Outset Medical (OM) investor relations material

Executive summary

• Q2 2026 revenue was $31.6 million, up 1% year-over-year and 14% sequentially, with gross margin expanding to 42% and strong execution in expense discipline and cash management.

• Net loss for Q2 2026 was $18.0 million, improved from $18.5 million in Q2 2025; non-GAAP net loss was $14.7 million.

• Signed a $40 million, three-year refresh agreement with HCA Healthcare, enhancing backlog and long-term revenue visibility.

• Achieved the highest number of new site implementations in several years, driving customer expansion and satisfaction.

• Launched a formalized customer success program and expanded commercial leadership to drive growth and adoption.

Financial highlights

• Product revenue was $21.9 million (down 5%), service/other revenue $9.7 million (up 17%), and recurring revenue from consumables/services was $22.1 million (flat year-over-year).

• Gross profit for Q2 2026 was $13.3 million, up 12% year-over-year; non-GAAP gross margin reached 42.2%, up over 380 basis points.

• Product gross margin was 46.1% (down 280 basis points), service/other gross margin was 33.4% (up over 2,400 basis points).

• Non-GAAP operating expenses were $25.8 million, nearly flat year-over-year; non-GAAP operating loss improved by 7% to $12.4 million.

• Ended the quarter with $151 million in cash equivalents, short-term investments, and restricted cash; net cash used in Q2 was $9.5 million.

Outlook and guidance

• Full-year 2026 revenue guidance reiterated at $125–$130 million, representing 5–9% growth over 2025.

• Most revenue growth expected in Q3 and Q4, with Q4 anticipated to be the strongest due to seasonality and capital sales cycles.

• Non-GAAP gross margin expected to remain in the low- to mid-40% range for the full year.

• Existing liquidity is expected to be sufficient for at least the next 12 months.

• Management expects continued operating losses in the near term as investments are made to support anticipated growth.