We feel now is a pretty good time to analyse Owlet, Inc.'s (NYSE:OWLT) business as it appears the company may be on the cusp of a considerable accomplishment. Owlet, Inc. provides digital parenting solutions in the United States, the United Kingdom, and internationally. The company’s loss has recently broadened since it announced a US$13m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$37m, moving it further away from breakeven. The most pressing concern for investors is Owlet's path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

According to the 5 industry analysts covering Owlet, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2026, before generating positive profits of US$4.7m in 2027. So, the company is predicted to breakeven just over a year from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 74% is expected, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Given this is a high-level overview, we won’t go into details of Owlet's upcoming projects, however, keep in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we would like to bring into light with Owlet is it currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. These losses tend to occur only on paper, however, in other cases it can be forewarning.

Next Steps:

There are key fundamentals of Owlet which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Owlet, take a look at Owlet's company page on Simply Wall St. We've also put together a list of key factors you should further research:

1. Valuation: What is Owlet worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Owlet is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Owlet’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.