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 ● ...

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].

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]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $21.1 million, representing a 43% increase year over year 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 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] - The Owlet three sixty subscription service gained over 48,000 paying subscribers shortly after its launch, indicating strong market adoption [20] Market Data and Key Metrics Changes - International revenue growth was up 104% year over year, with notable performance in France and Germany [19] - Baby registries showed a 63% year over year increase in DreamSoc, reflecting strong consumer interest [18] Company Strategy and Development Direction - The company is transitioning from a hardware-focused business to a comprehensive pediatric health platform, emphasizing the Owlet three sixty subscription service [13][60] - 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] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic uncertainties, including tariff impacts, and highlighted the company's strong positioning to capture market share [13][15] - The updated 2025 revenue guidance was raised to a range of $91 million to $95 million, reflecting the strong start to the year and ongoing momentum [30][31] Other Important Information - The company has minimized its manufacturing exposure to China by transitioning production to Vietnam and Thailand [15] - The company is actively assessing the impact of new tariffs on its operations and has included these considerations in its financial outlook [31] 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 [36] Question: What is the feedback on the Owlet three sixty subscription service? - Feedback has been overwhelmingly positive, with parents appreciating access to insights about their baby's health and sleep [38] Question: How should revenue cadence be expected throughout the year? - Sequential growth is expected each quarter, with Q4 anticipated to be the largest due to the holiday season [42] Question: Can you provide insight into the overall marketing strategy for 2025? - The marketing strategy focuses on FDA and CE medical clearances and enhancing communication with parents through various channels [46] Question: Are there any shifts in consumer behavior due to macroeconomic challenges? - Currently, there are no significant shifts observed, and the company remains cautiously optimistic [48] Question: How is the awareness of the Owlet three sixty subscription being raised? - In-app messaging, email, and SMS are being utilized to increase awareness among new parents [50] Question: Do you see any competitive advantages due to tariffs affecting competitors? - Yes, many competitors are exposed to high tariffs, which presents an opportunity for Owlet to capture additional market share [55]