Outset Medical Inc (NASDAQ:OM) Beats Q2 2025 Revenue and EPS Estimates, Raises Full-Year Guidance

Outset Medical Inc (NASDAQ:OM) reported its second-quarter 2025 financial results, delivering revenue and earnings per share (EPS) figures that surpassed analyst expectations. The company’s performance, coupled with an upward revision of its full-year revenue guidance, appears to have been met with cautious optimism in the market, as reflected in the stock’s after-hours trading activity.

Earnings and Revenue Beat Estimates

• Revenue: Outset Medical posted Q2 2025 revenue of $31.4 million, a 15% year-over-year increase and above the consensus estimate of $30.3 million. The growth was primarily driven by a 25% increase in Tablo console revenue and an 11% rise in recurring revenue from consumables and services.
• EPS: The company reported a net loss of $0.84 per share, narrower than the estimated loss of $1.01 per share. This improvement was supported by cost-cutting measures, including a 29% reduction in operating expenses compared to the prior-year period.

Market Reaction

Following the earnings release, Outset Medical’s stock saw a modest uptick in after-hours trading, suggesting that investors viewed the results favorably. The company’s ability to exceed revenue expectations while narrowing its losses likely contributed to the positive sentiment. However, the stock has faced downward pressure over the past month, declining by ~35.8%, which may reflect broader market concerns or profit-taking after previous gains.

Key Highlights from the Earnings Report

• Gross Margin Expansion: Gross margin improved to 37.8% (38.4% non-GAAP), up 110 basis points year-over-year, indicating better operational efficiency.
• Cost Discipline: Operating expenses declined significantly, with the company using 60% less cash in the first half of 2025 compared to the same period in 2024.
• Enterprise Growth: Outset Medical secured a new enterprise agreement with a major national health system, expanding Tablo’s presence to over 900 acute and sub-acute care sites in the U.S.

Updated 2025 Outlook

The company raised its full-year revenue guidance to $122 million to $126 million, up from the previous range of $115 million to $125 million. This upward revision aligns closely with the analyst consensus of $125.7 million, reinforcing confidence in the company’s growth trajectory. Outset Medical also reiterated expectations for non-GAAP gross margins in the high-30% range and projected less than $50 million in cash usage for the year, a significant improvement from over $100 million in 2024.

Looking Ahead

While Outset Medical continues to operate at a loss, its progress toward profitability is evident through disciplined spending and expanding gross margins. The company’s focus on recurring revenue streams and enterprise partnerships could further stabilize its financial position.

For more detailed earnings estimates and historical performance, visit Outset Medical’s earnings page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice.