Owlet Inc

Owlet Inc reported record second-quarter total revenue of $33.9 million, up 29.9% year-over-year, with gross margin expanding to 54% excluding a tariff refund. Adjusted EBITDA excluding the tariff refund reached a record $2.9 million, while subscription revenue grew to a record $3.2 million with 130,000 paying subscribers and 36% DreamSock penetration in the US. International revenue surged 214% year-over-year, marking the highest international revenue quarter in company history, and the company secured a new $25 million credit facility with Wells Fargo that significantly reduces its interest rate margin by at least 525 basis points. However, Prime Day units sold fell 8% year-over-year due to aggressive competitor discounting, and third-quarter revenue is expected to decline sequentially and versus the prior year amid challenging comparisons and cautious consumer spending signals. The company also highlighted its AI parenting Copilot feature, which 85% of parents engage with daily, and plans to expand telehealth tiers within its Owlet 360 subscription service.

Owlet has entered into a new $25 million asset-based revolving credit facility with Wells Fargo, refinancing and replacing its existing debt. The new facility lowers the interest rate margin to SOFR plus 2.00% to 2.25%, a reduction of at least 525 basis points from the previous SOFR plus 7.50% to 8.50%. Following the closing on June 26, 2026, Owlet's total liquidity stood at approximately $33.8 million, including cash and available borrowing capacity. The facility matures in three years and includes an option to increase commitments to $35 million, subject to lender approval. Chief Financial Officer Amanda Twede Crawford stated the refinancing meaningfully lowers annual interest expense while enhancing financial flexibility to support strategic priorities.