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Outset Medical Q3 2026 revenue rises 14% to $33.6M

Outset Medical, Inc. (OM) reported third-quarter 2026 revenue of $33.6 million, up 14% year over year.

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Form Type
8-K

Rhea-AI Filing Summary

Outset Medical, Inc. (OM) reported third-quarter 2026 revenue of $33.6 million, up 14% year over year. Console revenue was $10.5 million, up 26%, and recurring revenue from Tablo consumables and services was $23.1 million, up 10%. Gross margin was 40.7%, compared with 39.4% a year earlier; non-GAAP gross margin was 40.8%, versus 39.9%.

GAAP net loss narrowed to $14.7 million from $17.8 million, while non-GAAP net loss was $12.9 million compared with $12.4 million. Operating expenses were $25.9 million, down 5%. Outset used $10.3 million of net cash during the quarter. Total cash, including restricted cash, cash equivalents and short-term investments, was $140.7 million at September 30, 2026, versus $182.0 million at September 30, 2025.

Outset reiterated 2026 revenue guidance of $125 million to $130 million and continued to expect full-year non-GAAP gross margin in the low-40% to mid-40% range. Nine-month net cash used in operating activities was $32.9 million, compared with $36.8 million in 2025.

3 points · 0 major

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Positive

  • Moderate pointQ3 revenue rose 14% year over year to $33.6 million.
  • Moderate pointGAAP net loss narrowed to $14.7 million from $17.8 million.
  • Moderate pointNine-month operating cash use fell to $32.9 million from $36.8 million.

Negative

  • Moderate pointTotal cash and investments were $140.7 million, versus $182.0 million a year earlier.

Filing Explained

At September 30, Outset reported $140.7 million in cash, cash equivalents, short-term investments and restricted cash, alongside a $98,368-thousand term-loan balance.

As of September 30, 2026, it reported 18,873 thousand shares issued and outstanding, versus 18,169 thousand at December 31, 2025.

For holders whose share count did not change, the higher reported total means a smaller ownership fraction.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Revenue $33.6 million Third quarter 2026; up 14% from $29.4 million in Q3 2025
Console revenue $10.5 million Third quarter 2026; up 26% year over year
Recurring revenue $23.1 million Third quarter 2026; up 10% from $21.1 million in Q3 2025
Gross margin 40.7% Third quarter 2026; 39.4% in Q3 2025
GAAP net loss $14.7 million Third quarter 2026; $17.8 million in Q3 2025
Total cash, including restricted cash, cash equivalents and short-term investments $140.7 million As of September 30, 2026; $182.0 million as of September 30, 2025
2026 revenue guidance $125 million to $130 million Reiterated for 2026
Net cash used in operating activities $32.9 million Nine months ended September 30, 2026; $36.8 million in 2025
Recurring revenue financial
"Recurring revenue, consisting of Tablo consumables and services"
Revenue that a company expects to receive on a regular, predictable basis from ongoing sources such as subscriptions, service contracts, or repeat customer purchases. It matters to investors because it provides steadier cash flow and makes future earnings easier to forecast—like a landlord collecting monthly rent instead of one-off sales—supporting higher valuations and lower risk when those payments are reliable and customers tend to stay.
Non-GAAP financial measures financial
"non-GAAP financial measures are in addition to"
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
Gross margin financial
"Gross margin was 40.7%"
Gross margin is the difference between how much money a company makes from selling its products and how much it costs to produce them, expressed as a percentage of sales. It shows how efficiently a company is turning sales into profit before other expenses like marketing or salaries. Higher gross margin means the company keeps more money from each sale, which is a good sign of financial health.
Restricted cash financial
"cash, including restricted cash, cash equivalents"
Cash that a company holds but cannot use for day-to-day operations because it is set aside for a specific purpose—such as meeting loan covenants, serving as collateral, funding an escrow, or complying with regulations. Like money in a locked savings account earmarked for a bill, restricted cash reduces the cash available to run the business and pay dividends or debts, so investors treat it differently when assessing a company’s true short-term financial strength.
Revenue $33.6 million Up 14% from $29.4 million in Q3 2025
Gross margin 40.7% Up 130 basis points from 39.4% in Q3 2025
GAAP net loss $14.7 million Compared with $17.8 million in Q3 2025
Total cash, including restricted cash, cash equivalents and short-term investments $140.7 million Compared with $182.0 million as of September 30, 2025
Guidance

Outset reiterated 2026 revenue guidance of $125 million to $130 million and continued to expect full-year non-GAAP gross margin in the low-40% to mid-40% range.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much revenue did OM report in Q3 2026?

Outset reported $33.6 million in third-quarter 2026 revenue, up 14% from $29.4 million in Q3 2025. Console revenue was $10.5 million, up 26%, and recurring revenue from Tablo consumables and services was $23.1 million, up 10%.

What is Outset Medical's 2026 revenue guidance?

Outset reiterated revenue guidance of $125 million to $130 million for 2026 and continued to expect full-year non-GAAP gross margin in the low-40% to mid-40% range.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 4, 2026

Outset Medical, Inc.

(Exact name of Registrant as Specified in Its Charter)

Delaware

001-39513

20-0514392

(State or Other Jurisdiction

of Incorporation)

(Commission File Number)

(IRS Employer

Identification No.)

 

 

 

3052 Orchard Dr.,

San Jose, California

95134

(Address of Principal Executive Offices)

(Zip Code)

Registrant’s Telephone Number, Including Area Code: (669) 231-8200

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

☐

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Common Stock, $0.001 par value per share

 

OM

 

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 

 


 

Item 2.02 Result of Operations and Financial Condition.

 

On November 4, 2026, Outset Medical, Inc. (the “Company”) issued a press release and will hold its third quarter 2026 earnings conference call announcing the Company’s financial results for the quarter ended September 30, 2026. A copy of the press release is furnished herewith as Exhibit 99.1 and incorporated herein by reference.

 

The information contained in this Item 2.02 and Exhibit 99.1 hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any other filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.

 

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

 

Exhibit

Number

Description

99.1

Press Release entitled “Outset Medical Reports Third Quarter 2026 Results” dated November 4, 2026

104

 

Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 

 

 

 


 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

Outset Medical, Inc.

 

Date: November 4, 2026

By:

/s/ Renee Gaeta

Renee Gaeta

Chief Financial Officer

 

 


 

Exhibit 99.1

 

Outset Medical Reports Third Quarter 2026 Results

 

San Jose, CA – November 4, 2026 – 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 third quarter ended September 30, 2026.

Third Quarter and Recent Highlights

•
Net revenue totaled $33.6 million, an increase of 14% compared to the prior-year period and an increase of 6% sequentially.
•
Console revenue of $10.5 million, an increase of 26% compared to the prior-year period and an increase of 10% sequentially.
•
Recurring revenue, consisting of Tablo consumables and services, was $23.1 million, an increase of 10% compared to the prior-year period and an increase of 4% sequentially.
•
Gross margin expanded to 40.7%, an increase of 130 basis points compared to the prior-year period.
•
Net cash used during the quarter was $10.3 million, resulting in a total cash, cash equivalents, short-term investments and restricted cash position of $140.7 million at quarter end.

 

“Third-quarter results demonstrated continued progress against our strategic priorities and solid sales execution across both capital and recurring revenue,” said Leslie Trigg, Chair and Chief Executive Officer. “Consistently strong customer satisfaction and retention are expanding adoption of Tablo across our existing customer base and fueling new insourced dialysis partnerships with leading health systems. Advancing our mission to help providers nationwide improve the cost, complexity and clinical outcomes of dialysis continues to position Outset well for sustained long-term growth and value creation.”

Third Quarter 2026 Financial Results

Revenue for the third quarter was $33.6 million, an increase of 14% compared to $29.4 million in the third quarter of 2025. Product revenue of $23.7 million increased 15% from $20.6 million in the third quarter of 2025. Service and other revenue of $9.9 million increased 12% compared to $8.9 million in the third quarter of 2025. Recurring revenue from the sale of Tablo cartridges and service was $23.1 million compared to $21.1 million in the prior-year period.

Gross profit of $13.7 million increased 18% from $11.6 million in the third quarter of 2025. Gross margin was 40.7%, compared to 39.4% in the third quarter of 2025. On a non-GAAP basis, gross margin reached 40.8%, as compared to 39.9% in the third quarter of 2025. Product gross profit was $10.5 million compared to $9.4 million in the third quarter of 2025. Product gross margin was 44.2% compared to 45.7% in the third quarter of 2025. Service and other gross profit was $3.2 million, compared to $2.2 million in the third quarter of 2025. Service and other gross margin was 32.4% compared to 24.8% in the third quarter of 2025.

Operating expenses of $25.9 million decreased 5% from the same period in 2025. Research and development (R&D) expenses were $5.9 million, sales and marketing (S&M) expenses were $11.7 million, and general and administrative (G&A) expenses were $8.3 million. This compared to operating expenses of $27.4 million in the third quarter of 2025, including R&D expenses of $5.4 million, S&M expenses of $13.6 million, and G&A expenses of $8.5 million.

Excluding stock-based compensation expense and litigation charges, non-GAAP operating expenses were $24.2 million, including R&D expenses of $5.5 million, S&M expenses of $11.6 million, and G&A expenses of $7.0 million.

Net loss was $14.7 million compared to net loss of $17.8 million in the third quarter of 2025. On a non-GAAP basis, net loss was $12.9 million compared to net loss of $12.4 million in the third quarter of 2025.

Total cash, including restricted cash, cash equivalents and short-term investments, was $140.7 million as of September 30, 2026.

2026 Financial Guidance

Outset reiterated its 2026 revenue guidance of $125 million to $130 million and continues to expect non-GAAP gross margin to be in the low-40% to mid-40% range for the full year.

 


 

Conference Call Details

Outset will host a conference call today, November 4, 2026, at 1:30 p.m. PT / 4:30 p.m. ET to discuss third 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 are encouraged to register more than 15 minutes before the start of the call via the following link: https://register-conf.media-server.com/register/BIf6886fe8d04a44bbbb5a5da8650079ac. Once registered, participants will receive a dial-in number and unique PIN to join 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 and restructurings; statements regarding the evolution of the Company's commercial model, including changes to its sales organization and incentives, and the expected benefits thereof; 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, including the potential impact of healthcare policies, programs and initiatives on patient access to and adoption of 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

 

 

 

Nine Months Ended

 

 

 

 

September 30,

 

 

 

September 30,

 

 

 

 

2026

 

 

 

2025

 

 

 

2026

 

 

 

2025

 

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product revenue

 

$

23,694

 

 

 

$

20,558

 

 

 

$

64,152

 

 

 

$

64,934

 

 

Service and other revenue

 

 

9,902

 

 

 

 

8,873

 

 

 

 

28,942

 

 

 

 

25,668

 

 

Total revenue

 

 

33,596

 

 

 

 

29,431

 

 

 

 

93,094

 

 

 

 

90,602

 

 

Cost of revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of product revenue (2)

 

 

13,233

 

 

 

 

11,169

 

 

 

 

33,865

 

 

 

 

33,962

 

 

Cost of service and other revenue

 

 

6,692

 

 

 

 

6,672

 

 

 

 

20,181

 

 

 

 

22,117

 

 

Total cost of revenue

 

 

19,925

 

 

 

 

17,841

 

 

 

 

54,046

 

 

 

 

56,079

 

 

Gross profit (1)

 

 

13,671

 

 

 

 

11,590

 

 

 

 

39,048

 

 

 

 

34,523

 

 

Gross margin (1)

 

 

40.7

 

%

 

 

39.4

 

%

 

 

41.9

 

%

 

 

38.1

 

%

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development (2)

 

 

5,898

 

 

 

 

5,376

 

 

 

 

16,966

 

 

 

 

16,180

 

 

Sales and marketing (2)

 

 

11,736

 

 

 

 

13,550

 

 

 

 

37,167

 

 

 

 

41,482

 

 

General and administrative (2)(3)

 

 

8,306

 

 

 

 

8,477

 

 

 

 

29,779

 

 

 

 

25,938

 

 

Total operating expenses

 

 

25,940

 

 

 

 

27,403

 

 

 

 

83,912

 

 

 

 

83,600

 

 

Loss from operations

 

 

(12,269

)

 

 

 

(15,813

)

 

 

 

(44,864

)

 

 

 

(49,077

)

 

Interest income and other income, net

 

 

1,241

 

 

 

 

1,855

 

 

 

 

4,122

 

 

 

 

5,734

 

 

Interest expense

 

 

(3,505

)

 

 

 

(3,476

)

 

 

 

(10,316

)

 

 

 

(10,511

)

 

Loss on extinguishment of term loan

 

 

—

 

 

 

 

—

 

 

 

 

—

 

 

 

 

(7,685

)

 

Loss before provision for income taxes

 

 

(14,533

)

 

 

 

(17,434

)

 

 

 

(51,058

)

 

 

 

(61,539

)

 

Provision for income taxes

 

 

153

 

 

 

 

404

 

 

 

 

590

 

 

 

 

623

 

 

Net loss

 

$

(14,686

)

 

 

$

(17,838

)

 

 

$

(51,648

)

 

 

$

(62,162

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per share, basic and diluted

 

$

(0.78

)

 

 

$

(1.00

)

 

 

$

(2.78

)

 

 

$

(4.37

)

 

Shares used in computing net loss per share, basic and diluted

 

 

18,831

 

 

 

 

17,783

 

 

 

 

18,609

 

 

 

 

14,228

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

(1)  Gross profit and gross margin by source consisted of the following:

 

 

 

 

Three Months Ended

 

 

 

Nine Months Ended

 

 

 

 

September 30,

 

 

 

September 30,

 

 

 

 

2026

 

 

 

2025

 

 

 

2026

 

 

 

2025

 

 

Gross profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product revenue

 

$

10,461

 

 

 

$

9,389

 

 

 

$

30,287

 

 

 

$

30,972

 

 

Service and other revenue

 

 

3,210

 

 

 

 

2,201

 

 

 

 

8,761

 

 

 

 

3,551

 

 

Total gross profit

 

$

13,671

 

 

 

$

11,590

 

 

 

$

39,048

 

 

 

$

34,523

 

 

Gross margin

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product revenue

 

 

44.2

 

%

 

 

45.7

 

%

 

 

47.2

 

%

 

 

47.7

 

%

Service and other revenue

 

 

32.4

 

%

 

 

24.8

 

%

 

 

30.3

 

%

 

 

13.8

 

%

Total gross margin

 

 

40.7

 

%

 

 

39.4

 

%

 

 

41.9

 

%

 

 

38.1

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2)  Includes stock-based compensation expense as follows:

 

 

 

 

Three Months Ended

 

 

 

Nine Months Ended

 

 

Stock-based compensation expense

 

September 30,

 

 

 

September 30,

 

 

 

 

2026

 

 

 

2025

 

 

 

2026

 

 

 

2025

 

 

Cost of revenue

 

$

45

 

 

 

$

135

 

 

 

$

233

 

 

 

$

438

 

 

Research and development

 

 

363

 

 

 

 

1,117

 

 

 

 

1,777

 

 

 

 

2,426

 

 

Sales and marketing

 

 

166

 

 

 

 

1,174

 

 

 

 

1,040

 

 

 

 

2,586

 

 

General and administrative

 

 

1,114

 

 

 

 

2,654

 

 

 

 

4,787

 

 

 

 

6,103

 

 

Total stock-based compensation expense

 

$

1,688

 

 

 

$

5,080

 

 

 

$

7,837

 

 

 

$

11,553

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3)  Includes non-ordinary course litigation charges related to stockholder class action and related derivative lawsuits as follows:

 

 

 

 

Three Months Ended

 

 

 

Nine Months Ended

 

 

Litigation charges

 

September 30,

 

 

 

September 30,

 

 

 

 

2026

 

 

 

2025

 

 

 

2026

 

 

 

2025

 

 

General and administrative

 

$

143

 

 

 

 

343

 

 

 

$

810

 

 

 

 

343

 

 

Total litigation charges

 

$

143

 

 

 

 

343

 

 

 

$

810

 

 

 

 

343

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

Outset Medical, Inc.

Condensed Balance Sheets

(in thousands, except per share amounts)

 

 

 

September 30,

 

 

December 31,

 

 

 

2026

 

 

2025

 

 

 

(unaudited)

 

 

 

 

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

33,942

 

 

$

35,006

 

Short-term investments

 

 

102,685

 

 

 

133,940

 

Accounts receivable, net

 

 

30,407

 

 

 

28,329

 

Inventories

 

 

44,989

 

 

 

47,609

 

Prepaid expenses and other current assets

 

 

4,200

 

 

 

5,999

 

Total current assets

 

 

216,223

 

 

 

250,883

 

Restricted cash

 

 

4,121

 

 

 

3,829

 

Property and equipment, net

 

 

3,541

 

 

 

4,670

 

Operating lease right-of-use assets

 

 

4,435

 

 

 

4,797

 

Finance lease right-of-use assets

 

 

1,642

 

 

 

—

 

Other assets

 

 

447

 

 

 

317

 

Total assets

 

$

230,409

 

 

$

264,496

 

Liabilities and stockholders' equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

4,292

 

 

$

554

 

Accrued compensation and related benefits

 

 

9,965

 

 

 

10,735

 

Accrued expenses and other current liabilities

 

 

13,349

 

 

 

9,433

 

Accrued warranty liability

 

 

1,023

 

 

 

1,374

 

Deferred revenue, current

 

 

13,468

 

 

 

13,795

 

Operating lease liabilities, current

 

 

1,755

 

 

 

1,739

 

Finance lease liabilities, current

 

 

601

 

 

 

—

 

Total current liabilities

 

 

44,453

 

 

 

37,630

 

Deferred revenue

 

 

221

 

 

 

406

 

Operating lease liabilities

 

 

2,985

 

 

 

3,271

 

Finance lease liabilities

 

 

1,068

 

 

 

—

 

Term loan

 

 

98,368

 

 

 

96,237

 

Total liabilities

 

 

147,095

 

 

 

137,544

 

Commitments and contingencies

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

Preferred Stock, $0.001 par value; 5,000 shares authorized, and no shares issued and outstanding as of September 30, 2026 and December 31, 2025

 

 

—

 

 

 

—

 

Common stock, $0.001 par value; 300,000 shares authorized as of September 30, 2026 and December 31, 2025; 18,873 and 18,169 shares issued and outstanding as of September 30, 2026 and December 31, 2025, respectively

 

 

19

 

 

 

18

 

Additional paid-in capital

 

 

1,306,563

 

 

 

1,298,138

 

Accumulated other comprehensive (loss) income

 

 

(244

)

 

 

172

 

Accumulated deficit

 

 

(1,223,024

)

 

 

(1,171,376

)

Total stockholders' equity

 

 

83,314

 

 

 

126,952

 

Total liabilities and stockholders' equity

 

$

230,409

 

 

$

264,496

 

 

 


 

Outset Medical, Inc.

Condensed Statements of Cash Flows

(in thousands)

(unaudited)

 

 

 

Nine Months Ended September 30,

 

 

 

2026

 

 

2025

 

Net cash used in operating activities

 

$

(32,858

)

 

$

(36,806

)

Net cash provided by (used in) investing activities

 

 

31,729

 

 

 

(106,274

)

Net cash provided by financing activities

 

 

357

 

 

 

55,503

 

Net decrease in cash, cash equivalents and restricted cash

 

 

(772

)

 

 

(87,577

)

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)

 

$

38,063

 

 

$

39,766

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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):

 

 

 

September 30,

 

 

2026

 

 

2025

 

Cash and cash equivalents

 

$

33,942

 

 

$

36,437

 

Restricted cash

 

 

4,121

 

 

 

3,329

 

Total cash, cash equivalents and restricted cash*

 

$

38,063

 

 

$

39,766

 

 

 

 

 

 

 

 

* The total cash, including restricted cash, cash equivalents and investment securities as of September 30, 2026 was $140.7 million; compared to $182.0 million as of September 30, 2025.

 

 

 


 

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

 

 

 

Nine Months Ended

 

 

 

 

September 30,

 

 

 

September 30,

 

 

 

2026

 

 

 

2025

 

 

 

2026

 

 

 

2025

 

 

GAAP net loss per share, diluted

 

$

(0.78

)

 

 

$

(1.00

)

 

 

$

(2.78

)

 

 

$

(4.37

)

 

Stock-based compensation expense

 

 

0.09

 

 

 

 

0.29

 

 

 

 

0.42

 

 

 

 

0.81

 

 

Litigation charges

 

 

0.01

 

 

 

 

0.02

 

 

 

 

0.04

 

 

 

 

0.02

 

 

Non-GAAP net loss per share, diluted

 

$

(0.68

)

 

 

$

(0.69

)

 

 

$

(2.32

)

 

 

$

(3.54

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation between GAAP and non-GAAP net loss:

 

 

 

 

Three Months Ended

 

 

 

Nine Months Ended

 

 

 

 

September 30,

 

 

 

September 30,

 

 

 

 

2026

 

 

 

2025

 

 

 

2026

 

 

 

2025

 

 

GAAP net loss, diluted

 

$

(14,686

)

 

 

$

(17,838

)

 

 

$

(51,648

)

 

 

$

(62,162

)

 

Stock-based compensation expense

 

 

1,688

 

 

 

 

5,080

 

 

 

 

7,837

 

 

 

 

11,553

 

 

Litigation charges

 

 

143

 

 

 

 

343

 

 

 

 

810

 

 

 

 

343

 

 

Non-GAAP net loss, diluted

 

$

(12,855

)

 

 

$

(12,415

)

 

 

$

(43,001

)

 

 

$

(50,266

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation between GAAP and non-GAAP results of operations:

 

 

Three Months Ended

 

 

 

Nine Months Ended

 

 

 

 

September 30,

 

 

 

September 30,

 

 

 

2026

 

 

 

2025

 

 

 

2026

 

 

 

2025

 

 

GAAP gross profit

 

$

13,671

 

 

 

$

11,590

 

 

 

$

39,048

 

 

 

$

34,523

 

 

Stock-based compensation expense

 

 

45

 

 

 

 

135

 

 

 

 

233

 

 

 

 

438

 

 

Non-GAAP gross profit

 

$

13,716

 

 

 

$

11,725

 

 

 

$

39,281

 

 

 

$

34,961

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP gross margin

 

 

40.7

 

%

 

 

39.4

 

%

 

 

41.9

 

%

 

 

38.1

 

%

Stock-based compensation expense

 

 

0.1

 

 

 

 

0.5

 

 

 

 

0.3

 

 

 

 

0.5

 

 

Non-GAAP gross margin

 

 

40.8

 

%

 

 

39.9

 

%

 

 

42.2

 

%

 

 

38.6

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP research and development expense

 

$

5,898

 

 

 

$

5,376

 

 

 

$

16,966

 

 

 

$

16,180

 

 

Stock-based compensation expense

 

 

(363

)

 

 

 

(1,117

)

 

 

 

(1,777

)

 

 

 

(2,426

)

 

Non-GAAP research and development expense

 

$

5,535

 

 

 

$

4,259

 

 

 

$

15,189

 

 

 

$

13,754

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP sales and marketing expense

 

$

11,736

 

 

 

$

13,550

 

 

 

$

37,167

 

 

 

$

41,482

 

 

Stock-based compensation expense

 

 

(166

)

 

 

 

(1,174

)

 

 

 

(1,040

)

 

 

 

(2,586

)

 

Non-GAAP sales and marketing expense

 

$

11,570

 

 

 

$

12,376

 

 

 

$

36,127

 

 

 

$

38,896

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP general and administrative expense

 

$

8,306

 

 

 

$

8,477

 

 

 

$

29,779

 

 

 

$

25,938

 

 

Stock-based compensation expense

 

 

(1,114

)

 

 

 

(2,654

)

 

 

 

(4,787

)

 

 

 

(6,103

)

 

Litigation charges

 

 

(143

)

 

 

 

(343

)

 

 

 

(810

)

 

 

 

(343

)

 

Non-GAAP general and administrative expense

 

$

7,049

 

 

 

$

5,480

 

 

 

$

24,182

 

 

 

$

19,492

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP total operating expense

 

$

25,940

 

 

 

$

27,403

 

 

 

$

83,912

 

 

 

$

83,600

 

 

Stock-based compensation expense

 

 

(1,643

)

 

 

 

(4,945

)

 

 

 

(7,604

)

 

 

 

(11,115

)

 

Litigation charges

 

 

(143

)

 

 

 

(343

)

 

 

 

(810

)

 

 

 

(343

)

 

Non-GAAP total operating expense

 

$

24,154

 

 

 

$

22,115

 

 

 

$

75,498

 

 

 

$

72,142

 

 

 

 


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