Outset Medical (NASDAQ:OM) Issues Earnings Results

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

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 Price Performance

Shares of Outset Medical stock opened at $4.90 on Friday. The firm has a market capitalization of $90.85 million, a PE ratio of -1.20 and a beta of 1.96. The company has a current ratio of 6.29, a quick ratio of 4.97 and a debt-to-equity ratio of 0.87. Outset Medical has a 12 month low of $3.00 and a 12 month high of $16.16. The business’s 50-day moving average price is $4.60 and its 200-day moving average price is $4.27.

Insiders Place Their Bets

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 value of $87,299.68. Following the completion of the sale, the chief financial officer owned 113,753 shares in the company, valued at $561,939.82. The trade was a 13.45% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders sold 25,337 shares of company stock valued at $115,660. Insiders own 2.50% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in OM. Hsbc Holdings PLC bought a new stake in shares of Outset Medical in the 4th quarter worth approximately $46,000. XTX Topco Ltd grew its holdings in shares of Outset Medical by 876.9% during the 4th quarter. XTX Topco Ltd now owns 100,612 shares of the company’s stock valued at $373,000 after purchasing an additional 90,313 shares during the last quarter. Engineers Gate Manager LP bought a new position in shares of Outset Medical during the 4th quarter valued at $186,000. Bridgeway Capital Management LLC purchased a new position in Outset Medical in the 4th quarter worth $74,000. Finally, AQR Capital Management LLC raised its position in Outset Medical by 248.0% in the 4th quarter. AQR Capital Management LLC now owns 180,363 shares of the company’s stock worth $669,000 after purchasing an additional 128,541 shares during the period.

Analysts Set New Price Targets

Several research analysts have recently commented on the company. TD Cowen reissued a “buy” rating on shares of Outset Medical in a report on Friday, May 8th. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Outset Medical in a research note on Wednesday, June 24th. Finally, Wall Street Zen lowered 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 issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average target price of $10.00.

About Outset Medical

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.