Owlet, Inc. announced a new durable medical equipment partnership with 1 Natural Way, a national mom‑and‑baby‑focused DME provider, to distribute its FDA‑cleared BabySat infant pulse oximeter. The partnership will allow families nationwide to obtain BabySat through insurance‑supported pathways on 1NaturalWay.com.
BabySat, cleared by the FDA in June 2023, is a prescription‑eligible, wireless monitor designed for high‑risk infants. The device is covered by most major insurers, including Medicare and Medicaid, which is essential for families who rely on insurance reimbursement for high‑cost medical equipment.
Owlet’s recent financial results underscore the strategic value of the partnership. In Q3 2025, the company generated record revenue of $32.0 million, up 44.6% from $18.8 million in Q3 2024, and achieved a gross margin of 50.6%, a 150‑basis‑point decline from the prior year largely due to tariff impacts. Operating income rose to $1.2 million, and net income reached $4.1 million, a turnaround from a net loss in 2024. The partnership is expected to accelerate the adoption of BabySat among clinicians and parents who rely on DME channels, potentially adding a new revenue stream that complements Owlet’s direct‑to‑consumer sales.
The DME channel is a key distribution arm for medical devices, often representing a sizable portion of revenue for comparable products. By leveraging 1 Natural Way’s established network of hospitals, clinics, and home‑care providers, Owlet can tap into a customer base that is already engaged in maternal and infant health care. The partnership also positions Owlet against competitors that rely solely on direct sales, strengthening its competitive moat in the infant pulse oximeter market.
Jonathan Harris, Owlet’s President and CEO, said the collaboration “expands the availability of Owlet products via a trusted mom‑and‑baby partner, ensuring that families—especially military families—receive the highest level of care for their infants.” Ryan Wright, CEO of 1 Natural Way, added that the partnership “continues our mission of ensuring that moms receive access to the highest level of care for themselves and their babies during a sensitive and deeply personal time in their lives.” The deal aligns with Owlet’s broader strategy of building a comprehensive pediatric health platform that integrates medical‑grade technology with data and digital services.
The partnership is expected to accelerate BabySat adoption, broaden insurance coverage, and deepen Owlet’s presence in the high‑risk infant market, reinforcing the company’s trajectory of revenue growth and profitability.
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