Outset Medical (NASDAQ:OM) Posts Quarterly Earnings Results

Outset Medical (NASDAQ:OM) posted its quarterly earnings results on Thursday. The company reported ($0.83) EPS for the quarter, missing the consensus estimate of ($0.79) by ($0.04), FiscalAI reports. The business had revenue of $27.86 million for the quarter, compared to analysts’ expectations of $28.90 million. Outset Medical had a negative return on equity of 53.39% and a negative net margin of 63.65%.

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

• Q1 revenue was $27.9M, down 6% year?over?year with product revenue down 13%; management said the shortfall was driven by the lumpiness and timing of capital orders (about $1M of deals shifted out of Q1).
• Gross margins expanded to record levels — non?GAAP gross margin 43.8% (up 620 bps), product margin 52.4% and service margin 26.7% — while non?GAAP net loss improved 32% and the company ended the quarter with $161M in cash, now expecting <$40M cash burn for 2026.
• Management reaffirmed 2026 revenue guidance of $125M–$130M (5%–9% growth) and said growth will be back?half weighted, supported by late?stage deals in the pipeline and an expected ramp in Q3–Q4.
• The planned rollout of the next?generation Tablo (positioned as meeting FDA’s 2025 cybersecurity guidance) will begin limited release this quarter and is highlighted as a competitive, demand?driving advantage that may also accelerate trade?in/refresh opportunities.
• Commercial and operational momentum includes a new commercial leader, Derick Elliott, plus multiple recent go?live implementations (including a large multi?hospital rollout and >30 facilities planned in Q2), which management says validates sales execution and service capabilities.

Outset Medical Trading Down 21.2%

NASDAQ:OM traded down $0.99 during trading hours on Friday, hitting $3.69. The company had a trading volume of 383,821 shares, compared to its average volume of 135,752. The company has a market capitalization of $68.38 million, a PE ratio of -0.89 and a beta of 1.92. The stock has a 50-day moving average price of $3.89 and a 200 day moving average price of $5.25. Outset Medical has a 52 week low of $3.00 and a 52 week high of $21.98. The company has a debt-to-equity ratio of 0.76, a current ratio of 6.67 and a quick ratio of 5.40.

Analysts Set New Price Targets

Several research analysts have commented on the stock. BTIG Research decreased their price target on shares of Outset Medical from $17.00 to $15.00 and set a “buy” rating on the stock in a research note on Thursday, February 12th. Wall Street Zen downgraded shares of Outset Medical from a “hold” rating to a “sell” rating in a research note on Saturday, April 11th. Weiss Ratings reissued a “sell (e+)” rating on shares of Outset Medical in a research note on Friday, March 27th. Finally, TD Cowen reaffirmed a “buy” rating on shares of Outset Medical in a research note on Friday. One analyst has rated the stock with a Strong Buy rating, three have assigned 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 stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $10.00.

Institutional Trading of Outset Medical

Several large investors have recently added to or reduced their stakes in OM. Los Angeles Capital Management LLC bought a new stake in Outset Medical in the fourth quarter valued at $29,000. Legal & General Group Plc bought a new stake in Outset Medical in the second quarter valued at $34,000. BNP Paribas Financial Markets boosted its holdings in Outset Medical by 7,013.8% in the second quarter. BNP Paribas Financial Markets now owns 2,063 shares of the company’s stock valued at $40,000 after acquiring an additional 2,034 shares in the last quarter. Hsbc Holdings PLC bought a new stake in Outset Medical in the fourth quarter valued at $46,000. Finally, HRT Financial LP bought a new stake in shares of Outset Medical during the 4th quarter valued at $58,000.

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.