Outset Medical (OM) AI Stock Analysis

• Market Cap: $102.99M
• Dividend Yield: N/A
• Average Volume (3M): 1.29M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.69
• Revenue Growth: 4.65%
• EPS Growth: 68.71%
• Country: US
• Employees: 354
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): -0.69
• Shares Outstanding: 18,153,090
• 10 Day Avg. Volume: 455,427
• 30 Day Avg. Volume: 1,293,615
• PEG Ratio: 0.02
• Price to Book (P/B): 2.15
• Price to Sales (P/S): 0.51
• P/FCF Ratio: -0.49
• Enterprise Value/Market Cap: 0.57
• Enterprise Value/Revenue: 0.49
• Enterprise Value/Gross Profit: 1.30
• Enterprise Value/Ebitda: -0.84
• 1Y Price Target: $11.75
• Price Target Upside: 134.06% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: $5.00 ▼(-0.40% Downside)

The score is held back primarily by continued unprofitability and a mixed financial profile despite strong revenue growth and reduced leverage. Technicals are only moderately supportive (better short-term, weak long-term), and valuation is constrained by losses and no dividend. Earnings-call guidance was revised down, partially offset by positive corporate catalysts like FDA clearance and improving cash efficiency.

Positive Factors

Revenue Growth

The increase in Tablo console sales indicates growing demand and market penetration, which can drive long-term revenue growth and strengthen market position.

Improved Margins

Improved gross margins suggest better cost management and operational efficiency, enhancing profitability potential over the long term.

Strong Cash Position

A strong cash position provides financial flexibility to invest in growth opportunities and weather economic uncertainties, supporting long-term stability.

Negative Factors

Leadership Changes

Leadership changes can disrupt sales execution and strategic continuity, potentially affecting revenue growth and market strategy in the medium term.

Revenue Guidance Revision

Lowered revenue guidance reflects challenges in achieving expected growth, which may impact investor confidence and strategic planning.

Deal Closing Challenges

Delays in closing deals can lead to revenue unpredictability and hinder cash flow, affecting financial planning and operational execution.

Outset Medical Business Overview & Revenue Model

Company Description

Outset Medical, Inc., a medical technology company, develops a hemodialysis system for dialysis. It provides the Tablo Hemodialysis System, which comprises a compact console with integrated water purification, on-demand dialysate production, and software and connectivity capabilities for dialysis care in acute and home settings. The company was formerly known as Home Dialysis Plus, Ltd. and changed its name to Outset Medical, Inc. in January 2015. Outset Medical, Inc. was incorporated in 2003 and is headquartered in San Jose, California.

How the Company Makes Money

Outset Medical generates revenue primarily through the sale of its Tablo Hemodialysis Systems, which are sold to hospitals, clinics, and other healthcare facilities. In addition to system sales, the company earns revenue from the consumables required for the Tablo system, such as dialysate and other necessary supplies. This creates a recurring revenue stream as facilities need to continuously purchase these consumables for ongoing patient treatments. The company may also engage in partnerships with healthcare providers and payers, enhancing its market reach and potentially securing additional funding or reimbursement arrangements that further support its revenue generation. Overall, Outset Medical's business model hinges on both the initial sale of its dialysis systems and the ongoing sale of related consumables, supplemented by strategic partnerships that bolster its market position.

Outset Medical Financial Statement Overview

Summary

Strong TTM revenue growth and improving gross margin are offset by ongoing operating losses (negative net/EBIT margins). Balance sheet risk improved materially with very low debt-to-equity, but returns remain negative. Cash burn is improving, yet free cash flow is still negative overall.

Income Statement

Outset Medical's income statement shows a mixed performance. The company has experienced significant revenue growth in the TTM (Trailing-Twelve-Months) with a 64.1% increase, which is a positive indicator. However, profitability remains a challenge with negative net profit margins and EBIT margins, indicating ongoing operational losses. The gross profit margin has improved over time, but the company still struggles to achieve positive net income.

Balance Sheet

The balance sheet reflects a significant reduction in debt levels, improving the debt-to-equity ratio to 0.02 in the TTM from a high of 7.53 in the previous year. However, the return on equity remains negative, indicating that the company is not generating sufficient returns on shareholder investments. The equity ratio is relatively stable, suggesting a balanced asset structure.

Cash Flow

Cash flow analysis reveals some improvements, with a slight decrease in negative free cash flow growth. The operating cash flow to net income ratio indicates that cash outflows are still significant compared to net losses. The free cash flow to net income ratio is slightly above 1, suggesting that the company is managing its cash flow relative to its net income effectively, despite ongoing losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	120.07M	113.69M	130.38M	115.38M	102.60M	49.94M
Gross Profit	45.27M	38.56M	29.00M	17.83M	7.61M	-13.04M
EBITDA	-69.73M	-97.89M	-153.79M	-152.81M	-124.86M	-114.85M
Net Income	-87.80M	-127.98M	-172.80M	-162.96M	-131.94M	-120.70M
Balance Sheet
Total Assets	277.25M	275.80M	313.80M	400.12M	463.46M	403.83M
Cash, Cash Equivalents and Short-Term Investments	178.64M	158.69M	203.32M	287.50M	339.49M	314.87M
Total Debt	3.16M	201.86M	136.19M	103.23M	37.81M	38.60M
Total Liabilities	134.89M	248.98M	190.91M	154.13M	89.38M	75.22M
Stockholders Equity	142.37M	26.82M	122.89M	245.99M	374.08M	328.61M
Cash Flow
Free Cash Flow	-53.91M	-117.22M	-134.81M	-154.05M	-133.37M	-108.12M
Operating Cash Flow	-53.29M	-116.30M	-131.37M	-145.73M	-130.26M	-99.02M
Investing Cash Flow	1.88M	103.94M	83.03M	-66.30M	-142.51M	3.95M
Financing Cash Flow	54.56M	67.87M	43.65M	72.90M	160.15M	385.68M

Outset Medical Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.02
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OM, the sentiment is Negative. The current price of 5.02 is above the 20-day moving average (MA) of 4.79, above the 50-day MA of 4.42, and below the 200-day MA of 12.60, indicating a neutral trend. The MACD of 0.15 indicates Negative momentum. The RSI at 51.02 is Neutral, neither overbought nor oversold. The STOCH value of 30.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OM.

Outset Medical Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ELMD	78 Outperform	$236.87M	31.30	19.02%	―	16.05%	29.48%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
INGN	50 Neutral	$159.90M	-5.84	-13.27%	―	4.68%	55.37%
OM	48 Neutral	$102.99M	-0.39	-92.33%	―	4.65%	68.71%
CVRX	48 Neutral	$197.62M	-3.54	-91.88%	―	18.44%	25.42%
NNOX	47 Neutral	$204.04M	-3.41	-34.75%	―	15.19%	-3.32%
ARAY	44 Neutral	$93.57M	-4.95	-36.07%	―	1.51%	5.07%

Outset Medical Corporate Events

Outset Medical Wins FDA Clearance for Next-Gen Tablo System

On January 27, 2026, Outset Medical announced that the U.S. Food and Drug Administration granted 510(k) clearance for its next-generation Tablo hemodialysis platform, which becomes the first dialysis system to meet the FDA’s most rigorous, recently updated medical device cybersecurity standards. The upgraded Tablo system features enterprise-grade cybersecurity across hardware, software and cloud, modernized operating system and hardware to boost performance and extend maintenance intervals, and a more durable exterior suited to acute hospital environments, with shipments planned to begin in the second quarter of 2026 and existing Tablo customers eligible to upgrade, strengthening the company’s technology lead and value proposition for hospitals, health systems and home dialysis providers.

The most recent analyst rating on (OM) stock is a Hold with a $7.00 price target. To see the full list of analyst forecasts on Outset Medical stock, see the OM Stock Forecast page.

Outset Medical Previews 2025 Results and Adds Director

On January 12, 2026, Outset Medical reported preliminary, unaudited results for the fourth quarter and full year 2025, with revenue of approximately $28.9 million in the quarter and about $119.5 million for the year, representing 5% growth over 2024. The company highlighted operational traction, noting more than 1,000 sites of care had insourced dialysis with Outset by the end of 2025, delivering around 1 million treatments annually on its Tablo system, and reported a year-end cash balance of $173 million with net cash used in operations reduced to under $50 million from $116 million in 2024, signaling improved cash efficiency. Outset also announced that experienced medtech executive Karen N. Prange joined its board of directors and Compensation Committee, effective January 9, 2026, replacing outgoing director Andrea Saia, whose departure was not due to any disagreement, a move that bolsters the board’s commercial and acute-care expertise as the company pursues further growth in 2026.

The most recent analyst rating on (OM) stock is a Buy with a $8.00 price target. To see the full list of analyst forecasts on Outset Medical stock, see the OM Stock Forecast page.