FY26 Gross Margin Expected Between 50% and 52%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 07 2026
0mins
Sees FY26: Gross margin is expected to be in the range of 50% to 52%, compared to our previous guidance of 49% to 52%. Adjusted EBITDA is expected to be in the range of $7 to $9 million, representing 250% to 350% growth over 2025, compared to our previous guidance of $3 to $5 million.
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Analyst Views on OWLT
Wall Street analysts forecast OWLT stock price to rise
4 Analyst Rating
4 Buy
0 Hold
0 Sell
Strong Buy
Current: 5.970
Low
13.00
Averages
17.33
High
20.00
Current: 5.970
Low
13.00
Averages
17.33
High
20.00
About OWLT
Owlet, Inc. operates as a digital parenting platform company. The Company offers FDA-authorized medical and consumer pediatric wearables and an integrated HD visual and audio camera that provide real-time data and insights to parents who safeguard health, optimize wellness, and ensure peaceful sleep for their children. Its products include Owlet Dream Sock, an app to assist children with better sleep; Owlet Cam, a video streaming app to hear and see the baby from anywhere, and Owlet Monitor Duo. Its sock monitor offerings include Smart Sock, Dream Sock and BabySat. Its Cam offerings include Cam 1 and Cam 2. Combining Dream Sock or Owlet Smart Sock with Owlet Cam, this baby monitoring solution offers HD video, sleep insights, and health tracking to offer an extensive view into an infant's well-being. Its accessories product line includes the Owlet Sleeper, a wearable rayon blanket that encourages safe sleep, best for babies ages three-six months old, and an Owlet Sock Travel Case.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Owlet Launches Full Monitoring Ecosystem in ANZ
- Ecosystem Expansion: Owlet has launched Dream Sight and Dream Duo 3 in Australia and New Zealand, building on the success of Dream Sock to provide local families with a complete monitoring ecosystem for the first time, which is expected to significantly enhance market share and brand influence.
- Technological Innovation and Security: Dream Sight, as the next-generation 2K HD monitor, features night vision, a 130-degree wide-angle lens, and 256-bit encryption technology, ensuring user data security and further solidifying Owlet's leadership in the smart infant monitoring sector.
- User Feedback and Market Demand: A 2017 survey indicated that 96% of users reported reduced anxiety and 94% improved sleep quality after using Owlet products, demonstrating the effectiveness of Owlet's offerings in meeting parental needs and enhancing infant health monitoring.
- Strategic Market Positioning: Through this product launch, Owlet strengthens its market penetration in the Asia-Pacific region, which is expected to attract more families to focus on infant health monitoring, driving future growth and innovation for the company.
See More
Owlet Q1 2026 Earnings Call Insights and Outlook
- Leadership Transition: Kurt Workman returns as CEO, emphasizing a focus on subscription and telehealth, indicating a strategic shift aimed at enhancing long-term profitability and operational execution.
- Revenue Guidance Adjustment: Owlet revised its 2026 revenue guidance to a range of $118 million to $122 million, down from $126 million to $130 million, reflecting a cautious outlook on market demand while raising adjusted EBITDA expectations to $7 million to $9 million, highlighting a focus on profitability.
- Financial Performance: Q1 total revenue reached $22.5 million, exceeding the guidance of $20 million to $21 million, with a gross margin of 54.5%; however, adjusted EBITDA was negative $1.5 million, indicating ongoing cost pressures despite subscription growth.
- Market Strategy Contraction: The company has decided to defer entry into markets like India, Hong Kong, and Singapore, reallocating resources to core markets for higher near-term returns, reflecting a cautious approach to resource allocation and market dynamics.
See More
Owlet Dream Duo 3 Wins Best Baby Health Monitor Award
- Award Recognition: Owlet's Dream Duo 3 has been named 'Best for Monitoring Baby's Health' in the PARENTS 2026 Best for Baby Awards, enhancing brand visibility and solidifying its leadership position in the smart infant monitoring sector.
- Technological Innovation: The Dream Duo 3 combines the FDA-cleared Dream Sock® and SGS Cybersecurity-certified Dream Sight™, enabling real-time tracking of pulse, oxygen levels, and sleep patterns, significantly enhancing parents' insights into their baby's health.
- User Trust: Trusted by over 2.5 million families, Owlet's platform has amassed one of the largest pediatric health datasets globally, providing robust data support for future product innovations and further strengthening the company's competitive edge in the market.
- Market Availability: Dream Duo 3 is now available at www.owletcare.com and major retailers worldwide, including Walmart and Amazon, which is expected to further expand market share and enhance consumer purchasing convenience.
See More
Owlet Inc Shares Enter Oversold Territory
- Oversold Signal: Owlet Inc (Ticker: OWLT) saw its RSI drop to 29.7 during Monday's trading, indicating an oversold condition with shares hitting a low of $5, suggesting that recent heavy selling may be nearing exhaustion and providing potential buying opportunities for bullish investors.
- Market Comparison: Compared to the current RSI of 47.6 for the S&P 500 ETF (SPY), OWLT's low RSI reflects relative weakness in the market, which may attract investors looking for a rebound.
- Historical Performance: OWLT's 52-week low stands at $2.75 per share, with a high of $16.94, while the last trade was at $5.10, indicating significant price volatility that investors might consider for trading within this range.
- Investor Sentiment: While the current oversold condition may attract some investors, caution is advised in assessing market trends to avoid impulsive decisions in an uncertain environment.
See More
Owlet Issues Disappointing Q1 Revenue Outlook, Shares Decline
- Earnings Highlights: Owlet reported Q1 revenue of $26.6 million, a 29.6% year-over-year increase, surpassing market expectations of $26 million, although gross profit rose to $12.6 million, the gross margin fell by 596 basis points to 47.6% due to tariff impacts.
- Adjusted EBITDA Decline: The adjusted EBITDA stood at $0.1 million, significantly down from $0.5 million in the same quarter last year, indicating challenges in cost management that could affect future profitability.
- Disappointing Outlook: The company expects Q1 2026 revenue between $20 million and $21 million, below the consensus of $26.204 million, reflecting a cautious outlook on market demand that may lead to decreased investor confidence.
- Long-term Revenue Projections: Owlet projects 2026 full-year revenue of $126 million to $130 million, slightly below the market view of $128.073 million, with gross margins expected between 49% and 52%, indicating that tariff impacts will remain a significant concern.
See More
Fear & Greed Index Rises as U.S. Stocks Decline Sharply
- Deteriorating Market Sentiment: The CNN Money Fear & Greed Index recorded a reading of 26.7 on Friday, indicating a persistent state of 'Fear' in the market, down from 28.3 previously, reflecting investor anxiety about future market conditions.
- Significant Stock Market Decline: The Dow Jones dropped over 450 points to close at 47,501.55, while the S&P 500 fell 1.33% to 6,740.02, and the Nasdaq Composite declined 1.59%, showcasing overall market weakness and investor pessimism.
- Weak Economic Data: U.S. retail sales fell by 0.2% month-over-month in January, missing the market estimate of a 0.3% decline, and the nonfarm payrolls decreased by 92,000 in February 2026, with the unemployment rate rising to 4.4%, indicating heightened risks of economic slowdown.
- Oil Price Surge Risks: Qatar's energy minister warned that oil prices could surge past $150 if the Strait of Hormuz were to close completely, with crude prices rallying nearly 35% this week, marking the largest weekly gain in commodity trading history, which could have profound implications for the global economy.
See More
Owlet Launches Full Monitoring Ecosystem in ANZ
- Ecosystem Expansion: Owlet has launched Dream Sight and Dream Duo 3 in Australia and New Zealand, building on the success of Dream Sock to provide local families with a complete monitoring ecosystem for the first time, which is expected to significantly enhance market share and brand influence.
- Technological Innovation and Security: Dream Sight, as the next-generation 2K HD monitor, features night vision, a 130-degree wide-angle lens, and 256-bit encryption technology, ensuring user data security and further solidifying Owlet's leadership in the smart infant monitoring sector.
- User Feedback and Market Demand: A 2017 survey indicated that 96% of users reported reduced anxiety and 94% improved sleep quality after using Owlet products, demonstrating the effectiveness of Owlet's offerings in meeting parental needs and enhancing infant health monitoring.
- Strategic Market Positioning: Through this product launch, Owlet strengthens its market penetration in the Asia-Pacific region, which is expected to attract more families to focus on infant health monitoring, driving future growth and innovation for the company.
See More
Owlet Q1 2026 Earnings Call Insights and Outlook
- Leadership Transition: Kurt Workman returns as CEO, emphasizing a focus on subscription and telehealth, indicating a strategic shift aimed at enhancing long-term profitability and operational execution.
- Revenue Guidance Adjustment: Owlet revised its 2026 revenue guidance to a range of $118 million to $122 million, down from $126 million to $130 million, reflecting a cautious outlook on market demand while raising adjusted EBITDA expectations to $7 million to $9 million, highlighting a focus on profitability.
- Financial Performance: Q1 total revenue reached $22.5 million, exceeding the guidance of $20 million to $21 million, with a gross margin of 54.5%; however, adjusted EBITDA was negative $1.5 million, indicating ongoing cost pressures despite subscription growth.
- Market Strategy Contraction: The company has decided to defer entry into markets like India, Hong Kong, and Singapore, reallocating resources to core markets for higher near-term returns, reflecting a cautious approach to resource allocation and market dynamics.
See More
Owlet Dream Duo 3 Wins Best Baby Health Monitor Award
- Award Recognition: Owlet's Dream Duo 3 has been named 'Best for Monitoring Baby's Health' in the PARENTS 2026 Best for Baby Awards, enhancing brand visibility and solidifying its leadership position in the smart infant monitoring sector.
- Technological Innovation: The Dream Duo 3 combines the FDA-cleared Dream Sock® and SGS Cybersecurity-certified Dream Sight™, enabling real-time tracking of pulse, oxygen levels, and sleep patterns, significantly enhancing parents' insights into their baby's health.
- User Trust: Trusted by over 2.5 million families, Owlet's platform has amassed one of the largest pediatric health datasets globally, providing robust data support for future product innovations and further strengthening the company's competitive edge in the market.
- Market Availability: Dream Duo 3 is now available at www.owletcare.com and major retailers worldwide, including Walmart and Amazon, which is expected to further expand market share and enhance consumer purchasing convenience.
See More
Owlet Inc Shares Enter Oversold Territory
- Oversold Signal: Owlet Inc (Ticker: OWLT) saw its RSI drop to 29.7 during Monday's trading, indicating an oversold condition with shares hitting a low of $5, suggesting that recent heavy selling may be nearing exhaustion and providing potential buying opportunities for bullish investors.
- Market Comparison: Compared to the current RSI of 47.6 for the S&P 500 ETF (SPY), OWLT's low RSI reflects relative weakness in the market, which may attract investors looking for a rebound.
- Historical Performance: OWLT's 52-week low stands at $2.75 per share, with a high of $16.94, while the last trade was at $5.10, indicating significant price volatility that investors might consider for trading within this range.
- Investor Sentiment: While the current oversold condition may attract some investors, caution is advised in assessing market trends to avoid impulsive decisions in an uncertain environment.
See More
Owlet Issues Disappointing Q1 Revenue Outlook, Shares Decline
- Earnings Highlights: Owlet reported Q1 revenue of $26.6 million, a 29.6% year-over-year increase, surpassing market expectations of $26 million, although gross profit rose to $12.6 million, the gross margin fell by 596 basis points to 47.6% due to tariff impacts.
- Adjusted EBITDA Decline: The adjusted EBITDA stood at $0.1 million, significantly down from $0.5 million in the same quarter last year, indicating challenges in cost management that could affect future profitability.
- Disappointing Outlook: The company expects Q1 2026 revenue between $20 million and $21 million, below the consensus of $26.204 million, reflecting a cautious outlook on market demand that may lead to decreased investor confidence.
- Long-term Revenue Projections: Owlet projects 2026 full-year revenue of $126 million to $130 million, slightly below the market view of $128.073 million, with gross margins expected between 49% and 52%, indicating that tariff impacts will remain a significant concern.
See More
Fear & Greed Index Rises as U.S. Stocks Decline Sharply
- Deteriorating Market Sentiment: The CNN Money Fear & Greed Index recorded a reading of 26.7 on Friday, indicating a persistent state of 'Fear' in the market, down from 28.3 previously, reflecting investor anxiety about future market conditions.
- Significant Stock Market Decline: The Dow Jones dropped over 450 points to close at 47,501.55, while the S&P 500 fell 1.33% to 6,740.02, and the Nasdaq Composite declined 1.59%, showcasing overall market weakness and investor pessimism.
- Weak Economic Data: U.S. retail sales fell by 0.2% month-over-month in January, missing the market estimate of a 0.3% decline, and the nonfarm payrolls decreased by 92,000 in February 2026, with the unemployment rate rising to 4.4%, indicating heightened risks of economic slowdown.
- Oil Price Surge Risks: Qatar's energy minister warned that oil prices could surge past $150 if the Strait of Hormuz were to close completely, with crude prices rallying nearly 35% this week, marking the largest weekly gain in commodity trading history, which could have profound implications for the global economy.
See More
