Ouster, Inc.

Ouster reported Q2 2026 revenue of $55 million, up approximately 56% versus Q2 2025. GAAP gross margin was 49% versus 45% a year ago, though management said the quarter benefited from a one-time refund that boosted gross margin by about 1,000 basis points; Q2 2025 also had a one-time refund benefit of about 500 basis points. The company shipped over 17,000 sensors, including over 9,000 lidar sensors and over 8,000 camera sensors, and adjusted EBITDA was -$4 million, an improvement of about $1 million year over year. For royalty revenue, Q2 was about $1.9 million, first-half royalty revenue was about $2.2 million, and full-year 2026 royalty revenue is expected to be around $5 million. For Q3 2026, revenue guidance is $54.5 million to $57.5 million, with Rev8 production volumes expected to ramp throughout and into the latter part of the quarter. Full-year revenue expectations were left unchanged.

Angus Pacala framed the quarter as a strategic inflection point, calling Rev8 the most important product release in Ouster’s history and emphasizing that customer feedback has been “electric.” He said the company is extending its leadership across Physical AI, smart infrastructure, industrial automation, robotics, defense, and drones, while building a broader lidar-camera-AI compute stack. His tone was highly confident and long-term oriented, repeatedly stressing that Ouster’s product and software platform is creating durable competitive advantages and opening new market segments.

Ken Gianella highlighted record revenue and sensor shipments, plus improving operating leverage, while noting GAAP operating expenses were $47 million, up about 10% year over year due to Stereolabs integration, new product introductions, and investments in Physical AI solutions. He said Q3 operating expenses are expected to be 5%-8% higher year over year and that the company expects normalized product gross margins to remain in the 35%-40% range near term, even though software and solutions like BlueCity can be higher-margin. On liquidity, he said Ouster ended Q2 with $263 million in cash equivalents, restricted cash, and short-term investments and no debt, including about $98 million raised through ATM activity; a July common stock offering generated about $191 million in net proceeds, and management said no additional capital is expected to be needed for the current operating plan.

Analysts pressed on Rev8 backlog and whether supply constraints could have supported a higher guide; management said there is always backlog, but the guide reflects what they can realistically ship without compromising lead times, and Q2 included only minor prototype Rev8 sales. Questions on BlueCity focused on whether deployments could expand beyond early customers; management said the pattern is that once customers adopt BlueCity, they often move from POCs to citywide or statewide scale, and Utah is already among the furthest along. Analysts also asked about robotics and capacity, and management said demand is very strong, especially for Stereolabs, with capacity investments underway to avoid losing orders and to support growth into 2027 and beyond.