Ouster’s shares plunged 14.3% following the earnings release, driven by cautious outlook and margin pressures despite solid product revenue growth. Investors appear to have been disappointed by deceleration signals and a lack of positive forward guidance to offset supply chain headwinds and adjusted EBITDA losses.

• Revenue grew to $49 million with a 13th consecutive quarter of product revenue increase, including approximately 44% growth in the lidar business.
• Gross margin of 43% showed resilience but was impacted by ongoing supply chain constraints.
• Adjusted EBITDA loss widened to $7 million, reflecting continued investment and operational pressure.
• Strong wins in industrial automation and smart infrastructure contributed to backing long-term contracts, but these did not reassure investors enough about near-term profitability or growth trajectory.
• Market reaction suggests concerns over cautious outlook and margin compression outweighed optimism from product innovation and recent acquisition synergies.