Outset Medical Reports Third-Quarter Results

Core Insights - Outset Medical, Inc. has revised its 2025 revenue guidance to a range of $115 million to $120 million, down from a previous estimate of $122 million to $126 million [3][11] - The company reported a third-quarter revenue of $29.4 million, reflecting a 3% increase compared to $28.7 million in the same quarter of 2024 [5][9] - Operating expenses decreased by 19% year-over-year, totaling $27.4 million, as the company streamlined operations to accelerate its path to profitability [7][9] Financial Performance - Product revenue for the third quarter was $20.6 million, slightly up from $20.3 million in the prior year, while service and other revenue increased by 6% to $8.9 million [5][9] - Gross profit rose to $11.6 million, an 18% increase from $9.8 million in the third quarter of 2024, with a gross margin of 39.4%, up from 34.3% [6][9] - The net loss for the quarter was $17.8 million, an improvement from a net loss of $27.9 million in the same period last year [8][9] Cash Flow and Guidance - The company expects to use less than $50 million in cash for 2025, a significant reduction from over $100 million used in 2024 [3][11] - As of September 30, 2025, total cash, including restricted cash and short-term investments, was $182 million [10][25] - The non-GAAP gross margin guidance remains unchanged, still expected to be in the high-30% range [3][11] Market Demand and Strategy - Hospital demand for Outset's technology is growing due to its clinical, operational, and financial benefits [4] - The company is in the final stages of closing several large sales opportunities, which are now expected to finalize in the fourth quarter of 2025 and early 2026 [4]