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Ouster (OUST)
NASDAQ:OUST
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Ouster
(NASDAQ:OUST)
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Rating:58Neutral
Price Target:
$34.00
▲(18.59% Upside)
Ouster's strong earnings call and positive technical indicators are offset by financial performance challenges and valuation concerns. The company shows potential with revenue growth and strategic partnerships, but profitability and cash flow issues remain significant risks.
Ouster (OUST) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.71B
Dividend YieldN/A
Average Volume (3M)2.87M
Price to Earnings (P/E)―
Beta (1Y)2.11
Revenue Growth26.37%
EPS Growth38.13%
CountryUS
Employees292
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)-0.14
Shares Outstanding57,819,244
10 Day Avg. Volume3,766,624
30 Day Avg. Volume2,874,997
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)3.15
Price to Sales (P/S)5.12
P/FCF Ratio-15.20
Enterprise Value/Market Cap0.65
Enterprise Value/Revenue8.83
Enterprise Value/Gross Profit20.86
Enterprise Value/Ebitda-13.61
Forecast
1Y Price Target
$34.86Price Target Upside21.59% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
Ouster Business Overview & Revenue Model
Company DescriptionOuster (OUST) is a leading technology company specializing in the development and manufacturing of high-resolution lidar sensors used in various sectors including automotive, robotics, industrial automation, and smart infrastructure. The company's core products leverage advanced lidar technology to provide precise 3D mapping and environmental perception solutions, enabling enhanced safety and efficiency for autonomous vehicles and other applications.
How the Company Makes MoneyOuster generates revenue primarily through the sale of its lidar sensors and associated technologies. The company has established multiple key revenue streams, including direct sales to original equipment manufacturers (OEMs) in the automotive sector, partnerships with robotics and industrial companies, and subscription services for software that enhances the functionality of its lidar products. Additionally, Ouster's strategic collaborations with major players in the automotive and tech industries further bolster its market presence and contribute to its earnings. The company’s focus on scaling production and reducing costs is also aimed at increasing profitability as demand for lidar technology grows.
Ouster Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
The earnings call for Ouster's second quarter of 2025 was largely positive, marked by record revenue and sensor shipments, successful strategic partnerships, and technological advancements. Despite increased operating expenses and ongoing supply chain challenges, the company demonstrated strong financial performance and is well-positioned to capitalize on market opportunities.Q2-2025 Updates
Positive Updates
Record Revenue and Sensor Shipments
Ouster delivered strong second quarter results with revenue just over $35 million, above the high end of guidance, and achieved record sensor shipments surpassing 5,500 units. Revenue growth was 30% year-over-year and 7% sequentially.
Strategic Partnerships and Expansions
Ouster successfully converted a pilot program with a Fortune 500 technology company into a multimillion-dollar global deployment and expanded its partnership network to 39 states for smart infrastructure.
Financial Strength
Ouster finished the second quarter with a robust balance sheet of $229 million in cash and equivalents and no debt.
Technological Advancements
Ouster's OS1 became the first and only 3D lidar sensor to be approved for Blue UAS and certified by the U.S. Department of Defense. Significant improvements were also made in AI solutions and product development.
Positive Market Trends
Ouster is positioned to benefit from secular tailwinds driven by billions in federal funding for autonomous and intelligent systems.
Negative Updates
Increased Operating Expenses
GAAP operating expenses were $43 million in the second quarter, up 24% over the prior year, primarily due to higher stock-based compensation and litigation expenses.
Supply Chain and Tariff Challenges
Ouster continues to actively manage challenges in the geopolitical and macroeconomic environment, specifically around supply chain and tariffs.
Company Guidance
During Ouster's second-quarter 2025 earnings call, the company reported impressive financial performance, with revenue surpassing $35 million, exceeding the high end of their guidance, and achieving a solid gross margin of 45%. This growth was driven by record sensor shipments, totaling over 5,500 units, marking a 30% year-over-year revenue increase. The company maintained a strong balance sheet with $229 million in cash and equivalents and no debt. Looking ahead, Ouster anticipates third-quarter revenue between $35 million and $38 million and aims for 30% to 50% annual revenue growth, while maintaining gross margins between 35% and 40%. The earnings call highlighted strategic investments in AI algorithms and expanding distribution channels, noting successful partnerships and deployments across various sectors, including defense, automotive, and smart infrastructure.Ouster Financial Statement Overview
Summary
Ouster shows revenue growth but struggles with profitability and cash flow. The low debt-to-equity ratio is a positive, but negative net profit margins and cash flow issues highlight operational inefficiencies.Income Statement
Ouster's income statement shows a consistent increase in revenue over the years, with a notable 6.84% growth in TTM. However, the company is struggling with profitability, as evidenced by negative net profit margins and EBIT margins. The gross profit margin has improved to 42.32% in TTM, indicating some operational efficiency, but the persistent negative net income and EBIT margins highlight ongoing challenges in achieving profitability.45
Neutral
Balance Sheet
The balance sheet reflects a stable financial structure with a low debt-to-equity ratio of 0.08 in TTM, suggesting conservative leverage. However, the return on equity remains negative, indicating that the company is not generating profits from its equity base. The equity ratio is relatively healthy, but the negative ROE points to inefficiencies in utilizing shareholder funds.55
Neutral
Cash Flow
Cash flow analysis reveals significant challenges, with negative operating and free cash flows. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is also negative, indicating cash flow issues. The free cash flow to net income ratio is above 1, suggesting that while cash flow is negative, it is relatively better than net income, but overall cash management remains a concern.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 125.85M | 111.10M | 83.28M | 41.03M | 33.58M | 18.90M |
| Gross Profit | 53.26M | 40.46M | 9.68M | 10.93M | 9.09M | 1.51M |
| EBITDA | -81.64M | -79.94M | -342.62M | -123.38M | -88.69M | -98.30M |
| Net Income | -91.96M | -97.05M | -374.11M | -138.56M | -93.98M | -106.78M |
Balance Sheet | ||||||
| Total Assets | 321.84M | 276.15M | 330.74M | 256.14M | 307.70M | 46.41M |
| Cash, Cash Equivalents and Short-Term Investments | 226.50M | 172.02M | 190.15M | 122.93M | 182.64M | 11.36M |
| Total Debt | 17.65M | 20.25M | 69.90M | 56.20M | 19.27M | 21.81M |
| Total Liabilities | 100.81M | 95.24M | 151.07M | 84.52M | 47.00M | 122.32M |
| Stockholders Equity | 221.03M | 180.91M | 179.67M | 171.62M | 260.70M | -75.91M |
Cash Flow | ||||||
| Free Cash Flow | -15.97M | -37.45M | -140.90M | -116.11M | -74.84M | -45.63M |
| Operating Cash Flow | -12.52M | -33.69M | -137.89M | -110.69M | -70.56M | -42.12M |
| Investing Cash Flow | -18.29M | 14.65M | 50.60M | -5.15M | -15.23M | -3.51M |
| Financing Cash Flow | 55.23M | 15.39M | 15.66M | 55.60M | 257.80M | 39.86M |
Ouster Technical Analysis
Neutral
28.67
Price Trends
28.73
Negative
22.85
Positive
16.18
Positive
Market Momentum
0.87
Positive
45.95
Neutral
35.52
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OUST, the sentiment is Neutral. The current price of 28.67 is below the 20-day moving average (MA) of 30.02, below the 50-day MA of 28.73, and above the 200-day MA of 16.18, indicating a neutral trend. The MACD of 0.87 indicates Positive momentum. The RSI at 45.95 is Neutral, neither overbought nor oversold. The STOCH value of 35.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for OUST.
Ouster Risk Analysis
Ouster disclosed 65 risk factors in its most recent earnings report. Ouster 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
Ouster Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | 2.37B | 35.92 | 10.77% | ― | 2.46% | 572.04% | |
76 Outperform | 1.75B | 29.28 | 12.60% | 0.20% | 6.08% | -23.93% | |
70 Neutral | 1.42B | -94,280.64 | -1.47% | ― | 14.09% | 91.13% | |
62 Neutral | 1.44B | -22.38 | -5.37% | ― | -7.61% | -212.91% | |
58 Neutral | $1.71B | ― | -46.96% | ― | 26.37% | 38.13% | |
45 Neutral | 406.30M | -3.29 | -116.31% | ― | -71.30% | 17.62% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
Performance Comparison
OUST
Ouster
28.67
22.31
350.79%
MVIS
Microvision
1.29
0.13
11.21%
ROG
Rogers
78.93
-31.31
-28.40%
VICR
Vicor
52.14
9.85
23.29%
PENG
Penguin Solutions
26.54
5.24
24.60%
BELFA
Bel Fuse
119.69
21.50
21.90%
Ouster Corporate Events
Executive/Board ChangesShareholder Meetings
Ouster Holds Annual Meeting, Elects New Directors
Neutral
Jun 20, 2025
On June 18, 2025, Ouster, Inc. held its Annual Meeting of Stockholders where significant decisions were made regarding the company’s governance and operations. During the meeting, three Class I directors were elected, and the appointment of PricewaterhouseCoopers LLP as the independent accounting firm was ratified. Additionally, the compensation of the company’s named executive officers was approved. However, a proposal to amend the company’s Certificate of Incorporation to allow for officer exculpation from fiduciary breaches was not approved.
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.