Baby tech company Owlet reported a 25.9% increase in revenue in the second quarter of 2025, to $26.1 million from $20.7 million in the same period last year, which the company said is primarily due to increased sales of its FDA-cleared and CE Marked Dream Sock and baby sleep monitoring system Dream Duo.
The Utah-based company reported a net loss of $37.6 million, which includes a $34.8 million non-cash, mark-to-market common stock warrant liability adjustment. The company reported a net loss in the same period last year of $1.1 million.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) was $0.3 million in the second quarter of this year, up $0.2 million compared to Q2 2024.
Net loss per share was $2.37 for Q2 2025, compared to a $0.30 net loss per share for Q2 2024.
The company changed its financial outlook, stating it now expects revenue to range from $97 million to $100 million, with 24% to 28% year-over-year growth.
Gross margins are expected to range from 46% to 50%, which the company says includes the impact of new expected tariff costs, and Owlet expects to be adjusted EBITDA profitable for the full year 2025.
The company also announced that it reached a deal with most holders of its Series A and Series B warrants to convert their warrants into common stock.
The company will exchange 5.4 million shares of common stock for nearly all of its outstanding Series A and B warrants, pending stockholder approval. The new shares will be subject to a 180-day lockup.
Additionally, Owlet announced that Jonathan Harris, the company's current president, will succeed Kurt Workman as CEO, effective Oct. 1.
Workman will transition to executive chairman of the board of directors.
"I founded Owlet over 12 years ago because I believe that every baby should have access to medical-grade health monitors at home, and we've never been closer to that vision," said Mr. Workman.
"This organizational change will allow me to focus more deeply on the things I'm most passionate about – expanding access to Owlet's mission and helping guide the company's long-term strategy as we continue to grow."
THE LARGER TREND
Owlet became a public company through a special purpose acquisition company (SPAC) in 2021.
In 2023, Owlet was notified by the New York Stock Exchange that it was not in compliance with Section 802.01B of the NYSE listed company manual because its average global market capitalization over a consecutive 30-day trading period was below $50 million, and its reported stockholders' equity was less than $50 million.
Last year, the company announced it regained compliance with the NYSE's continued listing standards, and Owlet was no longer considered as being under continued listing standards on the NYSE's website.
Upon news of the company's increased revenue for the second quarter of this year, Owlet's stock [NYSE: OWLT] rose and is currently trading at $9.41 per share.
