A Quick Take on Owlet

While the shares dipped after we took a position for the portfolio of our investor group on Seeking Alpha last December at $5.2 on general market softness, Owlet (OWLT), the producer of the only FDA and CE cleared infant health monitors (Dream Sock), is executing fantastically and is transitioning from a hardware company to a comprehensive pediatric health platform, and investors are starting to take note:

• Owlet, producer of FDA and CE-cleared infant health monitors, achieved 43% revenue growth and a 930bp gross margin increase to 53.7%.

• Gross margins improved due to strong volume growth, favorable product mix, reduced return rates, better fixed cost absorption, and improved vendor terms.

• Net income was a positive $3M, with adjusted EBITDA breaking even, marking the fourth consecutive quarter of breakeven or better performance.

• Cash and cash equivalents stood at $16.3M as of March 31, 2025.