Ouster (NASDAQ:OUST) Issues Quarterly Earnings Results, Misses Estimates By $0.14 EPS

Ouster (NASDAQ:OUST) issued its quarterly earnings data on Thursday. The company reported ($0.26) EPS for the quarter, missing the consensus estimate of ($0.12) by ($0.14), Zacks reports. Ouster had a negative net margin of 26.02% and a negative return on equity of 19.33%. The company had revenue of $54.63 million during the quarter, compared to the consensus estimate of $51.47 million.

Here are the key takeaways from Ouster’s conference call:

• Record Q2 performance: Revenue rose 56% year over year to $55 million, while sensor shipments reached a quarterly record of more than 17,000. Growth was led by industrial and smart infrastructure markets.
• Ouster reported strong early demand for its Rev8 lidar, including multiple million-dollar-plus orders from major industrial, agriculture, and autonomous-vehicle customers. Rev8 is expected to reach production volumes by the end of Q3 and become a key revenue driver in the second half of 2026.
• The company highlighted expanding opportunities in BlueCity traffic management, robotics, defense, drones, and mining, while the Stereolabs acquisition is contributing camera growth and cross-selling opportunities across Ouster’s customer base.
• GAAP gross margin was 49%, but management noted that a one-time refund boosted the quarter by approximately 1,000 basis points; normalized gross margin was in the high-30% range, with the longer-term target still approximately 35%-40%. Operating expenses are expected to rise 5%-8% year over year in Q3.
• Ouster strengthened its balance sheet with roughly $289 million in Q2 and early-Q3 equity proceeds, ending the latest offering with approximately 72 million shares outstanding. Management said the capital should fund the current operating plan without additional financing, but the raises dilute existing shareholders.

Ouster Price Performance

Shares of OUST traded down $2.18 during trading hours on Friday, hitting $43.40. 3,849,889 shares of the stock were exchanged, compared to its average volume of 3,373,220. Ouster has a fifty-two week low of $16.40 and a fifty-two week high of $63.79. The business has a 50-day moving average of $42.80 and a 200-day moving average of $30.65. The firm has a market capitalization of $2.73 billion, a P/E ratio of -50.46 and a beta of 3.24.

Wall Street Analyst Weigh In

OUST has been the subject of a number of research reports. Northland Securities set a $60.00 price target on Ouster and gave the company an “outperform” rating in a research note on Tuesday, July 21st. Citigroup restated an “outperform” rating on shares of Ouster in a research report on Tuesday, July 21st. Oppenheimer reaffirmed an “outperform” rating and issued a $57.00 target price (up from $42.00) on shares of Ouster in a report on Wednesday, July 15th. Roth Capital initiated coverage on Ouster in a research report on Friday, May 29th. They issued a “buy” rating and a $75.00 target price for the company. Finally, Cantor Fitzgerald downgraded Ouster from an “overweight” rating to a “neutral” rating in a research report on Thursday, May 7th. Six equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $54.67.

Insiders Place Their Bets

In other Ouster news, CRO Cyrille Jacquemet sold 10,000 shares of the company’s stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $35.00, for a total transaction of $350,000.00. Following the sale, the executive owned 132,590 shares of the company’s stock, valued at approximately $4,640,650. This represents a 7.01% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CFO Kenneth P. Gianella sold 54,337 shares of the stock in a transaction dated Friday, June 12th. The stock was sold at an average price of $38.82, for a total value of $2,109,362.34. Following the sale, the chief financial officer owned 301,014 shares of the company’s stock, valued at approximately $11,685,363.48. The trade was a 15.29% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 744,754 shares of company stock valued at $28,929,859 over the last quarter. Company insiders own 5.72% of the company’s stock.

Institutional Investors Weigh In On Ouster

A number of hedge funds have recently added to or reduced their stakes in OUST. Geode Capital Management LLC boosted its holdings in shares of Ouster by 9.1% during the 4th quarter. Geode Capital Management LLC now owns 1,421,130 shares of the company’s stock worth $30,758,000 after buying an additional 118,132 shares in the last quarter. Invesco Ltd. increased its stake in shares of Ouster by 1,521.8% in the 2nd quarter. Invesco Ltd. now owns 571,662 shares of the company’s stock valued at $13,863,000 after acquiring an additional 536,413 shares in the last quarter. Charles Schwab Investment Management Inc. lifted its position in shares of Ouster by 4.5% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 487,438 shares of the company’s stock valued at $10,548,000 after acquiring an additional 21,019 shares during the period. New York State Common Retirement Fund lifted its position in shares of Ouster by 18.0% during the 4th quarter. New York State Common Retirement Fund now owns 479,751 shares of the company’s stock valued at $10,382,000 after acquiring an additional 73,280 shares during the period. Finally, Squarepoint Ops LLC boosted its stake in Ouster by 517.5% during the fourth quarter. Squarepoint Ops LLC now owns 401,727 shares of the company’s stock worth $8,693,000 after acquiring an additional 336,673 shares in the last quarter. 31.45% of the stock is currently owned by institutional investors.

More Ouster News

Here are the key news stories impacting Ouster this week:

• Positive Sentiment: Second-quarter revenue rose 56% year over year to $54.63 million, exceeding analyst expectations of $51.47 million. Record sensor shipments, demand for the Rev8 lidar platform and smart-infrastructure projects supported the growth. Ouster Q2 Earnings Surpass Expectations on Sensor Growth
• Positive Sentiment: Management highlighted the Rev8 production ramp, expansion of its BlueCity smart-infrastructure business and rising robotics demand. The company said it remains well positioned for longer-term “physical AI” applications. OUST Q2 Earnings Call Focuses on Rev8 Ramp and Robotics Demand
• Positive Sentiment: Rosenblatt Securities reaffirmed its “buy” rating and maintained a $53 price target, implying meaningful upside from recent trading levels. The broader analyst consensus remains “Moderate Buy,” with an average target of $54.67. Rosenblatt Securities Rating
• Neutral Sentiment: Ouster left its full-year revenue expectations unchanged. This signals continued confidence in the longer-term outlook but provides no upward revision to estimates after the quarter.
• Negative Sentiment: Ouster reported a second-quarter loss of $0.26 per share. While one data source characterized the result as better than its $0.31 loss estimate, other consensus figures cited a $0.12 expected loss, making the earnings reaction mixed. The company remains unprofitable, with a negative net margin.
• Negative Sentiment: Third-quarter revenue guidance of $54.5 million to $57.5 million is slightly below the $57.7 million analyst consensus, potentially raising concerns about the pace of growth.
• Negative Sentiment: COO Darien Spencer sold 30,000 shares worth approximately $1.35 million, reducing his holdings by 9.1%. The sale may add modest pressure to investor sentiment, although it does not necessarily indicate a change in business fundamentals. Ouster COO Stock Sale

About Ouster

Ouster, Inc is a leading provider of high-resolution digital lidar sensors, software and services designed to enable advanced perception capabilities across a range of industries. Headquartered in San Francisco, California, the company develops modular lidar solutions that capture precise three-dimensional data in real time, supporting applications from autonomous vehicles and robotics to mapping, smart infrastructure and industrial automation.

The company’s core product lineup features multi-beam digital lidar units available in various form factors, including compact models for robotics and drones and larger units for automotive and mapping systems.