Financial Data and Key Metrics Changes - Owlet achieved record annual revenue of $105.7 million for 2025, representing a 35.4% increase over 2024 [10][24] - Q4 2025 revenue was $26.6 million, up 29.6% year-over-year, driven by growth across the Dream product suite and Owlet360 subscription [10][23] - Full year 2025 gross margin was a record 50.6%, despite a 510 basis point impact from tariffs [10][24] - Adjusted EBITDA for Q4 was $0.1 million, down from $0.5 million in Q4 2024, while full year Adjusted EBITDA reached $2 million, a $3.8 million improvement over 2024 [10][11][25] Business Line Data and Key Metrics Changes - The Owlet360 subscription service crossed 110,000 paying subscribers, contributing to the company's long-term business strategy [5][17] - Dream Sock and Duo demonstrated strong domestic year-over-year sell-through at 9% and 53% respectively, indicating robust demand [12] - The introduction of the Dream Sight camera is expected to enhance customer lifetime value (LTV) and drive subscriber growth [7][11] Market Data and Key Metrics Changes - Owlet expanded its market share in baby monitors to 41% in Q4 2025, a 24% increase compared to Q4 2024 [13] - International revenue for Q4 reached $3.9 million, totaling $19.2 million for the year, a 27% increase over 2024 [14] - Strong sell-through was observed in international markets, with the U.K. up 58%, France up 41%, and the Nordics up 80% versus Q4 2024 [15] Company Strategy and Development Direction - The company aims to drive global adoption of Dream Sock, expand the Owlet360 subscription platform, grow healthcare channels, and launch the Owlet telehealth platform [11][19] - Owlet is focusing on integrating AI across its platforms to enhance competitive edge and support parents [18] - The company is positioned to redefine modern parenting by establishing a comprehensive pediatric health monitoring platform [65] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in strong performance and growth into 2026, despite challenges such as tariffs and macroeconomic pressures [11][30] - The company anticipates another record year of growth in 2026, with revenue expected to be in the range of $126 million to $130 million, representing a 19%-23% increase over 2025 [28][30] - The first quarter of 2026 is expected to be the lowest revenue contributor due to seasonality, but management remains optimistic about long-term demand [33][30] Other Important Information - The company simplified its capital structure and strengthened its balance sheet through a successful equity offering [8] - Owlet's telehealth platform is expected to launch in the second half of 2026, enhancing care quality and patient outcomes [20][47] Q&A Session Summary Question: Guidance for Q1 and revenue expectations - Management noted that Q1 is historically the lightest revenue contributor and that current macroeconomic conditions have influenced consumer spending [33][34] Question: Generative AI insights and their impact - The company sees a significant opportunity to leverage AI for personalized parenting support and to enhance subscription features [36] Question: International expansion and subscription progress - Management expects international revenue to begin in the first half of the year and is excited about the potential for subscription growth in new markets [41] Question: Go-to-market strategy for telehealth offering - The telehealth platform will be an upsell to Owlet360, with a focus on refining the user experience before the full launch [47] Question: Churn rate for Owlet360 subscribers - Management reported positive trends in subscriber growth and retention rates, with plans to share more data in future calls [50]

Financial Data and Key Metrics Changes - Owlet achieved record annual revenue of $105.7 million for 2025, representing a 35.4% increase compared to 2024 [10][24] - Q4 2025 revenue was $26.6 million, up 29.6% year-over-year, driven by growth across the Dream product suite and Owlet360 subscription [10][23] - Full year 2025 gross margin was a record 50.6%, despite a 510 basis point impact from tariffs [10][24] - Adjusted EBITDA for Q4 was $0.1 million, down from $0.5 million in Q4 2024, while full year 2025 Adjusted EBITDA reached a record $2 million, improving by $3.8 million over 2024 [10][11][25] Business Line Data and Key Metrics Changes - The Owlet360 subscription service crossed 110,000 paying subscribers, contributing to the company's growth strategy [5][17] - Dream Sock and Duo demonstrated strong domestic year-over-year sell-through at 9% and 53% respectively, indicating robust demand [12] - International revenue for Q4 reached $3.9 million, with full year 2025 international revenue at $19.2 million, up 27% versus 2024 [14][15] Market Data and Key Metrics Changes - Owlet expanded its market share in baby monitors to 41% in Q4 2025, a 24% increase compared to Q4 2024 [13] - Consumer spending on baby monitors in 2025 was the highest in the last five years, indicating a growing market [13] - International sell-through remains strong, with significant growth in the U.K. (58%), France (41%), and the Nordics (80%) compared to Q4 2024 [15] Company Strategy and Development Direction - The company aims to drive global adoption of Dream Sock, expand the Owlet360 subscription platform, grow healthcare channels, and launch the Owlet telehealth platform [11][19] - Owlet is focusing on integrating AI across its platforms to enhance its competitive edge and improve customer experiences [18] - The company is positioned to capture the Gen Z and young millennial demographic, where connected wearable devices are already a baseline expectation [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in strong performance and growth into 2026, despite challenges such as tariffs and macroeconomic pressures [11][30] - The company anticipates revenue for Q1 2026 in the range of $20 million-$21 million, with full year 2026 revenue expected to be between $126 million-$130 million, representing growth of 19%-23% over 2025 [27][28] - Management highlighted the importance of the pediatric telehealth opportunity, which could significantly enhance care quality and patient outcomes [20] Other Important Information - Owlet's cash and cash equivalents as of December 31, 2025, were $35.5 million, up from $23.8 million in the previous quarter [26] - The company has received regulatory clearance for Dream Sock sales in India and Israel, expanding its international growth potential [15][16] Q&A Session Summary Question: Guidance for Q1 and full year expectations - Management noted that Q1 is typically the lightest revenue contributor due to seasonality and observed softness in consumer spending [33] - Confidence in the full year guidance reflects strong long-term demand despite a lighter Q1 [34] Question: Generative AI insights and their impact - Management discussed leveraging AI for real-time personalized insights and enhancing subscription features, which will drive stickiness [36] Question: International expansion and subscription progress - Management expects international revenue to begin in the first half of the year, with strong sell-through in European markets [41] - The guidance does not include material contributions from new countries or telehealth opportunities, indicating potential upside [42] Question: Go-to-market strategy for telehealth offering - The telehealth platform will be an upsell to Owlet360, with a focus on getting the experience right before launching in the second half of 2026 [47] Question: Churn rate for Owlet360 subscribers - Management reported positive trends in subscriber growth, retention, and metrics indicating improved stickiness [50] Question: Long-term view on international revenue - Management sees significant growth opportunities in international markets, particularly in regions with high birth rates [59]

Financial Data and Key Metrics Changes - Owlet achieved revenue of $26.6 million in Q4 2025, a 29.6% increase compared to Q4 2024, concluding a record year with total revenue of $105.7 million for 2025, representing a 35.4% growth over 2024 [9][22] - Q4 gross margins were 47.6%, impacted by tariffs, while full year 2025 gross margins reached a record 50.6% [9][23] - Adjusted EBITDA for Q4 was $0.1 million, down from $0.5 million in Q4 2024, while full year 2025 Adjusted EBITDA was a record $2 million, improving by $3.8 million over 2024 [10][24] Business Line Data and Key Metrics Changes - The Owlet360 subscription service crossed 110,000 paying subscribers, contributing to revenue growth and enhancing customer relationships [5][15] - The Dream product suite, including the new Dream Sight camera, showed strong sales momentum, with Dream Sock and Duo experiencing year-over-year sell-through increases of 9% and 53% respectively [11][12] Market Data and Key Metrics Changes - Owlet expanded its market share in the baby monitor category to 41% in Q4 2025, a 24% increase compared to Q4 2024, with overall consumer spending on baby monitors at a five-year high [12] - International revenue reached $3.9 million in Q4, totaling $19.2 million for the year, a 27% increase from 2024, despite a decline in Q4 due to a shift in revenue recognition [13] Company Strategy and Development Direction - The company aims to drive global adoption of Dream Sock, expand the Owlet360 subscription platform, grow healthcare channels, and launch the Owlet telehealth platform [10][18] - Owlet is focusing on integrating AI across its platforms to enhance its competitive edge and provide personalized experiences for parents [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in strong performance and growth into 2026, despite challenges such as tariff impacts and macroeconomic pressures [10][28] - The company anticipates another record year in 2026, with revenue expectations between $126 million and $130 million, representing a growth of 19%-23% over 2025 [27] Other Important Information - Owlet's cash and cash equivalents were $35.5 million at the end of Q4, up from $23.8 million in Q3, indicating improved liquidity [25] - The company is investing in R&D to enhance software and services for its subscription and telehealth offerings [27] Q&A Session Summary Question: Guidance for Q1 and revenue expectations - Management noted that Q1 is typically the lowest revenue quarter due to seasonality and a strong prior year, but remains confident in long-term demand [31][33] Question: Details on generative AI insights - The company plans to leverage AI for personalized sleep coaching and actionable insights, enhancing the subscription features [34][35] Question: International expansion and subscription progress - Revenue from new international markets is expected to begin in the first half of the year, with strong sell-through in existing European markets [39][40] Question: Go-to-market strategy for telehealth offering - The telehealth platform will be an upsell to Owlet360, with a focus on refining the user experience before a full launch [44] Question: Churn rate for Owlet360 subscribers - Management reported improving retention rates and positive trends in subscriber metrics, indicating strong customer engagement [47]

Owlet, Inc. (NYSE: OWLT) Q4 & FY 2025 Financial Results March 5, 2026 March 4, 2025 2026 Confidential | 2 Owlet, Inc. (NYSE: OWLT) | Q4 2025 Financial Results Conference Call Speakers Webcast Contacts ● Jonathan Harris, President & CEO ● Amanda Twede Crawford, CFO ● Jay Gentzkow, VP Investor Relations and Corporate Development ● Domestic Callers: (833) 470-1428 ● International Callers: (404) 975-4839 ○ Access Code: 211338 ● Webcast Archive Available: investors.owletcare.com ● Website: investors.owletcare.co ...

Core Insights - Owlet, Inc. (OWLT) is expanding its product ecosystem to address a wider range of infant monitoring needs beyond a single-device offering [1] - The company is focusing on pairing wearable and camera-based devices to provide a comprehensive view of infant wellness [2] Product Development - In Q3 2025, Owlet launched the Dream Sight camera, its third-generation video baby monitor, featuring enhanced security and capabilities for future expansion [3] - Bundled offerings, such as combining the Dream Sock with camera products, are being emphasized to encourage multi-device adoption and create additional sales opportunities [4] Market Position and Competition - The competitive landscape in connected infant monitoring is intense, with companies like Masimo and iRhythm Technologies shaping adjacent markets [6] - Owlet's strategy of combining wearable and camera devices targets a specific niche in infant monitoring, which could enhance household adoption if executed effectively [9] Financial Performance - Owlet's shares have increased by 77.1% over the past six months, outperforming the Zacks Electronics - Miscellaneous Products industry's growth of 30.1% and the Zacks Computer and Technology sector's rise of 15.9% [10] - The Zacks Consensus Estimate for OWLT's 2026 loss has narrowed to 25 cents from 48 cents in the past 30 days, with an expected loss of 12 cents per share in 2025 [13]

Core Insights - Owlet, Inc. is transitioning from a connected baby monitor brand to a data-driven pediatric health platform, leveraging a growing dataset of infant health and sleep data from over 650,000 active devices and 85,000 paying Owlet360 subscribers [1][10] Data Flywheel and Monetization - The expanding dataset enhances Owlet's flywheel by increasing device adoption, which feeds more biometric and behavioral data into the platform, leading to improved insights and feature development [2] - Richer insights from the dataset increase the value of Owlet360, resulting in higher subscription attach rates, which have surpassed 25%, indicating early success in monetizing data [2] AI Integration - Owlet plans to incorporate AI-driven insights across its ecosystem, combining biometric data from Dream Sock with computer vision from the Dream Sight camera to provide personalized guidance on infant sleep and wellness [3] - The company aims to pilot generative AI features in early 2026, including tailored sleep coaching based on individual child patterns, which could enhance engagement and extend subscriptions beyond infancy [3] Long-term Healthcare Ambitions - The data flywheel supports Owlet's long-term goals in healthcare, including remote patient monitoring and telehealth initiatives, which could open higher-value channels beyond consumer hardware [4] Competitive Landscape - Masimo and Dexcom are relevant comparables, with Masimo focusing on clinically validated sensors and algorithms to drive decision support, while Dexcom monetizes continuous data streams through recurring revenue and analytics [6][7] - Both companies demonstrate how data scale and AI integration can significantly enhance lifetime value, a target for Owlet as it develops its dataset and AI capabilities [7] Financial Performance - Owlet's shares have increased by 73.3% over the past six months, outperforming the Zacks Electronics - Miscellaneous Products industry's growth of 20.6% and the Zacks Computer and Technology sector's rise of 19.1% [8] - The Zacks Consensus Estimate for Owlet's 2026 loss has improved to 25 cents from 88 cents in the past month, with an expected loss of 12 cents per share in 2025 [12]