Owlet (OWLT) investor relations material

Executive summary

• Q1 2026 revenue reached $22.5 million, up 6.4% year-over-year, driven by record $2.7 million subscription revenue and over 115,000 paying subscribers.

• Gross margin improved to 54.5%, up 80 basis points year-over-year despite tariff impacts.

• Adjusted EBITDA was $(1.5) million, down from breakeven or prior year, mainly due to tariffs.

• CEO transition with renewed strategic focus on subscription growth, telehealth, and operational efficiency.

• Launch of OnCall pediatric telehealth service and new AI-driven features in the app.

Financial highlights

• Subscription revenue hit a record $2.7 million, with subscription gross margin at 67.4%.

• Overall gross margin was 54.5%, up 80 basis points year-over-year.

• Q1 operating loss was $5.5 million; net loss was $3.3 million; adjusted EBITDA was $(1.5) million.

• Operating expenses totaled $17.7 million, 79% of revenue, up from $14 million year-over-year.

• Cash and liquidity at quarter end totaled $39.4 million; cash and cash equivalents were $35.5 million.

Outlook and guidance

• 2026 revenue guidance revised to $118–$122 million (12–15% growth), down from $126–$130 million.

• Adjusted EBITDA guidance raised to $7–$9 million (250–350% growth), up from $3–$5 million.

• Gross margin expected at 50–52% for 2026; tariff baseline set at 15% for the year.

• Revenue outlook reflects exit from lower-margin, high-burden channels and conservative sell-through assumptions.