Outset Medical (OM) Q4 2025 earnings summary

Executive summary

• Achieved $119.5 million in 2025 revenue, up 5% year-over-year, with strong gross margin expansion and reduced operating losses.

• Substantially reduced cost structure while investing in technology and leadership, including FDA clearance for the next-generation Tablo platform, with launch expected in Q2 2026.

• Maintained customer satisfaction above 95% and expanded insourcing agreements, including with a major national health system.

• Recapitalized with less debt and new capital, supporting cash flow breakeven and future growth.

• Year-end cash, cash equivalents, and short-term investments totaled $173 million.

Financial highlights

• Q4 revenue was $28.9 million; product revenue $19.9 million (console sales up 11% to $6.4 million, consumables $13.5 million).

• Non-GAAP gross margin for Q4 reached 42.9%, up over 500 basis points year-over-year; product gross margin exceeded 50% for the first time.

• Full-year non-GAAP gross margin was 39.6%, up 400 basis points; non-GAAP net loss for 2025 was $65.4 million, a 31% improvement.

• Ended 2025 with $173 million in cash and equivalents; annual cash usage reduced to $46 million from $116 million in 2024.

• Product gross margin for 2025 was 48.4%, up from 42.6% in 2024; service and other gross margin was 16.5%, up from 12.3%.

Outlook and guidance

• 2026 revenue expected between $125 million and $130 million, a 5%-9% increase.

• Non-GAAP gross margin projected in the low-to-mid 40% range, with manufacturing headwinds expected to diminish.

• Operating expense growth to be about half the rate of sales growth; cash usage in 2026 to be lower than 2025.

• Confident current cash position is sufficient to reach profitability and beyond.