Owlet Posts Record Revenue but Faces Subscription Growth Challenge — Owlet, Inc.

Event summary

Owlet reported Q2 2026 revenue of $33.9M, up 29.9% YoY.
Subscription revenue surged to $3.2M, a $2.4M increase from Q2 2025.
Adjusted EBITDA hit $2.9M (excluding tariff refunds), up from $0.5M in Q2 2025.
Gross margin improved to 64.4% (54.0% excluding tariff impacts).
Company aims to grow subscribers and position itself as a data/services platform.

The big picture

Owlet's strong Q2 performance highlights the growing demand for smart infant monitoring solutions. The company is positioning itself as a data-driven pediatric health platform, competing in an industry where regulatory approvals and subscription models are key differentiators. With a focus on expanding its subscriber base and leveraging its unique dataset, Owlet aims to transition from hardware sales to a recurring revenue model.

What we're watching

Subscription Growth: Whether Owlet can sustain its rapid subscription revenue growth and hit its target of over one million subscribers.
Regulatory Positioning: How the company leverages its FDA-cleared status to maintain competitive advantage in a crowded market.
Operational Efficiency: The pace at which Owlet can scale internationally while managing rising operating expenses.