment, leading to a substantial net loss for both periods Condensed Consolidated Statements of Operations (Millions, except per share) | Item | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :---------------------------------------- | :------ | :------ | :------ | :------ | | Revenues | $26.1 | $20.7 | $47.2 | $35.4 | | Gross profit | $13.4 | $10.3 | $24.7 | $16.8 | | Operating loss | $(1.9) | $(2.2) | $(4.6) | $(8.0) | | Common stock warrant liability adjustment | $(34.8) | $1.0 | $(28.1) | $10.2 | | Net income (loss) | $(37.6) | $(1.1) | $(34.6) | $2.1 | | Net loss per share attributable to common stockholders, basic and diluted | $(2.37) | $(0.30) | $(2.26) | $(0.08) | [Reconciliation of GAAP to Non-GAAP Measures](index=9&type=section&id=3.4.%20Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) This section provides a reconciliation from GAAP net income (loss) to non-GAAP measures such as EBITDA, Adjusted EBITDA, and Adjusted Net Income (Loss), highlighting adjustments for non-cash items like common stock warrant liability and stock-based compensation, which significantly impact reported GAAP figures GAAP to Non-GAAP Reconciliation Highlights (Millions, except per share) | Item | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :---------------------------------------- | :------ | :------ | :------ | :------ | | GAAP net income (loss) | $(37.6) | $(1.1) | $(34.6) | $2.1 | | Non-GAAP EBITDA | $(36.5) | $(1.0) | $(32.4) | $2.5 | | Non-GAAP Adjusted EBITDA | $0.3 | $0.1 | $0.3 | $(3.0) | | Non-GAAP adjusted net income (loss) | $(0.8) | $0.0 | $(1.9) | $(3.4) | | Non-GAAP adjusted net income (loss) per share | $(0.05) | $0.00 | $(0.12) | $(0.38) | - Key adjustments include common stock warrant liability adjustment (**$34.8M in Q2 2025**, **$(1.0)M in Q2 2024**) and stock-based compensation (**$1.6M in Q2 2025**, **$2.1M in Q2 2024**)[33](index=33&type=chunk) [Corporate Information and Disclosures](index=2&type=section&id=4.%20Corporate%20Information%20and%20Disclosures) This section covers forward-looking statements, non-GAAP financial measure disclosures, conference call details, company overview, and contact information [Forward-Looking Statements](index=2&type=section&id=4.1.%20Forward-Looking%20Statements) This section serves as a cautionary disclosure, highlighting that the press release contains forward-looking statements subject to various risks and uncertainties. These statements are based on current expectations and may differ materially from actual results due to factors such as regulatory pathways, competition, financing, and economic conditions. The company disclaims any obligation to update these statements - Forward-looking statements are based on expectations at the time they are made and are susceptible to risks, uncertainties, and other factors[14](index=14&type=chunk) - Key risk factors include regulatory pathways (FDA), competition, ability to obtain financing, implement strategic initiatives, protect intellectual property, maintain relationships, and adapt to economic conditions[14](index=14&type=chunk) - The Company assumes no obligation to update any forward-looking statements after the date of the press release, except as required by law[15](index=15&type=chunk) [Disclosure Regarding Non-GAAP Financial Measures](index=4&type=section&id=4.2.%20Disclosure%20Regarding%20Non-GAAP%20Financial%20Measures) Owlet provides non-GAAP financial measures (EBITDA, Adjusted EBITDA, Adjusted Net Income/Loss) to offer a meaningful perspective of its underlying operating performance, benchmarking, and trend analysis. These measures exclude items not correlated to core operations but should not be considered alternatives to GAAP measures - Non-GAAP financial measures are used as internal measures of business operating performance and for benchmarking against peers[17](index=17&type=chunk) - EBITDA is defined as net income (loss) adjusted for income tax, interest, depreciation, amortization, and impairment of intangible assets[19](index=19&type=chunk) - Adjusted EBITDA further adjusts for common stock warrant liability, stock-based compensation, transaction costs, and legal matters[19](index=19&type=chunk) - These non-GAAP measures are not recognized under GAAP and should not be construed as substitutes for GAAP financial measures[22](index=22&type=chunk) [Conference Call and Webcast Information](index=5&type=section&id=4.3.%20Conference%20Call%20and%20Webcast%20Information) Details for accessing the conference call and webcast hosted by Owlet on August 7, 2025, to discuss the financial results and provide a business update - Conference call and webcast held on **August 7, 2025**, at **4:30 p.m. ET**[24](index=24&type=chunk) - Access via domestic (**833-470-1428**) or international (**404-975-4839**) numbers with Access Code **579904**, or online at investors.owletcare.com[25](index=25&type=chunk) [About Owlet, Inc.](index=5&type=section&id=4.4.%20About%20Owlet,%20Inc.) Owlet, Inc. is a pioneer in smart infant monitoring, offering an FDA-authorized digital health platform with medical and consumer pediatric wearables and an integrated camera. The company aims to transform parenting by providing real-time data and insights to safeguard infant health, optimize wellness, and ensure peaceful sleep, leveraging data from over 2 million parents worldwide - Owlet is a pioneer of smart infant monitoring, offering an **FDA-authorized digital health infant monitoring platform**[26](index=26&type=chunk) - Products include medical and consumer pediatric wearables and an integrated HD visual and audio camera, providing real-time data and insights to parents[26](index=26&type=chunk) - Over **2 million parents worldwide** have used Owlet's platform, contributing to one of the largest collections of consumer infant health and sleep data[27](index=27&type=chunk) [Contacts](index=9&type=section&id=4.5.%20Contacts) Contact information for investor relations and media inquiries - Investor Relations contact: **ir@owletcare.com**[34](index=34&type=chunk) - Media contact: **pr@owletcare.com**[34](index=34&type=chunk)

Core Insights - Owlet, Inc. (NYSE: OWLT) is identified as an undercovered stock that is demonstrating growth potential [1] Company Overview - The company has been recognized for its innovative products aimed at improving infant health, particularly in neonatal intensive care units (NICU) [1]