Owlet, Inc. (NYSE: OWLT) Q3 2025 Financial Results November 13, 2025 1 March 4, 2025 Owlet, Inc. (NYSE: OWLT) | Q3 2025 Financial Results Conference Call Speakers Webcast Contacts Confidential | 2 ● Jonathan Harris, CEO & President ● Amanda Twede Crawford, CFO ● Jay Gentzkow, VP Investor Relations and Corporate Development ● Domestic Callers: (833) 470-1428 ● International Callers: (646) 844-6383 ○ Access Code: 428622 ● Webcast Archive Available: investors.owletcare.com ● Website: investors.owletcare.com ● ...

Offering Details - The Company is offering a total of 4,196,000 shares of Class A common stock, with an additional option for underwriters to purchase up to 629,400 shares[2]. - The proposed offering of the shares may be made pursuant to General Instruction I.B.1 of Form S-3[11]. - The Offering is expected to commence as soon as the Representatives deem advisable after the execution of the Underwriting Agreement[2]. - The Company has granted an option to Underwriters to purchase up to an additional 629,400 shares of Common Stock[99]. - The company is selling 4,196,000 shares of Common Stock at an initial public offering price of $7.15 per share[177]. - The total number of shares to be sold, including the option shares, is 4,825,400[179]. - The underwriters have been granted an option to purchase an additional 629,400 shares of Common Stock[179]. - The underwriters' discount per share is $0.46475[177]. - William Blair & Company, L.L.C. will purchase 2,194,508 shares, while TD Securities (USA) LLC will purchase 1,670,008 shares[177]. Regulatory Compliance - The registration statement for the public offering was declared effective on August 23, 2024[4]. - The Company has complied with all requests from the Securities and Exchange Commission for additional information[12]. - No stop order suspending the effectiveness of the registration statement has been issued by the Commission[12]. - The Company meets the requirements for use of Form S-3 under the 1933 Act[11]. - The Company has not engaged in any Testing-the-Waters Communication without the consent of the Representatives[20]. - The Company has prepared and will file a final prospectus supplement relating to the shares in accordance with Rule 424(b)[4]. - The Company has filed all required SEC reports on a timely basis, and these reports complied with the applicable requirements[25]. - The Company has maintained compliance with the Sarbanes-Oxley Act in all material respects[28]. - The Company is classified as an "emerging growth company" as defined in Section 2(a) of the 1933 Act[23]. - The Company will comply with the requirements of the 1933 Act and the 1934 Act to permit the completion of the distribution of the Shares[104]. Financial Position - The financial statements comply with Regulation S-X and present fairly the financial position of the Company and its consolidated subsidiaries[27]. - There has been no material adverse change in the Company's business or financial position since the last reporting period[30]. - The Company has not entered into any material transactions or incurred any significant liabilities since the last reporting period[30]. - The Company has not sustained any material losses or business interferences from external calamities or disputes[30]. - The Company must provide a comfort letter from PricewaterhouseCoopers LLP regarding financial statements at the time of execution and at Closing Time[127][128]. - The principal financial officer provided a certificate confirming the accuracy of financial data in the Registration Statement[134]. Legal and Regulatory Matters - The Company and its Subsidiaries are not in violation of any laws or regulations that would result in a Material Adverse Effect[41]. - There are no labor disputes or significant unfair labor practice complaints pending against the Company or its Subsidiaries[43]. - The Company possesses all necessary Governmental Licenses to conduct its business, and they are in compliance with all terms and conditions[47]. - The Company has been in compliance with all FDA regulations and has not received any adverse findings from the FDA[53]. - The Company has maintained compliance with all applicable FDA Laws and has not received any notices of action from the FDA that would result in a Material Adverse Effect[54]. - The Company has all necessary permits and is in compliance with Environmental Laws, with no pending actions or claims against it[60]. - The Company has conducted its business in compliance with the Foreign Corrupt Practices Act and has instituted policies to ensure continued compliance[67]. - The Company has maintained compliance with all applicable privacy, data security, and data protection laws, including the California Consumer Privacy Act and the EU General Data Protection Regulation[73]. Internal Controls and Insurance - The Company maintains effective internal control over financial reporting and has not experienced any material weaknesses in its internal controls[61]. - All required tax returns have been filed, and taxes due have been paid, with adequate reserves established for any contested assessments[63]. - The Company carries insurance with reputable insurers, and there is no reason to believe it will not be able to renew its coverage[64]. Indemnification and Agreements - The Company agrees to indemnify Underwriters against any losses arising from untrue statements or omissions in the Registration Statement[141]. - Each Underwriter agrees to indemnify the Company against losses related to untrue statements or omissions made in reliance on Underwriter Information[143]. - The indemnification agreement includes coverage for expenses incurred in investigating or defending against claims[146]. - The Company and Underwriters agree on the proportional allocation of losses based on the net proceeds from the Offering[148]. - The agreement is governed by the laws of the state of New York[164]. - The agreement supersedes all prior agreements and understandings between the company and the underwriters regarding the subject matter[170]. Miscellaneous - The Company has not engaged in any transactions with affiliates exceeding $120,000, other than for salary or employee benefits[76]. - The Company has taken necessary actions to render anti-takeover provisions inapplicable[77]. - The Company has not made any offers or sales of securities that would cause the Offering to be integrated with prior offerings[78]. - The Company acknowledges that the Underwriters will rely upon the accuracy and truthfulness of the representations made[97]. - The Company must ensure that all conditions specified in the Agreement are fulfilled to avoid termination of the Agreement[140]. - The Representatives may terminate the Agreement if there is a material adverse change in the Company's financial condition or market conditions[155].

Core Insights - Owlet, Inc. reported record financial results for Q3 2025, achieving significant growth in revenue, gross profit, operating income, and adjusted EBITDA, driven by strong sales of its Dream product line and international expansion [3][4][5]. Financial Performance - Revenue for Q3 2025 was $32.0 million, a 44.6% increase from $22.1 million in Q3 2024, primarily due to higher sales of Dream Sock and Dream Duo products [4]. - Gross profit reached $16.2 million with a gross margin of 50.6%, down from 52.2% in Q3 2024, attributed to tariff impacts [5]. - Operating income was $1.2 million, a turnaround from an operating loss of $4.8 million in Q3 2024 [8]. - Net income for Q3 2025 was $4.1 million, compared to a net loss of $5.6 million in Q3 2024 [8]. - Adjusted EBITDA improved to $1.6 million, up from $0.6 million in Q3 2024 [8]. Operational Highlights - Owlet360 subscription service surpassed 85,000 paying subscribers, with plans for international market expansion [3]. - The company experienced approximately 171% year-over-year growth in international markets, with a new regulatory clearance in India expected to support a product launch in early 2026 [3]. - Owlet is piloting its telehealth initiative, Owlet OnCall, to unlock healthcare channels [3]. Financial Outlook - For the full year 2025, Owlet expects revenue between $103 million and $106 million, representing a year-over-year growth of 32% to 36% [10]. - Gross margins are anticipated to be in the range of 48% to 50%, factoring in increased tariff costs [10]. - Adjusted EBITDA is projected to be between $1.25 million and $2 million [10]. Company Overview - Owlet, Inc. is a leading pediatric health platform, recognized for its FDA-cleared wearable pediatric monitors, providing hospital-grade technology for home use [23]. - The company aims to enhance pediatric wellness by integrating advanced medical technology with user-friendly design, having gained the trust of over 2.5 million parents since its inception [23].

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]