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 the second quarter reached $31.4 million, representing a 15% increase compared to the previous year, driven by strong Tableau console sales and consistent utilization [6][20] - Recurring revenue from consumables and services was $22.5 million, an 11% increase year-over-year [6][21] - Non-GAAP gross margin expanded to 38.4%, up more than one percentage point from last year [7][22] - Non-GAAP operating loss was $13.4 million, a 36% reduction from the prior year [24] - Net loss for the quarter was $18.5 million, down 46% from the previous year [24] Business Line Data and Key Metrics Changes - Product revenue was $23.1 million, with console revenue at $8.9 million and consumable revenue at $14.2 million, marking a 20% increase from the prior year [21] - Consumable revenue saw a 17% increase, contributing to the overall growth in recurring revenue [6] Market Data and Key Metrics Changes - Tableau is now utilized in over 900 acute and subacute sites across the United States, indicating strong market penetration [8] - A new enterprise agreement was secured with one of the largest national health systems, potentially placing hundreds of Tableau consoles [8] Company Strategy and Development Direction - The company aims to grow console revenue, expand gross margin, and drive towards profitability, with a focus on insourcing dialysis services [17][18] - The commercial organization has undergone significant transformation, enhancing sales processes and team capabilities to better target enterprise-level opportunities [11][72] - The company is optimistic about the market opportunity, particularly in the acute care sector, where penetration remains low [56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the pipeline and market demand, despite monitoring potential impacts from federal funding cuts in healthcare [13] - The company is on track to achieve cash flow breakeven and profitability, with a goal to use less than $50 million in cash for the year [15][28] Other Important Information - The company has produced over 1.5 million Tableau disposable treatments since bringing production in-house in 2023, which is crucial for quality and cost reduction [14] - The Chief Nursing Officer's role will focus on facilitating the transition from outsourcing to insourcing dialysis services, emphasizing the importance of nursing leadership in the sales process [50] Q&A Session Summary Question: Guidance and momentum for the second half of the year - Management acknowledged strong performance in the first half and expressed optimism for the second half, citing improvements in commercial transformation and high console utilization [32][36] Question: Status of Salesforce transition and productivity - Management confirmed that the commercial organization has significantly improved, with new tools and processes enhancing sales effectiveness [39][40] Question: Sustainability of deal strength and ASPs - Management indicated that strong ASPs are supported by high uptake of new products and a diversified pipeline, with enterprise agreements expected to drive future growth [45][48] Question: Focus of the new Chief Nursing Officer - The Chief Nursing Officer will work closely with the sales organization to facilitate the transition to insourcing, leveraging her experience to guide potential customers [50] Question: Outlook for cash burn into 2026 - Management provided limited guidance but indicated that cash burn may increase as production ramps up, with more detailed guidance expected later in the year [75]

Financial Data and Key Metrics Changes - Revenue for the first quarter was $29.8 million, reflecting a 6% growth from the first quarter of the previous year [5][21] - Recurring revenue grew 20% year-over-year to $22.7 million, indicating strong utilization of the installed base [6][22] - Non-GAAP gross margin was 37.6%, an increase of 650 basis points from 31.1% in the prior year [22] - Non-GAAP operating loss was $13.4 million, 40% lower than the previous year, marking the lowest level since the company went public [24][25] Business Line Data and Key Metrics Changes - Console revenue grew 23% sequentially, reaching $7.1 million, while consumable revenue was $14.2 million, contributing to a total product revenue of $21.3 million, which grew 4% year-over-year [21][22] - Service and other revenue increased by 9% to $8.5 million compared to the prior year [22] Market Data and Key Metrics Changes - The company saw continued penetration within acute care providers, with significant adoption of Tableau in various healthcare settings [8][10] - Tableau's utilization frequency remains high, contributing to a strong recurring revenue stream [6][14] Company Strategy and Development Direction - The company aims to grow console revenue, increase gross margin, and drive towards profitability, with a clear path outlined for 2025 [18][19] - The focus remains on expanding the installed base and leveraging operational efficiencies to enhance profitability [13][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the pipeline and market demand, noting that insourcing with Tableau continues to provide compelling financial and clinical benefits [11][12] - Despite potential macroeconomic headwinds, the company has not observed any negative impacts on hospital capital spending [48][49] Other Important Information - The company successfully completed a recapitalization and is seeking shareholder approval for an increase in stock options to attract and retain talent [13] - Tableau's competitive advantages are reinforced by its integration with major healthcare data systems, enhancing its value proposition [16] Q&A Session Summary Question: Details on the turnaround in the console selling process - Management noted significant progress in the sales transformation and indicated that the team is becoming more proficient, with strong customer demand observed [30][31][35] Question: Selling process in the subacute space - The sales process is similar to acute care, focusing on cost reduction and improved clinical care, with successful standardization efforts noted [40][42] Question: Risks of macro headwinds affecting hospitals - Management confirmed that there have been no observed changes in hospital capital spending and emphasized the tangible savings provided by Tableau [47][49] Question: Guidance adjustments and revenue growth expectations - Management remains conservative in guidance despite a strong quarter, expecting revenue to build throughout the year [62][66] Question: Impact of recent changes on business momentum - Management acknowledged that recent changes, including a reverse stock split, have helped improve business momentum [70] Question: Console installed base growth - Console revenue increased by 23% from the previous quarter, with strong performance in treatments noted [71]