Owlet (OWLT) reported third-quarter 2026 revenue of $30.4 million, down 4.9% from $32.0 million a year earlier. Net income was $1.4 million, compared with $4.2 million in the prior-year quarter, while basic and diluted earnings per share attributable to common stockholders were $0.02 and $0.01, respectively.
The company initiated a camera cable guard safety update after receiving a safety incident report involving exposed camera cables. Owlet withdrew its full-year 2026 financial outlook, citing anticipated remediation expenses, fourth-quarter retail sales interruption, retailer returns and near-term demand uncertainty.
- Subscription revenue increased to $3.6 million from $1.5 million; subscription gross margin was 68.4%.
- Gross margin rose to 53.8% from 50.6%, while operating income was $1.2 million, compared with $1.3 million.
- Owlet said it is shipping replacement enclosed cable guard systems free of charge to camera owners upon request.
- Owlet360 ended the quarter with more than 142,000 paying subscribers.
