Owlet (OWLT) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 revenue of $33.9 million, up 29.9% year-over-year, driven by strong Dream Sock, Dream Duo, international, and subscription growth.

• Subscription revenue reached $3.2 million, up $2.4 million year-over-year, with 130,000 paying subscribers and strong international and platform growth.

• Transitioned toward a data and services platform, expanding product and subscription offerings, and rolling out telehealth and web-based enrollment.

• Net loss narrowed significantly to $0.6 million for Q2 2026, or $4.4 million excluding the $3.75 million tariff refund, compared to $37.4 million loss in Q2 2025.

• Set new market share record and maintained focus on expanding the subscriber base and international scaling.

Financial highlights

• Q2 2026 revenue was $33.9 million, up 29.9% year-over-year; hardware revenue grew 21.6% and subscription revenue rose 273.1%.

• Q2 gross margin was 64.4%; excluding a $3.5 million tariff refund, gross margin was 54.0%, up 270 basis points year-over-year.

• Adjusted EBITDA reached $2.9 million excluding the tariff refund, and $6.7 million including it.

• Operating expenses rose to $20.1 million, mainly due to higher marketing spend, severance, and stock-based compensation.

• Cash and cash equivalents were $30.9 million at quarter-end.

Outlook and guidance

• Full-year 2026 revenue guidance remains $118–$122 million.

• Gross margin guidance raised to 53%–55% (from 50%–52%), reflecting the one-time tariff refund.

• Adjusted EBITDA guidance increased to $10.75 million–$12.75 million (from $7 million–$9 million), reflecting the one-time benefit.

• Q3 expected to decline sequentially and year-over-year due to competitor discounting and tough comps; Q4 forecast maintained.

• Management expects existing cash, cash equivalents, and borrowing capacity to be sufficient for at least the next 12 months.