Outset Medical (OM) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue was $31.6 million, up 1% year-over-year and 14% sequentially, with the highest number of new site implementations in several years.

• Gross margin expanded to 42.2%, up over 380 basis points year-over-year, driven by higher service revenue margins and cost reduction initiatives.

• Net loss for Q2 2026 was $18.0 million, improved from $18.5 million in Q2 2025; non-GAAP net loss was $14.7 million.

• Secured a $40 million, three-year refresh agreement with HCA Healthcare, enhancing backlog visibility and long-term revenue opportunities.

• Expanded customer base to all top 10 health systems, post-acute providers, and 30% of top 100 IDNs.

Financial highlights

• Product revenue was $21.9 million (down 5% YoY), service/other revenue $9.7 million (up 17% YoY), and recurring revenue from consumables/services was $22.1 million (flat YoY).

• Gross profit for Q2 2026 was $13.3 million, up 12% year-over-year.

• Non-GAAP operating expenses were $25.8 million, up 1% YoY; operating loss improved 7% YoY to $12.4 million.

• Net loss per share was $(0.97); non-GAAP net loss per share was $(0.80).

• Ended the quarter with $151 million in cash, cash equivalents, short-term investments, and restricted cash.

Outlook and guidance

• Full-year 2026 revenue guidance reiterated at $125–$130 million, representing 5–9% growth over 2025.

• Most revenue growth expected in Q3 and Q4, with Q4 anticipated to be the strongest due to seasonality in capital sales.

• Non-GAAP gross margin expected to remain in the low- to mid-40% range for the full year.

• Guidance supported by a strong commercial pipeline and contracted backlog from the HCA agreement.

• Management expects continued operating losses in the near term as investments are made to support anticipated growth.