Outset Medical (NASDAQ:OM) Releases Earnings Results, Misses Expectations By $0.08 EPS

Outset Medical (NASDAQ:OM) announced its quarterly earnings data on Thursday. The company reported ($0.80) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.72) by ($0.08), FiscalAI reports. The firm had revenue of $31.64 million during the quarter, compared to the consensus estimate of $28.97 million. Outset Medical had a negative return on equity of 58.06% and a negative net margin of 63.06%.

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

• Q2 revenue rose 14% sequentially to $31.6 million, driven in part by stronger console sales, while management reiterated full-year 2026 revenue guidance of $125 million–$130 million.
• Non-GAAP gross margin improved to 42.2%, up more than 380 basis points year over year, while operating expenses remained disciplined and second-quarter cash use was $9.5 million; the company expects to use less than $40 million for the full year.
• Outset signed a $40 million Tablo fleet-refresh agreement with HCA Healthcare extending through 2028, creating contracted backlog and revenue visibility, with additional expansion opportunities across HCA facilities.
• Consumable revenue declined 12% year over year, contributing to a 2% decline in recurring revenue, although management attributed the result largely to difficult comparisons and order timing and said utilization remained stable.
• The next-generation Tablo system is currently in a measured pilot phase, with a broader launch dependent on user feedback, device performance, and implementation metrics; management cited cybersecurity and workflow improvements as key selling points.

Outset Medical Stock Down 5.8%

NASDAQ OM traded down $0.30 during midday trading on Friday, hitting $4.90. 233,259 shares of the company traded hands, compared to its average volume of 112,415. The company has a market cap of $90.85 million, a PE ratio of -1.20 and a beta of 1.96. The company has a debt-to-equity ratio of 0.87, a current ratio of 6.29 and a quick ratio of 4.97. Outset Medical has a 52 week low of $3.00 and a 52 week high of $16.16. The company’s 50-day simple moving average is $4.60 and its 200-day simple moving average is $4.27.

Analyst Ratings Changes

Several equities research analysts have weighed in on the company. Weiss Ratings reiterated a “sell (e+)” rating on shares of Outset Medical in a report on Wednesday, June 24th. TD Cowen restated a “buy” rating on shares of Outset Medical in a report on Friday, May 8th. Finally, Wall Street Zen lowered shares of Outset Medical from a “hold” rating to a “sell” rating in a research note on Saturday, April 11th. Three equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, Outset Medical has an average rating of “Hold” and a consensus price target of $10.00.

Insider Buying and Selling at Outset Medical

In related news, CFO Renee Gaeta sold 17,672 shares of the firm’s stock in a transaction dated Wednesday, June 3rd. The stock was sold at an average price of $4.94, for a total transaction of $87,299.68. Following the sale, the chief financial officer owned 113,753 shares of the company’s stock, valued at $561,939.82. This trade represents a 13.45% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders sold 25,337 shares of company stock worth $115,660. Corporate insiders own 2.50% of the company’s stock.

Institutional Trading of Outset Medical

Several hedge funds have recently modified their holdings of the company. Los Angeles Capital Management LLC bought a new stake in shares of Outset Medical in the 4th quarter valued at about $29,000. Legal & General Group Plc purchased a new position in shares of Outset Medical in the 2nd quarter worth approximately $34,000. BNP Paribas Financial Markets raised its stake in shares of Outset Medical by 7,013.8% during the 2nd quarter. BNP Paribas Financial Markets now owns 2,063 shares of the company’s stock worth $40,000 after acquiring an additional 2,034 shares in the last quarter. Hsbc Holdings PLC bought a new position in shares of Outset Medical during the 4th quarter worth approximately $46,000. Finally, HRT Financial LP purchased a new stake in Outset Medical during the fourth quarter valued at approximately $58,000.

About Outset Medical

Outset Medical is a medical technology company specializing in innovations for renal care. The company’s flagship offering, the Tablo Hemodialysis System, is designed to streamline and simplify dialysis treatment across acute and outpatient settings. By integrating water purification, dialysate production, and treatment monitoring into a single device, Tablo aims to reduce the complexity and logistical burden traditionally associated with hemodialysis therapy.

Tablo’s modular design allows for rapid setup and flexible deployment in hospitals, clinics, long‐term care facilities and emergency response scenarios.