Forensic Analysis · Industrial & Scientific Instruments · as of Nov 11, 2026
Owlet, Inc. (OWLT)
A forensic read on Owlet, Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
D · Weak — demands caution
Forensic grade
Distress
Financial health
-9.1
Distress distance
Clean
Earnings quality
6
Forensic signals
35.4%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (auditor quality, say on pay, board independence, going concern). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Owlet, Inc. earns a D (Weak — demands caution) forensic quality grade, and its balance-sheet distress test reads -9.1, placing it in the Distress zone. 6 forensic signals were flagged in its latest SEC filings, led by return on invested capital.
What the filings flag
-78.2%
FY2025
Return on invested capital.Return on invested capital is -78.2% in the latest fiscal year.
+47.9%/yr
FY2023–FY2025
Share-count dilution.Diluted share count changed +119% over the last 2 years to FY2025 (+47.9%/yr). The count is growing — 8.3M shares in FY2023, 18.1M in FY2025: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~47.9% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2023 has been diluted ~54%.
9% of rev
FY2025
Stock-based comp load.Stock-based compensation ran 9% of revenue in FY2025 — about $0.52 per diluted share. No cash left the business to pay it, which is why operating cash flow adds it back. Net of repurchases the diluted count still rose about 47.9% a year across FY2023–FY2025 and that rate is not falling, so total profit has to grow by that much annually before any of it reaches a share. Stock compensation is one source of that issuance; acquisition consideration, equity raises, convertibles and other employee plans also net into the count, and these figures do not separate them.
n/m (sign flip)
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets flipped from negative to positive FY2024→FY2025 (FY2024 $-25.4M to FY2025 $+13.0M) — the standard accruals ratio divides by the average of the two, which collapses toward zero right as the sign changes, so the resulting percentage is a denominator artifact, not a real accrual measurement. Treat this as a structural balance-sheet shift to understand on its own terms rather than a clean or dirty accruals read.Accruals ratio: the year-over-year change in net operating assets, relative to their own average.NOA (net operating assets): the money tied up in running the business, operating assets minus operating liabilities.
79d DSO
FY2024→FY2025
Receivables vs revenue.Days sales outstanding moved from 57 to 79 days FY2024→FY2025 (receivables +89% vs revenue +35%). Across FY2023–FY2025 the day count ran 94 → 57 → 79 days, so the latest reading sits on top of a record that was flat or falling before it — one year's move, not a direction the business has been travelling in. Deferred revenue grew +63% over the same period, which accounts for part of the balance but not for a day count that widened against the same quarters a year earlier. Measured against the same quarter twelve months earlier — like-for-like on the calendar, so an ordinary seasonal build cannot produce it — receivables took longer to collect in 5 consecutive quarters (Jun 2025 +11, Sep 2025 +11, Dec 2025 +26, Mar 2026 +11, Jun 2026 +4 days). In the latest of them the receivable balance grew +36% against sales +30%, so more of a quarter's billings were still outstanding at the period end than a year earlier — money the company has recognized and not yet been paid. Both figures are measured on period-end balances rather than the beginning-plus-ending average, because averaging needs the balance a year before every reading — FY2024's opening balance is on file, but across the 3 fiscal years read here (FY2023–FY2025) the average yields only 2 day counts (1 step), too few to tell a climb from one year's move.DSO (days sales outstanding): the average days the company waits to collect cash after a sale.
90d
FY2024→FY2025
Inventory days.Days inventory outstanding moved from 80 to 90 FY2024→FY2025 (against cost of goods sold; inventory +45% vs +35% in cost of sales). Inventory is building a little faster than sales — watch for markdowns.
Key fundamentals
Latest Revenue$105.7M
Revenue Growth YoY+35.4%
Revenue CAGR (2yr)+39.9%
Net Margin-37.5%
Free Cash Flow-$11.6M
Debt / Equity0.68x
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Owlet, Inc.'s actual 10-K/10-Q/8-K filings?