Outset Medical Q3 revenue rises as net loss narrows

Overview

• U.S. dialysis technology firm's Q3 revenue rose 14% yr/yr to $33.6 mln

• Gross margin for Q3 expanded to 40.7% from 39.4% yr/yr

• Net loss for Q3 narrowed to $14.7 mln from $17.8 mln a year earlier

Outlook

• Outset reiterates 2026 revenue guidance of $125 mln to $130 mln

• Company expects 2026 non-GAAP gross margin in low-40% to mid-40% range

• Company reiterates 2026 revenue and non-GAAP gross margin guidance

Result Drivers

• CONSOLE SALES - Co said higher console revenue contributed to overall revenue growth

• RECURRING REVENUE - Growth in sales of Tablo consumables and services supported quarterly revenue

• GROSS MARGIN EXPANSION - Higher service and other gross margin helped lift overall gross margin to 40.7% from 39.4%

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the advanced medical equipment & technology peer group is "buy"

• Wall Street's median 12-month price target for Outset Medical, Inc. is $7.00, about 68.7% above its November 3 closing price of $4.15

Reuters Recommended Reads

• Nov 3 - Germany's Fresenius Medical says Q3 results weighed by China; narrows forecast

• Nov 4 - Healthcare firm Fresenius Q3 revenue rises on Kabi growth; lifts outlook

• Nov 2 - Denmark medical devices maker Coloplast's Q4 revenue rises

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)