Outset Medical 2025 Q2 Earnings Narrowing Losses Amid Revenue Growth

Outset Medical reported mixed results in its Q2 2025 earnings, with revenue rising but continued net losses. The company raised its full-year revenue guidance, signaling improved confidence.

Outset Medical reported Q2 2025 earnings with a 14.7% year-over-year revenue increase and a narrower net loss compared to the prior year. The company raised its 2025 revenue guidance, indicating positive momentum despite ongoing profitability challenges.

Revenue
Outset Medical’s Q2 2025 revenue reached $31.42 million, up from $27.39 million in the same period last year. Product revenue amounted to $23.08 million, driven by $8.93 million in consoles and $14.15 million in consumables. Service and other revenue contributed an additional $8.34 million, completing the total revenue picture.

Earnings/Net Income
The company narrowed its net loss to $18.54 million for Q2 2025, a 46.2% reduction from the $34.45 million loss in Q2 2024. Earnings per share also improved, with losses falling to $1.04 from $9.96, representing an 89.6% improvement. Despite this progress, the company has posted losses in seven consecutive years in this quarter. The narrowing of the loss reflects positive strides but also highlights the need for continued cost discipline.

Price Action
Following the earnings release, OM’s stock continued to underperform, falling 8.93% in the latest trading day, 11.71% over the past week, and 32.15% month-to-date.

Post-Earnings Price Action Review
A strategy of buying OM shares 30 days after earnings over the past three years, following a quarterly revenue increase, has performed poorly. The strategy delivered a CAGR of -56.95%, with a total return of -153.41%, significantly underperforming the benchmark of 63.70%. It also faced a Sharpe ratio of -0.50, indicating high risk with poor returns, and a maximum drawdown of 0%.

CEO Commentary
Leslie Trigg, CEO and Chair, highlighted progress in the commercial transformation, strong demand for Tablo in acute-care settings, and cost reduction efforts. She emphasized the successful reduction of cash burn and operating expenses by nearly 30% year-over-year and expressed confidence in the path toward near-term profitability.

Guidance
Outset Medical raised its 2025 revenue guidance to a range of $122 million to $126 million, up from $115 million to $125 million. The company expects non-GAAP gross margin to remain in the high-30% range and cash usage to stay under $50 million in 2025, compared to over $100 million in 2024.

Additional News
Within three weeks of the earnings release, Outset Medical announced a strategic partnership with a leading acute care provider to expand the deployment of Tablo dialysis systems in hospital settings. The CEO also reaffirmed her commitment to the company’s leadership role, stating she plans to remain in her position for the next three years. Additionally, the company announced a $25 million equity offering to strengthen its liquidity position, which will be used to fund operations and reduce future cash burn.