• On March 5, 2026, Owlet, Inc. reported fourth-quarter 2025 sales of US$26.6 million and a net loss of US$9.2 million, alongside full-year sales of US$105.7 million and an increased annual net loss of US$39.7 million.
• The company paired these record annual revenues with guidance for 2026 calling for US$126 million to US$130 million in revenue, underpinned by growth in its subscription services, new AI-enabled products, and recent regulatory clearances in India and Israel.
• We’ll now examine how Owlet’s record 2025 revenue and bullish 2026 sales guidance may influence its existing investment narrative.

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Owlet Investment Narrative Recap

To own Owlet today, you need to believe its growing base of connected baby monitors and subscriptions can eventually support a sustainable, profitable business. The latest results reinforce the core near term catalyst of subscription and AI product uptake, but the widening annual net loss keeps funding needs and potential dilution as the key risk. The 2026 revenue guidance itself does not materially change that trade off in the short term.

The most relevant update is Owlet’s 2026 revenue outlook of US$126 million to US$130 million, which the company links to subscription growth, AI enabled products, and new regulatory clearances in India and Israel. This ties directly into the core catalyst of expanding recurring revenue and international reach, while also testing how far the current model can scale before healthcare channel revenues, hospital adoption, and reimbursement meaningfully diversify the business.

Yet, investors should also be aware that rising operating losses and any need for additional capital could...

Owlet's narrative projects $167.1 million revenue and $4.4 million earnings by 2028. This requires 23.0% yearly revenue growth and a $51.3 million earnings increase from $-46.9 million today.

Uncover how Owlet's forecasts yield a $17.00 fair value, a 134% upside to its current price.

Exploring Other Perspectives

Before this report, the most optimistic analysts expected Owlet to reach about US$164 million in revenue and near break even earnings by 2028, which is far more upbeat than consensus and could shift meaningfully now that management has paired record 2025 sales with higher losses.

Explore 6 other fair value estimates on Owlet - why the stock might be worth over 2x more than the current price!

Form Your Own Verdict

Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

• A great starting point for your Owlet research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Owlet research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Owlet's overall financial health at a glance.

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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.