Ouster’s Stock Plunges 22.45% on Mixed Earnings, Cautious Guidance *Key drivers: Below-forecast losses, flat Q4 revenue outlook, margin pressures*

The share price fell to its lowest level since August 2025 today, with an intraday decline of 6.90%.

Ouster’s stock has dropped 22.45% over three days, driven by mixed earnings results. While Q3 revenue of $39.53 million exceeded estimates by 7.55% and marked a 41% year-over-year increase, the quarterly loss of $0.37 per share—worse than some forecasts—sparked volatility. Management’s cautious Q4 guidance, projecting flat revenue growth, highlighted uncertainties in shipment schedules and product mix.

Despite maintaining $247 million in cash and operating in a sector ranked among the top 15% for performance, Ouster’s path to profitability remains uncertain. While management highlights long-term growth potential in LiDAR-driven automation, near-term challenges include stabilizing gross margins and scaling production to meet demand. Analysts remain split, with the Zacks Rank suggesting a neutral outlook as the stock balances strong revenue momentum against persistent losses.