Ouster's Q2 2025 Earnings Call: Contradictions on Defense Strategy, Distribution, and Autonomous Vehicle Growth

Defense as a top vertical, Blue UAS certification and defense opportunities, Ouster's distribution strategy, defense as a key vertical, and autonomous vehicles as a growth driver are the key contradictions discussed in Ouster's latest 2025Q2 earnings call.



Record Revenue and Sensor Shipments:
- Ouster reported revenue of over $35 million for Q2 2025, surpassing the high end of guidance and showing solid gross margin of 45%.
- The growth was driven by a record number of sensor shipments, exceeding 5,500 units, and the adoption of Physical AI solutions across industries.

Expansion in Blue UAS Certification:
- Ouster's OS1 became the first and only 3D lidar sensor to be approved for Blue UAS and certified by the U.S. Department of Defense for use in unmanned aerial systems.
- This certification opens up new defense market opportunities and positions Ouster as a trusted solution for government applications, aligning with the U.S. government's efforts to strengthen the domestic industrial base for critical technologies.

Growth in Industrial and Automotive Verticals:
- The industrial vertical was the largest contributor to Q2 revenue, followed by automotive.
- This growth was supported by large volume deals for applications in warehouse autonomy, robotaxi, yard logistics, and defense, indicating strong adoption of Ouster's technology in these sectors.

Software-Attached Business and Strategic Partnerships:
- Ouster expanded its distribution channels, signing exclusive partnerships for BlueCity in major markets, covering 39 states, and establishing a partnership with a security integrator for Gemini deployments.
- These strategic initiatives are aimed at capturing the vast nationwide market and enhancing Ouster's ability to convert customer pilots into large volume orders, driving future growth.