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Owlet Broadens Its Product Ecosystem: Can New Devices Drive Growth?

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Key Takeaways

  • OWLT is expanding beyond a single device by pairing wearables and cameras to create a more connected nursery.
  • Owlet launched the Dream Sight camera in Q3 2025, a third-generation monitor with enhanced security.
  • OWLT is using Dream Sock and camera bundles to drive multi-device adoption and incremental sales.

Owlet, Inc. (OWLT - Free Report) is broadening its product ecosystem as part of a strategy to move beyond a single-device offering and address a wider set of infant monitoring needs. The company is expanding its hardware lineup to create a more connected nursery experience, aiming to support adoption across multiple stages of early childhood.

Owlet’s ecosystem centers on pairing wearable and camera-based devices to deliver a more holistic view of infant wellness. The company continues to build around its core Dream Sock platform while introducing complementary products designed to increase engagement within the home. This approach allows Owlet to serve parents seeking both biometric tracking and visual monitoring, rather than relying on one category alone.

In the third quarter of 2025, the company highlighted the launch of the new Dream Sight camera, its third-generation video baby monitor. The device is positioned as a more advanced and reliable offering, featuring enhanced security and onboard capabilities intended to support future feature expansion. The launch contributed to broader ecosystem momentum, alongside continued strength in the Dream Sock franchise.

Owlet also emphasized the role of bundled offerings, such as combining the Dream Sock with camera products, to encourage multi-device adoption. This strategy opens incremental sales opportunities while reinforcing the value of Owlet’s platform approach. In addition, the company pointed to strong consumer interest across retail channels, supported by new product introductions and expanded distribution.

Looking ahead, Owlet’s ability to drive growth through new devices will depend on execution, product differentiation and sustained demand. If adoption continues to broaden across its ecosystem, hardware expansion could remain an important contributor to overall growth.

Owlet’s Competitive Landscape

Competition in connected infant monitoring and digital health remains intense, with companies such as Masimo (MASI - Free Report) and iRhythm Technologies (IRTC - Free Report) shaping adjacent parts of the broader monitoring market. 

Masimo is a leader in medical-grade pulse oximetry and patient monitoring, with a strong presence in hospitals and deep expertise in hardware reliability. While Masimo operates primarily in clinical settings, its scale highlights the technical complexity and investment required to develop high-quality monitoring devices.

iRhythm Technologies operates in remote cardiac monitoring and offers a useful comparison from a product ecosystem perspective. The company combines proprietary devices with long-term monitoring services, illustrating how expanding device use cases can support sustained engagement over time.

Against these peers, Owlet remains more narrowly focused on infant monitoring, but its strategy of pairing wearable and camera-based devices targets a specific and growing niche. If execution remains strong, a broader device ecosystem could help Owlet deepen household adoption and compete effectively within its segment.

OWLT’s Price Performance & Estimates

Shares of Owlet have surged 77.1% in the past six months, outperforming the Zacks Electronics - Miscellaneous Products industry’s 30.1% growth and the Zacks Computer and Technology sector’s 15.9% rise.
 

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The Zacks Consensus Estimate for OWLT’s 2026 loss has narrowed to 25 cents from 48 cents in the past 30 days. The company is expected to report 12 cents loss per share in 2025.



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OWLT currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.


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