Owlet, Inc. (OWLT): Business Model Canvas [Dec-2025 Updated]

You're looking at Owlet, Inc.'s strategy, and honestly, it's a fascinating pivot from just selling baby monitors to building a real health platform. The core of their model now rests on two pillars: FDA-cleared hardware like the prescription-only BabySat, and the recurring revenue from their Owlet360 digital service, which already has over 85,000 paying subscribers as of Q3 2025. This shift is key to hitting their full-year 2025 revenue guidance of between $103 million and $106 million, so understanding how they manage supply chain costs (COGS) against that subscription growth is defintely where the value lies. Dive in below to see the full nine blocks of their evolving business model.

Owlet, Inc. (OWLT) - Canvas Business Model: Key Partnerships

You're looking at how Owlet, Inc. builds its ecosystem through external ties, which is crucial for scaling both its consumer and clinical offerings. The focus here is on leveraging specialized expertise and established channels to get their monitoring technology into more hands, both at home and in healthcare settings.

The clinical expansion hinges on partners like Locus Health, where the data from the FDA-cleared prescription device, BabySat, integrates directly into their remote patient monitoring platform. This collaboration, announced in November 2025, is specifically designed to support the approximately 500,000 babies who transition home from intensive care units in the United States annually, giving providers secure, automated access to vital signs like oxygen saturation and pulse rate post-discharge. Also in the clinical channel, Owlet, Inc. started a consignment agreement with Children's Hospital of The King's Daughters in the first quarter of 2025, a move that lets babies leave that hospital with either a BabySat or Dream Sock right away.

On the technology side, Owlet, Inc. partnered with OpenSynergy to embed their Blue SDK Bluetooth software stack into the new Dream Sight camera baby monitor. This choice was made to accelerate development timelines and ensure high-quality, secure connectivity across thousands of smartphone models. To be fair, OpenSynergy brings serious pedigree; their Blue SDK has already been deployed in over 1 billion embedded devices, including more than 400 million cars, so you know the underlying tech is battle-tested.

Distribution relies heavily on established retail footprints, both domestically and internationally. You see the core consumer products available through major retailers including Amazon, Walmart, and Target. This retail strength is paired with aggressive international expansion; for instance, international revenue growth was up 171% year-over-year in the third quarter of 2025, aided by the Dream Sight launch and securing distribution clearance in India slated for 2026. Plus, the company recently launched Dream Sock and the Owlet360 subscription in Australia and New Zealand following TGA approval.

The company also backs its mission through charitable efforts, partnering with more than 40 global nonprofits. Since 2021, Owlet, Inc. has donated over $2.5M in product and direct charitable support to organizations focused on infant health and wellness. This commitment is part of their broader goal to reach every baby and family, which also includes raising more than $150,000 for critical SIDS research.

Here's a quick look at the scale of these key external relationships:

The consumer market share also reflects strong retail performance; Owlet, Inc.'s market share of baby monitor dollars reached a record high of 40% in the third quarter of 2025.

The subscription service, Owlet360, also relies on these touchpoints for growth, recently surpassing 85,000 total paying subscribers by the end of Q3 2025.

Owlet, Inc. (OWLT) - Canvas Business Model: Key Activities

You're looking at the core engine driving Owlet, Inc.'s performance as of late 2025. The company's key activities are heavily weighted toward maintaining its regulatory lead and scaling its recurring revenue streams.

Maintaining FDA and international medical device regulatory clearances

This is a major moat for Owlet, Inc. As of September 16, 2025, the Dream Sock is the first FDA-cleared over-the-counter infant monitoring device and the only one available on the market today. Furthermore, the BabySat device is FDA-cleared for medical use and available via prescription. International regulatory wins are also a key activity, with Dream Sock recently receiving approval from Australia's Therapeutic Goods Administration (TGA). The company is also planning for further global expansion, with a new distribution clearance in India supporting a commercial product launch expected in early 2026.

Research and development of new AI-powered features and products

The R&D focus supports both hardware and software evolution. The Owlet360 subscription service leverages AI-driven insights to provide personalized information. New product introductions, like the Dream Sight camera, are contributing to revenue growth. The company is also integrating its data capabilities through partnerships, such as the collaboration with Locus Health to seamlessly deliver infant health data into Remote Patient Monitoring programs, connecting data from the FDA-cleared BabySat device.

Scaling the Owlet360 subscription service and digital platform

The shift toward recurring revenue is a critical focus. By the end of the third quarter of 2025, total paying subscribers for Owlet360 had recently surpassed 85,000. This followed a reported 66,000 paying subscribers as of August 2025, and over 48,000 subscribers shortly after its launch in Q1 2025. The introductory pricing for the service was set at $5.99 per month. This platform is now expanding internationally, with the service launching in Australia and New Zealand in December 2025, marking the first international expansion of the recurring-revenue platform.

Global supply chain management to mitigate tariff impacts on cost of revenue

Managing the cost of goods sold against global trade dynamics is an ongoing activity. For the third quarter of 2025, the cost of revenue was $15.8 million. This resulted in a Q3 gross margin of 50.6%, which was a decrease of 150 basis points year-over-year, primarily reflecting tariff impacts. The full-year 2025 gross margin guidance is narrowed to the range of 48% to 50%, explicitly including the impact of new, increased tariff costs. Lower direct and fulfillment costs partially offset the tariff pressure in Q3.

Direct-to-consumer and retail channel sales execution

Sales execution drove record top-line performance in Q3 2025. The company raised its full-year 2025 revenue guidance to a range of $103 million to $106 million, representing 32% to 36% growth year-over-year. Quarterly revenue for Q3 2025 hit a record of $32.0 million, which was up 44.6% from Q3 2024. Domestic sell-through grew 42% versus the prior year in Q3, while international revenue growth was up 171% year-over-year for the same quarter. The company achieved a record high market share of baby monitor dollars at 40% in Q3 2025.

Here's a quick look at the key revenue and margin metrics for the third quarter of 2025:

The company's sales execution is also reflected in the product adoption rates:

• Dream Sock additions across registries increased 30% year-over-year in Q3.
• The attach rate for Dream Sock to Owlet360 was over 25% at the end of Q3.

Finance: draft 13-week cash view by Friday.

Owlet, Inc. (OWLT) - Canvas Business Model: Key Resources

You're looking at the core assets Owlet, Inc. (OWLT) is relying on to drive its platform strategy as of late 2025. These aren't just inventory; they are regulatory approvals, proprietary datasets, and financial stability that create a competitive moat.

The regulatory pathway is a massive resource. Owlet, Inc. has successfully navigated the FDA process, which is a significant barrier to entry for competitors relying on consumer electronics standards. This is evidenced by the clearances for their core monitoring products.

• FDA-cleared medical devices: Dream Sock (first and only FDA-cleared OTC infant monitor) and prescription-only BabySat.
• Intellectual property: Regulatory clearances for pulse oximetry technology, underpinning the medical-grade accuracy claim.

The proprietary data asset is central to their digital health pivot. The scale of data collection, built over years, is a key differentiator, especially with the launch of services like Owlet360™ that leverage this set.

• Proprietary collection of infant health and sleep data: Fueled by over 2.5 million parents who have trusted the platform since 2012, resulting in one of the largest collections of consumer infant health and sleep data in the world.

Brand equity, while less tangible, is quantified by external validation and customer loyalty metrics. Trust among new parents is a hard-won asset in this space.

• Strong brand recognition and trust: Owlet earned a spot on Fast Company's 2025 Brands That Matter List.

Financially, the balance sheet shows the capital available to support operations and growth initiatives, such as international expansion and clinical integration partnerships. Here's the quick math on their cash position as of the last reported quarter.

The following table summarizes key financial and operational metrics relevant to Owlet, Inc.'s Key Resources as of Q3 2025.

The intellectual property is further evidenced by the specific capabilities enabled by the FDA clearances, which allow for features competitors cannot legally offer over-the-counter.

• FDA-cleared Dream Sock features: Live Health Readings and Health Notifications for healthy infants between ages 1-18 months and weighing 6-30 lbs.
• BabySat: Prescription-only monitoring system for infants with acute or chronic medical conditions.

Anyway, the combination of regulatory approval, a massive proprietary dataset, and a recognized brand name forms the foundation of Owlet, Inc.'s current resource base.

Finance: draft 13-week cash view by Friday.

Owlet, Inc. (OWLT) - Canvas Business Model: Value Propositions

You're looking at how Owlet, Inc. delivers value to its customers as of late 2025. It's a shift from just selling hardware to building an integrated health platform.

Peace of mind through real-time tracking of infant pulse rate and oxygen level

The core value starts with continuous, non-invasive monitoring. Since 2012, more than 2.5 million parents have trusted Owlet to monitor their children's well-being and sleep. This massive installed base fuels the data insights that underpin the entire ecosystem.

Clinically validated, medical-grade accuracy in an over-the-counter device (Dream Sock)

The Dream Sock is positioned as the only FDA-cleared over-the-counter infant monitoring device on the market today. This regulatory clearance is a major differentiator. Domestic sell-through for the core Dream Sock product grew 40% in Q1 2025 versus Q1 2024, and in Q3 2025, domestic sell-through grew 42% year-over-year. This performance helped Owlet achieve a record market share of baby monitor dollars at 40% in Q3 2025.

Comprehensive monitoring via the Dream Duo (wearable sock plus HD video camera)

For parents wanting a complete view, the Dream Duo bundles the vital signs tracking sock with an HD video camera. The strength of these hardware sales directly impacts the top line; Q3 2025 revenue of $32.0 million was primarily driven by higher sales of both the Dream Sock and Dream Duo products.

Personalized sleep insights and expert guidance via the Owlet360 subscription

The recurring revenue stream comes from Owlet360, which transforms monitoring into proactive care with personalized analytics. Total paying subscribers for Owlet360 recently surpassed 85,000 as of Q3 2025. This subscription service, which launched in January 2025, had an attach rate for the Dream Sock of over 25% at the end of Q3.

Here's a quick look at the key product and service metrics as of late 2025:

The subscription offers features like daily sleep reports and expanded trend insights across pulse rate, oxygen, movement, comfort temperature, and room environment metrics.

Seamless data integration for healthcare providers (BabySat)

For the clinical channel, BabySat is an FDA-cleared prescription monitoring device. This device is designed to bring hospital-grade monitoring into the home under physician supervision. The price point for BabySat is reported at $599, which is 2x the price of the Dream Sock. The value proposition here is the secure, ongoing access to vital infant health information for providers, such as through the collaboration connecting BabySat data into the Locus Health platform.

You should track the continued expansion of these health care channels, including the consignment agreement launch with the Children's Hospital of the King's Daughters.

Owlet, Inc. (OWLT) - Canvas Business Model: Customer Relationships

You're looking at how Owlet, Inc. keeps its parents engaged and coming back, which is key now that they're pushing recurring revenue and medical channels. The relationship strategy is clearly tiered, moving from broad consumer reassurance to specialized medical support.

Automated in-app notifications and real-time data display for parents

The core relationship starts with the real-time data stream from the Dream Sock, which tracks pulse rate and oxygen levels, sending alerts to the Owlet Dream App and Base Station if readings fall outside preset ranges. This immediate feedback loop is central to building trust. The data collected from these interactions is significant; observations from nearly 50,000 newborns monitored at home have been published in a peer-reviewed medical journal, validating the technology's impact. The Dream App itself offers features like Predictive Sleep Technology, which learns past patterns to recommend optimal nap and bedtime windows.

Digital self-service and expert resources through the Owlet Dream App

The Owlet Dream App serves as the primary digital touchpoint, offering core tracking at no cost. Brand health remains strong, with the Dream Sock showing a recent Net Promoter Score (NPS) of 77 at the end of the third quarter of 2025. Overall, the blended product NPS stood at 71. This digital self-service environment is backed by data showing high user benefit:

• 96% of parents using Owlet feel less anxious.
• 94% of parents report better sleep quality while using the Owlet Smart Sock.
• 82% of parents report practicing the safe sleep guidelines from the American Academy of Pediatrics (AAP).

Dedicated support for the prescription-based BabySat through healthcare channels

For the higher-acuity customer, the relationship shifts to a healthcare channel model for the FDA-cleared BabySat device. This requires a prescription for infants between 1-18 months that a physician determines need additional monitoring. To streamline this, Owlet partnered with Locus Health to integrate BabySat data directly into their remote patient monitoring platform. This collaboration is designed to give healthcare providers secure, ongoing access to vital infant health information, which is expected to help the approximately 500,000 babies transitioning home from intensive care units annually in the United States. AdaptHealth is currently working to incorporate the BabySat into its insurance portfolio, which is a key step in making this dedicated support scalable.

Community building and emotional connection with parents for brand loyalty

Owlet, Inc. fosters deep emotional connection, evidenced by its inclusion in Fast Company's 2025 Brands That Matter list, which recognizes brands that achieve cultural significance. Since 2012, more than 2.5 million parents have trusted Owlet. This trust translates to market dominance; Owlet increased its share of total dollars spent on baby monitors to 40% in the third quarter of 2025, a record high. The company also supports community through charitable giving, having donated more than $2.5 million in product and support to nonprofits dedicated to infant health.

Subscription-based relationship for recurring digital services (Owlet360)

The Owlet360 subscription service is a major focus for recurring revenue, offering personalized guidance and deeper analytics beyond the core, free app features. The momentum here is strong, moving from over 48,000 paying subscribers in Q1 2025 to surpassing 85,000 paying subscribers by the end of Q3 2025. This service is also key to international expansion, marking its first international rollout in Q3 2025. The attach rate for the core Dream Sock product was over 25% at the end of the third quarter.

Here's the quick math on the subscription and loyalty growth you should watch:

What this estimate hides is the exact churn rate for the Owlet360 service, which is crucial for valuing that recurring stream. Finance: draft 13-week cash view by Friday.

Owlet, Inc. (OWLT) - Canvas Business Model: Channels

You're looking at how Owlet, Inc. gets its products-the Dream Sock, Cam, and the prescription BabySat-into the hands of parents and providers as of late 2025. The channel strategy is clearly multi-pronged, balancing high-margin direct sales with broader retail reach and a critical push into the healthcare system.

Direct-to-Consumer (DTC) e-commerce via Owlet's website

The company's website, owletcare.com, remains a core engine for customer acquisition. Honestly, the DTC channel has historically been the lion's share of the business. In 2024, for example, DTC sales accounted for approximately 70% of total revenue. This direct relationship is key because it feeds directly into the Owlet360 subscription service. As of the third quarter of 2025, the Owlet360 subscription service had surpassed 85,000 paying subscribers, up from over 48,000 in the first quarter of 2025. This direct line helps Owlet, Inc. control the customer experience and maximize the lifetime value per customer.

Major domestic and international specialty retail partners

While DTC is dominant, retail partners give Owlet, Inc. necessary scale and visibility. Although the search results don't give a precise 2025 DTC vs. Retail revenue split, we know international revenue growth was up approximately 171% year-over-year in Q3 2025, which is heavily reliant on local retail distribution in those new territories. The company is expanding its distribution across 26 countries. Domestically, the continued strength in consumer adoption is evident: Dream Sock additions across registries increased 30% year-over-year in Q3 2025, which speaks to the pull-through from retail shelf presence and online marketplace visibility.

Healthcare channels for the prescription device BabySat

This is where Owlet, Inc. is making a significant strategic pivot, moving from an out-of-pocket consumer purchase to an insurance-reimbursed medical device. The BabySat is priced at $599, which is 2x higher than the consumer Dream Sock. Management is actively working to embed this device into the continuum of care. The distribution strategy here involves several key components:

• The company is working with multiple insurance companies and rolling out reimbursement in 12 Medicaid states.
• Owlet, Inc. is engaging with 6 Durable Medical Equipment (DME) suppliers, including a new partnership with Adapt, to reach caregivers across the U.S.
• They are in discussions with major hospitals like Childrens of Cincinnati, Omaha, and Boston for product placement at the time of patient discharge.
• In November 2025, a partnership with Rhapsody was announced to integrate BabySat data directly into patients' Electronic Health Records (EHRs).

Baby registries (Amazon, BabyList, Target) driving initial adoption

Registries are a critical channel for driving initial product awareness and sales volume for the core consumer products. Owlet, Inc. is recognized as the Top brand across Amazon, BabyList, and Target registries. The strong performance here directly correlates with the growth seen in sell-through metrics. For instance, domestic sell-through grew 42% versus the prior year in Q3 2025. Furthermore, the company's overall market share of baby monitor dollars reached 40% in Q3 2025, a record high, which is heavily influenced by visibility on these major consumer platforms.

International distribution expansion (e.g., Australia, New Zealand, planned India launch)

International expansion is a major growth driver, with revenue growth reported at approximately 171% year-over-year in Q3 2025. This rapid growth is fueled by expanding the distribution footprint. The company has already expanded to 26 countries, following the CE Medical clearance which allows access to pharmacies throughout the European Union. Looking ahead, Owlet, Inc. has secured new distribution clearance in India, supporting a commercial product launch expected in early 2026. This global push is intended to grow international sales from approximately 15% of total revenue in 2024 to an expected 20% by the end of 2025.

Here's a quick look at the key performance indicators tied to these channels as of late 2025:

Finance: draft 13-week cash view by Friday.

Owlet, Inc. (OWLT) - Canvas Business Model: Customer Segments

You're looking at the customer base for Owlet, Inc. as of late 2025. This isn't just about selling a product; it's about segmenting families based on their need for data, from basic reassurance to clinical oversight. The numbers show a clear push toward recurring revenue and medical integration.

The core consumer segment remains tech-savvy, health-conscious parents of newborns, typically ages 0-18 months (or 2.5-13.6 kg). This group drives the volume for the flagship Dream Sock, which is the first FDA-cleared over-the-counter infant monitoring device. Owlet's market share of baby monitor dollars reached a record high of 40% in the third quarter of 2025. Domestic sell-through for the core product grew 42% year-over-year in Q3 2025, and registry additions saw a 30% increase year-over-year in the same period.

The overall trust level is high, with more than 2.5 million parents having trusted Owlet since its founding in 2012. Customer satisfaction remains strong, evidenced by a Net Promoter Score (NPS) of 73+.

Here's a quick look at the scale across the primary segments as of Q3 2025:

Parents seeking higher levels of monitoring or subscription value are served by the Owlet360 subscription, which recently surpassed 85,000 paying subscribers. The attach rate for this subscription to the Dream Sock was over 25% at the end of Q3 2025. For the highest level of monitoring, the prescription BabySat device is priced at $599, which is noted as 2 times the price of the Dream Sock.

The push into healthcare channels targets parents of infants with acute or chronic conditions. This includes remote patient monitoring programs utilizing the FDA-cleared BabySat. A key strategic partnership with Locus Health aims to support approximately 500,000 babies transitioning home from intensive care units annually in the United States. The company also has a distribution partnership with Children's Hospital of The King's Daughters, enabling babies to leave the hospital with either a BabySat or Dream Sock.

The international consumer segment is showing rapid acceleration. In Q3 2025, international revenue growth was reported at 171% year-over-year. This expansion includes new regulatory clearance in India, supporting a commercial launch expected in early 2026. Furthermore, as of December 5, 2025, the Dream Sock launched in Australia and New Zealand following Therapeutic Goods Administration (TGA) approval.

Expectant parents adding products to baby registries are a key driver for initial product adoption. Registry additions for the core product increased by 30% year-over-year in Q3 2025. The company is focused on capturing this early-stage purchasing behavior.

You can see the key drivers for these segments:

• Tech-savvy parents: Domestic sell-through grew 42% (Q3 2025 YoY).
• Subscription buyers: Owlet360 surpassed 85,000 subscribers.
• Healthcare systems: Targeting the 500,000 US babies discharged from the NICU annually.
• International buyers: Revenue grew 171% YoY in Q3 2025.
• Registry buyers: Registry additions increased 30% YoY in Q3 2025.

Finance: draft 13-week cash view by Friday.

Owlet, Inc. (OWLT) - Canvas Business Model: Cost Structure

You're looking at the hard costs Owlet, Inc. faces to deliver its smart infant monitoring products and platform. This is where the rubber meets the road for profitability, and as of late 2025, we see some clear drivers.

The Cost of Revenue (COGS) for hardware manufacturing and associated costs was a key focus, especially with ongoing supply chain pressures. For the third quarter of 2025, the Cost of Revenue hit $15.8 million. This figure directly resulted in the Q3 2025 gross margin landing at 50.6%. Management noted that this margin was down 150 basis points year-over-year, primarily reflecting the impact of tariffs, though this was partially offset by lower direct and fulfillment costs and a favorable product mix. The full-year 2025 expectation for gross margins was narrowed to the range of 48% to 50%, factoring in new, increased tariff costs.

The overall spending on running the business outside of direct product costs-the Operating Expenses-was significant but managed down year-over-year. Total Operating Expenses, which include stock-based compensation, were $15.0 million in Q3 2025. This represented 47% of revenue for the quarter, showing strong operating leverage compared to 74% in Q3 2024. This total expense figure is the sum of several major buckets that drive the business forward.

Here's a quick snapshot of the key Q3 2025 financial metrics related to costs and margins:

Within those Operating Expenses, you have critical investments that are not directly tied to the unit cost of the product but are essential for future revenue. Research and Development (R&D) is a necessary cost for developing new products, like the DreamSight camera launched in Q3, and for enhancing the software platform, including the Owlet360 subscription service. While the specific dollar amount for R&D isn't broken out in the top-line summary, it is a component of the $15.0 million total operating spend.

Driving sales and getting products to customers are the next major cost centers. Sales and Marketing (S&M) costs are what Owlet, Inc. uses to push domestic sell-through and support its strong international growth, which saw approximately 171% year-over-year growth in Q3. These costs are essential for customer acquisition, especially as the company pushes its FDA-cleared Dream Sock and expands its subscription base, which surpassed 85,000 paying subscribers in Q3 2025.

Logistics and fulfillment costs for global distribution are embedded in both COGS and Operating Expenses, though the press release specifically mentioned lower direct and fulfillment costs as a factor helping the gross margin. Managing the supply chain efficiently across international markets, especially with new regulatory clearances like the one in India expected in early 2026, is a constant cost management challenge.

• Tariff costs negatively impacted Q3 2025 gross margin by 280 basis points.
• Q3 2025 operating costs decreased year-over-year due to the absence of impairment charges and an insurance loss recovery of $1.2 million.
• The prior year quarter included a $1.9 million non-cash impairment charge related to internally developed software.

Finance: draft 13-week cash view by Friday.

Owlet, Inc. (OWLT) - Canvas Business Model: Revenue Streams

You're looking at the hard numbers for how Owlet, Inc. brings in cash as of late 2025. It's a mix of hardware sales and growing recurring revenue.

Product Sales are the foundation, driven by the core hardware platform. The increase in Q3 2025 revenue to $32.0 million, a 44.6% jump year-over-year, was primarily fueled by higher sales of the Dream Sock and the Dream Duo system. The Dream Sock is noted as the first and only FDA-cleared over-the-counter infant monitoring device on the market as of Q3 2025.

Subscription Revenue from the Owlet360 digital service is accelerating, showing a clear shift toward recurring income. By the end of Q3 2025, total paying subscribers had surpassed 85,000. This is a significant increase from the over 48,000 paying subscribers reported at the end of Q1 2025. The attach rate for the Dream Sock to this service was over 25% at the end of Q3.

The full-year 2025 revenue guidance reflects this strong momentum. Management raised the projection to a range between $103 million and $106 million. This compares to the actual full-year revenue of $78.1 million recorded in 2024.

Sales through healthcare channels represent a growing, specialized stream. This includes the prescription device, BabySat, and related data services. Progress in Q3 2025 included the first deployment of Owlet Connect with Rhapsody Health and a consignment agreement with the Children's Hospital of the King's Daughters, allowing babies to leave the hospital with a BabySat or Dream Sock.

Revenue from accessories and replacement parts sales is embedded within the overall product sales figures, though specific standalone amounts aren't broken out in the latest reports. The overall gross margin for Q3 2025 was 50.6%, which benefited partially from the growth in the Owlet360 subscription revenue.

Here's a quick look at the key revenue milestones from the latest reported quarter:

• Q3 2025 Revenue: $32.0 million
• Q3 2025 Gross Margin: 50.6%
• Q3 2025 Operating Income: $1.2 million (first positive operating profit in company history)
• Total Paying Subscribers (Owlet360): Over 85,000 in Q3 2025
• Full-Year 2025 Revenue Guidance Range: $103 million to $106 million

Finance: draft 13-week cash view by Friday.