Outset Medical, Inc. (OM) · Nov 4, 2026 · Earnings
Beat — Revenue $33.6M vs ~$31.4M consensus; non-GAAP EPS $(0.68) vs roughly $(0.72) expected
Outset Medical’s third-quarter earnings beat revenue expectations as console sales and recurring Tablo revenue accelerated, while losses stayed elevated.
Outset is scaling Tablo, its integrated dialysis platform, through hospital and insourced-dialysis partnerships; management entered the quarter with 2026 revenue guidance of $125M–$130M and a recently announced three-year, $40M HCA fleet-refresh agreement.
The quarter cleared the main operating hurdle. Revenue of $33.6M rose 14% year over year and 6% sequentially, ahead of the published consensus near $31.4M; console revenue grew 26%, while recurring revenue reached $23.1M, up 10%.
| Metric | Q3 2026 | Q3 2025 | Consensus / comparison |
|---|---|---|---|
| Revenue (Financial Results) | $33.6M (+14%) | $29.4M | ~$31.4M |
| Non-GAAP EPS (Appendix A) | $(0.68) | $(0.69) | ~$(0.72) |
| Gross margin (Financial Results) | 40.7% | 39.4% | — |
| Recurring revenue (Financial Highlights) | $23.1M (+10%) | $21.1M | — |
| Net loss (Financial Results) | $(14.7M) | $(17.8M) | — |
The quality of growth improved, but profitability did not yet turn. Gross margin expanded to 40.7%, helped by service and other margin rising to 32.4%, although product margin slipped to 44.2% from 45.7%. Non-GAAP net loss widened slightly to $12.9M from $12.4M, showing that the revenue ramp is not yet flowing cleanly through to earnings. 〔0〕
The balance sheet remains usable but is moving in the wrong direction. Outset ended September with $140.7M of cash, short-term investments and restricted cash after using $10.3M during the quarter; that is down from $151.0M at June 30, so continued execution still depends on reducing cash burn rather than simply growing sales.
Guidance was reaffirmed, not raised. Keeping the $125M–$130M revenue range is consistent with the prior plan, so the surprise is execution above the quarterly revenue bar rather than a reset of the full-year business outlook.
Bottom line: This was a modest execution win: Tablo adoption and console demand produced a clear revenue beat, but persistent losses, cash usage and unchanged guidance keep it from materially rewriting the story.
Q4 results and 2027 outlook
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