Ian Arndt

Ian Arndt asked about Owlet's long-term vision for international revenue as a percentage of total revenue and the potential impact of adding subscription services internationally. He also sought an update on any follow-through from the FDA safety communication issued in September 2025.

Answer

CEO Jonathan Harris highlighted significant international growth opportunities, citing lower penetration rates in Europe compared to the U.S. and the massive market potential in India. He expressed excitement about expanding international subscription services in various languages to drive high-margin recurring revenue. Regarding the FDA communication, Jonathan Harris stated no further updates have been received, noting internal FDA turmoil, but emphasized Owlet's strong market share growth in the U.S. (41% of the baby monitor category).

Ian Arndt asked about Owlet's longer-term vision for international revenue as a percentage of total revenue, including thoughts on expanding subscription services internationally. He also sought an update on any additional follow-through or impact from the FDA safety communication issued in September 2025.

Answer

President and CEO Jonathan Harris highlighted significant international growth opportunities, noting lower penetration in Europe (3% vs. 11% in the U.S.) and the massive market potential in India. He expressed excitement about rolling out more international subscriptions in various languages to drive high-margin recurring revenue. Regarding the FDA communication, he stated that Owlet has not heard anything further since September 2025, maintaining a strong relationship with the FDA, and noted continued market share growth in the U.S. (over 41% of the baby monitor category).

Ian Arndt asked for a breakdown of the primary growth drivers supporting the 2026 guidance, specifically differentiating between recovery in RECELL volumes and contributions from Cohealyx and PermeaDerm launches.

Answer

Interim CEO Cary Vance stated that growth is expected across all three product lines, with the majority driven by increased utilization within existing accounts, including additional physicians and procedure types. He emphasized that the plan focuses on this trajectory within established institutions.

Ian Arndt of Lake Street Capital Markets requested a breakdown of the key growth drivers for the 2026 revenue guidance, specifically differentiating between the recovery of RECELL base volumes and the contributions from new Cohealyx and PermeaDerm launches. He also inquired about the conversion rate of Cohealyx VAC reviews into active ordering accounts and any observed bottlenecks in this process.

Answer

Interim CEO Cary Vance stated that growth is anticipated across all three product lines (RECELL, Cohealyx, PermeaDerm), primarily driven by increased utilization within existing accounts through additional physicians and procedures. Regarding Cohealyx VAC reviews, Vance indicated a steady rate of accounts exiting the VAC process and beginning to order products. He noted no significant bottlenecks beyond standard administrative processes, emphasizing that denials are rare, though the timeline varies by account.