Outset Medical (NASDAQ:OM) Issues Quarterly Earnings Results, Beats Estimates By $0.01 EPS

Outset Medical (NASDAQ:OM) released its quarterly earnings results on Wednesday. The company reported ($0.68) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.69) by $0.01, FiscalAI reports. The business had revenue of $33.60 million during the quarter, compared to the consensus estimate of $31.40 million. Outset Medical had a negative return on equity of 61.67% and a negative net margin of 63.06%.

Here are the key takeaways from Outset Medical’s conference call:

• Third-quarter revenue rose 14% year over year to $33.6 million, with console revenue up 26% and recurring revenue up 10%. Non-GAAP gross margin improved to 40.8%, while operating expenses grew just 4%—below revenue growth.
• Outset reported 96% cumulative retention among parent customers that purchased Tablo consoles, and customer satisfaction exceeded the healthcare benchmarks used in its third-party survey. The company said these relationships support further adoption within existing health systems.
• Management highlighted refresh, expansion, and new-customer sales as its three growth drivers, including an estimated $150 million console-refresh opportunity and the HCA agreement. It is adding commercial resources and tightening sales territories to pursue these opportunities.
• Outset reiterated 2026 revenue guidance of $125 million to $130 million rather than raising it after the quarter, and did not provide a 2027 forecast. Management said it aims to return to double-digit growth, while noting it would discuss 2027 in more detail after Q4.
• The company ended the quarter with $140.7 million in cash, equivalents, short-term investments, and restricted cash, and expects about $40 million of cash use for 2026. Management also said next-generation Tablo preparations continue, with a full release planned only after it is satisfied with the customer experience; the HHS kidney-care plan’s impact remains uncertain pending implementation.

Outset Medical Stock Down 11.6%

NASDAQ:OM traded down $0.52 on Thursday, hitting $3.92. The stock had a trading volume of 123,303 shares, compared to its average volume of 338,444. The company has a debt-to-equity ratio of 1.03, a quick ratio of 4.11 and a current ratio of 5.19. The stock has a market cap of $73.79 million, a P/E ratio of -0.96 and a beta of 1.93. The firm’s fifty day simple moving average is $3.73 and its two-hundred day simple moving average is $4.14. Outset Medical has a 1 year low of $2.84 and a 1 year high of $12.48.

Analyst Upgrades and Downgrades

A number of research firms have recently weighed in on OM. Weiss Ratings lowered Outset Medical from a “sell (d-)” rating to a “sell (e+)” rating in a report on Friday, August 21st. Wall Street Zen raised Outset Medical from a “sell” rating to a “hold” rating in a research report on Saturday, August 15th. Three analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus target price of $10.00.

About Outset Medical

Outset Medical, Inc is a medical technology company that develops products for hemodialysis, a treatment that filters waste and excess fluid from the blood when the kidneys are no longer able to do so adequately. The company’s primary product is the Tablo Hemodialysis System, an integrated dialysis platform designed to simplify treatment for healthcare providers and support broader use of dialysis in hospitals, outpatient facilities and the home.

The Tablo system combines dialysis delivery, water purification and dialysate production in a single device and uses a touchscreen interface intended to guide users through treatment setup and operation.