Owlet: The Business Is Growing, But The Stock Isn't

Kurt Christensen 1.06K Followers Follow Summary Owlet remains a buy despite flat stock performance, supported by strong Q2 results and ongoing business evolution. Q2 revenue hit a record $33.9M (up 29.9% YoY), with gross margin rebounding to 54% and subscription growth driving margin expansion. Management maintained 2026 guidance, forecasting $120M revenue (13.5% growth) and $8M EBITDA, with international and subscription segments as key growth drivers. OWLT's FDA approval and Amazon enforcement could reduce competition, while a direct subscription model and telehealth expansion offer future margin and growth catalysts. Andrey Zhuravlev/iStock via Getty Images Owlet, Inc. ( OWLT ) has continued to trade sideways since the large sell-off in March. I rated the stock a buy in March following the steep sell-off in the stock price. I thought a This article was written by Kurt Christensen 1.06K Followers Follow I am a graduate in finance. Currently working in international tax. A personal investor. Analyst’s Disclosure: I/we have a beneficial long position in the shares of OWLT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.