Free cash flow remains deeply negative at -20.3% in 2026Q1, with an operating cash flow to net income ratio of 0.42 highlighting a disconnect between accounting results and actual cash generation.
| Cash from Operations | -42.36M | -39.96M | -33.69M | -137.89M | -110.69M | -70.56M | -42.12M | -40.19M | -27.8M |
| Operating CF Margin % | - | -23.59% | -30.33% | -165.58% | -269.78% | -210.13% | -222.79% | -352.12% | -2066.99% |
| Operating CF Growth % | -844.53% | -18.58% | 75.56% | -24.57% | -56.88% | -67.53% | -4.8% | -44.55% | - |
| Net Income | -55.83M | -60.38M | -97.05M | -374.11M | -138.56M | -93.98M | -106.78M | -51.66M | -32.81M |
| Depreciation & Amortization | 13.37M | 12.89M | 14.74M | 21.67M | 9.46M | 5.48M | 3.72M | 2.03M | 1.07M |
| Stock-Based Compensation | 39.82M | 40.82M | 40.46M | 57.73M | 33.32M | 25.36M | 12.06M | 1.24M | 524K |
| Deferred Taxes | -360K | 0 | 0 | 0 | 0 | -2.48M | 0 | 5.49M | 0 |
| Other Non-Cash Items | -1.37M | -1.24M | -3.31M | 178.28M | -1.38M | 1.21M | 56.18M | 4.11M | 5.47M |
| Working Capital Changes | -38M | -32.06M | 11.46M | -21.46M | -13.53M | -6.15M | -7.29M | -1.4M | -2.06M |
| Change in Receivables | -5.68M | -8.02M | -1.72M | 3.57M | -856K | -8.01M | -1.46M | -594K | -502K |
| Change in Inventory | -11.49M | -6.78M | 4.74M | 10.05M | -13.68M | -3.44M | -3.15M | -5.38M | -3.47M |
| Change in Payables | 5.55M | 13.2M | 2.48M | -8.52M | 4.19M | -2.44M | 144K | 2.11M | 0 |
| Cash from Investing | -31.78M | -36.25M | 14.65M | 50.6M | -5.15M | -15.23M | -3.51M | -7.49M | -6.49M |
| Capital Expenditures | -26.9M | -24.89M | -3.76M | -3.01M | -5.42M | -4.28M | -3.51M | -7.49M | -6.49M |
| CapEx % of Revenue | 14.52% | 14.7% | 3.38% | 3.61% | 13.21% | 12.76% | 18.56% | 65.66% | 482.6% |
| Acquisitions | -27.49M | 0 | 668K | 32.14M | 275K | -10.95M | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - |
| Other Investing | 12K | 12K | 0 | 560K | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | 97.66M | 97.61M | 15.39M | 15.66M | 55.6M | 257.8M | 39.86M | 50.51M | 29.19M |
| Debt Issued (Net) | 0 | 0 | -43.98M | 0 | 39.08M | -7M | -3M | 50.5M | 29.19M |
| Equity Issued (Net) | 97.16M | 97.2M | 57.81M | 14.57M | 16.28M | -45K | 41.53M | 0 | -12K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | -45K | -45K | 0 | 0 | -12K |
| Other Financing | 493K | 410K | 1.56M | 1.08M | 248K | 264.85M | 1.34M | 7K | 10K |
| Net Change in Cash | 23.92M | 21.88M | -4.54M | -71.64M | -60.38M | 172.01M | -5.76M | 2.82M | -5.1M |
| Free Cash Flow | -69.26M | -64.85M | -37.45M | -140.9M | -116.11M | -74.84M | -45.63M | -47.68M | -34.29M |
| FCF Margin % | -37.37% | -38.29% | -33.71% | -169.19% | -283% | -222.88% | -241.36% | -417.78% | -2549.59% |
| FCF Growth % | -93.59% | -73.16% | 73.42% | -21.34% | -55.15% | -64.03% | 4.31% | -39.04% | - |
| FCF per Share | -1.12 | -1.15 | -0.80 | -3.80 | -6.53 | -5.59 | -25.55 | -26.70 | -42.98 |
| FCF Conversion (FCF/Net Income) | 1.24x | 0.66x | 0.35x | 0.37x | 0.80x | 0.75x | 0.39x | 0.78x | 0.85x |
| Interest Paid | 0 | 0 | 2.07M | 0 | 0 | 0 | 1.23M | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Liquidity and cash burn
According to recent financial filings, Ouster's operating cash flow to net income ratio of 0.42 in 2026Q1 highlights a persistent disconnect between accounting profitability and cash generation, suggesting that non-cash charges and accruals continue to obscure the underlying cash burn inherent in the company's current business model.
The significant gap between net income and operating cash flow suggests that the company's reported earnings are heavily influenced by non-cash items, including substantial stock-based compensation. Investors should monitor whether this conversion ratio improves as the company scales, as the current reliance on non-cash adjustments may mask the true cost of operations.
As reported in quarterly statements, Ouster's free cash flow margin of -20.3% in 2026Q1 underscores a persistent cash-burning trajectory, indicating that despite revenue growth, the company has yet to achieve the operational efficiency required to generate self-sustaining cash flow from its core hardware and software business activities.
The negative free cash flow trajectory reflects the high fixed-cost burden associated with R&D and the ongoing integration of legacy product lines. Without a clear path to positive margins, the company remains dependent on external financing to bridge the gap between its current cash burn and future profitability.
Based on Ouster's reported figures, working capital fluctuations, such as the $29.5 million outflow observed in 2025Q4, demonstrate the inherent volatility in managing inventory and receivables during a period of rapid product transition and integration, which directly impacts the company's short-term liquidity position and overall cash availability.
The erratic nature of working capital changes suggests that the company is struggling to optimize its cash conversion cycle amidst shifting demand across its industrial and robotics verticals. This volatility warrants further investigation into whether these outflows are temporary integration costs or indicative of structural inefficiencies in supply chain management.
Financial disclosures reveal that stock-based compensation of $7.5 million and significant acquisition-related cash outflows of $27.5 million in 2026Q1 suggest that the cash flow statement is heavily impacted by non-operational activities, which may hide the true extent of the company's ongoing core operating cash burn.
The heavy reliance on stock-based compensation to manage operating expenses effectively dilutes shareholders while masking the true cash cost of talent acquisition. Furthermore, the large acquisition-related outflows indicate that the company is prioritizing inorganic growth, which may further strain its already limited cash reserves in the near term.
Quick answers to the most common questions about buying OUST stock.
Ouster, Inc. (OUST) generated $-40.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Ouster, Inc. (OUST) reported negative free cash flow of $64.8M in 2025, indicating capital requirements exceeded cash from operations.
Ouster, Inc. (OUST) spent $24.9M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.