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    Did Owlet’s (OWLT) New Insurance-Backed BabySat Deal Just Shift Its Healthcare-Channel Narrative?

    Simply Wall St·12/20/2025 06:19:20
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    • Earlier this month, Owlet, Inc. announced a new DME partnership with 1 Natural Way, allowing families across the U.S. to access its FDA-cleared BabySat pulse oximeter through insurance-supported channels, including commercial plans, many state Medicaid networks, and TRICARE.
    • This expansion into reimbursed home monitoring for higher-risk infants underlines Owlet’s push further into clinically integrated, insurance-backed distribution rather than relying solely on direct-to-consumer sales.
    • Next, we’ll examine how broader insurance-backed BabySat access via 1 Natural Way could influence Owlet’s investment narrative around healthcare-channel growth.

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    Owlet Investment Narrative Recap

    To own Owlet, you need to believe it can turn its parent-facing wearables and data into a durable, healthcare-integrated business. The new 1 Natural Way DME partnership directly addresses a key short term catalyst for the stock: proving that insurance-backed BabySat distribution can scale beyond pilots, while the biggest near term risk remains whether healthcare-channel revenue becomes meaningful fast enough to justify recent growth expectations and past shareholder dilution.

    Among recent updates, the UK and Ireland launch of Owlet360, now with more than 90,000 subscribers after the earlier U.S. rollout, is especially relevant. It shows how Owlet is pairing insurance-backed BabySat access with a growing subscription base, supporting the catalyst around recurring revenue growth even as the company works to broaden its product mix beyond Dream Sock and Dream Duo.

    Yet investors should be aware that the real test is whether healthcare-channel adoption offsets the risk that...

    Read the full narrative on Owlet (it's free!)

    Owlet's narrative projects $167.1 million revenue and $4.4 million earnings by 2028.

    Uncover how Owlet's forecasts yield a $14.88 fair value, a 6% upside to its current price.

    Exploring Other Perspectives

    OWLT 1-Year Stock Price Chart
    OWLT 1-Year Stock Price Chart

    Four members of the Simply Wall St Community currently place Owlet’s fair value between US$14.88 and US$18.71, highlighting how far individual views can spread. You can compare those opinions with the catalyst around expanding insurance-backed BabySat access, which could be important for how the business performs over time.

    Explore 4 other fair value estimates on Owlet - why the stock might be worth as much as 33% more than the current price!

    Build Your Own Owlet Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.