Outset Medical, Inc. Earnings Recaps
Q1 2026
May 11, 2026
Shares declined 1.4% after Outset Medical reported a modest revenue decline and continued lumpiness in capital sales, which dampened top-line growth and raised caution on near-term momentum despite margin expansion and a stable outlook.
Key takeaways
- Revenue totaled $27.9 million, down 6% year-over-year, driven by variability in capital order timing affecting product sales.
- Product margin expanded to over 52%, reaching record levels due to margin improvement programs and favorable mix.
- Treatments and service segments performed in line with expectations, contributing to stable gross margins.
- The company reaffirmed full-year guidance, supported by a robust late-stage pipeline and upcoming launch of next-generation Tablo with enhanced cybersecurity features.
- Management emphasized disciplined cash usage and operational efficiencies but acknowledged lumpiness in capital equipment orders persists, limiting near-term revenue visibility.
Q3 2025
Nov 11, 2025
Outset Medical, Inc. reported third-quarter revenue of $29.4 million, reflecting 3% growth year-over-year, while navigating challenges in sales execution and timing of deal closures.
Key takeaways
- Sales opportunities expected to close in Q3 have been postponed to Q4 and into 2026, highlighting complexities in securing large enterprise-wide contracts.
- Tableau console sales grew 8%, contributing to a significant increase in average deal size by over 20%, indicating strong customer demand for insourcing dialysis.
- Non-GAAP gross margin improved to 39.9%, with ongoing improvements expected to reach the 50% target, fueled by efficient expense management and increasing product gross margins.
- Leadership transition in the sales department may create temporary disruption but is aimed at strengthening commercial execution moving forward.
- Recurring revenue from Tableau consumables and services reached $21.1 million, with improvements in order patterns anticipated to stabilize in the coming quarters.