Owlet, Inc.

Fast-growing pediatric monitoring company narrowing operating losses but still net-loss-making with thin equity.

Strengths

• Revenue up 35% to $106M with gross margin ~51% (82nd pct) and operating loss cut to $(8.3)M
• Only FDA-cleared/medically-certified consumer pediatric monitor; growing Owlet360 subscription

Risks

• Net loss $39.7M (warrant-driven) and deeply negative ROE/ROA (8th/17th pct)
• Identified material weaknesses in internal controls and concentrated retail distribution
• Modest $35M cash and reliance on future capital despite improving trajectory

Notable findings

• Net lossNet loss (net margin -37.5%)
• Cash burnNegative free cash flow (-11.1M)
• Exec changeRecent 8-K item 5.02 8-K ↗
• Material weakness• We have identified material weaknesses in our internal control over financial reporting and we may identify additional material weaknesses in the future or otherwise fail to maintain effective inter
• Customer concentration~50% of revenue from one customer/distributor — 6 % 50
• Buying back stockNet buyback — share count -35%/yr over 4y
• Revenue declineRevenue -15.4% YoY