Free cash flow remains deeply negative at -46.3% of revenue, highlighting a persistent inability to generate self-sustaining cash flow from operations.
| Cash from Operations | -33.51M | -46.33M | -116.3M | -131.37M | -145.73M | -130.26M | -99.02M | -70.29M | -46.44M |
| Operating CF Margin % | - | -38.78% | -102.3% | -100.76% | -126.31% | -126.96% | -198.29% | -466.19% | -2314% |
| Operating CF Growth % | 247.01% | 60.17% | 11.47% | 9.85% | -11.87% | -31.56% | -40.86% | -51.35% | - |
| Net Income | -74.85M | 0 | -127.98M | -172.8M | -162.96M | -131.94M | -121.49M | -68.3M | -49.78M |
| Depreciation & Amortization | 2.74M | 0 | 5.73M | 5.81M | 5.17M | 5.16M | 3.16M | 1.94M | 1.07M |
| Stock-Based Compensation | 16.09M | 0 | 29.36M | 38.63M | 27.2M | 17.45M | 21.44M | 883K | 788K |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 3.08M | 2.49M | -4.11M | -75K |
| Other Non-Cash Items | 6.21M | -48.53M | 2.28M | -2.25M | 6M | 1.59M | 1.24M | 893K | 1.77M |
| Working Capital Changes | 16.29M | 2.2M | -25.69M | -773K | -21.14M | -25.6M | -5.85M | -1.6M | -217K |
| Change in Receivables | 8.65M | 3.77M | -5.01M | -5.09M | -2.51M | -19.14M | -2.57M | -2.89M | -552K |
| Change in Inventory | 5.86M | 11.79M | -10.86M | 1.65M | -14.73M | -22.04M | -16.29M | -5.02M | -2.21M |
| Change in Payables | 344K | -3.29M | -1.95M | 5.31M | -1.28M | -3.07M | 737K | 802K | 2.67M |
| Cash from Investing | -11.71M | -97.68M | 103.94M | 83.03M | -66.3M | -142.51M | 3.95M | 74.3M | -68.78M |
| Capital Expenditures | -740K | -798K | -912K | -3.44M | -8.32M | -3.11M | -9.11M | -3.29M | -1.77M |
| CapEx % of Revenue | 0.63% | 0.67% | 0.8% | 2.64% | 7.22% | 3.03% | 18.24% | 21.84% | 87.99% |
| Acquisitions | 0 | 0 | 0 | 0 | 57.97M | 139.4M | 31K | -77.59M | 0 |
| Investments | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | -57.97M | -139.4M | 0 | 77.59M | -67.01M |
| Cash from Financing | 348K | 55.5M | 67.87M | 43.65M | 72.9M | 160.15M | 385.68M | 249K | 134.87M |
| Debt Issued (Net) | -5K | -106.68M | 66.52M | 33.23M | 64.86M | 0 | -1.36M | -9K | -9K |
| Equity Issued (Net) | 353K | 162.19M | 2.28M | 10.43M | 8.04M | 149.09M | 0 | 0 | 134.57M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 0 | 0 | -938K | 0 | 0 | 11.06M | 387.05M | 258K | 314K |
| Net Change in Cash | -44.87M | -88.51M | 55.51M | -4.7M | -139.13M | -112.62M | 290.61M | 4.25M | 19.65M |
| Free Cash Flow | -34.25M | -47.13M | -117.22M | -134.81M | -154.05M | -133.37M | -108.12M | -73.58M | -48.21M |
| FCF Margin % | -29.13% | -39.44% | -103.1% | -103.4% | -133.52% | -129.99% | -216.53% | -488.03% | -2401.99% |
| FCF Growth % | 64.6% | 59.8% | 13.05% | 12.49% | -15.51% | -23.35% | -46.94% | -52.64% | - |
| FCF per Share | -1.86 | -3.10 | -33.84 | -40.78 | -47.98 | -43.88 | -37.96 | -36.69 | -24.04 |
| FCF Conversion (FCF/Net Income) | 0.46x | 0.57x | 0.91x | 0.76x | 0.89x | 0.99x | 0.81x | 1.03x | 0.93x |
| Interest Paid | 8.27M | 15.63M | 20.68M | 10.85M | 3.19M | 1.15M | 3.27M | 3.35M | 3.29M |
| Taxes Paid | 339K | 447K | 593K | 491K | 385K | 83K | 19K | 35K | 9K |
Liquidity and dilution risk
According to quarterly financial data, Outset Medical's OCF/NI ratio fluctuated significantly, reaching 0.68 in 2026Q1, which indicates that reported net losses are not fully capturing the underlying cash burn required to sustain the company's current operational footprint and high-cost manufacturing model.
The persistent gap between net income and operating cash flow suggests that non-cash charges, particularly stock-based compensation, are masking the true severity of the cash drain. Investors should monitor this divergence, as it implies that the company's accounting earnings provide an incomplete picture of the actual liquidity pressure facing the business.
As reported in recent financial statements, Outset Medical's FCF margin of -46.3% in 2026Q1 highlights a persistent inability to generate self-sustaining cash flow, with the company continuing to burn through capital at a rate that outpaces its current revenue generation capabilities.
The trajectory of free cash flow suggests that the business model has yet to reach the necessary scale to cover its fixed operating costs. This trend warrants further investigation into whether the company can achieve a pivot toward positive cash generation before its current liquidity reserves are exhausted.
Based on reported figures, working capital changes have been highly erratic, swinging from a $12.6 million outflow in 2025Q1 to a $6.0 million inflow in 2025Q3, which suggests that the company's cash position is heavily influenced by timing differences in inventory management and accounts receivable.
This volatility makes it difficult to discern a clear trend in operational efficiency, as the cash flow statement appears sensitive to short-term fluctuations in supply chain logistics. Such instability may indicate that the company lacks a mature, predictable cycle for managing its cash conversion process.
Analysis of the cash flow statement reveals that stock-based compensation, which totaled $3.5 million in 2026Q1, serves as a significant non-cash adjustment that effectively obscures the true cash-based operating burn required to maintain the company's current sales and research infrastructure during this period of financial instability.
By adding back these non-cash expenses, the company presents a more favorable cash flow picture than the underlying operational reality suggests. This practice warrants caution, as it may lead investors to underestimate the actual capital requirements needed to sustain the business in the absence of external financing.
Quick answers to the most common questions about buying OM stock.
Outset Medical, Inc. (OM) generated $-46.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Outset Medical, Inc. (OM) reported negative free cash flow of $47.1M in 2025, indicating capital requirements exceeded cash from operations.
Outset Medical, Inc. (OM) spent $0.8M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.