Outset Medical (OM)
NASDAQ:OM
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Outset Medical
(NASDAQ:OM)
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Rating:51Neutral
Price Target:
$4.00
▼(-2.44% Downside)
Action:ReiteratedDate:02/14/26
The score is held back primarily by still-weak financials (ongoing losses and negative free cash flow despite balance-sheet improvement) and bearish technical momentum. Offsetting these is a constructive earnings outlook with improving margins, disciplined spending, and expectations for lower cash use supported by a strong cash position.
Positive Factors
Regulatory-cleared product leadership
Achieving FDA 510(k) clearance under the updated 2025 cybersecurity rules is a durable competitive advantage: it raises the technical bar for competitors, reduces procurement friction for hospitals and health systems, and enables upgrade paths that increase installed-base stickiness and long-term adoption.
Negative Factors
Persistent negative free cash flow
Ongoing negative free cash flow means the business still consumes capital to operate. Until FCF turns sustainably positive, growth investments and product launches will strain liquidity or require external financing, limiting strategic optionality and increasing investor and execution risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Regulatory-cleared product leadership
Achieving FDA 510(k) clearance under the updated 2025 cybersecurity rules is a durable competitive advantage: it raises the technical bar for competitors, reduces procurement friction for hospitals and health systems, and enables upgrade paths that increase installed-base stickiness and long-term adoption.
Read all positive factors
Outset Medical (OM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$74.99M
Dividend YieldN/A
Average Volume (3M)207.56K
Price to Earnings (P/E)―
Beta (1Y)1.78
Revenue Growth4.65%
EPS Growth68.71%
CountryUS
Employees354
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)-0.84
Shares Outstanding18,311,626
10 Day Avg. Volume142,135
30 Day Avg. Volume207,560
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.44
Price to Sales (P/S)0.47
P/FCF Ratio-1.20
Enterprise Value/Market Cap1.95
Enterprise Value/Revenue1.23
Enterprise Value/Gross Profit3.13
Enterprise Value/Ebitda-2.40
Forecast
1Y Price Target
$10.50Price Target Upside156.10% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)-2.69
Revenue Forecast (FY)$126.63M
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 s...
How the Company Makes Money
Outset Medical primarily makes money by selling and supporting its Tablo Hemodialysis System and generating recurring revenue tied to system usage. Key revenue streams include: (1) Product revenue from sales of Tablo consoles/systems to dialysis p...
Outset Medical Earnings Call Summary
Earnings Call Date:Feb 11, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call highlighted clear operational and financial progress: revenue growth, material gross margin expansion, reduced operating expenses and cash burn, a strengthened balance sheet, strong customer satisfaction, and strategic momentum from FDA clearance of a cyber-hardened next-generation Tablo. Lowlights include lingering net losses, continued cash use (though improved), manufacturing under-absorption headwinds, product revenue timing variability, and long enterprise sales cycles. On balance, the positives around margin expansion, cost discipline, product leadership (cyber clearance), and improved cash runway outweigh the remaining challenges.Positive Updates
Full-Year Revenue Growth
Fiscal 2025 revenue of $119.5M, up 5% versus 2024, with management expecting 2026 revenue of $125M–$130M (a 5%–9% increase).
Negative Updates
Q4 Product Revenue Below Prior-Year Quarter
Q4 product revenue was $19.9M versus $21M in the prior-year quarter (down YoY), driven partly by consumable order timing.
Read all updates
Q4-2025 Updates
Positive
Negative
Full-Year Revenue Growth
Fiscal 2025 revenue of $119.5M, up 5% versus 2024, with management expecting 2026 revenue of $125M–$130M (a 5%–9% increase).
Read all positive updates
Company Guidance
Outset guided 2026 revenue of $125–130 million (a 5–9% increase versus 2025's $119.5M), with Q1 expected roughly flat to Q4 2025 and sales stepping up through the rest of the year; non‑GAAP gross margin is expected in the low‑to‑mid‑40% range (Q4 was 42.9%, FY 2025 was 39.6%), noting the 2025 manufacturing under‑absorption headwind (~150 bps for the year, ~130 bps in Q4) should attenuate in 2026 and that a higher console mix would push margin lower while a higher consumable mix would push it higher; operating expense growth is expected to be roughly half the rate of sales growth (i.e., ~2.5–4.5% if revenue rises 5–9%); Q1 will be the highest cash‑use quarter due to planned inventory and manufacturing investments, but full‑year cash use should be below the $46M consumed in 2025, supported by $173M of cash, equivalents and investments on hand, and the company plans a late‑Q2 commercial launch of the next‑gen Tablo (ASP and detailed margin impact to be disclosed nearer launch).Outset Medical Financial Statement Overview
Summary
Income Statement
22
Negative
Balance Sheet
55
Neutral
Cash Flow
28
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 119.48M | 113.69M | 130.38M | 115.38M | 102.60M |
| Gross Profit | 46.75M | 38.56M | 29.00M | 17.83M | 7.61M |
| EBITDA | -62.37M | -97.89M | -153.79M | -152.81M | -124.86M |
| Net Income | -81.65M | -127.98M | -172.80M | -162.96M | -131.94M |
Balance Sheet | |||||
| Total Assets | 264.50M | 275.80M | 313.80M | 400.12M | 463.46M |
| Cash, Cash Equivalents and Short-Term Investments | 168.95M | 158.69M | 203.32M | 287.50M | 339.49M |
| Total Debt | 104.52M | 201.86M | 136.19M | 103.23M | 37.81M |
| Total Liabilities | 137.54M | 248.98M | 190.91M | 154.13M | 89.38M |
| Stockholders Equity | 126.95M | 26.82M | 122.89M | 245.99M | 374.08M |
Cash Flow | |||||
| Free Cash Flow | -47.13M | -117.22M | -134.81M | -154.05M | -133.37M |
| Operating Cash Flow | -46.33M | -116.30M | -131.37M | -145.73M | -130.26M |
| Investing Cash Flow | -97.68M | 103.94M | 83.03M | -66.30M | -142.51M |
| Financing Cash Flow | 55.50M | 67.87M | 43.65M | 72.90M | 160.15M |
Outset Medical Technical Analysis
Neutral
4.10
Price Trends
3.86
Positive
4.15
Negative
9.74
Negative
Market Momentum
0.08
Negative
64.44
Neutral
94.10
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OM, the sentiment is Neutral. The current price of 4.1 is above the 20-day moving average (MA) of 3.56, above the 50-day MA of 3.86, and below the 200-day MA of 9.74, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 64.44 is Neutral, neither overbought nor oversold. The STOCH value of 94.10 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for OM.
Outset Medical Risk Analysis
Outset Medical disclosed 79 risk factors in its most recent earnings report. Outset Medical reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Outset Medical Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $196.79M | 21.81 | 20.28% | ― | 16.05% | 29.48% | |
56 Neutral | $185.18M | -8.03 | -11.56% | ― | 4.68% | 55.37% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | $74.99M | -0.69 | -54.99% | ― | 4.65% | 68.71% | |
50 Neutral | $220.23M | -3.47 | -99.33% | ― | 18.44% | 25.42% | |
47 Neutral | $146.65M | -4.35 | -32.46% | ― | 15.19% | -3.32% | |
41 Neutral | $44.65M | -1.80 | -57.91% | ― | 1.51% | 5.07% |
* Healthcare Sector Average
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Outset Medical Corporate Events
Business Operations and StrategyProduct-Related AnnouncementsRegulatory Filings and Compliance
Outset Medical Wins FDA Clearance for Next-Gen Tablo System
Positive
Jan 27, 2026
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, r...
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Outset Medical Previews 2025 Results and Adds Director
Positive
Jan 12, 2026
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 20...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.