Market Overview - U.S. stock futures were mostly lower, with S&P 500 futures down approximately 0.2% [1] Outset Medical Inc - Outset Medical reported a quarterly loss of $0.69 per share, missing the analyst consensus estimate of a loss of $0.66 per share [2] - The company reported quarterly sales of $29.431 million, which fell short of the analyst consensus estimate of $30.880 million [2] - Following the disappointing results, Outset Medical shares dropped 25.8% to $8.95 in pre-market trading [2] Other Companies - Gemini Space Station Inc saw a decline of 9.7% to $15.20 after disclosing third-quarter results [4] - CoreWeave Inc fell 9.2% to $95.90 following its third-quarter results [4] - Life360 declined 7.3% to $86.45 after announcing an agreement to acquire Nativo [4] - Century Aluminum Co dropped 6% to $30.37 after posting weak quarterly earnings [4] - Beyond Meat Inc experienced a 6% decline to $1.26 due to a wider-than-expected quarterly loss [4] - Harrow Inc fell 5.3% to $32.30 after reporting worse-than-expected quarterly sales [4] - Nanobiotix SA – ADR decreased by 5.3% to $20.99 after a previous jump of 12% [4] - CleanSpark Inc declined 5.3% to $14.24 as it announced the upsizing and pricing of a $1.15 billion convertible notes offering [4]

Group 1: Market Overview - U.S. stock futures were mostly lower, with S&P 500 futures down approximately 0.2% on Tuesday [1] - Several stocks experienced significant declines in pre-market trading [2][4] Group 2: Outset Medical Inc - Outset Medical reported a quarterly loss of 69 cents per share, missing the analyst consensus estimate of a 66 cents loss [2] - The company's quarterly sales were $29.431 million, below the analyst consensus estimate of $30.880 million [2] - Following the disappointing results, Outset Medical shares fell 25.8% to $8.95 in pre-market trading [2] Group 3: Other Companies - Gemini Space Station Inc shares dipped 9.7% to $15.20 after disclosing third-quarter results [4] - CoreWeave Inc saw a decline of 9.2% to $95.90 following its third-quarter results [4] - Life360 shares declined 7.3% to $86.45 after announcing an agreement to acquire Nativo [4] - Century Aluminum Co fell 6% to $30.37 after posting weak quarterly earnings [4] - Beyond Meat Inc declined 6% to $1.26 following a wider-than-expected quarterly loss [4] - Harrow Inc shares fell 5.3% to $32.30 after reporting worse-than-expected quarterly sales [4] - Nanobiotix SA – ADR dropped 5.3% to $20.99 after a previous jump of 12% on Monday [4] - CleanSpark Inc declined 5.3% to $14.24 as it announced the upsize and pricing of a $1.15 billion convertible notes offering [4]

Market Overview - U.S. stock futures declined following a rally on Monday, with major indices showing lower futures [1] - The bond market will be closed for Veterans' Day [1] Federal Reserve Outlook - The CME Group's FedWatch tool indicates a 63.7% probability of an interest rate cut by the Federal Reserve in December [2] Stock Performance - Nvidia Corp. (NASDAQ: NVDA) fell 1.31% after SoftBank sold its entire stake for $5.83 billion, despite maintaining a stronger price trend [6] - BigBear.ai Holdings Inc. (NYSE: BBAI) surged 20.32% after reporting revenue of $33.14 million, exceeding estimates of $31.82 million [6] - Rocket Lab Corp. (NASDAQ: RKLB) rose 9.50% after posting revenue of $155.05 million, beating the consensus estimate of $151.75 million [6] - Paramount Skydance Corp. (NASDAQ: PSKY) gained 4.92% despite missing earnings, citing $1 billion in merger savings and plans for layoffs [12] - LivePerson Inc. (NASDAQ: LPSN) jumped 12.79% after better-than-expected results and raised FY25 sales guidance to $235 million to $240 million [12] - Outset Medical Inc. (NASDAQ: OM) tumbled 25.68% after reporting disappointing results and cutting FY25 sales guidance [12] Sector Performance - On Monday, sectors such as consumer discretionary, communication services, and information technology saw the largest gains, while consumer staples and real estate declined [8] Economic Insights - Professor Jeremy Siegel noted significant uncertainty in the economy due to the government shutdown, which could impact Q4 GDP by 1.5 to 2 percentage points [10] - Siegel maintains a constructive view on equities, supported by ongoing AI capital expenditure and a potential accommodative rate cut path [13]

Core Insights - U.S. stock futures are trading mixed, indicating varied investor sentiment in the market [1] Company Summaries - Sea Ltd. (NYSE:SE) is expected to report quarterly earnings of 77 cents per share on revenue of $5.65 billion, with shares rising 2.7% to $159.20 in after-hours trading [2] - Outset Medical Inc. (NASDAQ:OM) reported a quarterly loss of 69 cents per share, missing the consensus estimate of 66 cents, and sales of $29.431 million, below the expected $30.880 million, leading to a 23.4% drop in shares to $9.25 [2] - Amdocs Ltd. (NASDAQ:DOX) is anticipated to post earnings of $1.82 per share on revenue of $1.15 billion, with shares slightly increasing by 0.1% to $85.61 in after-hours trading [2] - LivePerson Inc. (NASDAQ:LPSN) exceeded expectations with its third-quarter results and raised its FY25 sales guidance to $235 million to $240 million, up from $230 million to $240 million, resulting in a 16.4% increase in shares to $6.10 [2] - Cae Inc. (NYSE:CAE) is expected to report earnings of 14 cents per share on revenue of $823.11 million, with shares rising 0.1% to close at $27.22 [2]

Core Insights - Outset Medical, Inc. reported a quarterly loss of $0.69 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.64, marking an earnings surprise of -7.81% [1] - The company's revenues for the quarter ended September 2025 were $29.43 million, missing the Zacks Consensus Estimate by 3.19%, but showing an increase from $28.67 million year-over-year [2] - Outset Medical shares have declined approximately 27.5% year-to-date, contrasting with the S&P 500's gain of 14.4% [3] Financial Performance - Over the last four quarters, Outset Medical has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] - The current consensus EPS estimate for the upcoming quarter is -$0.54 on revenues of $32.4 million, and for the current fiscal year, it is -$3.96 on revenues of $124 million [7] Market Outlook - The company's stock performance in the near future is expected to align with the market, as indicated by a Zacks Rank 3 (Hold) [6] - The outlook for the Medical Info Systems industry, where Outset Medical operates, is relatively strong, ranking in the top 27% of over 250 Zacks industries [8]

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Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $29.4 million, representing a 3% growth compared to Q3 2024 [14][18] - Non-GAAP gross margin reached 39.9%, an increase of 350 basis points year-over-year [20] - Non-GAAP operating loss was $10.4 million, a 35% improvement from the prior year [22] - Cash used during the quarter was approximately $6 million, reflecting improved gross margin and lower operating expenses [22][23] Business Line Data and Key Metrics Changes - Tablo console sales increased by 8% in Q3 2025 [12] - Product revenue was $20.6 million, slightly ahead of $20.3 million in the prior year [18] - Recurring revenue from Tablo consumables and service was $21.1 million, slightly above Q3 2024 [18] Market Data and Key Metrics Changes - The average size of sales opportunities increased by over 20% [12] - Hospital demand for insourcing dialysis with Outset's technology continues to grow, indicating a strong market opportunity [11][26] Company Strategy and Development Direction - The company is focusing on enterprise-wide insourcing, managing large opportunities across multiple hospitals [10][11] - Aiming to reach a gross margin milestone of 50% through disciplined expense management and revenue growth [12][20] - The company is committed to improving sales execution and forecasting to better anticipate deal dynamics [34][45] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that Q3 results fell short of expectations due to timing shifts in large deals [10][30] - There is confidence in the long-term growth potential, with a focus on improving execution under new sales leadership [45][49] - The company expects to see treatment revenue normalize in 2026 as ordering patterns align with actual utilization [19][50] Other Important Information - The resignation of the Head of Sales may cause internal disruption, but the company has a strong sales leadership team in place [12][14] - The company ended the quarter with $182 million in cash and equivalents, indicating sufficient capital for future operations [22][23] Q&A Session Summary Question: What factors contributed to the guidance trim? - Management indicated that a large console opportunity shifted from Q3 to Q4, impacting guidance [28][30] Question: How is the company addressing the sales leadership transition? - The search for a new sales leader is underway, with a focus on candidates with capital equipment and enterprise sales experience [36][39] Question: What is the outlook for 2026? - Management believes that 2025 serves as a good proxy for 2026, with expectations for improved execution and growth [45][82] Question: Are there any concerns about order cancellations? - Management confirmed that no deals have fallen out of the pipeline, and the sales team is actively working on closing remaining opportunities [70][71] Question: What is the status of the home channel and SNF opportunities? - The home channel has shown stable retention rates and growth, with positive feedback from patients using Tablo [75][76]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $29.4 million, representing a 3% growth compared to Q3 2024 [13][21] - Non-GAAP gross margin reached nearly 40% in Q3 2025, with a 350 basis point increase year-over-year [19][21] - Non-GAAP operating loss was $10.4 million, over 35% lower than the operating loss of $16.1 million in the prior year [20][21] Business Line Data and Key Metrics Changes - Tablo console sales increased by 8% in Q3 2025, with a significant growth in the average size of sales opportunities, which increased by more than 20% [12][17] - Product revenue was $20.6 million, slightly ahead of $20.3 million in the prior year, with consumable sales at $12.2 million [17][21] - Recurring revenue from Tablo consumables and service was $21.1 million, slightly ahead of Q3 2024 [17] Market Data and Key Metrics Changes - The demand for insourcing dialysis with Outset's technology continues to grow, supported by clinical, operational, and financial benefits [11][12] - The company is approaching 1,000 acute sites using Tablo, with a run rate of a million treatments per year [23] Company Strategy and Development Direction - The company is focusing on enterprise-wide insourcing and managing large opportunities that span multiple hospitals within health systems [11][23] - The strategy includes optimizing inventory levels and gradually increasing production to mitigate gross margin impacts [19][20] - The company aims to reach a gross margin milestone of 50% in the future [12][19] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that while progress has been made, there is still work to be done in transforming the sales process and improving execution [10][12] - The resignation of the Head of Sales may cause internal disruption, but the team remains committed to customer service [13][21] - Management remains optimistic about future growth, citing strong customer demand and a growing pipeline of larger deals [41][42] Other Important Information - The company revised its 2025 revenue guidance to a range of $115 million to $120 million, down from $122 million to $126 million [21][22] - Cash balances at the end of the quarter were $182 million, with a projected cash use of less than $50 million in 2025 [20][21] Q&A Session Summary Question: What factors contributed to the guidance trim? - Management indicated that a large console opportunity shifted from Q3 to Q4, and the departure of the Head of Sales was also a consideration in the revised guidance [26][27] Question: Can you elaborate on console revenues and order timing? - Console revenues showed positive growth, but management expressed frustration with execution and the ability to predict deal timing [29][30] Question: What qualities are being sought in a new sales leader? - The company is looking for someone with a background in capital equipment and enterprise sales, who can strategically lead and coach the sales team [32][34] Question: What is the growth outlook for 2026? - Management has not provided specific guidance for 2026 but remains optimistic about growth potential, emphasizing that demand continues to grow [40][42] Question: Are there any order cancellations or drops in the pipeline? - Management confirmed that no deals have fallen out of the pipeline, and the sales team is actively working to close pending opportunities [63][64]

Revenue Performance - Total revenues for the three months ended September 30, 2025, were $29.4 million, a 2.4% increase from $28.7 million in the same period of 2024[103]. - For the nine months ended September 30, 2025, total revenues reached $90.6 million, up from $84.2 million in 2024, reflecting a growth of 14.3%[103]. - Total revenue for the three months ended September 30, 2025, was $29,431,000, a 3% increase from $28,666,000 in 2024, while for the nine months, it was $90,602,000, an 8% increase from $84,222,000 in 2024[116]. - Product revenue increased by $0.3 million, or 1%, for the three months ended September 30, 2025, driven by a $0.6 million increase in console revenue, offset by a $0.3 million decrease in consumable revenue[117]. Operational Efficiency - The company has focused on driving adoption of the Tablo system in acute care settings, emphasizing clinical flexibility and operational versatility[101]. - Tablo's cloud technology allows for remote monitoring and continuous data streaming, contributing to operational efficiencies and reduced service hours[99]. - Gross margin expansion is targeted through increased sales of higher-margin accessories and consumables, alongside cost reduction initiatives in manufacturing[108]. - The localization of production in Mexico has helped reduce costs and improve supply chain flexibility, although future supply chain constraints remain a concern[114]. Financial Position - Cash, cash equivalents, restricted cash, and short-term investments totaled $182.0 million as of September 30, 2025[130]. - The company raised $172.7 million through the sale of Series A Convertible Preferred Stock in early 2025[130]. - The company entered into a $100 million term loan agreement in January 2025, with an additional $25 million available upon achieving specified revenue milestones[131]. Losses and Expenses - Net loss for the three months ended September 30, 2025, was $17,838,000, a decrease from a net loss of $27,940,000 in 2024, while the nine-month net loss was $62,162,000 compared to $102,338,000 in 2024[116]. - Total operating expenses decreased by 19% to $27,403,000 for the three months ended September 30, 2025, compared to $33,659,000 in 2024, and by 30% to $83,600,000 for the nine months compared to $119,332,000 in 2024[120]. - The company expects to continue incurring operating losses in the near term while making investments to support anticipated growth[132]. Cash Flow - Operating activities used $36,806,000 in cash for the nine months ended September 30, 2025, compared to $99,815,000 in 2024[134]. - The net cash used in operating activities for the nine months ended September 30, 2025, was $36.8 million, primarily due to a net loss of $62.2 million[135]. - The net cash used in investing activities was $106.3 million, driven by purchases of short-term investment securities totaling $193.7 million[136]. - The net cash provided by financing activities was $55.5 million, with net proceeds of $161.5 million from the issuance of Series A Convertible Preferred Stock[137]. - The company experienced a net cash inflow from operating assets and liabilities of $0.7 million, mainly due to decreases in inventory and accounts receivable[135]. - The cash outflow of $205.0 million in repayment of the SLR Term Loan included final payment and termination fees[137]. Market Conditions - The company has observed a trend of customers deferring purchases due to rising interest rates and cautious capital spending, impacting bookings and revenues[112]. - Macroeconomic factors, including inflation and labor costs, pose risks to the company's operations and customer purchasing decisions[111]. - The company is actively monitoring potential impacts from ongoing investigations into tariffs and trade relations that could affect its supply chain and cost structure[115]. Accounting and Estimates - There have been no new or significant changes in critical accounting estimates compared to the previous annual report[139]. - The company reported a provision for credit losses of $0.7 million during the nine months ended September 30, 2025[135]. - The amortization of premiums on investments amounted to $1.7 million for the nine months ended September 30, 2025[135]. - The company incurred stock-based compensation expense of $11.6 million during the reporting period[135]. - The company’s financial statements are prepared in accordance with U.S. GAAP, requiring estimates and assumptions that may differ from actual results[138].

Revenue Performance - Revenue for Q3 2025 was $29.4 million, a 3% increase from $28.7 million in Q3 2024[6] - Product revenue was $20.6 million, compared to $20.3 million in Q3 2024, while service and other revenue increased by 6% to $8.9 million[6] - Recurring revenue from Tablo consumables and services was $21.1 million, slightly up from the prior-year period[10] Profitability - Gross profit reached $11.6 million, an 18% increase from $9.8 million in Q3 2024, with a gross margin of 39.4%[7] - For the three months ended September 30, 2025, total gross profit was $11,590,000, representing a 17.9% increase from $9,820,000 in the same period of 2024[22] - The gross margin for product revenue improved to 45.7% in Q3 2025 from 43.2% in Q3 2024, while total gross margin increased to 39.4% from 34.3%[22] Expenses and Losses - Operating expenses declined by 19% to $27.4 million from $33.7 million in Q3 2024, driven by cost reduction efforts[8] - Net loss for Q3 2025 was $17.8 million, an improvement from a net loss of $27.9 million in the same period last year[9] - Stock-based compensation expense for the nine months ended September 30, 2025, totaled $11,553,000, down from $24,411,000 in the same period of 2024[22] - The company reported a GAAP net loss of $17,838,000 for Q3 2025, compared to a net loss of $27,940,000 in Q3 2024[28] - Non-GAAP net loss per share, diluted, was $(0.69) for Q3 2025, an improvement from $(5.80) in Q3 2024[27] Cash and Investments - Total cash and short-term investments as of September 30, 2025, was $182 million[11] - Cash and cash equivalents decreased to $36,437,000 as of September 30, 2025, from $124,014,000 as of December 31, 2024[24] - The company experienced a net cash used in operating activities of $(36,806,000) for the nine months ended September 30, 2025, compared to $(99,815,000) in the same period of 2024[26] - Total current assets as of September 30, 2025, were $265,367,000, slightly up from $258,221,000 as of December 31, 2024[24] - The total cash, including restricted cash, cash equivalents, and investment securities as of September 30, 2025, was $182,000,000, compared to $179,000,000 as of September 30, 2024[26] Guidance and Outlook - The company revised its 2025 revenue guidance to a range of $115 million to $120 million, down from $122 million to $126 million[4] - Non-GAAP gross margin guidance remains unchanged, expected to be in the high-30% range for 2025[12] - The company anticipates using less than $50 million of cash in 2025, compared to over $100 million in 2024[4] Liabilities - Total liabilities decreased to $134,890,000 as of September 30, 2025, from $248,976,000 as of December 31, 2024[24]