Outset Medical (OM) investor relations material

Executive summary

• Q3 2025 revenue was $29.4 million, up 3% year-over-year, with Tablo console sales up 8% and average deal size increasing 20%.

• Net loss for Q3 2025 was $17.8 million, improved from $27.9 million in Q3 2024; non-GAAP net loss was $12.4 million, down 39% year-over-year.

• Gross margin improved to 39.4% (non-GAAP: 39.9%), driven by higher average selling prices and lower unit costs.

• Operating expenses declined nearly 20% year-over-year, reflecting restructuring and cost optimization.

• Leadership change with Head of Sales retiring; sales team now reports to CEO during search for new leader.

Financial highlights

• Product revenue was $20.6 million, up 1% year-over-year; service and other revenue was $8.9 million, up 6%.

• Gross profit for Q3 2025 was $11.6 million, up 18% year-over-year; product gross margin was 45.7%, service/other gross margin was 24.8%.

• Recurring revenue from consumables and service reached $21.1 million, nearly flat year-over-year.

• Operating expenses were $27.4 million, down from $33.7 million in Q3 2024.

• Cash, cash equivalents, and short-term investments totaled $182 million as of September 30, 2025.

Outlook and guidance

• 2025 revenue guidance revised to $115–$120 million from $122–$126 million, reflecting deal timing shifts and sales leadership transition.

• Full-year gross margin expected in the high 30% range; non-GAAP gross margin guidance remains in the high-30% range.

• Cash use in 2025 expected to be less than $50 million, a reduction of over 50% from 2024.

• Several large sales opportunities are now expected to close in Q4 2025 and early 2026; no deals have dropped out of the pipeline.

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