Outset Medical (NASDAQ:OM) Issues Quarterly Earnings Results

Outset Medical (NASDAQ:OM – Get Free Report) issued its quarterly earnings data on Thursday. The company reported ($0.80) earnings per share for the quarter, missing the consensus estimate of ($0.72) by ($0.08), FiscalAI reports. The company had revenue of $31.64 million for the quarter, compared to the consensus estimate of $28.97 million. Outset Medical had a negative return on equity of 58.06% and a negative net margin of 63.06%.

Here are the key takeaways from Outset Medical’s conference call:

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• Q2 revenue rose 14% sequentially to $31.6 million, driven in part by stronger console sales, while management reiterated full-year 2026 revenue guidance of $125 million–$130 million.
• Non-GAAP gross margin improved to 42.2%, up more than 380 basis points year over year, while operating expenses remained disciplined and second-quarter cash use was $9.5 million; the company expects to use less than $40 million for the full year.
• Outset signed a $40 million Tablo fleet-refresh agreement with HCA Healthcare extending through 2028, creating contracted backlog and revenue visibility, with additional expansion opportunities across HCA facilities.
• Consumable revenue declined 12% year over year, contributing to a 2% decline in recurring revenue, although management attributed the result largely to difficult comparisons and order timing and said utilization remained stable.
• The next-generation Tablo system is currently in a measured pilot phase, with a broader launch dependent on user feedback, device performance, and implementation metrics; management cited cybersecurity and workflow improvements as key selling points.

Outset Medical Trading Down 5.8%

Shares of OM traded down $0.30 during mid-day trading on Friday, reaching $4.90. 233,259 shares of the company’s stock traded hands, compared to its average volume of 112,415. The stock has a market cap of $90.85 million, a P/E ratio of -1.20 and a beta of 1.96. The stock’s 50-day moving average is $4.60 and its two-hundred day moving average is $4.27. Outset Medical has a 12 month low of $3.00 and a 12 month high of $16.16. The company has a debt-to-equity ratio of 0.87, a current ratio of 6.29 and a quick ratio of 4.97.

Insider Buying and Selling at Outset Medical

In related news, CFO Renee Gaeta sold 17,672 shares of the firm’s stock in a transaction that occurred on Wednesday, June 3rd. The stock was sold at an average price of $4.94, for a total transaction of $87,299.68. Following the completion of the sale, the chief financial officer directly owned 113,753 shares of the company’s stock, valued at approximately $561,939.82. This trade represents a 13.45% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 25,337 shares of company stock valued at $115,660 in the last quarter. Corporate insiders own 2.50% of the company’s stock.

Institutional Trading of Outset Medical

A number of hedge funds and other institutional investors have recently bought and sold shares of OM. Legal & General Group Plc bought a new stake in shares of Outset Medical during the second quarter worth $34,000. BNP Paribas Financial Markets increased its stake in Outset Medical by 7,013.8% in the 2nd quarter. BNP Paribas Financial Markets now owns 2,063 shares of the company’s stock worth $40,000 after buying an additional 2,034 shares during the period. New York State Common Retirement Fund purchased a new position in Outset Medical in the 2nd quarter worth about $108,000. Los Angeles Capital Management LLC bought a new stake in Outset Medical during the 4th quarter valued at about $29,000. Finally, Quantbot Technologies LP bought a new stake in Outset Medical during the 2nd quarter valued at about $152,000.

Wall Street Analysts Forecast Growth

Several analysts recently weighed in on the company. Wall Street Zen lowered Outset Medical from a “hold” rating to a “sell” rating in a report on Saturday, April 11th. TD Cowen reaffirmed a “buy” rating on shares of Outset Medical in a research note on Friday, May 8th. Finally, Weiss Ratings reiterated a “sell (e+)” rating on shares of Outset Medical in a research report on Wednesday, June 24th. Three analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of $10.00.

Read Our Latest Stock Report on Outset Medical

Outset Medical Company Profile

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Outset Medical is a medical technology company specializing in innovations for renal care. The company’s flagship offering, the Tablo Hemodialysis System, is designed to streamline and simplify dialysis treatment across acute and outpatient settings. By integrating water purification, dialysate production, and treatment monitoring into a single device, Tablo aims to reduce the complexity and logistical burden traditionally associated with hemodialysis therapy.

Tablo’s modular design allows for rapid setup and flexible deployment in hospitals, clinics, long‐term care facilities and emergency response scenarios.

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