Outset Medical down on Q3 sales miss, slashed guidance

 Outset Medical (Nasdaq: OM)

  shares took a big hit today on third-quarter results that failed to reach the consensus sales forecast.

Shares of OM fell 46% to $6.49 apiece in mid-afternoon trading today.

The San Jose, California–based home dialysis company reported losses of $17.8 million. That equals $1.00 per share on sales of $29.4 million for the three months ended Sept. 30, 2025.

Outset recorded a 36.1% bottom-line gain on a sales increase of 2.7%.

Adjusted to exclude one-time items, losses per share came in at 69¢. That equaled expectations on Wall Street, while sales fell shy of experts’ forecasts for $30.7 million in revenue.

The company saw an 8% increase in revenue for its Tablo home dialysis system console. Recurring revenue for Tablo consumables and services of $21.1 million increased slightly from the same period a year ago. However, the company reported that consumable revenue was dampened in the quarter by order timing. It said that has accelerated in the fourth quarter, though.

“Hospital demand continues to grow as a result of the clinical, operational and financial benefits that can be achieved by insourcing dialysis with Outset’s proven technology, expert know-how and exceptional service,” said Leslie Trigg, chair and CEO. “We entered the second half of the year with work remaining in our commercial transformation, and while we have made good progress, the expected timing to close several large opportunities forecasted for the second half of 2025 has shifted. These opportunities remain in the final stages of our sales process and are now expected to close over the fourth quarter and into early 2026.”

The analysts’ take on Outset

BTIG analysts Marie Thibault, Sam Eiber and Alexandra Pang maintain a “Buy” rating for Outset, despite the results.

The analysts say the “weak revenue” surprised them, especially as they viewed guidance as “relatively conservative” following a strong second quarter. They note that last quarter saw an uptick in console revenue as well, with console sales beating third-quarter expectations. This occurred even with one large console order delayed into the fourth quarter and beyond.

However, they note that consumables revenue, “usually a steady bright spot,” came in week on dampened orders from acute care customers. They said it appears to be a timing issue that normalized in early Q4.

The analysts say the guidance cut largely relates to the console revenue, anticipated longer timing for some larger enterprise deals going into 2026, and the recent departure of the company’s head of sales potentially resulting in some disruption.

Thibault, Eiber and Pang remain “constructive” on Outset as the pipeline, although delayed, remains intact.

“Importantly, though, there have been no cancellations and no deals have dropped out of the pipeline,” the analysts wrote. “We acknowledge the hit to credibility around forecasting and visibility into the console pipeline. We expect initial 2026 guidance to remain cautious and we understand investor frustration on this lack of consistency.”

https://www.massdevice.com/outset-stock-down-q3-2025-misses/