Outset Medical AI Stock Analysis
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Outset Medical (OM) AI Stock Analysis
Outset Medical
(NASDAQ:OM)
The score is driven primarily by mixed financial performance: strong recent revenue acceleration and improving gross margins plus sharply reduced debt are offset by large ongoing operating/net losses and materially negative operating and free cash flow. Technicals add support with the stock trading above key moving averages and positive momentum indicators. The latest earnings call was broadly constructive with reiterated 2026 guidance and improving operating leverage, but continued cash use and margin mix pressures remain meaningful constraints. Valuation is weaker/less informative due to a negative P/E and no dividend yield support.
Outset Medical (OM) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $70.32M
- Dividend Yield
- ―
- Average Volume (3M)
- 144.51K
- Price to Earnings (P/E)
- -1.0
- Beta (1Y)
- 1.78
- Revenue Growth
- 1.58%
- EPS Growth
- 70.22%
- Country
- US
- Employees
- 310
- Sector
- Healthcare
- Sector Strength
- 51
- Industry
- Medical - Devices
Outset Medical Business Overview & Revenue Model
Company Description
Outset Medical, Inc. is a medical technology firm that specializes in developing hemodialysis systems. The company's primary product is the Tablo Hemodialysis System, a compact console designed to deliver dialysis treatment in various environments, i...
How the Company Makes Money
Outset Medical generates revenue primarily from (1) sales of its Tablo Hemodialysis System hardware to healthcare providers and (2) recurring sales of single-use and consumable products used with Tablo for each treatment, along with (3) associated se...
Outset Medical Earnings Call Summary
The call was predominantly positive, with 14% year-over-year revenue growth, 26% console revenue growth, improved company-wide gross margin, more than 300 basis points of operating leverage, strong customer satisfaction and retention, and substantial refresh and expansion opportunities. The main negatives were the year-over-year increase in non-GAAP net loss, a 150-basis-point decline in product gross margin, ongoing cash use, and the fact that the next-generation system and HHS policy benefits remain subject to future execution and implementation.
Q3-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Outset reiterated full year revenue guidance of $125 million to $130 million for 2026 and continues to expect full year non-GAAP gross margin to be in the low 40% to mid-40% range, with a higher mix of console sales potentially shifting gross margin towards the lower end of that range; the company is also on track to use approximately $40 million for the full year, toward its next milestone of a 50% company-wide gross margin, and said it wants to return to a double-digit growth company, with further 2027 detail expected when it reports Q4.
Outset Medical Financial Statement Overview
Summary
Improving operating trajectory but still materially unprofitable and cash-burning. Revenue growth accelerated sharply (TTM growth 3.54 vs. 2025 growth 0.05) and gross margin improved to ~42%, while the balance sheet de-risked with debt reduced to ~$6.4M and low debt-to-equity (~0.08). However, losses remain heavy (TTM operating margin ~-37%, net margin ~-58%) and cash generation is still negative (TTM operating cash flow about -$42.4M; free cash flow about -$42.6M), keeping the financial profile below average despite improvements.
Income Statement
28NegativeBalance Sheet
62PositiveCash Flow
34Negative| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 121.97M | 119.48M | 113.69M | 130.38M | 115.38M | 102.60M |
| Gross Profit | 51.28M | 46.75M | 38.56M | 29.00M | 17.83M | 7.61M |
| EBITDA | -54.39M | -62.37M | -102.09M | -153.79M | -153.93M | -124.86M |
| Net Income | -71.14M | -81.65M | -127.98M | -172.80M | -162.96M | -131.94M |
Balance Sheet | ||||||
| Total Assets | 230.41M | 264.50M | 275.80M | 313.80M | 400.12M | 463.46M |
| Cash, Cash Equivalents and Short-Term Investments | 136.63M | 168.95M | 158.69M | 203.32M | 287.50M | 339.49M |
| Total Debt | 104.78M | 101.25M | 201.86M | 136.19M | 103.23M | 37.81M |
| Total Liabilities | 147.09M | 137.54M | 248.98M | 190.91M | 154.13M | 89.38M |
| Stockholders Equity | 83.31M | 126.95M | 26.82M | 122.89M | 245.99M | 374.08M |
Cash Flow | ||||||
| Free Cash Flow | -42.89M | -47.13M | -117.22M | -134.81M | -154.05M | -133.37M |
| Operating Cash Flow | -42.38M | -46.33M | -116.30M | -131.37M | -145.73M | -130.26M |
| Investing Cash Flow | 40.32M | -97.68M | 103.94M | 83.03M | -66.30M | -142.51M |
| Financing Cash Flow | 357.00K | 55.50M | 67.87M | 43.65M | 72.90M | 160.15M |
Outset Medical Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OM, the sentiment is Negative. The current price of 3.73 is below the 20-day moving average (MA) of 4.12, below the 50-day MA of 3.76, and below the 200-day MA of 4.10, indicating a bearish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 42.38 is Neutral, neither overbought nor oversold. The STOCH value of 19.90 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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.
Latest Risks Added
3 New RisksOutset Medical Peers Comparison
Overall Rating
ELMD76Outperform- OM56Neutral
INGN52Neutral
ARAY42Neutral
CVRX42Neutral
NNOX41Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ELMD | 76Outperform | $204.10M | 16.89 | 23.73% | ― | 14.12% | 47.72% |
| OM | 56Neutral | $72.77M | -0.96 | -68.03% | ― | 1.58% | 70.22% |
| INGN | 52Neutral | $146.13M | -4.34 | -20.06% | ― | -2.28% | -31.45% |
| Sector * | 51Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
| ARAY | 42Neutral | $9.24M | -0.48 | -36.60% | ― | -12.50% | 5.33% |
| CVRX | 42Neutral | $17.95M | -0.30 | -208.45% | ― | 7.79% | 0.87% |
| NNOX | 41Neutral | $25.07M | -0.19 | -94.35% | ― | 31.52% | -89.07% |
* Healthcare Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| OM | Outset Medical, Inc. | 3.73 | -1.19 | -24.19% | |
| ARAY | Accuray Incorporated | 2.80 | -37.01 | -92.97% | |
| ELMD | Electromed | 24.32 | -0.31 | -1.26% | |
| INGN | Inogen Inc | 5.69 | -1.02 | -15.20% | |
| NNOX | Nano-X Imaging Ltd. | 0.32 | -2.51 | -88.62% | |
| CVRX | Cvrx, Inc. | 0.61 | -8.68 | -93.47% |
Outset Medical Corporate Events
Outset Medical Announces Departure of General Counsel Brottem
NeutralOn August 27, 2026, Outset Medical, Inc. announced that its General Counsel, John Brottem, has decided to depart the company, with his exit effective September 11, 2026, as he pursues other professional opportunities. The company emphasized that Brot...
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.
Date of analysis: Nov 05, 2026