Free cash flow deteriorated to -$35.0M in Q3 2026 (-59.0% FCF margin) against cash of $88.9M, suggesting the current runway is narrowing as working capital absorbed -$29.6M in the quarter.
Ouster, Inc. (OUST) cash flow statement — 8-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 |
|---|
| Cash from Operations | -64.81M | -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 % | -1486.22% | -18.58% | 75.56% | -24.57% | -56.88% | -67.53% | -4.8% | -44.55% | - |
| Net Income | -45.75M | -60.38M | -97.05M | -374.11M | -138.56M | -93.98M | -106.78M | -51.66M | -32.81M |
| Depreciation & Amortization | 14.67M | 12.89M | 14.74M | 21.67M | 12.19M | 5.48M | 3.72M | 2.03M | 1.07M |
| Stock-Based Compensation | 37.64M | 40.82M | 40.46M | 57.73M | 33.32M | 25.36M | 12.06M | 1.24M | 524K |
| Deferred Taxes | -1.4M | 0 | 0 | 0 | 0 | -2.48M | 0 | 5.49M | 0 |
| Other Non-Cash Items | 613K | -1.24M | -3.31M | 178.28M | -4.11M | 1.21M | 56.18M | 4.11M | 5.47M |
| Working Capital Changes | -70.59M | -32.06M | 11.46M | -21.46M | -13.53M | -6.15M | -7.29M | -1.4M | -2.06M |
| Change in Receivables | -11.91M | -8.02M | -1.72M | 3.57M | -856K | -8.01M | -1.46M | -594K | -502K |
| Change in Inventory | -18.22M | -6.78M | 4.74M | 10.05M | -13.68M | -3.44M | -3.15M | -5.38M | -3.47M |
| Change in Payables | 5.43M | 13.2M | 2.48M | -8.52M | 4.19M | -2.44M | 144K | 2.11M | 0 |
| Cash from Investing | -230.86M | -36.25M | 14.65M | 50.6M | -5.15M | -15.23M | -3.51M | -7.49M | -6.49M |
| Capital Expenditures | -32.63M | -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 | 76K | 12K | 0 | 560K | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | 296.2M | 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) | 296.68M | 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 | -481K | 410K | 1.56M | 1.08M | 248K | 264.85M | 1.34M | 7K | 10K |
| Net Change in Cash | 568K | 21.88M | -4.54M | -71.64M | -60.38M | 172.01M | -5.76M | 2.82M | -5.1M |
| Free Cash Flow | -97.45M | -64.85M | -37.45M | -140.9M | -116.11M | -74.84M | -45.63M | -47.68M | -34.29M |
| FCF Margin % | -43.37% | -38.29% | -33.71% | -169.19% | -283% | -222.88% | -241.36% | -417.78% | -2549.59% |
| FCF Growth % | -207.57% | -73.16% | 73.42% | -21.34% | -55.15% | -64.03% | 4.31% | -39.04% | - |
| FCF per Share | -1.36 | -1.15 | -0.80 | -3.80 | -6.53 | -5.59 | -25.55 | -26.70 | -42.98 |
| FCF Conversion (FCF/Net Income) | 2.13x | 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 | -380K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
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.
Key Metrics
Top Statement Risk
Persistent operating cash burn
Metrics are mathematically derived from official filings.
Net Losses Overstate Cash Burn Gap
According to recent SEC filings, Ouster's operating cash flow in Q3 2026 was -$29.3M against a net loss of -$14.2M, an OCF-to-net-income ratio of 2.07 that is driven largely by a -$29.6M working capital outflow rather than by earnings quality.
The reported net loss understates the cash drain in the latest quarter, as the working capital swing rather than the accounting loss explains most of the gap between earnings and cash. Stock-based compensation of $11.5M is a non-cash add-back that partially offsets the loss, so the operating cash deficit suggests underlying cash generation remains negative even after accounting for it. Investors should monitor whether the working capital outflow reverses or persists, since a recurring pattern would indicate the cash burn is structural rather than timing-related.
Free Cash Flow Deeply Negative Despite Growth
Based on Ouster's reported figures, free cash flow turned to -$35.0M in Q3 2026, a -59.0% FCF margin, deteriorating from -$15.4M in Q2 2026 even as quarterly revenue grew.
The FCF trajectory over the last several quarters shows that revenue scale has not yet translated into cash self-sufficiency, with margins swinging between roughly -6% and -82% across the ten-quarter window. The Q4 2025 quarter was an outlier with positive net income but -$37.2M FCF, reinforcing that the reported earnings line is a poor proxy for cash generation. This pattern suggests the business is still consuming cash at a scale that warrants further investigation into the drivers of the working capital and capex swings.
Working Capital Outflows Drive Quarterly Volatility
As reported in financial statements, working capital absorbed -$29.6M in Q3 2026 and -$29.5M in Q4 2025, two of the largest quarterly outflows in the ten-quarter window and the primary source of cash volatility.
The large working capital outflows in the most recent two quarters appear to reflect either receivables build from strong top-line growth or inventory accumulation, though the supplied data does not separate these components. Because revenue expanded sharply while cash conversion lagged, the outflows may indicate that collections are slower than sales growth implies. Further evidence is needed to determine whether this is timing-driven or a sign of weakening receivables quality.
Capex Spike Versus Modest Baseline
Based on Ouster's reported figures, capital expenditure reached -$21.8M in Q4 2025, equal to 35.0% of revenue, against a typical run-rate near 2% to 5% of revenue in other quarters.
The Q4 2025 capex spike is an outlier relative to the baseline spending pattern and may reflect a one-time facility or equipment investment rather than sustained maintenance needs. With depreciation and amortization running at only about $3M to $4M per quarter, the low baseline capex suggests the asset base is light and the company is not yet investing heavily to scale production. Investors should distinguish whether the Q4 2025 outlay represents growth capacity or a one-off, as this materially affects forward free cash flow.
Positive Revenue Momentum Masks Cash Weakness
As reported in financial statements, the 52.5% year-over-year revenue growth and maintained guidance may suggest demand strength, yet cumulative operating cash flow across the ten quarters remains deeply negative.
Strong top-line growth can coexist with persistent cash consumption when working capital absorbs cash faster than revenue converts to collections, which appears to be the case here. The guidance maintained for the next quarter signals confidence, but it does not by itself indicate when the business will reach cash-flow neutrality. Investors should weigh whether the growth narrative is sufficient to justify continued cash burn, recognizing that the data does not confirm the timing of any inflection.