Overview

* Outset Medical ( OM ) Q3 revenue grows 3% to $29.4 mln, driven by Tablo console sales

* Company revises 2025 revenue guidance to $115-120 mln, down from $122-126 mln

* Operating expenses decline nearly 20% yr/yr, aiding path to profitability

Outlook

* Outset revises 2025 revenue guidance to $115 mln-$120 mln from $122 mln-$126 mln

* Company maintains non-GAAP gross margin guidance in high-30% range

* Outset expects to use less than $50 mln cash in 2025, down from over $100 mln in 2024

Result Drivers

* TABLO CONSOLE SALES - 8% increase in Tablo console revenue drove Q3 revenue growth

* ORDER TIMING - Consumable revenue was dampened by order timing

* COST REDUCTIONS - Operating expenses declined nearly 20%, aiding path to profitability

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Net -$17.84

Income mln

Q3 Gross 39.40%

Margin

Q3 Basic -$1

EPS

Q3 Gross $11.59

Profit mln

Q3 $27.40

Operatin mln

g

Expenses

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the advanced medical equipment & technology peer group is "buy"

* Wall Street's median 12-month price target for Outset Medical Inc ( OM ) is $23.50, about 48.7% above its November 7 closing price of $12.06

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)