Outset Medical Reports Second Quarter 2026 Results
Rhea-AI Summary
Outset Medical (Nasdaq: OM) reported second quarter 2026 revenue of $31.6 million, up 1% year over year and 14% sequentially. Product revenue was $21.9 million (down 5%), while service and other revenue rose 17% to $9.7 million. Recurring revenue from Tablo consumables and services was $22.1 million, roughly flat versus the prior year.
GAAP gross profit increased to $13.3 million, with gross margin expanding to 42.0% from 37.8%. Service and other gross margin improved to 32.6% from 6.9%. Operating expenses were $29.0 million, similar to last year. GAAP net loss was $18.0 million, and non-GAAP net loss was $14.7 million. Total cash, cash equivalents, short-term investments and restricted cash were $151.0 million at June 30, 2026.
Outset signed a three-year, $40 million agreement with HCA Healthcare to refresh Tablo systems and reiterated 2026 revenue guidance of $125–$130 million, implying 5–9% growth over 2025 and a full-year non-GAAP gross margin in the low- to mid-40% range.
Positive
- Total revenue $31.6M, up 1% YoY and 14% sequentially
- Gross margin expanded to 42.0%, up over 400 basis points YoY
- Service and other revenue up 17% YoY to $9.7M
- Service and other gross margin improved to 32.6% from 6.9% YoY
- GAAP net loss narrowed to $18.0M from $18.5M YoY
- Operating cash use for six months improved to $22.5M from $30.5M
- Three-year, $40M HCA Healthcare agreement to refresh Tablo systems
- 2026 revenue guidance reaffirmed at $125–$130M (5–9% growth)
Negative
- Product revenue declined 5% YoY to $21.9M
- Recurring revenue from Tablo cartridges and service slightly below prior year at $22.1M
- GAAP net loss remained sizable at $18.0M in Q2 2026
- Total cash and investments decreased to $151.0M from $187.4M a year earlier
- Total operating expenses remained high at $29.0M, roughly flat YoY
News Explained
June 30 liquidity was $151.0 million after $9.5 million of second-quarter net cash use.
With the second quarter ended
The
Common shares outstanding were higher at June 30 than at December 31, establishing a higher reported share count without identifying the mechanics of that change in this release.
The next quarterly balance sheet and cash-flow statement are the specific records that can show whether cash use continues and how the reported liquidity pool and term loan change.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Feb 11 | Q4/full-year earnings | Positive | -16.3% | Revenue growth, margin expansion, FDA clearance, and 2026 guidance accompanied a negative reaction. |
| May 07 | Q1 earnings | Positive | +35.3% | Recurring revenue growth, margin expansion, lower cash use, and narrower loss accompanied a negative reaction. |
| Feb 19 | Q4 earnings | Positive | +2.1% | Results exceeded prior guidance, with revenue and gross-margin improvement reported alongside stronger recurring revenue. |
| Aug 07 | Q2 earnings | Negative | -68.5% | Revenue declined and full-year guidance was revised downward despite improved recurring revenue and gross margins. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Historical earnings events split evenly between alignment and divergence, with two positive earnings reports followed by negative 24-hour reactions.
Key Terms
non-gaap financial measures financial
stock-based compensation financial
restricted cash financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
SAN JOSE, Calif., Aug. 06, 2026 (GLOBE NEWSWIRE) -- Outset Medical, Inc. (Nasdaq: OM), a medical technology company pioneering a first-of-its-kind technology to improve clinical outcomes in dialysis with less cost and complexity, today reported financial results for the second quarter ended June 30, 2026.
Second Quarter and Recent Highlights
- Net revenue totaled
$31.6 million , an increase of1% compared to the prior-year period and an increase of14% sequentially. - Recurring revenue, consisting of Tablo consumables and services, was
$22.1 million , roughly even with the prior-year period. - Gross margin expanded to
42% , an increase of more than 400 basis points compared to the prior-year period. - Net cash used during the quarter was
$9.5 million , resulting in a total cash, cash equivalents, short-term investments and restricted cash position of$151 million at quarter end. - Signed a three-year,
$40 million agreement with HCA Healthcare to refresh the existing fleet of Tablo systems across the nation’s largest health system.
“Second quarter results reflect continued progress in strengthening the foundation of our business while positioning Outset for the next phase of growth,” said Leslie Trigg, Chair and Chief Executive Officer. “During the quarter, we completed our highest number of successful new site installations in several years. We also signed our first refresh agreement, which enhances backlog visibility and marks an important milestone as we begin to capitalize on a significant refresh opportunity. By reshaping how dialysis care is delivered across a large market that needs better solutions, Outset is well positioned to accelerate adoption, drive long-term growth and advance toward profitability.”
Second Quarter 2026 Financial Results
Revenue for the second quarter was
Gross profit of
Operating expenses of
Excluding stock-based compensation expense and litigation charges, non-GAAP operating expenses were
Net loss was
Total cash, including restricted cash, cash equivalents and short-term investments, was
2026 Financial Guidance
Outset reiterated its 2026 revenue guidance of
Conference Call Details
Outset will host a conference call today, August 6, 2026, at 1:30 p.m. PT / 4:30 p.m. ET to discuss second quarter results. Those interested in accessing the live or archived version of the conference call can visit the “Investors” section of the Outset Medical website at https://investors.outsetmedical.com. Those interested in participating in the call via telephone may register online here. Once registered, participants will receive a dial-in number and unique PIN to join the call. Participants are encouraged to register more than 15 minutes before the start of the call.
Use of Non-GAAP Financial Measures
The Company may report non-GAAP results for gross profit/loss, gross margin, operating expenses, operating margins, net income/loss, basic and diluted net income/loss per share, other income/loss, and cash flows. These non-GAAP financial measures are in addition to, and not a substitute for or superior to, financial measures calculated in accordance with GAAP. As listed in the itemized reconciliations between GAAP and non-GAAP financial measures included in this press release, the Company’s GAAP financial measures include stock-based compensation expense and litigation charges incurred outside of the ordinary course of business in connection with the stockholder class action and relative derivative lawsuits, as disclosed in the Company’s latest annual and quarterly reports. Stock-based compensation is a non-cash expense. In addition, litigation charges related to the above-described matters are excluded because they constitute non-routine litigation costs, arise outside of the ordinary course of the Company’s business, and are not indicative of its recurring operating results or underlying performance trends. As such, management has excluded the effects of these items in non-GAAP measures to assist investors in analyzing and assessing past and future operating performance and period-to-period comparisons. There are limitations related to the use of non-GAAP financial measures because they are not prepared in accordance with GAAP, may exclude significant expenses required by GAAP to be recognized in the Company’s financial statements, and may not be comparable to non-GAAP financial measures used by other companies. The Company encourages investors to carefully consider its results under GAAP, as well as its supplemental non-GAAP information and the reconciliation between these presentations, to more fully understand its business. Reconciliations between GAAP and non-GAAP results are presented in Appendix A of this press release.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements are based on management’s current assumptions and expectations of future events and trends, which affect or may affect the Company’s business, strategy, operations or financial performance, and actual results and other events may differ materially from those expressed or implied in such statements due to numerous risks and uncertainties. Forward-looking statements include, but are not limited to, statements about the Company’s possible or assumed future results of operations and financial position, including expectations regarding projected revenues, gross margin, operating expenses, capital expenditures, cash use, cash burn, cash position, profitability and outlook; statements about the sufficiency of the Company’s cash balances through cash-flow breakeven; statements regarding the anticipated impacts and benefits of the Company’s cost reduction actions, initiatives to optimize the commercial organization and improve forecasting and order visibility, and restructurings; statements regarding anticipated customer orders, refreshes, expansions or other business opportunities, including the expected closing, timing, size, scope and benefits thereof; statements regarding the Company’s overall business strategy, plans and objectives of management; statements regarding the anticipated launch and timing of product enhancements and new features, as well as new or expanded services, and the expected benefits, performance, and impact thereof; the Company’s expectations regarding the market sizes and growth potential for Tablo and the total addressable market opportunities for Tablo; continued execution of the Company’s initiatives designed to expand gross margins; the Company’s ability to respond to and resolve any reports, observations or other actions by the Food and Drug Administration or other regulators in a timely and effective manner; as well as the Company’s expectations regarding the impact of macroeconomic factors (including changes in tariff or trade laws and policies) on the Company, its customers and suppliers. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Factors that could cause actual results or other events to differ materially from those contemplated in this press release can be found in the Risk Factors section of the Company’s public filings with the Securities and Exchange Commission, including its latest annual and quarterly reports. Because forward-looking statements are inherently subject to risks and uncertainties, you should not rely on these forward-looking statements as predictions of future events. These forward-looking statements speak only as of their date and, except to the extent required by law, the Company undertakes no obligation to update these statements, whether as a result of any new information, future developments or otherwise.
About Outset Medical, Inc.
Outset is a medical technology company transforming the dialysis experience across the continuum of care with a first-of-its-kind technology. The Tablo® Hemodialysis System, FDA-cleared for use from hospital to home, is trusted by more than 1,000 U.S. healthcare facilities and has enabled millions of treatments delivered by thousands of nurses. Designed to reduce the cost and complexity of dialysis, Tablo combines water purification and on-demand dialysate production into a single, integrated system that connects seamlessly with Electronic Medical Record systems and a proprietary data analytics platform. This enterprise solution empowers providers to develop an in-house dialysis program where they are in control – enabling better operational, clinical, and financial outcomes. Outset is redefining what’s possible in kidney care through innovation, scale, and a relentless commitment to improving the lives of patients and the professionals who care for them. For more information, visit www.outsetmedical.com.
Investor Contact
Investors@outsetmedical.com
| Outset Medical, Inc. Condensed Statements of Operations (in thousands, except per share amounts) (unaudited) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Revenue: | ||||||||||||||||
| Product revenue | $ | 21,908 | $ | 23,082 | $ | 40,458 | $ | 44,376 | ||||||||
| Service and other revenue | 9,727 | 8,337 | 19,040 | 16,795 | ||||||||||||
| Total revenue | 31,635 | 31,419 | 59,498 | 61,171 | ||||||||||||
| Cost of revenue: | ||||||||||||||||
| Cost of product revenue(2) | 11,799 | 11,791 | 20,632 | 22,793 | ||||||||||||
| Cost of service and other revenue | 6,554 | 7,761 | 13,489 | 15,445 | ||||||||||||
| Total cost of revenue | 18,353 | 19,552 | 34,121 | 38,238 | ||||||||||||
| Gross profit(1) | 13,282 | 11,867 | 25,377 | 22,933 | ||||||||||||
| Gross margin(1) | 42.0 | % | 37.8 | % | 42.7 | % | 37.5 | % | ||||||||
| Operating expenses: | ||||||||||||||||
| Research and development(2) | 5,450 | 5,289 | 11,068 | 10,804 | ||||||||||||
| Sales and marketing(2) | 12,152 | 14,280 | 25,431 | 27,932 | ||||||||||||
| General and administrative(2)(3) | 11,356 | 9,163 | 21,473 | 17,461 | ||||||||||||
| Total operating expenses | 28,958 | 28,732 | 57,972 | 56,197 | ||||||||||||
| Loss from operations | (15,676 | ) | (16,865 | ) | (32,595 | ) | (33,264 | ) | ||||||||
| Interest income and other income, net | 1,354 | 1,903 | 2,881 | 3,879 | ||||||||||||
| Interest expense | (3,442 | ) | (3,475 | ) | (6,811 | ) | (7,035 | ) | ||||||||
| Loss on extinguishment of term loan | — | — | — | (7,685 | ) | |||||||||||
| Loss before provision for income taxes | (17,764 | ) | (18,437 | ) | (36,525 | ) | (44,105 | ) | ||||||||
| Provision for income taxes | 220 | 104 | 437 | 219 | ||||||||||||
| Net loss | $ | (17,984 | ) | $ | (18,541 | ) | $ | (36,962 | ) | $ | (44,324 | ) | ||||
| Net loss per share, basic and diluted | $ | (0.97 | ) | $ | (1.04 | ) | $ | (2.00 | ) | $ | (3.57 | ) | ||||
| Shares used in computing net loss per share, basic and diluted | 18,619 | 17,743 | 18,496 | 12,420 | ||||||||||||
| (1)Gross profit and gross margin by source consisted of the following: | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Gross profit | ||||||||||||||||
| Product revenue | $ | 10,109 | $ | 11,291 | $ | 19,826 | $ | 21,583 | ||||||||
| Service and other revenue | 3,173 | 576 | 5,551 | 1,350 | ||||||||||||
| Total gross profit | $ | 13,282 | $ | 11,867 | $ | 25,377 | $ | 22,933 | ||||||||
| Gross margin | ||||||||||||||||
| Product revenue | 46.1 | % | 48.9 | % | 49.0 | % | 48.6 | % | ||||||||
| Service and other revenue | 32.6 | % | 6.9 | % | 29.2 | % | 8.0 | % | ||||||||
| Total gross margin | 42.0 | % | 37.8 | % | 42.7 | % | 37.5 | % | ||||||||
| (2)Includes stock-based compensation expense as follows: | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| Stock-based compensation expense | June 30, | June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Cost of revenue | $ | 77 | $ | 186 | $ | 188 | $ | 303 | ||||||||
| Research and development | 594 | 750 | 1,414 | 1,309 | ||||||||||||
| Sales and marketing | 416 | 933 | 874 | 1,412 | ||||||||||||
| General and administrative | 1,609 | 1,627 | 3,673 | 3,449 | ||||||||||||
| Total stock-based compensation expense | $ | 2,696 | $ | 3,496 | $ | 6,149 | $ | 6,473 | ||||||||
| (3)Includes non-ordinary course litigation charges related to stockholder class action and related derivative lawsuits as follows: | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| Litigation charges | June 30, | June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| General and administrative | $ | 554 | $ | — | $ | 666 | $ | — | ||||||||
| Total litigation charges | $ | 554 | $ | — | $ | 666 | $ | — | ||||||||
| Outset Medical, Inc. Condensed Balance Sheets (in thousands, except per share amounts) | ||||||||
| June 30, | December 31, | |||||||
| 2026 | 2025 | |||||||
| (unaudited) | ||||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 35,005 | $ | 35,006 | ||||
| Short-term investments | 112,189 | 133,940 | ||||||
| Accounts receivable, net | 29,223 | 28,329 | ||||||
| Inventories | 47,315 | 47,609 | ||||||
| Prepaid expenses and other current assets | 4,118 | 5,999 | ||||||
| Total current assets | 227,850 | 250,883 | ||||||
| Restricted cash | 3,829 | 3,829 | ||||||
| Property and equipment, net | 3,711 | 4,670 | ||||||
| Operating lease right-of-use assets | 4,887 | 4,797 | ||||||
| Finance lease right-of-use assets | 1,697 | — | ||||||
| Other assets | 411 | 317 | ||||||
| Total assets | $ | 242,385 | $ | 264,496 | ||||
| Liabilities and stockholders' equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 4,455 | $ | 554 | ||||
| Accrued compensation and related benefits | 9,073 | 10,735 | ||||||
| Accrued expenses and other current liabilities | 12,929 | 9,433 | ||||||
| Accrued warranty liability | 797 | 1,374 | ||||||
| Deferred revenue, current | 14,043 | 13,795 | ||||||
| Operating lease liabilities, current | 2,035 | 1,739 | ||||||
| Finance lease liabilities, current | 559 | — | ||||||
| Total current liabilities | 43,891 | 37,630 | ||||||
| Deferred revenue | 302 | 406 | ||||||
| Operating lease liabilities | 3,059 | 3,271 | ||||||
| Finance lease liabilities | 1,149 | — | ||||||
| Term loan | 97,647 | 96,237 | ||||||
| Total liabilities | 146,048 | 137,544 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders' equity: | ||||||||
| Preferred Stock, | — | — | ||||||
| Common stock, | 19 | 18 | ||||||
| Additional paid-in capital | 1,304,792 | 1,298,138 | ||||||
| Accumulated other comprehensive (loss) income | (136 | ) | 172 | |||||
| Accumulated deficit | (1,208,338 | ) | (1,171,376 | ) | ||||
| Total stockholders' equity | 96,337 | 126,952 | ||||||
| Total liabilities and stockholders' equity | $ | 242,385 | $ | 264,496 | ||||
| Outset Medical, Inc. Condensed Statements of Cash Flows (in thousands) (unaudited) | ||||||||
| Six Months Ended June 30, | ||||||||
| 2026 | 2025 | |||||||
| Net cash used in operating activities | $ | (22,479 | ) | $ | (30,486 | ) | ||
| Net cash provided by (used in) investing activities | 22,065 | (109,241 | ) | |||||
| Net cash provided by financing activities | 413 | 55,272 | ||||||
| Net decrease in cash, cash equivalents and restricted cash | (1 | ) | (84,455 | ) | ||||
| Cash, cash equivalents and restricted cash at beginning of the period | 38,835 | 127,343 | ||||||
| Cash, cash equivalents and restricted cash at end of the period(1) | $ | 38,834 | $ | 42,888 | ||||
| (1)The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the accompanying condensed balance sheets that sum to the total of the amounts shown in the accompanying condensed statements of cash flows (in thousands): | ||||||||
| June 30, | ||||||||
| 2026 | 2025 | |||||||
| Cash and cash equivalents | $ | 35,005 | $ | 39,559 | ||||
| Restricted cash | 3,829 | 3,329 | ||||||
| Total cash, cash equivalents and restricted cash* | $ | 38,834 | $ | 42,888 | ||||
| * The total cash, including restricted cash, cash equivalents and investment securities as of June 30, 2026 was | ||||||||
| Appendix A | ||||||||||||||||
| Outset Medical, Inc. Results of Operations – Non-GAAP (in thousands, except per share amounts) (unaudited) | ||||||||||||||||
| Reconciliation between GAAP and non-GAAP net loss per share: | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| GAAP net loss per share, diluted | $ | (0.97 | ) | $ | (1.04 | ) | $ | (2.00 | ) | $ | (3.57 | ) | ||||
| Stock-based compensation expense | 0.14 | 0.20 | 0.33 | 0.52 | ||||||||||||
| Litigation charges | 0.03 | — | 0.04 | — | ||||||||||||
| Non-GAAP net loss per share, diluted | $ | (0.80 | ) | $ | (0.84 | ) | $ | (1.63 | ) | $ | (3.05 | ) | ||||
| Reconciliation between GAAP and non-GAAP net loss: | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| GAAP net loss, diluted | $ | (17,984 | ) | $ | (18,541 | ) | $ | (36,962 | ) | $ | (44,324 | ) | ||||
| Stock-based compensation expense | 2,696 | 3,496 | 6,149 | 6,473 | ||||||||||||
| Litigation charges | 554 | — | 666 | — | ||||||||||||
| Non-GAAP net loss, diluted | $ | (14,734 | ) | $ | (15,045 | ) | $ | (30,147 | ) | $ | (37,851 | ) | ||||
| Reconciliation between GAAP and non-GAAP results of operations: | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| GAAP gross profit | $ | 13,282 | $ | 11,867 | $ | 25,377 | $ | 22,933 | ||||||||
| Stock-based compensation expense | 77 | 186 | 188 | 303 | ||||||||||||
| Non-GAAP gross profit | $ | 13,359 | $ | 12,053 | $ | 25,565 | $ | 23,236 | ||||||||
| GAAP gross margin | 42.0 | % | 37.8 | % | 42.7 | % | 37.5 | % | ||||||||
| Stock-based compensation expense | 0.2 | 0.6 | 0.3 | 0.5 | ||||||||||||
| Non-GAAP gross margin | 42.2 | % | 38.4 | % | 43.0 | % | 38.0 | % | ||||||||
| GAAP research and development expense | $ | 5,450 | $ | 5,289 | $ | 11,068 | $ | 10,804 | ||||||||
| Stock-based compensation expense | (594 | ) | (750 | ) | (1,414 | ) | (1,309 | ) | ||||||||
| Non-GAAP research and development expense | $ | 4,856 | $ | 4,539 | $ | 9,654 | $ | 9,495 | ||||||||
| GAAP sales and marketing expense | $ | 12,152 | $ | 14,280 | $ | 25,431 | $ | 27,932 | ||||||||
| Stock-based compensation expense | (416 | ) | (933 | ) | (874 | ) | (1,412 | ) | ||||||||
| Non-GAAP sales and marketing expense | $ | 11,736 | $ | 13,347 | $ | 24,557 | $ | 26,520 | ||||||||
| GAAP general and administrative expense | $ | 11,356 | $ | 9,163 | $ | 21,473 | $ | 17,461 | ||||||||
| Stock-based compensation expense | (1,609 | ) | (1,627 | ) | (3,673 | ) | (3,449 | ) | ||||||||
| Litigation charges | (554 | ) | — | (666 | ) | — | ||||||||||
| Non-GAAP general and administrative expense | $ | 9,193 | $ | 7,536 | $ | 17,134 | $ | 14,012 | ||||||||
| GAAP total operating expense | $ | 28,958 | $ | 28,732 | $ | 57,972 | $ | 56,197 | ||||||||
| Stock-based compensation expense | (2,619 | ) | (3,310 | ) | (5,961 | ) | (6,170 | ) | ||||||||
| Litigation charges | (554 | ) | — | (666 | ) | — | ||||||||||
| Non-GAAP total operating expense | $ | 25,785 | $ | 25,422 | $ | 51,345 | $ | 50,027 | ||||||||
