Outset Medical FY Conference Summary Company Overview - Outset Medical operates in the healthcare sector, focusing on dialysis technology with a highly differentiated product, Tablo, which has seen limited competition for decades [5][34] - Since its IPO in 2020, Outset Medical has expanded its installed base to approximately 6,000 consoles across over 900 hospitals and healthcare facilities [5][10] Financial Performance - The company reported a product revenue growth of 20% year-over-year and treatment utilization growth of 17% for Q2 [10] - Gross margin improved from a negative margin at IPO to approximately 38.4% in Q2 2025, with a product gross margin nearing 50% [6][17] - Operating expenses were reduced by about $80 million, positioning the company for near-term profitability [6][50] Business Model and Revenue Streams - Outset Medical's business model includes capital sales and recurring revenue, generating approximately $20,000 annually per console in acute settings and $15,000 in home settings [11][12] - The company expects to exit Q4 2025 with over $100 million in recurring revenue, which is characterized as high margin and predictable [11][12] - The recurring revenue model is driven by disposables and service, with a service reattach rate exceeding 95% [12] Market Dynamics - The acute and post-acute market is estimated at $2.5 billion, while the home market exceeds $9 billion [11] - The company is contracted with all major players in the critical care and long-term acute care markets, indicating strong market penetration potential [23] - The value proposition of insourcing dialysis with Tablo can lead to a 50% to 75% reduction in costs for hospitals [14][25] Competitive Landscape - Outset Medical faces competition from traditional behavior change rather than direct competitors, as many hospitals are accustomed to outsourcing dialysis [35] - The company positions itself as a change management partner, providing not just technology but also support in transitioning to insourced services [36] Utilization and Growth Strategy - Treatment utilization remains consistent, with approximately four to five treatments per week per console in acute settings and three to four in home settings [22] - The company aims to integrate home dialysis programs with acute care customers, addressing the growing need for home dialysis options [26] Sales Transformation - Outset Medical has undergone a sales transformation to better engage with larger health systems, focusing on enterprise-level sales processes [41][42] - The sales cycle remains stable at 9 to 12 months, with no observed elongation despite market conditions [46] Profitability and Future Outlook - The company is targeting profitability with a commitment to reducing cash burn from over $100 million in 2024 to under $50 million in 2025 [51] - Outset Medical anticipates continued growth in 2026 and beyond, aiming to maintain a high-growth trajectory within the medtech sector [54] Key Takeaways - The strength of the recurring revenue model, currently at approximately 65% of total revenue, is a significant asset for Outset Medical [60] - The potential for growth in the acute care space and the home dialysis market is substantial, with a focus on expanding market share and enhancing service delivery [61] Conclusion - Outset Medical is positioned as a leader in the dialysis market with a strong growth trajectory, innovative technology, and a robust business model that emphasizes recurring revenue and customer retention [61]

Core Insights - Northwest Kidney Centers collaborates with Outset Medical to enhance access to home hemodialysis through the integration of the Tablo Hemodialysis System [1][2][3] - The partnership aims to improve patient independence and quality of life by providing an intuitive and user-friendly dialysis solution [2][3][4] Company Overview - Northwest Kidney Centers is a nonprofit organization established in 1962, recognized as the first outpatient dialysis provider and currently the eighth-largest in the U.S., serving over 2,000 patients annually [5][6] - Outset Medical is a medical technology company focused on transforming the dialysis experience, with the Tablo system being FDA-cleared for use from hospital to home [7][8] Product Features - The Tablo Hemodialysis System operates using standard tap water and electricity, simplifying the dialysis process and eliminating the need for complex infrastructure [2][3] - It features a touchscreen interface, automated setup, and cloud connectivity, making it accessible for both patients and healthcare providers [2][8] Impact on Patient Care - The collaboration is expected to empower patients by providing a more sustainable and easier-to-learn dialysis option, aligning with modern lifestyles [3][4] - Patients who participated in the pilot phase reported increased engagement and confidence in their treatment due to the system's intuitive design [2][3]

Company Overview - Outset Medical, Inc. is a medical technology company focused on transforming the dialysis experience with innovative technology [3] - The company has developed the Tablo Hemodialysis System, which is FDA-cleared for use in various healthcare settings, from hospitals to home [3] - Tablo integrates water purification and on-demand dialysate production into a single system, enhancing operational efficiency and patient care [3] Market Presence - The Tablo system is trusted by over 1,000 healthcare facilities in the U.S. and has facilitated millions of treatments administered by thousands of nurses [3] - Outset Medical aims to empower healthcare providers to establish in-house dialysis programs, leading to improved operational, clinical, and financial outcomes [3] Upcoming Events - Management will present at the 23rd annual Morgan Stanley Global Healthcare Conference on September 10, 2025, at 7 a.m. Eastern time [1] - A live and archived webcast of the presentation will be available on the company's investor relations website [2]

Company Overview - Outset Medical, Inc. is a medical technology company focused on pioneering technology to reduce the cost and complexity of dialysis [4] - The Tablo Hemodialysis System is a significant technological advancement that simplifies the dialysis experience for patients and providers, allowing for treatment in various settings [4] Leadership Appointment - Brittni McGill has been appointed as the Chief Nursing Officer to enhance strategic outreach and clinical program innovation for the dialysis nursing community [1] - McGill brings 18 years of nursing and hospital executive experience, having previously led acute care clinical services and managed over 1,400 employees [2] Clinical Impact - Under McGill's leadership, a previous initiative in dialysis resulted in a successful treatment rate increase to 98% and a 75% reduction in central line bloodstream infections [2] - The focus of Outset is on improving patient outcomes and operational efficiency in dialysis care [3] Educational Background - McGill is a Doctorate of Nursing Practice candidate and holds a Master's in Nursing Administration and a Bachelor's in Nursing [3]

Company Overview - Outset Medical, Inc. is a medical technology company focused on pioneering technology to reduce the cost and complexity of dialysis [4] - The company's flagship product, the Tablo Hemodialysis System, is FDA cleared for use in various settings, including hospitals and homes, representing a significant advancement in dialysis technology [4] - Tablo integrates water purification and on-demand dialysate production, functioning as a mobile dialysis clinic with two-way wireless data transmission and a proprietary data analytics platform [4] Financial Results Announcement - Outset Medical will release its financial results for the second quarter of 2025 after the market closes on August 6, 2025 [1] - A conference call will be held on the same day at 2:00 p.m. Pacific time (5:00 p.m. Eastern time) to discuss the financial and operating results [2][3] - Participants interested in the conference call must register online to receive dial-in numbers and a unique pin [3]

Market Opportunity - The U S End-Stage Renal Disease (ESRD) market represents $73 billion in annual spending, with Medicare paying $41 billion[13] - Dialysis for ESRD patients accounts for 7% of the entire Medicare budget, while these patients comprise only 1% of the Medicare population[13] - The company estimates a $114 billion U S Total Addressable Market (TAM), including $25 billion for the acute and post-acute market and $89 billion for the home market[35, 38, 65] Tablo System Advantages - Tablo enables potential cost savings of 50% – 80% in acute dialysis, with a potential payback period of less than 1 year[49] - One customer projected net savings of $450,000 in the first year and estimated net savings of $550 per treatment using Tablo[52] - Tablo reduces dialysate preparation time to 0 hours, compared to 16–24 hours per week for historical devices in home care[72, 74] Commercial Traction - The company has trained >10,000 nurses and 1,000 physicians[59] - The company has secured contracts with 10 of the 10 largest subacute providers and 8 of the 8 top national health systems[56, 58] - The company has performed >1,000,000 treatments per year[11] Financial Position - The company estimates a cash position of $210 million entering 2025[90] - The company secured $169 million in gross proceeds from a January 2025 equity financing[90] - The company has recurring revenue of >60%, which is expected to grow over time[85]