Core Insights - Owlet has partnered with Rhapsody to integrate infant health data from its BabySat pulse oximeter into electronic health record (EHR) systems, enhancing data sharing between home and hospital settings [2][3][4] Company Overview - Owlet, Inc. is a pioneer in smart infant monitoring, offering FDA-cleared wearable pediatric monitors and innovative software that provides real-time health insights to parents [6][7] - The company has gained the trust of over 2.5 million parents since its inception in 2012, creating one of the largest collections of pediatric health data globally [7] Partnership Details - The collaboration with Rhapsody aims to create a secure, standards-based pathway for pediatric data, allowing clinicians to access and record vital information seamlessly [3][5] - This integration is expected to simplify data connectivity, enabling hospitals to scale their pediatric remote patient monitoring (RPM) programs effectively [4][5] Market Impact - The partnership reflects a growing interest in connected monitoring solutions within healthcare systems across the nation, positioning Owlet to bridge the gap between home monitoring and hospital care [5] - Owlet's focus on clinically validated insights aims to empower families and enhance the quality of care provided by clinicians [5]

Company Overview - Owlet, Inc. (OWLT) shares increased by 17.9% to close at $9.35, supported by high trading volume, contrasting with a 7.3% decline over the past four weeks [1] - The stock's surge was attributed to investor perception of its $7.15-per-share public offering as a sign of strong institutional confidence and a potential growth catalyst [1] Financial Performance Expectations - Owlet is projected to report a quarterly loss of $0.23 per share, reflecting a year-over-year decline of 866.7% [2] - Expected revenues for the upcoming quarter are $26.55 million, representing a 20.1% increase from the same quarter last year [2] Earnings Estimates and Stock Movement - The consensus EPS estimate for Owlet has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [3] - The stock currently holds a Zacks Rank of 3 (Hold), suggesting a neutral outlook [3] Industry Context - Owlet operates within the Zacks Technology Services industry, where Distribution Solutions Group (DSGR) also resides [3] - DSGR's consensus EPS estimate for its upcoming report is $0.42, showing a year-over-year increase of 13.5% [4] - DSGR currently has a Zacks Rank of 2 (Buy), indicating a more favorable outlook compared to Owlet [4]

Core Viewpoint - Owlet, Inc. has announced the pricing of an underwritten public offering of 4,196,000 shares of its Class A common stock at a price of $7.15 per share, aiming to raise capital through this offering [1] Group 1: Offering Details - The public offering consists of 4,196,000 shares of Class A common stock [1] - The shares are priced at $7.15 each, before underwriting discounts and commissions [1] - All shares in the offering are to be sold by the company [1] Group 2: Financial Implications - The gross proceeds from the offering are intended to provide the company with additional capital [1]

Core Viewpoint - Owlet, Inc. has announced a proposed underwritten public offering of its Class A common stock, indicating a strategic move to raise capital in the smart infant monitoring sector [1] Company Summary - Owlet, Inc. is recognized as a pioneer in smart infant monitoring technology, highlighting its innovative position within the industry [1] - The company plans to grant underwriters a 30-day option to purchase additional shares, up to 15% of the shares offered in the public offering, which suggests confidence in demand for its stock [1]

Core Insights - Owlet, Inc. has received approval from the Central Drugs Standard Control Organization (CDSCO) for its Dream Sock® product, enabling the company to distribute its integrated monitoring devices in India [1] Group 1: Company Developments - The approval from CDSCO is a significant milestone for Owlet, Inc. as it prepares to launch its products in India [1] - The company plans to introduce its integrated monitoring devices, including Dream Sock®, Dream Sight™, and Dream Duo™, in early 2026 [1] Group 2: Regulatory Approval - The CDSCO is India's national regulatory body, and its approval is crucial for Owlet's market entry [1]

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]

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]

Core Points - Owlet, Inc. announced the approval of an equity inducement award for Jordan Thompson, the new Vice President and Corporate Controller, as a material inducement to employment [1] Summary by Category Company Announcement - The Compensation Committee of Owlet's Board of Directors approved an equity inducement award on September 30, 2025 [1] - The award consists of 129,863 restricted shares [1]

Core Insights - Owlet, Inc. has launched its new HD video baby monitor, Dream Sight™, and the next-generation Dream Duo™, enhancing its position in the smart infant monitoring market [1] Product Launch - The new products feature advanced technology aimed at providing clarity, connection, and peace of mind for parents from day one [1] - The company emphasizes that parents are seeking more advanced features and greater reliability in baby monitors [1]

[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)