Owlet announced a partnership with Locus Health to embed its FDA‑cleared BabySat infant monitoring device into Locus Health’s remote‑patient‑monitoring platform, allowing clinicians to receive real‑time vital‑sign data—oxygen saturation, pulse rate, activity, and temperature—directly within the Locus Health workflow after a baby is discharged from the hospital. CEO Jonathan Harris said the alliance "extends our mission beyond the nursery by connecting our proven monitoring capabilities directly into clinical workflows."
The partnership follows Owlet’s record Q3 2025 earnings, where revenue reached $32.0 million, up 44.6% from $22.2 million in Q3 2024, and net income rose to $4.1 million from a $5.6 million loss. Gross margin fell to 50.6% from 52.6% due to tariff impacts, but operating income improved to $1.2 million, reflecting disciplined cost management amid revenue growth.
Owlet raised its full‑year 2025 revenue guidance to $103 million–$106 million, up from the prior $99 million–$102 million range, signaling confidence in continued demand for its FDA‑cleared devices. The partnership with Locus Health positions Owlet to capture a larger share of the projected $10.5 billion remote patient monitoring market, which is expected to grow at a CAGR of 12% over the next five years.
By embedding BabySat data into Locus Health’s platform, Owlet gains direct access to neonatal intensive care units and other pediatric facilities that rely on remote monitoring. The integration enables continuous data streams that can trigger earlier alerts for complications, potentially reducing readmissions for high‑risk infants and strengthening Owlet’s value proposition to hospitals.
The deal also signals a strategic shift from consumer‑direct sales to enterprise solutions, aligning with Owlet’s broader goal of becoming a comprehensive pediatric health platform. While the company faces tariff‑related margin pressure, the partnership offers a tailwind through increased adoption and recurring subscription revenue, offsetting short‑term cost headwinds.
Locus Health, a leader in pediatric remote monitoring, brings a robust clinical workflow and a network of hospitals that can accelerate adoption of Owlet’s technology. The collaboration positions Owlet against competitors such as Philips and GE Healthcare, who also offer infant monitoring solutions, but Owlet’s FDA and CE clearances for BabySat and Dream Sock give it a regulatory advantage.
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