Outset Medical (NASDAQ:OM – Get Free Report) released its quarterly earnings data on Wednesday. The company reported ($0.68) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.69) by $0.01, FiscalAI reports. Outset Medical had a negative return on equity of 61.67% and a negative net margin of 63.06%. The business had revenue of $33.60 million for the quarter, compared to analysts’ expectations of $31.40 million.
Here are the key takeaways from Outset Medical’s conference call:
- Third-quarter revenue rose 14% year over year to $33.6 million, with console revenue up 26% and recurring revenue up 10%. Non-GAAP gross margin improved to 40.8%, while operating expenses grew just 4%—below revenue growth.
- Outset reported 96% cumulative retention among parent customers that purchased Tablo consoles, and customer satisfaction exceeded the healthcare benchmarks used in its third-party survey. The company said these relationships support further adoption within existing health systems.
- Management highlighted refresh, expansion, and new-customer sales as its three growth drivers, including an estimated $150 million console-refresh opportunity and the HCA agreement. It is adding commercial resources and tightening sales territories to pursue these opportunities.
- Outset reiterated 2026 revenue guidance of $125 million to $130 million rather than raising it after the quarter, and did not provide a 2027 forecast. Management said it aims to return to double-digit growth, while noting it would discuss 2027 in more detail after Q4.
- The company ended the quarter with $140.7 million in cash, equivalents, short-term investments, and restricted cash, and expects about $40 million of cash use for 2026. Management also said next-generation Tablo preparations continue, with a full release planned only after it is satisfied with the customer experience; the HHS kidney-care plan’s impact remains uncertain pending implementation.
Outset Medical Trading Up 7.0%
Shares of Outset Medical stock traded up $0.29 on Wednesday, reaching $4.44. The company had a trading volume of 108,450 shares, compared to its average volume of 339,470. The firm has a market cap of $83.47 million, a price-to-earnings ratio of -1.09 and a beta of 1.93. Outset Medical has a 1 year low of $2.84 and a 1 year high of $12.90. The firm’s 50-day moving average price is $3.72 and its two-hundred day moving average price is $4.15. The company has a debt-to-equity ratio of 1.03, a current ratio of 5.19 and a quick ratio of 4.11.
Analyst Ratings Changes
Several research analysts have recently weighed in on the stock. Weiss Ratings cut shares of Outset Medical from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Friday, August 21st. Wall Street Zen upgraded Outset Medical from a “sell” rating to a “hold” rating in a research note on Saturday, August 15th. Three research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Hold” and a consensus price target of $10.00.
Check Out Our Latest Stock Report on Outset Medical
About Outset Medical
Outset Medical, Inc is a medical technology company that develops products for hemodialysis, a treatment that filters waste and excess fluid from the blood when the kidneys are no longer able to do so adequately. The company’s primary product is the Tablo Hemodialysis System, an integrated dialysis platform designed to simplify treatment for healthcare providers and support broader use of dialysis in hospitals, outpatient facilities and the home.
The Tablo system combines dialysis delivery, water purification and dialysate production in a single device and uses a touchscreen interface intended to guide users through treatment setup and operation.
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