Outset Medical (NASDAQ:OM) Releases Earnings Results, Misses Expectations By $0.04 EPS

Outset Medical (NASDAQ:OM) announced its quarterly earnings results on Thursday. The company reported ($0.83) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.79) by ($0.04), FiscalAI reports. Outset Medical had a negative return on equity of 53.39% and a negative net margin of 63.65%.The firm had revenue of $27.86 million during the quarter, compared to analysts’ expectations of $28.90 million.

Here are the key takeaways from Outset Medical’s conference call:

• Q1 revenue was $27.9M, down 6% year‑over‑year with product revenue down 13%; management said the shortfall was driven by the lumpiness and timing of capital orders (about $1M of deals shifted out of Q1).
• Gross margins expanded to record levels — non‑GAAP gross margin 43.8% (up 620 bps), product margin 52.4% and service margin 26.7% — while non‑GAAP net loss improved 32% and the company ended the quarter with $161M in cash, now expecting <$40M cash burn for 2026.
• Management reaffirmed 2026 revenue guidance of $125M–$130M (5%–9% growth) and said growth will be back‑half weighted, supported by late‑stage deals in the pipeline and an expected ramp in Q3–Q4.
• The planned rollout of the next‑generation Tablo (positioned as meeting FDA’s 2025 cybersecurity guidance) will begin limited release this quarter and is highlighted as a competitive, demand‑driving advantage that may also accelerate trade‑in/refresh opportunities.
• Commercial and operational momentum includes a new commercial leader, Derick Elliott, plus multiple recent go‑live implementations (including a large multi‑hospital rollout and >30 facilities planned in Q2), which management says validates sales execution and service capabilities.

Outset Medical Price Performance

OM traded down $0.99 on Friday, reaching $3.69. The company had a trading volume of 383,821 shares, compared to its average volume of 135,752. The business has a 50 day simple moving average of $3.89 and a 200 day simple moving average of $5.25. The company has a market cap of $68.38 million, a price-to-earnings ratio of -0.89 and a beta of 1.92. The company has a debt-to-equity ratio of 0.76, a quick ratio of 5.40 and a current ratio of 6.67. Outset Medical has a 52-week low of $3.00 and a 52-week high of $21.98.

Analyst Ratings Changes

A number of equities research analysts have recently issued reports on the stock. BTIG Research lowered their price target on shares of Outset Medical from $17.00 to $15.00 and set a “buy” rating on the stock in a report on Thursday, February 12th. TD Cowen reissued a “buy” rating on shares of Outset Medical in a report on Friday. Weiss Ratings reissued a “sell (e+)” rating on shares of Outset Medical in a report on Friday, March 27th. Finally, Wall Street Zen downgraded shares of Outset Medical from a “hold” rating to a “sell” rating in a report on Saturday, April 11th. One research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $10.00.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in the business. Los Angeles Capital Management LLC purchased a new position in shares of Outset Medical during the fourth quarter worth approximately $29,000. Legal & General Group Plc purchased a new position in shares of Outset Medical during the second quarter worth approximately $34,000. BNP Paribas Financial Markets raised its stake in shares of Outset Medical by 7,013.8% during the second quarter. BNP Paribas Financial Markets now owns 2,063 shares of the company’s stock worth $40,000 after acquiring an additional 2,034 shares in the last quarter. Hsbc Holdings PLC purchased a new position in shares of Outset Medical during the fourth quarter worth approximately $46,000. Finally, HRT Financial LP purchased a new position in shares of Outset Medical during the fourth quarter worth approximately $58,000.

Outset Medical Company Profile

Outset Medical is a medical technology company specializing in innovations for renal care. The company’s flagship offering, the Tablo Hemodialysis System, is designed to streamline and simplify dialysis treatment across acute and outpatient settings. By integrating water purification, dialysate production, and treatment monitoring into a single device, Tablo aims to reduce the complexity and logistical burden traditionally associated with hemodialysis therapy.

Tablo’s modular design allows for rapid setup and flexible deployment in hospitals, clinics, long‐term care facilities and emergency response scenarios.