SAN JOSE, Calif., Nov. 04, 2026 (GLOBE NEWSWIRE) — Outset Medical, Inc. (Nasdaq: OM), a medical technology company pioneering a first-of-its-kind technology to improve clinical outcomes in dialysis with less cost and complexity, today reported financial results for the third quarter ended September 30, 2026.

Third Quarter and Recent Highlights

  • Net revenue totaled $33.6 million, an increase of 14% compared to the prior-year period and an increase of 6% sequentially.
  • Console revenue of $10.5 million, an increase of 26% compared to the prior-year period and an increase of 10% sequentially.
  • Recurring revenue, consisting of Tablo consumables and services, was $23.1 million, an increase of 10% compared to the prior-year period and an increase of 4% sequentially.
  • Gross margin expanded to 40.7%, an increase of 130 basis points compared to the prior-year period.
  • Net cash used during the quarter was $10.3 million, resulting in a total cash, cash equivalents, short-term investments and restricted cash position of $140.7 million at quarter end.

“Third-quarter results demonstrated continued progress against our strategic priorities and solid sales execution across both capital and recurring revenue,” said Leslie Trigg, Chair and Chief Executive Officer. “Consistently strong customer satisfaction and retention are expanding adoption of Tablo across our existing customer base and fueling new insourced dialysis partnerships with leading health systems. Advancing our mission to help providers nationwide improve the cost, complexity and clinical outcomes of dialysis continues to position Outset well for sustained long-term growth and value creation.”

Third Quarter 2026 Financial Results

Revenue for the third quarter was $33.6 million, an increase of 14% compared to $29.4 million in the third quarter of 2025. Product revenue of $23.7 million increased 15% from $20.6 million in the third quarter of 2025. Service and other revenue of $9.9 million increased 12% compared to $8.9 million in the third quarter of 2025. Recurring revenue from the sale of Tablo cartridges and service was $23.1 million compared to $21.1 million in the prior-year period.

Gross profit of $13.7 million increased 18% from $11.6 million in the third quarter of 2025. Gross margin was 40.7%, compared to 39.4% in the third quarter of 2025. On a non-GAAP basis, gross margin reached 40.8%, as compared to 39.9% in the third quarter of 2025. Product gross profit was $10.5 million compared to $9.4 million in the third quarter of 2025. Product gross margin was 44.2% compared to 45.7% in the third quarter of 2025. Service and other gross profit was $3.2 million, compared to $2.2 million in the third quarter of 2025. Service and other gross margin was 32.4% compared to 24.8% in the third quarter of 2025.

Operating expenses of $25.9 million decreased 5% from the same period in 2025. Research and development (R&D) expenses were $5.9 million, sales and marketing (S&M) expenses were $11.7 million, and general and administrative (G&A) expenses were $8.3 million. This compared to operating expenses of $27.4 million in the third quarter of 2025, including R&D expenses of $5.4 million, S&M expenses of $13.6 million, and G&A expenses of $8.5 million.

Excluding stock-based compensation expense and litigation charges, non-GAAP operating expenses were $24.2 million, including R&D expenses of $5.5 million, S&M expenses of $11.6 million, and G&A expenses of $7.0 million.

Net loss was $14.7 million compared to net loss of $17.8 million in the third quarter of 2025. On a non-GAAP basis, net loss was $12.9 million compared to net loss of $12.4 million in the third quarter of 2025.

Total cash, including restricted cash, cash equivalents and short-term investments, was $140.7 million as of September 30, 2026.

2026 Financial Guidance

Outset reiterated its 2026 revenue guidance of $125 million to $130 million and continues to expect non-GAAP gross margin to be in the low-40% to mid-40% range for the full year.

Conference Call Details

Outset will host a conference call today, November 4, 2026, at 1:30 p.m. PT / 4:30 p.m. ET to discuss third quarter results. Those interested in accessing the live or archived version of the conference call can visit the “Investors” section of the Outset Medical website at https://investors.outsetmedical.com.

Those interested in participating in the call via telephone are encouraged to register more than 15 minutes before the start of the call via the following link: https://register-conf.media-server.com/register/BIf6886fe8d04a44bbbb5a5da8650079ac. Once registered, participants will receive a dial-in number and unique PIN to join the call.

Use of Non-GAAP Financial Measures

The Company may report non-GAAP results for gross profit/loss, gross margin, operating expenses, operating margins, net income/loss, basic and diluted net income/loss per share, other income/loss, and cash flows. These non-GAAP financial measures are in addition to, and not a substitute for or superior to, financial measures calculated in accordance with GAAP. As listed in the itemized reconciliations between GAAP and non-GAAP financial measures included in this press release, the Company’s GAAP financial measures include stock-based compensation expense and litigation charges incurred outside of the ordinary course of business in connection with the stockholder class action and relative derivative lawsuits, as disclosed in the Company’s latest annual and quarterly reports. Stock-based compensation is a non-cash expense. In addition, litigation charges related to the above-described matters are excluded because they constitute non-routine litigation costs, arise outside of the ordinary course of the Company’s business, and are not indicative of its recurring operating results or underlying performance trends. As such, management has excluded the effects of these items in non-GAAP measures to assist investors in analyzing and assessing past and future operating performance and period-to-period comparisons. There are limitations related to the use of non-GAAP financial measures because they are not prepared in accordance with GAAP, may exclude significant expenses required by GAAP to be recognized in the Company’s financial statements, and may not be comparable to non-GAAP financial measures used by other companies. The Company encourages investors to carefully consider its results under GAAP, as well as its supplemental non-GAAP information and the reconciliation between these presentations, to more fully understand its business. Reconciliations between GAAP and non-GAAP results are presented in Appendix A of this press release.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements are based on management’s current assumptions and expectations of future events and trends, which affect or may affect the Company’s business, strategy, operations or financial performance, and actual results and other events may differ materially from those expressed or implied in such statements due to numerous risks and uncertainties. Forward-looking statements include, but are not limited to, statements about the Company’s possible or assumed future results of operations and financial position, including expectations regarding projected revenues, gross margin, operating expenses, capital expenditures, cash use, cash burn, cash position, profitability and outlook; statements about the sufficiency of the Company’s cash balances through cash-flow breakeven; statements regarding the anticipated impacts and benefits of the Company’s cost reduction actions and restructurings; statements regarding the evolution of the Company’s commercial model, including changes to its sales organization and incentives, and the expected benefits thereof; statements regarding anticipated customer orders, refreshes, expansions or other business opportunities, including the expected closing, timing, size, scope and benefits thereof; statements regarding the Company’s overall business strategy, plans and objectives of management; statements regarding the anticipated launch and timing of product enhancements and new features, as well as new or expanded services, and the expected benefits, performance, and impact thereof; the Company’s expectations regarding the market sizes and growth potential for Tablo and the total addressable market opportunities for Tablo, including the potential impact of healthcare policies, programs and initiatives on patient access to and adoption of Tablo; continued execution of the Company’s initiatives designed to expand gross margins; the Company’s ability to respond to and resolve any reports, observations or other actions by the Food and Drug Administration or other regulators in a timely and effective manner; as well as the Company’s expectations regarding the impact of macroeconomic factors (including changes in tariff or trade laws and policies) on the Company, its customers and suppliers. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Factors that could cause actual results or other events to differ materially from those contemplated in this press release can be found in the Risk Factors section of the Company’s public filings with the Securities and Exchange Commission, including its latest annual and quarterly reports. Because forward-looking statements are inherently subject to risks and uncertainties, you should not rely on these forward-looking statements as predictions of future events. These forward-looking statements speak only as of their date and, except to the extent required by law, the Company undertakes no obligation to update these statements, whether as a result of any new information, future developments or otherwise.

About Outset Medical, Inc.

Outset is a medical technology company transforming the dialysis experience across the continuum of care with a first-of-its-kind technology. The Tablo® Hemodialysis System, FDA-cleared for use from hospital to home, is trusted by more than 1,000 U.S. healthcare facilities and has enabled millions of treatments delivered by thousands of nurses. Designed to reduce the cost and complexity of dialysis, Tablo combines water purification and on-demand dialysate production into a single, integrated system that connects seamlessly with Electronic Medical Record systems and a proprietary data analytics platform. This enterprise solution empowers providers to develop an in-house dialysis program where they are in control – enabling better operational, clinical, and financial outcomes. Outset is redefining what’s possible in kidney care through innovation, scale, and a relentless commitment to improving the lives of patients and the professionals who care for them. For more information, visit www.outsetmedical.com.

Investor Contact

Investors@outsetmedical.com

 
Outset Medical, Inc.
Condensed Statements of Operations
(in thousands, except per share amounts)
(unaudited)
 
    Three Months Ended       Nine Months Ended    
    September 30,       September 30,    
    2026       2025       2026       2025    
Revenue:                                
Product revenue   $ 23,694       $ 20,558       $ 64,152       $ 64,934    
Service and other revenue     9,902         8,873         28,942         25,668    
Total revenue     33,596         29,431         93,094         90,602    
Cost of revenue:                                
Cost of product revenue(2)     13,233         11,169         33,865         33,962    
Cost of service and other revenue     6,692         6,672         20,181         22,117    
Total cost of revenue     19,925         17,841         54,046         56,079    
Gross profit(1)     13,671         11,590         39,048         34,523    
Gross margin(1)     40.7   %     39.4   %     41.9   %     38.1   %
Operating expenses:                                
Research and development(2)     5,898         5,376         16,966         16,180    
Sales and marketing(2)     11,736         13,550         37,167         41,482    
General and administrative(2)(3)     8,306         8,477         29,779         25,938    
Total operating expenses     25,940         27,403         83,912         83,600    
Loss from operations     (12,269 )       (15,813 )       (44,864 )       (49,077 )  
Interest income and other income, net     1,241         1,855         4,122         5,734    
Interest expense     (3,505 )       (3,476 )       (10,316 )       (10,511 )  
Loss on extinguishment of term loan     —         —         —         (7,685 )  
Loss before provision for income taxes     (14,533 )       (17,434 )       (51,058 )       (61,539 )  
Provision for income taxes     153         404         590         623    
Net loss   $ (14,686 )     $ (17,838 )     $ (51,648 )     $ (62,162 )  
                                 
Net loss per share, basic and diluted   $ (0.78 )     $ (1.00 )     $ (2.78 )     $ (4.37 )  
Shares used in computing net loss per share, basic and diluted     18,831         17,783         18,609         14,228    

(1)Gross profit and gross margin by source consisted of the following:    
    Three Months Ended       Nine Months Ended    
    September 30,       September 30,    
    2026       2025       2026       2025    
Gross profit                                
Product revenue   $ 10,461       $ 9,389       $ 30,287       $ 30,972    
Service and other revenue     3,210         2,201         8,761         3,551    
Total gross profit   $ 13,671       $ 11,590       $ 39,048       $ 34,523    
Gross margin                                
Product revenue     44.2   %     45.7   %     47.2   %     47.7   %
Service and other revenue     32.4   %     24.8   %     30.3   %     13.8   %
Total gross margin     40.7   %     39.4   %     41.9   %     38.1   %
                                 
(2)Includes stock-based compensation expense as follows:    
    Three Months Ended       Nine Months Ended    
Stock-based compensation expense   September 30,       September 30,    
    2026       2025       2026       2025    
Cost of revenue   $ 45       $ 135       $ 233       $ 438    
Research and development     363         1,117         1,777         2,426    
Sales and marketing     166         1,174         1,040         2,586    
General and administrative     1,114         2,654         4,787         6,103    
Total stock-based compensation expense   $ 1,688       $ 5,080       $ 7,837       $ 11,553    
                                 
(3)Includes non-ordinary course litigation charges related to stockholder class action and related derivative lawsuits as follows:    
    Three Months Ended       Nine Months Ended    
Litigation charges   September 30,       September 30,    
    2026       2025       2026       2025    
General and administrative   $ 143         343       $ 810         343    
Total litigation charges   $ 143         343       $ 810         343    
                                 

 
Outset Medical, Inc.
Condensed Balance Sheets
(in thousands, except per share amounts)
 
    September 30,     December 31,  
    2026     2025  
    (unaudited)        
Assets            
Current assets:            
Cash and cash equivalents   $ 33,942     $ 35,006  
Short-term investments     102,685       133,940  
Accounts receivable, net     30,407       28,329  
Inventories     44,989       47,609  
Prepaid expenses and other current assets     4,200       5,999  
Total current assets     216,223       250,883  
Restricted cash     4,121       3,829  
Property and equipment, net     3,541       4,670  
Operating lease right-of-use assets     4,435       4,797  
Finance lease right-of-use assets     1,642       —  
Other assets     447       317  
Total assets   $ 230,409     $ 264,496  
Liabilities and stockholders’ equity            
Current liabilities:            
Accounts payable   $ 4,292     $ 554  
Accrued compensation and related benefits     9,965       10,735  
Accrued expenses and other current liabilities     13,349       9,433  
Accrued warranty liability     1,023       1,374  
Deferred revenue, current     13,468       13,795  
Operating lease liabilities, current     1,755       1,739  
Finance lease liabilities, current     601       —  
Total current liabilities     44,453       37,630  
Deferred revenue     221       406  
Operating lease liabilities     2,985       3,271  
Finance lease liabilities     1,068       —  
Term loan     98,368       96,237  
Total liabilities     147,095       137,544  
Commitments and contingencies            
Stockholders’ equity:            
Preferred Stock, $0.001 par value; 5,000 shares authorized, and no shares issued and outstanding as of September 30, 2026 and December 31, 2025     —       —  
Common stock, $0.001 par value; 300,000 shares authorized as of September 30, 2026 and December 31, 2025; 18,873 and 18,169 shares issued and outstanding as of September 30, 2026 and December 31, 2025, respectively     19       18  
Additional paid-in capital     1,306,563       1,298,138  
Accumulated other comprehensive (loss) income     (244 )     172  
Accumulated deficit     (1,223,024 )     (1,171,376 )
Total stockholders’ equity     83,314       126,952  
Total liabilities and stockholders’ equity   $ 230,409     $ 264,496  

 
Outset Medical, Inc.
Condensed Statements of Cash Flows
(in thousands)
(unaudited)
 
    Nine Months Ended September 30,  
    2026     2025  
Net cash used in operating activities   $ (32,858 )   $ (36,806 )
Net cash provided by (used in) investing activities     31,729       (106,274 )
Net cash provided by financing activities     357       55,503  
Net decrease in cash, cash equivalents and restricted cash     (772 )     (87,577 )
Cash, cash equivalents and restricted cash at beginning of the period     38,835       127,343  
Cash, cash equivalents and restricted cash at end of the period(1)   $ 38,063     $ 39,766  
             
             
(1) The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the accompanying condensed balance sheets that sum to the total of the amounts shown in the accompanying condensed statements of cash flows (in thousands):  
    September 30,  
    2026     2025  
Cash and cash equivalents   $ 33,942     $ 36,437  
Restricted cash     4,121       3,329  
Total cash, cash equivalents and restricted cash*   $ 38,063     $ 39,766  
             
* The total cash, including restricted cash, cash equivalents and investment securities as of September 30, 2026 was $140.7 million; compared to $182.0 million as of September 30, 2025.  

Appendix A

Outset Medical, Inc.
Results of Operations – Non-GAAP
(in thousands, except per share amounts)
(unaudited)
 
Reconciliation between GAAP and non-GAAP net loss per share:    
    Three Months Ended       Nine Months Ended    
    September 30,       September 30,    
    2026       2025       2026       2025    
GAAP net loss per share, diluted   $ (0.78 )     $ (1.00 )     $ (2.78 )     $ (4.37 )  
Stock-based compensation expense     0.09         0.29         0.42         0.81    
Litigation charges     0.01         0.02         0.04         0.02    
Non-GAAP net loss per share, diluted   $ (0.68 )     $ (0.69 )     $ (2.32 )     $ (3.54 )  
                                 
Reconciliation between GAAP and non-GAAP net loss:    
    Three Months Ended       Nine Months Ended    
    September 30,       September 30,    
    2026       2025       2026       2025    
GAAP net loss, diluted   $ (14,686 )     $ (17,838 )     $ (51,648 )     $ (62,162 )  
Stock-based compensation expense     1,688         5,080         7,837         11,553    
Litigation charges     143         343         810         343    
Non-GAAP net loss, diluted   $ (12,855 )     $ (12,415 )     $ (43,001 )     $ (50,266 )  
                                 
Reconciliation between GAAP and non-GAAP results of operations:
    Three Months Ended       Nine Months Ended    
    September 30,       September 30,    
    2026       2025       2026       2025    
GAAP gross profit   $ 13,671       $ 11,590       $ 39,048       $ 34,523    
Stock-based compensation expense     45         135         233         438    
Non-GAAP gross profit   $ 13,716       $ 11,725       $ 39,281       $ 34,961    
                                 
GAAP gross margin     40.7   %     39.4   %     41.9   %     38.1   %
Stock-based compensation expense     0.1         0.5         0.3         0.5    
Non-GAAP gross margin     40.8   %     39.9   %     42.2   %     38.6   %
                                 
GAAP research and development expense   $ 5,898       $ 5,376       $ 16,966       $ 16,180    
Stock-based compensation expense     (363 )       (1,117 )       (1,777 )       (2,426 )  
Non-GAAP research and development expense   $ 5,535       $ 4,259       $ 15,189       $ 13,754    
                                 
GAAP sales and marketing expense   $ 11,736       $ 13,550       $ 37,167       $ 41,482    
Stock-based compensation expense     (166 )       (1,174 )       (1,040 )       (2,586 )  
Non-GAAP sales and marketing expense   $ 11,570       $ 12,376       $ 36,127       $ 38,896    
                                 
GAAP general and administrative expense   $ 8,306       $ 8,477       $ 29,779       $ 25,938    
Stock-based compensation expense     (1,114 )       (2,654 )       (4,787 )       (6,103 )  
Litigation charges     (143 )       (343 )       (810 )       (343 )  
Non-GAAP general and administrative expense   $ 7,049       $ 5,480       $ 24,182       $ 19,492    
                                 
GAAP total operating expense   $ 25,940       $ 27,403       $ 83,912       $ 83,600    
Stock-based compensation expense     (1,643 )       (4,945 )       (7,604 )       (11,115 )  
Litigation charges     (143 )       (343 )       (810 )       (343 )  
Non-GAAP total operating expense   $ 24,154       $ 22,115       $ 75,498       $ 72,142    


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Outset Medical, Inc.