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Mar 31, 2025
Outset Medical Q1 2025 Earnings Report
Reported strong growth in console and recurring revenue as gross margin expanded and cash use declined in the first quarter ended March 31, 2025
Key Takeaways
Outset Medical reported a 6% increase in total revenue for the first quarter of 2025, reaching $29.8 million. The company saw significant growth in recurring revenue (consumables and services), which increased by 20% to $22.7 million. Gross margin improved to 37.2% on a GAAP basis and 37.6% on a non-GAAP basis. Net loss decreased significantly compared to the prior year, and net cash used in operating activities declined by 44%.
Total revenue for Q1 2025 was $29.8 million, a 6% increase year-over-year.
Recurring revenue from consumables and services grew 20% to $22.7 million.
GAAP gross margin improved to 37.2% from 29.2% in Q1 2024.
Net loss per share improved to ($3.66) from ($11.77) in Q1 2024.
Revenue by Segment
Forward Guidance
Outset Medical reiterated its full-year 2025 revenue guidance and non-GAAP gross margin guidance, and expects to significantly reduce cash usage compared to 2024.
Positive Outlook
- Reiterated 2025 revenue guidance of $115 million to $125 million.
- Reiterated non-GAAP gross margin guidance in the high-30% range.
- Expects to use less than $50 million of cash in 2025.
- Proposed and enacted tariffs expected to have no impact due to special exemption.
- Continued progress towards profitability.
Challenges Ahead
- Guidance for 2025 revenue range is wide ($115M - $125M).
- Still projecting a non-GAAP gross margin in the 'high-30%' range, not explicitly stating a higher target.
- Cash usage is still expected, albeit reduced.
- Does not provide specific guidance on GAAP profitability.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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