Outset Medical Reports 3% Revenue Growth to $29.4 Million in Q3 2025

Outset Medical, Inc. reported its financial results for the third quarter of 2025, revealing total revenue of $29.4 million, a 3% increase from $28.7 million in the same period last year. For the nine months ending September 30, 2025, revenue reached $90.6 million, up 8% from $84.2 million in the prior year. The growth was driven by a 1% increase in product revenue, totaling $20.6 million, and a 6% rise in service and other revenue, which amounted to $8.9 million for the quarter. The company reported a net loss of $17.8 million for the quarter, a decrease from a loss of $27.9 million in the same period last year, and a net loss of $62.2 million for the nine months, down from $102.3 million in 2024.

The company’s gross profit for the third quarter was $11.6 million, reflecting a gross margin of 39.4%, an improvement from 34.3% in the prior year. This increase in gross margin was attributed to higher average selling prices for consumables and consoles, as well as lower unit costs per console. Operating expenses decreased significantly, totaling $27.4 million for the quarter, down 19% from $33.7 million in the same period last year, primarily due to reductions in research and development, sales and marketing, and general and administrative expenses.

In terms of operational developments, Outset Medical has focused on expanding its customer base and enhancing product adoption. The company reported a significant increase in its installed base of Tablo® Hemodialysis Systems, which are designed to simplify dialysis care. As of September 30, 2025, the company had cash, cash equivalents, restricted cash, and short-term investments totaling $182 million, bolstered by a successful private placement of Series A Convertible Preferred Stock that raised $172.7 million earlier in the year. The company also entered into a credit agreement providing a $100 million term loan, which is expected to support its growth initiatives.

Looking ahead, Outset Medical anticipates continued investment in its operational capabilities and product offerings, particularly in the home dialysis market. The company is focused on optimizing its commercial organization and expanding its market presence in both acute and post-acute care settings. Despite the positive revenue trends, management cautioned that ongoing macroeconomic factors, including inflation and rising interest rates, could impact customer purchasing decisions and overall market conditions. The company expects to continue incurring operating losses in the near term as it invests in growth, but believes its current liquidity position will be sufficient to meet its needs for at least the next 12 months.