Revenue growth has contracted by 6.3% in 2026Q1, while gross margins remain plateaued at 43.4% due to manufacturing complexities.
| Sales/Revenue | 117.59M | 119.48M | 113.69M | 130.38M | 115.38M | 102.6M | 49.94M | 15.08M | 2.01M |
| Revenue Growth % | 2.01% | 5.09% | -12.8% | 13% | 12.45% | 105.47% | 231.18% | 651.27% | - |
| Cost of Goods Sold | 69.8M | 72.72M | 75.13M | 101.38M | 97.54M | 94.99M | 62.97M | 32.88M | 8.12M |
| COGS % of Revenue | - | 60.87% | 66.08% | 77.76% | 84.54% | 92.58% | 126.11% | 218.07% | 404.68% |
| Gross Profit | 47.78M | 46.75M | 38.56M | 29M | 17.83M | 7.61M | -13.04M | -17.8M | -6.12M |
| Gross Margin % | 40.64% | 39.13% | 33.92% | 22.24% | 15.46% | 7.42% | -26.11% | -118.07% | -304.68% |
| Gross Profit Growth % | - | 21.24% | 32.98% | 62.62% | 134.4% | 158.36% | 26.77% | -191.12% | - |
| Operating Expenses | 114.72M | 113.46M | 151.94M | 198.77M | 178.85M | 138.13M | 104.43M | 52.51M | 40.45M |
| OpEx % of Revenue | - | 94.96% | 133.64% | 152.46% | 155.02% | 134.62% | 209.13% | 348.22% | 2015.35% |
| Selling, General & Admin | 93.67M | 92.22M | 113.54M | 141.46M | 130M | 101.39M | 75.58M | 29.18M | 17.53M |
| SG&A % of Revenue | - | 77.19% | 99.87% | 108.5% | 112.67% | 98.81% | 151.36% | 193.51% | 873.54% |
| Research & Development | 21.34M | 21.23M | 38.4M | 57.31M | 48.85M | 36.74M | 28.85M | 23.33M | 22.92M |
| R&D % of Revenue | - | 17.77% | 33.77% | 43.96% | 42.34% | 35.81% | 57.78% | 154.71% | 1141.8% |
| Other Operating Expenses | -284K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -66.94M | -66.71M | -113.38M | -169.77M | -161.02M | -130.52M | -117.47M | -70.31M | -46.56M |
| Operating Margin % | -56.93% | -55.84% | -99.72% | -130.22% | -139.56% | -127.21% | -235.24% | -466.29% | -2320.03% |
| Operating Income Growth % | - | 41.16% | 33.22% | -5.43% | -23.37% | -11.11% | -67.08% | -50.99% | - |
| EBITDA | -64.58M | -62.37M | -107.65M | -163.96M | -154.74M | -125.36M | -113.71M | -68.37M | -45.07M |
| EBITDA Margin % | -54.92% | -52.21% | -94.69% | -125.76% | -134.12% | -122.18% | -227.72% | -453.46% | -2245.59% |
| EBITDA Growth % | 25.37% | 42.06% | 34.35% | -5.96% | -23.44% | -10.24% | -66.31% | -51.71% | - |
| D&A (Non-Cash Add-back) | 2.36M | 4.34M | 5.73M | 5.81M | 6.28M | 5.16M | 3.75M | 1.94M | 1.49M |
| EBIT | -65.09M | -66.71M | -107.82M | -159.6M | -159.09M | -130.02M | -118.6M | -64.02M | -45.12M |
| Net Interest Income | -1.59M | -6.54M | -14.11M | -2.5M | -275K | -1.22M | -2.37M | -1.77M | -2.93M |
| Interest Income | 5.43M | 7.41M | 9.76M | 10.17M | 3.29M | 498K | 526K | 2.48M | 1.71M |
| Interest Expense | 7.02M | 13.95M | 23.87M | 12.68M | 3.57M | 1.72M | 2.89M | 4.26M | 4.64M |
| Other Income/Expense | -7.09M | -14.22M | -14.11M | -2.5M | -1.64M | -1.22M | -4.03M | 2.03M | -3.19M |
| Pretax Income | -74.03M | -80.94M | -127.48M | -172.27M | -162.66M | -131.74M | -121.49M | -68.28M | -49.76M |
| Pretax Margin % | -62.96% | -67.74% | -112.13% | -132.14% | -140.98% | -128.4% | -243.3% | -452.84% | -2479.07% |
| Income Tax | 820K | 718K | 491K | 523K | 295K | 199K | 0 | 20K | 25K |
| Effective Tax Rate % | -1.11% | -0.89% | -0.39% | -0.3% | -0.18% | -0.15% | 0% | -0.03% | -0.05% |
| Net Income | -74.85M | -81.65M | -127.98M | -172.8M | -162.96M | -131.94M | -121.49M | -68.3M | -49.78M |
| Net Margin % | -63.65% | -68.34% | -112.57% | -132.54% | -141.24% | -128.59% | -243.3% | -452.97% | -2480.32% |
| Net Income Growth % | 34.24% | 36.2% | 25.94% | -6.04% | -23.51% | -8.6% | -77.88% | -37.2% | - |
| Net Income (Continuing) | -74.85M | -81.65M | -127.98M | -172.8M | -162.96M | -131.94M | -121.49M | -68.3M | -49.78M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -4.07 | -5.37 | -36.95 | -52.27 | -50.75 | -43.41 | -2.83 | -34.06 | -1.65 |
| EPS Growth % | 87.41% | 85.47% | 29.31% | -3% | -16.91% | -1433.92% | 91.69% | -1964.24% | - |
| EPS (Basic) | - | -5.37 | -36.95 | -52.27 | -50.75 | -43.41 | -2.83 | -1.61 | -1.65 |
| Diluted Shares Outstanding | 18.37M | 15.21M | 3.46M | 3.31M | 3.21M | 3.04M | 2.85M | 2.01M | 2.01M |
| Basic Shares Outstanding | 18.37M | 15.21M | 3.46M | 3.31M | 3.21M | 3.04M | 2.85M | 2.01M | 2.01M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - |
Liquidity and dilution risk
As reported in recent financial filings, Outset Medical's revenue has struggled to maintain momentum, posting a 6.3% year-over-year decline in 2026Q1, which suggests that the company is currently facing significant headwinds in scaling its installed base and driving consistent recurring revenue from its Tablo console platform.
The revenue trajectory appears to be in a state of contraction, failing to break out of the $27M to $31M quarterly range observed over the last ten periods. This lack of growth indicates that the company may be struggling with market penetration or that the transition to a recurring revenue model is not yet offsetting the volatility of hardware sales.
Based on the company's latest income statement, gross margins have reached a plateau near 43.4%, reflecting the inherent manufacturing complexity of the Tablo system and the ongoing difficulty in achieving the necessary economies of scale to improve profitability in a highly competitive medical device landscape.
While gross margins have improved from the sub-30% levels seen in early 2024, the current 43.4% figure suggests that the cost of goods sold remains a significant burden. Investors should monitor whether the company can successfully shift its product mix toward higher-margin consumables to drive further margin expansion.
According to the provided quarterly data, Outset Medical continues to operate with significant inefficiency, as evidenced by an operating margin of -60.7% in 2026Q1, which highlights the company's inability to scale its operating expenses in proportion to its current, relatively flat revenue base.
The persistent gap between gross profit and operating expenses suggests that the company's SG&A and R&D investments are not yet yielding the expected operational leverage. This structure implies that the business model remains highly dependent on achieving a much larger installed base to dilute fixed operating costs.
Analysis of the income statement reveals that stock-based compensation remains a material non-cash expense, totaling $3.5 million in 2026Q1, which 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.
The reliance on equity-based incentives to manage cash outflows warrants further investigation, as it may be diluting existing shareholders while failing to align with meaningful improvements in net income. The consistent net losses suggest that the quality of earnings is currently poor, with little visibility into a near-term path to profitability.
Based on the reported figures, the company's cash position of $35 million appears insufficient to support its ongoing quarterly net losses, raising significant concerns regarding the sustainability of the current business model without the immediate need for dilutive equity financing or additional debt in the near term.
Short-sellers would likely focus on the widening gap between the company's cash reserves and its persistent cash burn, which may force management into unfavorable financing terms. The lack of a clear inflection point in the income statement suggests that the company's survival is increasingly tied to its ability to secure external capital.
Quick answers to the most common questions about buying OM stock.
For fiscal year 2025, Outset Medical, Inc. (OM) reported total revenue of $119.5M. This represents a 5853.0% increase compared to $2.0M in 2018.
Outset Medical, Inc. (OM) reported a net loss of $81.7M for the fiscal year ending 2025.
Outset Medical, Inc. (OM) reported an operating income of $-66.7M, resulting in an operating profit margin of -55.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Outset Medical, Inc. (OM) generated $46.8M in gross profit for the year, representing a gross profit margin of 39.1%. This demonstrates the company's core pricing power and production efficiency.