Outset Medical (OM) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 14% YoY to $33.6M, up 6% sequentially; GAAP gross margin increased 130 bps YoY to 40.7%.

• GAAP net loss narrowed to $14.7M from $17.8M, while non-GAAP net loss was $12.9M versus $12.4M.

Financial highlights

• Product revenue rose 15% YoY to $23.7M; service and other revenue grew 12% to $9.9M.

• Console revenue increased 26% YoY to $10.5M; consumables were $13.2M, up 8%.

• Gross profit increased 18% to $13.7M; GAAP operating loss narrowed to $12.3M from $15.8M.

• Non-GAAP operating expenses were $24.2M; excluding ~$1M of bad debt expense, expenses rose 4% YoY against 14% revenue growth.

Outlook and guidance

• FY 2026 revenue guidance was reiterated at $125M–$130M; non-GAAP gross margin is expected in the low-40% to mid-40% range.

• Higher console sales mix could place FY non-GAAP gross margin toward the low end of the range; HCA refresh backlog and pipeline support the outlook.

• Near-term operating losses are expected to continue as investments support growth; management aims to return to double-digit revenue growth.

• Next-generation Tablo is progressing toward full release, with broader market availability anticipated in coming months and quarters.