Ouster Q2 Earnings Surpass Expectations with $35M in Sales, Narrowing Loss to $6M

Ouster, a lidar maker, reported Q2 adjusted Ebitda of -$6mln on sales of $35mln, beating Wall Street expectations of a loss of -$10.3mln and sales of $33.8mln. The strong earnings report led to a 12% increase in the company's stock.

Ouster, Inc. (OUST), a leading provider of lidar sensors, has reported its second-quarter (Q2) 2025 earnings, showcasing a significant improvement in financial performance. The company reported an adjusted Ebitda of -$6 million on sales of $35 million, which exceeded Wall Street expectations of a loss of -$10.3 million and sales of $33.8 million. This strong earnings report has led to a 12% increase in the company's stock price.

The company's CEO, Charles Angus Pacala, highlighted the robust growth in revenue, driven by record sensor shipments and strategic investments in AI algorithms and data training infrastructure. Pacala noted that the company's ability to convert customer pilots into large volume orders has been a key driver of growth. In the second quarter, Ouster shipped over 5,500 lidar sensors, marking a 30% year-over-year increase in revenue.

The company's gross margin improved to 45% in Q2 2025, influenced by higher revenue, product mix, and a favorable employment tax refund. GAAP operating expenses were $43 million, up 24% year-over-year, primarily due to higher stock-based compensation and litigation expenses. Cash and equivalents stood at $229 million at quarter end, including $59 million in net proceeds from the ATM.

Pacala emphasized the company's focus on scaling its software-attached business and advancing its technology roadmap. He noted that the industrial vertical was the largest contributor to second quarter revenue, followed by automotive. The company also announced expanded partnerships and software deployments, including Ouster Rev7 and BlueCity at a World Cup host city and a broadened agreement with the Utah Department of Transportation.

Ouster's OS1 became the first and only 3D lidar sensor approved for Blue UAS and certified by the U.S. Department of Defense, setting the company apart as a trusted solution for government applications. This certification positions Ouster well to benefit from the U.S. government's efforts to strengthen the domestic industrial base for critical technologies.

For the third quarter, Ouster expects to achieve revenue between $35 million and $38 million, reflecting a continued growth trajectory. The company aims to maintain its gross margin between 35% to 40% and keep operating expenses at or below third quarter 2023 levels.

Management acknowledged ongoing challenges in the geopolitical and macroeconomic environment, particularly around supply chain and tariffs, but expressed confidence in the company's operational resilience. The company's stock price surged more than 23% in morning trades following the earnings report, reflecting investor confidence in Ouster's growth prospects.

Reference List:
[1] https://seekingalpha.com/news/4482166-ouster-outlines-35m-38m-q3-revenue-target-as-software-attached-business-and-ai-drive-growth
[2] https://www.investors.com/news/technology/ouster-stock-climbs-lidar-sales-rise-physical-ai/