On this page of StockholderLetter.com we present the latest annual shareholder letter from Owlet, Inc. — ticker symbol OWLT. Reading current and past OWLT letters to shareholders can bring important insights into the investment thesis.
2025 Annual Report
Dear Fellow Stockholders, Twelve years ago, Owlet was founded with a mission to empower parents with better information about their infant s safety, health, and wellbeing. Today, that mission has never been more attainable. My focus is on ensuring that our foundational success serves as a springboard for a deeper, multi-year relationship with the families we serve. A Sharpened Strategic Focus As we discussed in our first quarter earnings call in May, we realigned the organization around three core pillars designed to sharpen focus and drive long-term value: Grow to 1 Million New Customers Per Year Win Core Markets: We are concentrating our resources where they matter most. With market penetration in the U.S. at roughly 11% and Europe in the low-single digits, the "white space" for growth in our existing footprint remains substantial. We believe the business has the potential to scale toward over one million new customers annually over time. Subscription First Winning the Two Year Journey: We are shifting from a hardware-centric model to a multi-year subscription relationship. With the launch of Owlet360, and Owlet OnCall recently going live within our app, we are capturing a potential "4-year parenting loop" across two children per household. By the end of Q1 2026, we reached over 115,000 paying subscribers and surpassed $1 million in Monthly Recurring Revenue (MRR), validating the value proposition of our subscription model. Operational Discipline: We are increasing our focus on operational efficiency and financial discipline to drive profitable growth. By leveraging AI-driven efficiencies and deferring lower-ROI projects, we have raised our full-year 2026 Adjusted EBITDA guidance to $7M $9M, representing up to 350% year-over-year growth. The Path Ahead As a father of three, I know firsthand nothing matters more than having clarity and peace of mind when it comes to our children's health. While our strategic and financial milestones validate our business model, it is the impact on real families that truly defines who we are as a Company. A recent note from an Owlet mother, Kate B., perfectly captures why our mission is so critical. As summarized from Kate B. s parent story: After my fourth child, Miles, was born, I noticed concerning drops in his oxygen levels whenever I put his Dream Sock on him. When Miles later caught a
respiratory infection, his Dream Sock showed his oxygen levels dropping again, which prompted us to call for an ambulance. Miles was ultimately hospitalized and treated for an airway condition. Our Dream Sock was a blessing for our family. It helped us stay aware of changes in his health readings and be able to provide information we could share with our care team as we advocated for our son.* Stories like Miles s are the reason we do the work that we do. They drive our innovation, sharpen our focus, and remind us that behind every subscription and data point is a family that we are empowering with actionable insights. Thank you for your continued support and for being part of our mission to support families in the parenthood journey. Sincerely, Kurt Workman Co-Founder, President and Chief Executive Officer * This story reflects one family s experience. Individual experiences may vary. Dream Sock is intended to track your baby s pulse rate and oxygen level and keep parents informed, but it is not intended to diagnose, treat, cure, or prevent any disease or condition.
Forward-Looking Statements This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the Reform Act ). All statements contained in this communication that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding Company s expected customer growth, market penetration, strategy and growth of the Owlet360 subscription model and Owlet OnCall, the anticipated benefits of the Company s subscription offerings, operational initiatives, financial performance and strategic priorities. In some cases, you can identify forward-looking statements by terms such as estimate, may, believes, plans, expects, anticipates, intends, goal, potential, continues, designed, seek, will, the negation thereof, or similar expressions, although not all forward-looking statements contain these identifying words. Forward-looking statements are based on the Company s current expectations, speak only as of the dates they are made, and are susceptible to a number of risks, uncertainties, and other factors. For all such forward-looking statements, the Company intends these forward-looking statements to be covered by the Reform Act. The Company s actual results, performance or achievements may differ materially from any future results, performance or achievements expressed or implied by its forward-looking statements. Many important factors could affect the Company s future results and cause those results to differ materially from those expressed in or implied by the Company s forward-looking statements. Such factors include, but are not limited to: (i) the commercial success of Owlet s products, including its subscription services, and the Company s ability to support, scale and maintain its subscription services; (ii) the Company s ability to increase its customer base, including its long-term objective of serving over 1 million customers annually; (iii) the regulatory pathway for Owlet s products, including submissions to, actions taken by and decisions and responses from regulators, such as the FDA, the TGA and other similar regulators outside of the United States, as well as Owlet s ability to obtain and maintain regulatory approval or certification for its products and comply with ongoing regulatory requirements; (iv) Owlet s competition and the Company s ability to profitably grow and manage growth; (v) the ability of Owlet to implement strategic initiatives, reduce costs, grow revenues, develop and launch new products, innovate and enhance existing products, meet customer demands and adapt to changes in consumer preferences and retail trends; (vi) Owlet s ability to acquire, defend and protect its intellectual property and satisfy regulatory requirements concerning privacy, data protection and cybersecurity, including for Owlet s digital platforms and technologies; (vii) Owlet s ability to maintain relationships with channel partners, customers, manufacturers and suppliers; (viii) impacts from compliance with applicable laws or regulations; (ix) the impact of and disruption to Owlet s business, financial condition, operations, supply chain and logistics due to economic and other conditions beyond the Company s control; (x) adverse impacts from other economic, business, regulatory, competitive or other factors, such as changes in discretionary consumer spending and consumer preferences; and (xi) other risks and uncertainties set forth in the Company s other releases, public statements and filings with the U.S. Securities and Exchange Commission ( SEC ), including those identified in the Risk Factors section of the Company s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, and as any such factors may be updated from time to time in the Company s other filings with the SEC. All such forward-looking statements attributable to the Company or any person acting on the Company s behalf are expressly qualified in their entirety by the cautionary statements contained or referred to above. Moreover, the Company operates in an evolving environment. New risk factors and uncertainties may emerge from time to time, and factors that the Company currently deems immaterial may become material, and it is impossible for the Company to predict such events or how they may affect Owlet. Except as required by law, the Company assumes no obligation to update any forward-looking statements after the date of this communication, whether because of new information, future events or otherwise, although Owlet may do so from time to time. The Company does not endorse any projections regarding future performance that may be made by third parties.
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OWLT Shareholder/Stockholder Letter Transcript:

2025 Annual Report


Dear Fellow Stockholders,
Twelve years ago, Owlet was founded with a mission to empower parents with better
information about their infant   s safety, health, and wellbeing. Today, that mission has never been
more attainable. My focus is on ensuring that our foundational success serves as a springboard
for a deeper, multi-year relationship with the families we serve.
A Sharpened Strategic Focus
As we discussed in our first quarter earnings call in May, we realigned the organization around
three core pillars designed to sharpen focus and drive long-term value:
       Grow to 1 Million New Customers Per Year     Win Core Markets: We are
concentrating our resources where they matter most. With market penetration in the U.S.
at roughly 11% and Europe in the low-single digits, the "white space" for growth in our
existing footprint remains substantial. We believe the business has the potential to scale
toward over one million new customers annually over time.
       Subscription First     Winning the Two Year Journey: We are shifting from a
hardware-centric model to a multi-year subscription relationship. With the launch of
Owlet360, and Owlet OnCall recently going live within our app, we are capturing a
potential "4-year parenting loop" across two children per household. By the end of Q1
2026, we reached over 115,000 paying subscribers and surpassed $1 million in
Monthly Recurring Revenue (MRR), validating the value proposition of our subscription
model.
       Operational Discipline: We are increasing our focus on operational efficiency and
financial discipline to drive profitable growth. By leveraging AI-driven efficiencies and
deferring lower-ROI projects, we have raised our full-year 2026 Adjusted EBITDA
guidance to $7M   $9M, representing up to 350% year-over-year growth.   
The Path Ahead
As a father of three, I know firsthand nothing matters more than having clarity and peace of
mind when it comes to our children's health. While our strategic and financial milestones
validate our business model, it is the impact on real families that truly defines who we are as a
Company. A recent note from an Owlet mother, Kate B., perfectly captures why our mission is
so critical. As summarized from Kate B.   s parent story:
After my fourth child, Miles, was born, I noticed concerning drops in his oxygen
levels whenever I put his Dream Sock on him. When Miles later caught a

respiratory infection, his Dream Sock showed his oxygen levels dropping again,
which prompted us to call for an ambulance. Miles was ultimately hospitalized and
treated for an airway condition. Our Dream Sock was a blessing for our family. It
helped us stay aware of changes in his health readings and be able to provide
information we could share with our care team as we advocated for our son.*
Stories like Miles   s are the reason we do the work that we do. They drive our innovation,
sharpen our focus, and remind us that behind every subscription and data point is a family that
we are empowering with actionable insights.
Thank you for your continued support and for being part of our mission to support families in the
parenthood journey.
Sincerely,
Kurt Workman    
Co-Founder, President and Chief Executive Officer
* This story reflects one family   s experience. Individual experiences may vary. Dream Sock   is intended to
track your baby   s pulse rate and oxygen level and keep parents informed, but it is not intended to diagnose,
treat, cure, or prevent any disease or condition.

Forward-Looking Statements
This communication contains forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995 (the    Reform Act   ). All statements contained in this communication that do
not relate to matters of historical fact should be considered forward-looking statements, including, without
limitation, statements regarding Company   s expected customer growth, market penetration, strategy and
growth of the Owlet360 subscription model and Owlet OnCall, the anticipated benefits of the Company   s
subscription offerings, operational initiatives, financial performance and strategic priorities. In some
cases, you can identify forward-looking statements by terms such as    estimate,       may,       believes,       plans,   
   expects,       anticipates,       intends,       goal,       potential,       continues,       designed,       seek,       will,    the negation
thereof, or similar expressions, although not all forward-looking statements contain these identifying
words. Forward-looking statements are based on the Company   s current expectations, speak only as of
the dates they are made, and are susceptible to a number of risks, uncertainties, and other factors. For all
such forward-looking statements, the Company intends these forward-looking statements to be covered
by the Reform Act. The Company   s actual results, performance or achievements may differ materially
from any future results, performance or achievements expressed or implied by its forward-looking
statements. Many important factors could affect the Company   s future results and cause those results to
differ materially from those expressed in or implied by the Company   s forward-looking statements. Such
factors include, but are not limited to: (i) the commercial success of Owlet   s products, including its
subscription services, and the Company   s ability to support, scale and maintain its subscription services;
(ii) the Company   s ability to increase its customer base, including its long-term objective of serving over 1
million customers annually; (iii) the regulatory pathway for Owlet   s products, including submissions to,
actions taken by and decisions and responses from regulators, such as the FDA, the TGA and other
similar regulators outside of the United States, as well as Owlet   s ability to obtain and maintain regulatory
approval or certification for its products and comply with ongoing regulatory requirements; (iv) Owlet   s
competition and the Company   s ability to profitably grow and manage growth; (v) the ability of Owlet to
implement strategic initiatives, reduce costs, grow revenues, develop and launch new products, innovate
and enhance existing products, meet customer demands and adapt to changes in consumer preferences
and retail trends; (vi) Owlet   s ability to acquire, defend and protect its intellectual property and satisfy
regulatory requirements concerning privacy, data protection and cybersecurity, including for Owlet   s digital
platforms and technologies; (vii) Owlet   s ability to maintain relationships with channel partners, customers,
manufacturers and suppliers; (viii) impacts from compliance with applicable laws or regulations; (ix) the
impact of and disruption to Owlet   s business, financial condition, operations, supply chain and logistics
due to economic and other conditions beyond the Company   s control; (x) adverse impacts from other
economic, business, regulatory, competitive or other factors, such as changes in discretionary consumer
spending and consumer preferences; and (xi) other risks and uncertainties set forth in the Company   s
other releases, public statements and filings with the U.S. Securities and Exchange Commission (   SEC   ),
including those identified in the    Risk Factors    section of the Company   s Annual Report on Form 10-K for
the fiscal year ended December 31, 2025, and as any such factors may be updated from time to time in
the Company   s other filings with the SEC. All such forward-looking statements attributable to the
Company or any person acting on the Company   s behalf are expressly qualified in their entirety by the
cautionary statements contained or referred to above. Moreover, the Company operates in an evolving
environment. New risk factors and uncertainties may emerge from time to time, and factors that the
Company currently deems immaterial may become material, and it is impossible for the Company to
predict such events or how they may affect Owlet. Except as required by law, the Company assumes no
obligation to update any forward-looking statements after the date of this communication, whether
because of new information, future events or otherwise, although Owlet may do so from time to time. The
Company does not endorse any projections regarding future performance that may be made by third
parties.


shareholder letter icon 6/30/2026 Letter Continued (Full PDF)
 

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