Outset Medical Reports 15% Revenue Growth to $31.4 Million in Q2 2025

Outset Medical, Inc. reported a total revenue of $31.4 million for the second quarter of 2025, marking a 15% increase from $27.4 million in the same period of the previous year. For the first half of 2025, the company generated $61.2 million in revenue, up 10% from $55.6 million in the first half of 2024. The growth was primarily driven by a 20% increase in product revenue, which reached $23.1 million, attributed to a rise in consumable sales and a slight increase in console sales. Service and other revenue also saw a modest increase of 2% for the quarter, totaling $8.3 million.

In terms of profitability, Outset Medical reported a net loss of $18.5 million for the second quarter of 2025, a significant improvement compared to a net loss of $34.5 million in the same quarter of 2024. The loss for the first half of 2025 was $44.3 million, down from $74.4 million in the prior year. The company’s gross profit increased to $11.9 million for the second quarter, with a gross margin of 37.8%, up from 35.7% in the same quarter last year. This improvement in gross margin was attributed to higher average selling prices and lower unit costs.

Operationally, Outset Medical has focused on expanding its customer base and enhancing product adoption. As of June 30, 2025, the company had a total of 17,766 shares of common stock outstanding, following the conversion of 842,000 shares of Series A Convertible Preferred Stock into common stock earlier in the year. The company has also implemented several restructuring plans aimed at reducing operating expenses, which have resulted in a 29% decrease in total operating expenses for the second quarter compared to the previous year.

In terms of liquidity, Outset Medical reported cash, cash equivalents, restricted cash, and short-term investments totaling $187.4 million as of June 30, 2025. The company raised $172.7 million through the sale of Series A Convertible Preferred Stock and secured a $100 million term loan under the Perceptive Credit Agreement. Despite these positive developments, the company continues to face challenges, including ongoing operating losses and the need to comply with covenants under its credit agreements.

Looking ahead, Outset Medical remains focused on driving adoption of its Tablo Hemodialysis System in both acute and home care settings. The company plans to leverage its commercial infrastructure to broaden its installed base and enhance utilization among existing customers. However, management acknowledges that macroeconomic factors, including inflation and rising interest rates, may 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 initiatives.