Outset Medical, Inc.

Outset reported second-quarter 2026 revenue of $31.6 million, up 1% year over year and up 14% sequentially. Product revenue was $21.9 million, down 5%; console revenue was $9.5 million, up 6%; consumable revenue was $12.4 million, down 12%; and service and other revenue was $9.7 million, up 17%. Non-GAAP gross margin was 42.2%, up more than 380 basis points year over year; product gross margin was 46.1%; and service and other gross margin was 32.6%. Non-GAAP operating expenses were $25.8 million, up 1%, and non-GAAP operating loss was $12.4 million, an improvement of 7% year over year. The company ended the quarter with $151 million in cash, cash equivalents, short-term investments, and restricted cash, and used $9.5 million of cash in the quarter. For 2026, management reiterated revenue guidance of $125 million to $130 million, representing 5% to 9% growth, with most of the growth expected in the third and fourth quarters; it also said cash use should remain below $40 million for the full year.

Leslie Trigg said the quarter showed steady execution across revenue, margin, operating discipline, and cash management, while commercial progress continued. She emphasized customer success, citing strong implementation activity, an 8.8/10 customer advocacy score, and expansion opportunities within the installed base. Her tone was upbeat but measured, stressing that the company is building a more disciplined commercial engine and is seeing early signs of several new growth tailwinds, including refresh cycles, next-gen Tablo, and the formalized customer success program.

Renee Gaeta focused on the quarter’s financial improvement and the mechanics behind it. She highlighted non-GAAP gross margin of 42.2%, up over 380 basis points year over year, driven by product cost improvements, reduced overhead, and service efficiencies, and noted operating expenses of $25.8 million, up only 1% year over year. She also said cash use was $9.5 million in Q2, leaving $151 million in cash and investments, and reiterated that the company is on track to use less than $40 million of cash for the full year. On guidance, she reaffirmed full-year revenue of $125 million to $130 million and said the HCA refresh agreement is included in that outlook.

Analysts pressed on the strength of console revenue, asking how much came from the HCA refresh versus next-gen Tablo or other deals. Management said HCA was part of the Q2 pipeline and a factor in console performance, but also pointed to new expansion customers and the close of several deals, while Leslie Trigg said all parts of the business performed as expected. Questions also focused on declining consumable revenue; Renee Gaeta said the comparison was tough because 2025 had unusually strong flu-season and ordering-cadence benefits, and both executives said utilization remains stable with no material concern. On HCA phasing, management confirmed visibility to 2026 but would not say how much revenue lands in 2027 or 2028, and on next-gen Tablo they said the product is still in pilot, with a measured rollout planned after pilot metrics confirm user experience and performance.