Quarterly ResultMay 7, 2026, 04:06 PM
Outset Medical Q1 Gross Margin Expands to 43.4%; Net Loss Narrows to $19.0M
AI Summary
Outset Medical reported first quarter 2026 financial results, with net revenue decreasing 6% to $27.9 million. Despite the revenue decline, the company achieved significant gross margin expansion, reaching 43.4% on a GAAP basis and 43.8% on a non-GAAP basis, driven by record product and service gross margins. Net loss narrowed to $19.0 million from $25.8 million in the prior-year period, reflecting progress on its path to profitability. The company also reiterated its full-year 2026 revenue and non-GAAP gross margin guidance.
Key Highlights
- Net revenue decreased 6% to $27.9 million compared to $29.8 million in Q1 2025.
- Gross margin expanded to 43.4% (GAAP) from 37.2% in the prior-year period.
- Non-GAAP gross margin reached 43.8%, up from 37.6% in Q1 2025.
- Net loss narrowed to $19.0 million from $25.8 million in Q1 2025.
- Recurring revenue from consumables and services was $22.5 million, roughly even year-over-year.
- Cash, cash equivalents, and short-term investments totaled $161 million at quarter-end.
- Reiterated 2026 revenue guidance of $125 million to $130 million.
- Reiterated 2026 non-GAAP gross margin guidance in the low to mid-40% range.