Owlet, Inc. Q3 FY2025 earnings call

• Q3 was an exceptional quarter with record revenue, gross profit, adjusted EBITDA, and operating income.
• FDA's safety communication on unauthorized infant monitors validated Owlet's strategy, as DreamSock is FDA-cleared.
• DreamSock saw strong domestic sell-through growth, registry additions, and high NPS. The new DreamSight camera launched in September, offering advanced tech and future-ready AI capabilities.
• International revenue grew 171% y/y, with new regulatory clearances in India and six international clearances for DreamSock.
• Owlet 360 subscription had over 85,000 paying subscribers, with sequential growth in monthly recurring revenue, attach rate, and retention. Plans to expand subscriptions internationally in Q4 2025.
• Progress in healthcare channels with Owlet Connect launching, integration with CHKD, and conversations with other hospital partnerships.

Q3 2025 revenue was a record $32 million, increasing 45% vs Q3 2024. Gross profit was $16.2 million, a record, with gross margins of 50.6%. Adjusted EBITDA was $1.6 million, a record, and operating income was $1.2 million, the first quarterly operating profit. Revenue growth was driven by the launch of DreamSight camera and core business momentum. DreamSock had 42% domestic sell-through growth in Q3, and international revenue grew 171% y/y.

• For full-year 2025, revenue is expected to be in the range of $103 million to $106 million, a 32%-36% growth y/y.
• Gross margin is narrowed to 48% to 50% for 2025, accounting for tariff impacts.
• Adjusted EBITDA is expected to be in the range of $3.1 million to $3.8 million for 2025, the first full year of adjusted EBITDA profitability.

• Uncertainty around the consumer environment.
• Government shutdown aftereffects.
• Tariff policies that could impact Q4 holiday sales.

Q: Asks about the partnership with Children's Hospital of the King's Daughters and international growth.

A: Jonathan Harris mentions the CHKD partnership is successful and they're using it as a pilot for other healthcare systems; international performed well with continued momentum in European countries and new regulatory clearances.

Q: Asks about Rhapsody partnership and Owlet 360 subscriber retention.

A: Jonathan Harris says the Rhapsody integration allows real-time access to BabySat data for hospitals and will scale partnerships; on Owlet 360, subscribers are engaged with strong retention, and more camera features are coming with DreamSight.