Baby monitor manufacturer Owlet jumps nearly 20% on strong 2Q25, guidance upgrades

Shares of Owlet, a small-cap manufacturer of baby monitors, soared more than 19% on Friday, with the gains extending into early trading today, August 11. The company released strong quarterly financials and raised its guidance for the year. Since the beginning of the year, Owlet shares have already more than doubled, yet analysts still unanimously rate the stock a "buy."

Owlet soared more than 19% on the New York Stock Exchange on Friday to $9.30 per share. That marked a one-month high (the stock closed at $9.41 per share on July 9).

In the first minutes of premarket trading today, quotes continued to climb, with the stock gaining 3% as of this writing.

The gains have been driven by the company's earnings for the second quarter. Owlet's revenue in April-June grew nearly 26% year over year to $26.1 million. That's 20% higher than the Zacks consensus estimate.

This contributed to a 33% increase in revenue for the first half of the year to $47.2 million, the best first half for the top line in Owlet's history, said CEO and cofounder Kurt Workman, who was quoted in the earnings release.

The gross margin last quarter rose 1.8 percentage points year over year to 51.3%, while adjusted EBITDA tripled to $0.3 million.

The gross margin was up for the ninth consecutive quarter and adjusted EBITDA remained positive for the fifth consecutive quarter, Freedom Broker pointed out in a note seen by Oninvest.

At the same time, Owlet reported a more than 34-fold increase in the net loss to minus $37.6 million, which it attributed to a common stock warrant liability mark-to-market adjustment.

Owlet also raised its forecast for the full year. It had previously guided for 16.5-21.6% top-line growth to $91-95 million, but now expects 24.0-28.0% growth to $97-100 million. The gross margin, according to the latest guidance, will be 46-50%, and adjusted EBITDA positive. In 2024, it was negative at minus $2 million.

Owlet is up 109% since the beginning of the year. The company has five ratings from Wall Street analysts, all of them "buys," according to MarketWatch. The average target price of $13.20 per share still implies of 42% to the August 8 closing price.

The AI translation of this story was reviewed by a human editor.