Outset Medical Reports 6% Revenue Growth to $29.8 Million in Q1 2025

Outset Medical, Inc. reported its financial results for the first quarter of 2025, revealing total revenue of $29.8 million, a 6% increase from $28.2 million in the same period last year. The growth was driven by a 4% rise in product revenue, which reached $21.3 million, and a 9% increase in service and other revenue, totaling $8.5 million. The company achieved a gross profit of $11.1 million, reflecting a 35% increase compared to $8.2 million in the prior year, with gross margins improving from 29.2% to 37.2%. Despite these gains, Outset Medical reported a net loss of $25.8 million, a decrease from a loss of $39.9 million in the previous year.

The company’s operational efficiency was highlighted by a significant reduction in total operating expenses, which fell by 39% to $27.5 million from $45.1 million in the prior year. This decrease was attributed to lower research and development costs, which dropped by 56%, and a 35% reduction in sales and marketing expenses. The company has implemented several restructuring plans aimed at streamlining operations and reducing costs, which have contributed to these improved financial metrics.

In terms of strategic developments, Outset Medical completed a private placement of 863,000 shares of Series A Convertible Preferred Stock, generating gross proceeds of approximately $172.7 million. This capital infusion is expected to support the company’s growth initiatives, including the expansion of its Tablo® Hemodialysis System, which is designed to simplify dialysis treatment. The company also entered into a credit agreement providing a $100 million term loan, with an additional $25 million available based on revenue milestones.

As of March 31, 2025, Outset Medical had 17.7 million shares of common stock outstanding and reported cash, cash equivalents, and short-term investments totaling $192.3 million. The company has focused on increasing its installed base of Tablo systems, which has shown promising adoption rates in both acute and home care settings. The company’s workforce, which includes a significant portion dedicated to sales and clinical support, is expected to continue driving growth in these markets.

Looking ahead, Outset Medical anticipates ongoing operating losses as it invests in growth and works to optimize its operational structure. The company is committed to expanding its market presence and improving its financial performance, despite facing challenges such as rising interest rates and macroeconomic pressures that may impact customer purchasing decisions. Management believes that the current liquidity position will be sufficient to meet operational needs for at least the next 12 months, while also navigating the complexities of the healthcare market.