Outset Medical Stock Earnings Reports

Outset Medical reported Q1 2026 revenue of $27.9M, slightly down year-over-year due to lumpiness in capital orders but with stable treatments and strong consumable and service performance. Product revenue declined 13% to $18.6M while recurring revenue (consumables + service) remained ~flat at $22.5M. Gross margin expanded meaningfully (non-GAAP gross margin +620 bps to 43.8%; product margin >52%), reflecting mix and margin expansion efforts. Non-GAAP operating expenses rose modestly, while non-GAAP net loss improved 32% year-over-year. Cash and equivalents totaled $161M; cash burn for the quarter was ~$12M and the company now expects < $40M cash use for the remainder of 2026 (about 15% better than prior expectation). Management reaffirmed 2026 revenue guidance of $125M–$130M (growth weighted to H2) and emphasized confidence in a deep pipeline, several late-stage large deals, an emerging refresh opportunity for older consoles, and the upcoming limited then full launch of next‑generation Tablo. Next‑generation Tablo is highlighted as potentially differentiated by compliance with FDA 2025 cybersecurity guidance, expected to be a demand driver and to accelerate replacement (refresh) cycles. The company also introduced new commercial leader Derick Elliott and emphasized implementation/service strengths and data/analytics capabilities (3.5M cumulative treatments, >1,000 facilities, 8 trillion cloud data points). Overall tone: disciplined cost control, improving margins and cash profile, H2 revenue upside driven by capital closings and new product launch.