Outset Medical (NASDAQ:OM) Announces Quarterly Earnings Results

Outset Medical (NASDAQ:OM) posted its earnings results on Thursday. The company reported ($0.80) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.72) by ($0.08), FiscalAI reports. The company had revenue of $31.64 million for the quarter, compared to the consensus estimate of $28.97 million. Outset Medical had a negative net margin of 63.06% and a negative return on equity of 58.06%.

Here are the key takeaways from Outset Medical’s conference call:

• Q2 revenue rose 14% sequentially to $31.6 million, driven in part by stronger console sales, while management reiterated full-year 2026 revenue guidance of $125 million–$130 million.
• Non-GAAP gross margin improved to 42.2%, up more than 380 basis points year over year, while operating expenses remained disciplined and second-quarter cash use was $9.5 million; the company expects to use less than $40 million for the full year.
• Outset signed a $40 million Tablo fleet-refresh agreement with HCA Healthcare extending through 2028, creating contracted backlog and revenue visibility, with additional expansion opportunities across HCA facilities.
• Consumable revenue declined 12% year over year, contributing to a 2% decline in recurring revenue, although management attributed the result largely to difficult comparisons and order timing and said utilization remained stable.
• The next-generation Tablo system is currently in a measured pilot phase, with a broader launch dependent on user feedback, device performance, and implementation metrics; management cited cybersecurity and workflow improvements as key selling points.

Outset Medical Stock Performance

OM traded down $0.30 during midday trading on Friday, reaching $4.90. The company had a trading volume of 233,259 shares, compared to its average volume of 112,415. The business has a 50-day moving average of $4.60 and a two-hundred day moving average of $4.27. The company has a quick ratio of 4.97, a current ratio of 6.29 and a debt-to-equity ratio of 0.87. Outset Medical has a 1 year low of $3.00 and a 1 year high of $16.16. The company has a market cap of $90.85 million, a P/E ratio of -1.20 and a beta of 1.96.

Analyst Upgrades and Downgrades

OM has been the subject of several research reports. TD Cowen reissued a “buy” rating on shares of Outset Medical in a report on Friday, May 8th. Weiss Ratings restated a “sell (e+)” rating on shares of Outset Medical in a report on Wednesday, June 24th. Finally, Wall Street Zen downgraded shares of Outset Medical from a “hold” rating to a “sell” rating in a research report on Saturday, April 11th. Three analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $10.00.

Insider Buying and Selling at Outset Medical

In related news, CFO Renee Gaeta sold 17,672 shares of the business’s stock in a transaction that occurred on Wednesday, June 3rd. The stock was sold at an average price of $4.94, for a total transaction of $87,299.68. Following the completion of the transaction, the chief financial officer directly owned 113,753 shares in the company, valued at approximately $561,939.82. The trade was a 13.45% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders sold 25,337 shares of company stock worth $115,660. 2.50% of the stock is owned by insiders.

Hedge Funds Weigh In On Outset Medical

Large investors have recently added to or reduced their stakes in the company. Legal & General Group Plc purchased a new stake in shares of Outset Medical in the second quarter worth $34,000. BNP Paribas Financial Markets lifted its stake in shares of Outset Medical by 7,013.8% during the 2nd quarter. BNP Paribas Financial Markets now owns 2,063 shares of the company’s stock valued at $40,000 after buying an additional 2,034 shares in the last quarter. New York State Common Retirement Fund purchased a new position in shares of Outset Medical during the 2nd quarter valued at $108,000. Los Angeles Capital Management LLC bought a new position in Outset Medical in the 4th quarter worth $29,000. Finally, Quantbot Technologies LP purchased a new stake in Outset Medical in the 2nd quarter worth $152,000.

Outset Medical Company Profile

Outset Medical is a medical technology company specializing in innovations for renal care. The company’s flagship offering, the Tablo Hemodialysis System, is designed to streamline and simplify dialysis treatment across acute and outpatient settings. By integrating water purification, dialysate production, and treatment monitoring into a single device, Tablo aims to reduce the complexity and logistical burden traditionally associated with hemodialysis therapy.

Tablo’s modular design allows for rapid setup and flexible deployment in hospitals, clinics, long?term care facilities and emergency response scenarios.