Revenue: As of FY2026 Q1, the actual value is USD 22.5 M.

EPS: As of FY2026 Q1, the actual value is USD -0.25.

EBIT: As of FY2026 Q1, the actual value is USD -4.8 M.

Financial Highlights for Q1 2026

Revenue

Total revenue for the first quarter of 2026 was $22.5 million, an increase of 6.4% from $21.1 million in Q1 2025 . Hardware revenue was $19.8 million in Q1 2026, compared to $20.7 million in Q1 2025 . Subscription revenue reached a record $2.7 million in Q1 2026, significantly up from $0.4 million in Q1 2025 .

Gross Margin

Gross margin for Q1 2026 was 54.5%, an 80 basis point increase from 53.7% in Q1 2025 . This improvement was primarily due to growth in the Owlet360 subscription service, favorable product mix, and lower direct and fulfillment costs, partially offset by tariff impacts . Cost of revenue for Q1 2026 was $10.2 million, compared to $9.8 million in Q1 2025 . Hardware cost of revenue was $9.3 million in Q1 2026, compared to $9.6 million in Q1 2025 . Subscription cost of revenue was $0.9 million in Q1 2026, compared to $0.2 million in Q1 2025 . Subscription gross margin for Q1 2026 was 67.4% .

Operating Costs and Profit

Operating expenses for Q1 2026 were $17.7 million, an increase from $14.0 million in the same period of 2025, mainly due to higher headcount-related expenses, including stock-based compensation, salaries, and benefits . General and administrative expenses were $9.3 million in Q1 2026, up from $7.1 million in Q1 2025 . Sales and marketing expenses were $4.5 million in Q1 2026, up from $4.0 million in Q1 2025 . Research and development expenses were $4.0 million in Q1 2026, up from $2.9 million in Q1 2025 . Operating loss was - $5.5 million in Q1 2026, compared to an operating loss of - $2.7 million in Q1 2025 .

Net Income/Loss

Net loss for Q1 2026 was - $3.3 million, a decrease from net income of $3.0 million in Q1 2025 . Adjusted EBITDA (non-GAAP) was - $1.5 million in Q1 2026, compared to $0.0 million in Q1 2025 . Adjusted net loss (non-GAAP) was - $2.4 million in Q1 2026, compared to - $1.1 million in Q1 2025 .

Cash Flow

Net cash used in operating activities for the three months ended March 31, 2026, was - $5.0 million, an improvement from - $5.9 million in the same period of 2025 . Net cash used in investing activities was - $0.4 million in Q1 2026, compared to - $0.1 million in Q1 2025 . Net cash provided by financing activities was $5.5 million in Q1 2026, compared to $2.0 million in Q1 2025 . The net change in cash, cash equivalents, and restricted cash was $0 million in Q1 2026, compared to - $4.0 million in Q1 2025 .

Balance Sheet Highlights

Cash and cash equivalents remained stable at $35.5 million as of March 31, 2026, compared to December 31, 2025 . Total current assets increased to $82.5 million as of March 31, 2026, from $81.9 million as of December 31, 2025 . Total assets increased to $86.8 million as of March 31, 2026, from $85.6 million as of December 31, 2025 . Total current liabilities increased to $48.1 million as of March 31, 2026, from $44.2 million as of December 31, 2025 . Total liabilities increased to $50.9 million as of March 31, 2026, from $50.2 million as of December 31, 2025 . Total stockholders’ equity increased to $21.0 million as of March 31, 2026, from $19.0 million as of December 31, 2025 .

Operational Metrics (Unique)

Owlet360 subscription engine scaled to over 115,000 paying subscribers by the end of Q1 2026 . Owlet also announced the official release of its OnCall pediatric telehealth service in its app .

Outlook / Guidance

Owlet, Inc. updated its full-year 2026 financial outlook, emphasizing a strategic focus on high-margin revenue and operational efficiency for profitable growth . The company now anticipates total revenue between $118 million and $122 million, representing 12% to 15% growth over 2025, which is a revision from previous guidance . Gross margins are projected to be between 50% and 52%, and Adjusted EBITDA is expected to be $7 million to $9 million, indicating 250% to 350% growth over 2025 .