Owlet reports Q2 revenue growth, announces CEO transition plan

Owlet Inc. (NYSE: OWLT) reported second-quarter revenue of $26.1 million, representing a 25.9% increase from the same period in 2024. The smart infant monitoring company also announced that President Jonathan Harris will succeed co-founder Kurt Workman as CEO effective October 1, 2025.

The company's gross margin expanded to 51.3% in the second quarter, up 180 basis points year-over-year. This improvement was attributed to higher revenue, favorable product mix toward Dream Sock products, lower direct product and fulfillment costs, and fixed cost absorption, partially offset by tariff impacts.

Owlet reported a net loss of $37.6 million for the quarter, compared to a $1.1 million loss in Q2 2024. The larger loss included a $34.8 million non-cash mark-to-market common stock warrant liability adjustment. Adjusted EBITDA improved to $0.3 million from $0.1 million in the prior year quarter.

The company's Owlet360 subscription service reached over 66,000 paying subscribers with steady growth in monthly recurring revenue, attach rate, retention rate, and consumer satisfaction, according to the announcement.

Workman will transition to Executive Chairman of the Board of Directors when Harris assumes the CEO role. Harris has served as President for the past two years, leading global go-to-market efforts following FDA and CE mark clearances, international growth and distribution, and the launch of the Owlet360 subscription offering.

For full year 2025, Owlet raised its revenue guidance to a range of $97 million to $100 million, representing 24% to 28% growth year-over-year. The company expects gross margins between 46% and 50%, including the impact of new tariff costs, and projects full-year adjusted EBITDA profitability.

Operating expenses increased to $15.3 million in the second quarter from $12.5 million in the prior year, primarily due to higher compensation expense including accrued bonuses. Operating loss narrowed to $1.9 million from $2.2 million year-over-year.

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