Outset Medical reported Q1 2026 revenue of $27.9 million (down 6% year-over-year) due to capital order lumpiness, but expanded product gross margin to 52.4%, improved net loss 32%, and lowered expected full-year cash use to under $40 million. The company reaffirmed 2026 revenue guidance of $125–$130 million and announced a $40 million HCA refresh amendment for Tablo consoles through 2028.
Capital sales lumpiness and guidance 23
Recurring revenue foundation 23
Next-generation Tableau launch 16
Customer wins and go-live implementations 11
Refresh and replacement opportunity 11
Commercial leadership 9
Management tone
Confident
Net tone +55 · moderate hedging
Grounding quotes
“we remain confident in our growth plan for the year, supported by the upcoming launch of the next-generation Tableau, a deep sales pipeline, and the addition of an experienced commercial leader in Derek Elliott”
“We are reaffirming our annual guidance today because we remain very confident in the depth, diversity, and maturity of our pipeline.”
“we achieved excellent gross margin expansion with product margin reaching over 52%, the result of our ongoing margin expansion programs and mix”
“In early customer discussions, there has been strong reception to the cybersecurity benefits and other enhancements that next-generation Tableau will provide.”
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Product gross margin expanded to 52.4%, up 400 basis points year-over-year.
Non-GAAP net loss improved 32% year-over-year to $15.4 million.
Full-year 2026 cash use guidance improved to under $40 million, roughly 15% better than previously expected.
Entered a $40 million HCA Refresh Amendment committing Tablo console purchases through 2028.
Service and other revenue grew 10% year-over-year to $9.3 million.
Reaffirmed 2026 revenue guidance of $125–$130 million, a 5%–9% increase over 2025.
↓ Risks & pressure points
Q1 2026 revenue of $27.9 million decreased 6% year-over-year due to capital order lumpiness.
Product revenue declined 13% year-over-year to $18.6 million, with about $1 million in capital deals slipping from Q1.
Capital sales of $5.4 million and a non-GAAP operating loss of $13.4 million persisted in the quarter.
Key moments
Read the management remarks selected from the transcript.
“We used approximately $12 million during the quarter, which is less than we previously forecasted due to ongoing expense, discipline, and working capital management. As we look ahead to our cash needs for the remainder of the year, we now anticipate using less than $40 million, which is roughly 15% better than we previously expected.”
Renee M. Gaeta, CFO
“Turning to our guidance for 2026, we continue to expect revenue to be in the range of $125 to $130 million, a 5% to 9% increase over 2025, with the majority of the 2026 growths coming in the third and fourth quarters.”
Renee M. Gaeta, CFO
