Outset Medical(OM) - 2025 Q2 - Quarterly Results

Overview of Second Quarter 2025 Performance Outset Medical achieved strong Q2 2025 financial growth and operational milestones Financial Performance Outset Medical reported strong Q2 2025 financial results, with revenue up 15% and net loss reduced Q2 2025 Key Financial Metrics (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $31.4M | $27.4M | +15% | | Product Revenue | $23.1M | $19.2M | +20% | | Service & Other Revenue | $8.3M | $8.2M | +2% | | Gross Profit | $11.9M | $9.8M | +21% | | Gross Margin | 37.8% | 35.7% | +210 bps | | Operating Expenses | $28.7M | $40.5M | -29% | | Net Loss | ($18.5M) | ($34.5M) | +46% | - Recurring revenue from Tablo cartridges and services grew 11% year-over-year to $22.5 million, primarily driven by a 17% increase in consumable revenue[4][9] - The company significantly reduced its cash usage, using approximately 60% less cash in the first half of 2025 compared to the same period in 2024[9] Operational Highlights The company achieved key commercial milestones, including a new enterprise agreement for Tablo access - Signed a new enterprise agreement with a major national health system, providing Tablo access to over 100 additional facilities[9] - The Tablo system is now utilized in over 900 acute and sub-acute care locations in the United States[9] 2025 Financial Guidance Outset Medical raised its full-year 2025 revenue guidance to $122M-$126M, reflecting positive outlook Full-Year 2025 Guidance | Metric | Updated 2025 Guidance | Previous 2025 Guidance | | :--- | :--- | :--- | | Revenue | $122M - $126M | $115M - $125M | | Non-GAAP Gross Margin | High-30% range (reaffirmed) | N/A | | Cash Usage | Less than $50M (reaffirmed) | N/A | Financial Statements This section presents the company's detailed financial statements for the reported periods Condensed Statements of Operations Q2 2025 total revenue grew to $31.4M, with gross profit increasing and net loss significantly improving Condensed Statements of Operations (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Total revenue | $31,419 | $27,388 | | Gross profit | $11,867 | $9,782 | | Total operating expenses | $28,732 | $40,546 | | Loss from operations | $(16,865) | $(30,764) | | Net loss | $(18,541) | $(34,454) | - Product gross margin improved to 48.9% in Q2 2025 from 45.1% in Q2 2024, while service and other gross margin declined to 6.9% from 13.6%[18] Condensed Balance Sheets As of June 30, 2025, total assets were $288.8M, with cash and investments at $184.1M Condensed Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $39,559 | $124,014 | | Short-term investments | $144,531 | $34,671 | | Total current assets | $275,578 | $258,221 | | Total assets | $288,801 | $275,795 | | Term loans | $94,814 | $197,375 | | Total liabilities | $134,017 | $248,976 | | Total stockholders' equity | $154,784 | $26,819 | Condensed Statements of Cash Flows Net cash used in operating activities for H1 2025 was significantly reduced to $(30.5)M Cash Flow Summary for Six Months Ended June 30 (in thousands) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(30,486) | $(79,247) | | Net cash used in investing activities | $(109,241) | $(20,090) | | Net cash provided by financing activities | $55,272 | $68,687 | | Net decrease in cash, cash equivalents and restricted cash | $(84,455) | $(30,650) | Non-GAAP Financial Measures This section reconciles GAAP to non-GAAP financial results, adjusting for non-cash items Reconciliation of GAAP to Non-GAAP Results Q2 2025 non-GAAP net loss was $15.0M, compared to a GAAP net loss of $18.5M - Non-GAAP measures are used to assist investors in analyzing operating performance by excluding items like stock-based compensation and severance charges, which management believes are not reflective of current operating performance[12] GAAP vs. Non-GAAP Reconciliation for Q2 2025 (in thousands) | Metric | GAAP | Adjustments | Non-GAAP | | :--- | :--- | :--- | :--- | | Gross Profit | $11,867 | $186 | $12,053 | | Gross Margin | 37.8% | +0.6% | 38.4% | | Operating Expenses | $28,732 | $(3,310) | $25,422 | | Net Loss | $(18,541) | $3,496 | $(15,045) | Company Information and Forward-Looking Statements This section provides company information and disclosures on forward-looking statements About Outset Medical Outset Medical simplifies dialysis with its FDA-cleared Tablo® Hemodialysis System for all care settings - The company's core technology is the Tablo® Hemodialysis System, an FDA-cleared device designed to simplify the dialysis process for both patients and providers in any care setting[14] Forward-Looking Statements This report contains forward-looking statements subject to risks and uncertainties detailed in SEC filings - The report includes projections on revenue, gross margin, cash use, and profitability, which are subject to risks and uncertainties detailed in the company's SEC filings[13]