Outset Medical, Inc. (OM)
NASDAQ:OM
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Outset Medical
(NASDAQ:OM)
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Rating:54Neutral
Price Target:
$5.00
▲(14.94% Upside)
Action:Reiterated
Date:06/06/26
The score is held back primarily by weak financial performance (large losses and negative free cash flow despite improving margins) and loss-driven valuation (negative P/E). Offsetting these are improving near-term technical momentum (price above 20/50/100-day averages with positive MACD) and a constructive earnings call featuring reaffirmed growth guidance, strong gross margin expansion, and reduced cash burn expectations.
Positive Factors
High recurring revenue mix
Consumables and service representing roughly 70% of revenue create predictable, high‑frequency cash flows tied to treatments. This installed‑base pull‑through reduces reliance on capital sales, supports steady revenue and margin resilience even if machine placements are lumpy.
Negative Factors
Deep ongoing losses & negative FCF
Despite margin gains, the company remains deeply unprofitable with materially negative free cash flow. Persistent operating losses strain capital over time and raise the prospect of dilution or additional financing if revenue growth stalls, a structural risk to long‑term stability.
Read all positive and negative factors
Positive Factors
Negative Factors
High recurring revenue mix
Consumables and service representing roughly 70% of revenue create predictable, high‑frequency cash flows tied to treatments. This installed‑base pull‑through reduces reliance on capital sales, supports steady revenue and margin resilience even if machine placements are lumpy.
Read all positive factors
Outset Medical (OM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$87.58M
Dividend YieldN/A
Average Volume (3M)185.79K
Price to Earnings (P/E)―
Beta (1Y)1.87
Revenue Growth2.01%
EPS Growth85.71%
CountryUS
Employees354
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)-4.16
Shares Outstanding18,537,241
10 Day Avg. Volume198,253
30 Day Avg. Volume185,794
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.44
Price to Sales (P/S)0.47
P/FCF Ratio-1.20
Enterprise Value/Market Cap0.74
Enterprise Value/Revenue0.55
Enterprise Value/Gross Profit1.36
Enterprise Value/Ebitda-1.03
Forecast
1Y Price Target
$7.67Price Target Upside76.25% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)-2.86
Revenue Forecast (FY)$126.77M
Outset Medical Business Overview & Revenue Model
Company Description
Outset Medical, Inc., a medical technology company, develops a hemodialysis system for dialysis. It provides the Tablo Hemodialysis System, which comprises a compact console with integrated water purification, on-demand dialysate production, and s...
How the Company Makes Money
Outset Medical primarily generates revenue by selling and deploying its Tablo Hemodialysis System and associated recurring consumables and services required to run dialysis treatments. Key revenue streams generally include: (1) product revenue fro...
Outset Medical Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call presented a largely positive operational and financial trajectory: substantial gross margin expansion (620 bps), a 32% improvement in non-GAAP net loss, strong cash balance ($161M) with lower-than-expected cash burn, and a strategic next-generation product and experienced commercial hire poised to drive future demand. Offsetting these positives were a 6% year-over-year revenue decline in Q1 driven by lumpiness in capital orders (product revenue down 13%), modestly higher operating expenses, and reliance on the timing and success of the next-gen Tableau launch to deliver back-half revenue. On balance, the positive margin, cash, and operational execution updates outweigh the timing-related revenue headwinds.Positive Updates
Revenue and Guidance Reaffirmed
Q1 revenue of $27.9M and company reaffirmed 2026 revenue guidance of $125M–$130M (a 5%–9% increase over 2025), with majority of growth expected in Q3–Q4.
Negative Updates
Quarterly Revenue Decline and Product Sales Drop
Q1 revenue declined 6% year-over-year to $27.9M from $29.8M. Product revenue fell 13% to $18.6M, and capital sales were $5.4M, reflecting timing variability.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue and Guidance Reaffirmed
Q1 revenue of $27.9M and company reaffirmed 2026 revenue guidance of $125M–$130M (a 5%–9% increase over 2025), with majority of growth expected in Q3–Q4.
Read all positive updates
Company Guidance
Outset reaffirmed 2026 guidance of $125–$130 million in revenue (up 5%–9% vs. 2025), noting Q1 revenue of $27.9M (down 6% YoY) with product revenue $18.6M (down 13%), capital sales $5.4M, consumables $13.2M and service & other $9.3M (up 10%); recurring consumables + service revenue was $22.5M and comprises roughly 70% of total revenue. Q2 is expected to be a modest step-up with the majority of the year’s growth in Q3–Q4 (helped by next‑generation Tableau), and full‑year non‑GAAP gross margin is guided to the low‑ to mid‑40% range (Q1 non‑GAAP gross margin was 43.8%, +620 bps YoY; product margin 52.4%, +400 bps; service margin 26.7%, +~1,640 bps), with company aiming toward a 50% company‑wide gross‑margin milestone. Non‑GAAP operating expenses were $25.6M (+~4%), non‑GAAP operating loss was $13.4M (flat YoY) and non‑GAAP net loss improved to $15.4M (‑32% YoY); balance sheet cash was $161M, Q1 cash use was ~$12M, and management now expects full‑year cash use of < $40M (about 15% better than prior expectation).Outset Medical Financial Statement Overview
Summary
Income Statement
22
Negative
Balance Sheet
58
Neutral
Cash Flow
28
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 117.59M | 119.48M | 113.69M | 130.38M | 115.38M | 102.60M |
| Gross Profit | 47.78M | 46.75M | 38.56M | 29.00M | 17.83M | 7.61M |
| EBITDA | -62.73M | -62.37M | -97.89M | -153.79M | -152.81M | -124.86M |
| Net Income | -74.85M | -81.65M | -127.98M | -172.80M | -162.96M | -131.94M |
Balance Sheet | ||||||
| Total Assets | 249.45M | 264.50M | 275.80M | 313.80M | 400.12M | 463.46M |
| Cash, Cash Equivalents and Short-Term Investments | 156.71M | 168.95M | 158.69M | 203.32M | 287.50M | 339.49M |
| Total Debt | 4.68M | 104.52M | 201.86M | 136.19M | 103.23M | 37.81M |
| Total Liabilities | 137.77M | 137.54M | 248.98M | 190.91M | 154.13M | 89.38M |
| Stockholders Equity | 111.69M | 126.95M | 26.82M | 122.89M | 245.99M | 374.08M |
Cash Flow | ||||||
| Free Cash Flow | -34.25M | -47.13M | -117.22M | -134.81M | -154.05M | -133.37M |
| Operating Cash Flow | -33.51M | -46.33M | -116.30M | -131.37M | -145.73M | -130.26M |
| Investing Cash Flow | -11.71M | -97.68M | 103.94M | 83.03M | -66.30M | -142.51M |
| Financing Cash Flow | 348.00K | 55.50M | 67.87M | 43.65M | 72.90M | 160.15M |
Outset Medical Technical Analysis
Neutral
4.35
Price Trends
4.27
Positive
4.18
Positive
7.03
Negative
Market Momentum
0.17
Negative
53.40
Neutral
39.77
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OM, the sentiment is Neutral. The current price of 4.35 is above the 20-day moving average (MA) of 4.28, above the 50-day MA of 4.27, and below the 200-day MA of 7.03, indicating a neutral trend. The MACD of 0.17 indicates Negative momentum. The RSI at 53.40 is Neutral, neither overbought nor oversold. The STOCH value of 39.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for OM.
Outset Medical Risk Analysis
Outset Medical disclosed 79 risk factors in its most recent earnings report. Outset Medical reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Outset Medical Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $304.04M | 30.63 | 22.14% | ― | 16.79% | 45.17% | |
54 Neutral | $87.58M | ― | -55.88% | ― | 2.01% | 85.71% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | $170.84M | -7.03 | -12.90% | ― | 3.39% | 19.78% | |
47 Neutral | $130.13M | ― | -47.09% | ― | 15.40% | -25.87% | |
47 Neutral | $156.03M | -2.69 | -120.77% | ― | 11.73% | 8.07% | |
42 Neutral | $43.48M | -0.92 | -77.48% | ― | -7.88% | -5535.71% |
* Healthcare Sector Average
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Outset Medical Corporate Events
Executive/Board ChangesShareholder Meetings
Outset Medical Shareholders Back Board and Governance Measures
Positive
Jun 5, 2026
On June 4, 2026, Outset Medical held its annual meeting of stockholders virtually, with a quorum representing roughly three-quarters of its 18.5 million outstanding shares. Shareholders elected Brent D. Lang and Karen Prange as Class III directors...
Executive/Board Changes
Outset Medical Announces Executive Vice President Marc Nash Departure
Neutral
May 29, 2026
On May 26, 2026, Outset Medical, Inc. announced that Marc Nash, its Executive Vice President of RD, Operations and Service, had informed the company of his decision to leave effective June 5, 2026, to pursue other professional opportunities. The c...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.