Owlet Q3 revenue beats estimates on higher product sales

Reuters11-14
Owlet Q3 revenue beats estimates on higher product sales

Overview

  • Owlet Q3 revenue rises 44.6% yr/yr, beating analyst expectations

  • Adjusted EPS for Q3 beats consensus, reflecting strong operational performance

  • Company reports record Q3 net income of $4.1 mln, reversing a loss in Q3 2024

Outlook

  • Owlet expects full-year 2025 revenue between $103 mln and $106 mln

  • Company anticipates 2025 gross margins of 48% to 50%

  • Owlet projects 2025 adjusted EBITDA between $1.25 mln and $2 mln

Result Drivers

  • PRODUCT SALES - Increased sales of Dream Sock and Dream Duo products drove revenue growth

  • INTERNATIONAL EXPANSION - Strong international growth with 171% increase yr/yr, supported by new regulatory clearance in India

  • SUBSCRIPTION GROWTH - Owlet360 subscription surpasses 85,000 paying subscribers, expanding to international markets

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$32 mln

$27.18 mln (4 Analysts)

Q3 Adjusted EPS

Beat

$0.03

-$0.21 (2 Analysts)

Q3 Adjusted EBITDA

Beat

$1.60 mln

$483,250 (4 Analysts)

Q3 Gross Margin

50.60%

Q3 Gross Profit

$16.20 mln

Q3 Operating Expenses

$15 mln

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the advanced medical equipment & technology peer group is "buy"

  • Wall Street's median 12-month price target for Owlet Inc is $13.00, about 15.4% above its November 12 closing price of $11.00

Press Release: ID:nBw2t1FJ1a

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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