Owlet, Inc. announced its third-quarter 2026 financial results and the initiation of a safety update for its camera cable guard accessory. The company reported $30.4 million in revenue for the quarter ended September 30, 2026, and a net income of $1.4 million.
Owlet's President, Chief Executive Officer, and Co-Founder, Kurt Workman, stated that the third quarter results were driven by a focus on profitable growth. He noted that revenue was in line with expectations and that the company expanded gross margin by 315 basis points. Workman also announced that the company is providing a replacement enclosed cable guard system free of charge to every Owlet camera owner upon request to elevate safety standards.
The company is withdrawing its previously issued full year 2026 financial outlook. This decision follows a safety incident report involving exposed camera cables. Owlet cited anticipated remediation expenses, interruption in retail sales during the fourth quarter, retailer returns, and near-term demand uncertainty resulting from the camera cable guard safety update as reasons for the withdrawal.
Financial highlights for the third quarter include $3.6 million in subscription revenue and an operating income of $1.2 million. The company reported an Adjusted EBITDA of $3.5 million and operating cash inflows of $2.2 million. The Owlet360 subscription service ended the quarter with over 142,000 paying subscribers.
The third-quarter revenue of $30.4 million represents a 4.9% decrease compared to the $32.0 million reported in the third quarter of 2025. The company attributed the decrease to lower hardware revenue caused by the prior-year Dream Sight launch and competitor discounting ahead of an August 10, 2026, FDA-clearance deadline.
Owlet's President, CEO, and Co-Founder Kurt Workman and CFO Amanda Twede Crawford were scheduled to host a conference call to review the results and provide a business update on November 13, 2026, at 8:30 a.m. ET.
