Outset Medical (OM) RBC Capital Markets Global Healthcare Conference 2026 summary

Business overview and market positioning

• Focuses on improving dialysis outcomes, reducing costs, and simplifying procedures, with 85% of revenue from acute care and 70% from recurring sources.

• Tablo device is used in about 1,000 hospitals and post-acute settings, offering hospitals the ability to insource dialysis and control patient care and costs.

• Over 70 clinical abstracts and papers support the clinical and financial ROI of insourcing dialysis with Tablo.

• Tablo is designed for ease of use, enabling both home and hospital use, and purifies water and dialysate on demand.

• Device flexibility allows for a wide range of inpatient treatments, a first in the dialysis space.

Financial performance and guidance

• Q1 2026 revenue declined 6% year-over-year due to timing of capital orders, but recurring consumable and service revenue grew.

• Gross margin improved, cash burn was lower than expected, and guidance for 2026 was held at $125–$130 million.

• 70% of revenue is recurring, providing stability, while capital sales cycles remain unpredictable but are a focus for improvement.

• Expect modest growth in Q2 (low to mid-single digits), with more substantial growth in the second half of 2026.

• Refresh cycle for consoles and launch of next-generation Tablo are expected to be key growth drivers.

Sales cycle and commercial strategy

• Capital sales cycles average 9–12 months, with unpredictability mainly during implementation planning with Chief Nursing Officers.

• New Clinical Excellence team and proprietary implementation services aim to improve deal close predictability.

• Early results from implementation services are promising, with 200 consoles going live and positive engagement.

• New commercial leader with national accounts experience brought in to enhance execution and predictability.

• No significant change in hospital capital spending environment observed.