Owlet

Q2 FY2026 EarningsQ2 FY26 results significantly beat consensus on both top and bottom lines: revenue $33.87M vs. $31.72M expected, and GAAP EPS -$0.05 vs. -$0.09 expected. Total gross margin reached 64.4%, substantially outperforming the 51.2% mean estimate, primarily driven by a $4.0M IEEPA tariff refund. Hardware sales grew 21.6% YoY behind strong consumer demand, while subscription revenue surged 273% YoY. Management successfully refinanced high-cost debt with a new $25M Wells Fargo credit facility, though operating expenses spiked due to CEO transition costs and stock-based compensation.