Ouster Reports 49% Revenue Growth to $48.6 Million in Q1 2026

Ouster, Inc. reported a significant increase in its financial performance for the first quarter of 2026, with total revenue reaching $48.6 million, a 49% increase from $32.6 million in the same period last year. This growth was primarily driven by higher sensor volumes as customers increased their purchase levels. Product revenue alone accounted for $48.2 million, up from $31.1 million, while royalty revenue decreased to $0.3 million from $1.5 million. The company's gross profit also improved, rising to $20.8 million, resulting in a gross margin of 43%, compared to 41% in the prior year.

Operating expenses for the quarter totaled $40.1 million, an increase of 7% from $37.3 million in the previous year. Research and development expenses rose to $16.1 million, reflecting the inclusion of costs from the recently acquired Stereolabs and increased compensation expenses. Sales and marketing expenses also increased by 22% to $7.8 million, while general and administrative expenses saw a slight rise to $16.1 million, primarily due to transaction and integration costs associated with the Stereolabs acquisition. The net loss for the quarter was $17.5 million, an improvement from a loss of $22.0 million in the same quarter of 2025.

Ouster's acquisition of Stereolabs, completed on February 4, 2026, was a strategic move aimed at enhancing its product offerings and software capabilities. The acquisition included cash consideration of $32.4 million and the issuance of 1,847,677 shares of common stock. This acquisition is expected to strengthen Ouster's position in the Physical AI market by integrating Stereolabs' advanced AI vision and perception solutions into its product portfolio.

In terms of operational metrics, Ouster's customer base continues to expand, with a notable increase in product adoption rates. The company reported a significant increase in sales volumes, particularly in the Americas, where revenue surged by 111% to $32.8 million. However, revenue from the Asia and Pacific region declined by 36% to $8.0 million, while Europe, the Middle East, and Africa saw an increase of 68% to $7.8 million. The company is focused on geographic expansion and aims to penetrate diverse end markets to further increase sales volumes.

Looking ahead, Ouster's management remains optimistic about future growth, citing a multi-billion dollar total addressable market for its solutions across various sectors, including automotive, industrial, robotics, and smart infrastructure. The company plans to continue investing in research and development to maintain its competitive edge and capitalize on the growing demand for lidar technology. However, Ouster acknowledges the potential challenges posed by market fluctuations, supply chain issues, and the need for additional capital to support its growth initiatives.