Outset Medical (NASDAQ:OM) Announces Quarterly Earnings Results

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

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 trading hours on Friday, reaching $4.90. 233,259 shares of the stock were exchanged, compared to its average volume of 112,415. The stock has a market cap of $90.85 million, a PE ratio of -1.20 and a beta of 1.96. Outset Medical has a twelve month low of $3.00 and a twelve month high of $16.16. The firm has a 50 day moving average of $4.60 and a 200 day moving average of $4.27. The company has a debt-to-equity ratio of 0.87, a current ratio of 6.29 and a quick ratio of 4.97.

Insider Activity

In other news, CFO Renee Gaeta sold 17,672 shares of the business’s stock in a transaction on Wednesday, June 3rd. The shares were sold at an average price of $4.94, for a total value 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. The trade was a 13.45% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 25,337 shares of company stock valued at $115,660 in the last 90 days. 2.50% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the business. JPMorgan Chase & Co. lifted its position in Outset Medical by 662.8% during the 2nd quarter. JPMorgan Chase & Co. now owns 8,452 shares of the company’s stock worth $162,000 after buying an additional 7,344 shares in the last quarter. Legal & General Group Plc bought a new position in shares of Outset Medical in the 2nd quarter valued at about $34,000. Rhumbline Advisers bought a new position in Outset Medical during the second quarter worth about $499,000. New York State Common Retirement Fund acquired a new position in shares of Outset Medical during the 2nd quarter worth approximately $108,000. Finally, Quantbot Technologies LP acquired a new position in shares of Outset Medical in the second quarter valued at $152,000.

Analysts Set New Price Targets

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

Outset Medical Company Profile

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.