Outset Medical Reports Q2 2026 Revenue of $31.6 Million, Net Loss of $18.0 Million

Outset Medical, Inc. reported its financial results for the second quarter of 2026, revealing total revenue of $31.6 million, a slight increase of 1% from $31.4 million in the same period last year. For the first half of 2026, revenue totaled $59.5 million, down 3% from $61.2 million in the first half of 2025. The company experienced a decline in product revenue, which fell by 5% to $21.9 million for the quarter and by 9% to $40.5 million for the six-month period, primarily due to a decrease in consumable sales. However, service and other revenue increased by 17% for the quarter and 13% for the half-year, attributed to growth in the installed base of Tablo consoles.

The company's gross profit improved to $13.3 million for the second quarter, up 12% from $11.9 million a year earlier, with gross margins rising to 42% from 37.8%. This increase was driven by higher margins on service revenue, although the lower mix of consumable revenue, which typically has a higher margin, partially offset these gains. Operating expenses remained relatively stable, totaling $29.0 million for the quarter, with notable increases in general and administrative expenses due to higher legal costs associated with ongoing litigation.

Outset Medical's net loss for the second quarter was $18.0 million, slightly less than the $18.5 million loss reported in the same quarter of 2025. The company’s accumulated deficit reached $1.2 billion as of June 30, 2026. The company had cash, cash equivalents, and short-term investments totaling $151.0 million, which management believes will be sufficient to meet operational needs for at least the next 12 months.

In terms of operational developments, Outset Medical continues to focus on expanding the adoption of its Tablo Hemodialysis System across various healthcare settings, including acute care and home-based dialysis. The company has invested in enhancing its sales and clinical support teams and is working to optimize its commercial infrastructure. As of June 30, 2026, the company employed 47% of its workforce in sales and service roles, reflecting its commitment to driving utilization and fleet expansion.

Looking ahead, Outset Medical anticipates continued operating losses as it invests in growth initiatives. The company is also navigating challenges posed by macroeconomic factors, including rising interest rates and inflation, which have led to longer sales cycles and cautious capital spending among customers. Management remains focused on optimizing operating expenses and working capital to align with anticipated revenue growth while continuing to drive the adoption of its innovative dialysis technology.