Ouster Announces Operating Results for Second Quarter 2025

About this update from Ouster, Inc.

Company exceeds guidance, ships record number of sensors, and delivers tenth straight quarter of revenue growth SAN FRANCISCO --(BUSINESS WIRE)-- Ouster, Inc. (Nasdaq: OUST) (“Ouster” or the “Company”), a global leader in high-performance lidar sensors and intelligent software solutions that bring Physical AI to life across the automotive, industrial, robotics and smart infrastructure sectors, announced today financial results for the three months ended June 30, 2025 . Second Quarter 2025 Highlights: $35 million in revenue, up 30% year over year and 7% sequentially; GAAP gross margin of 45%, up 1100bps year over year and 400bps sequentially; Net loss of $21 million , an improvement of $3 million year over year and $1 million sequentially; Non-GAAP gross margin1 of 52%, up 1200bps year over year and 500bps sequentially; Adjusted EBITDA1 loss of $6 million , an improvement of $5 million year over year and $2 million sequentially; Cash, cash equivalents, restricted cash, and short-term investments of $229 million as of June 30, 2025 . “Ouster achieved strong second quarter results above the high end of guidance and shipped a record 5,500 sensors, bringing Physical AI to life across logistics, industrial, and smart infrastructure sites around the world,” said Ouster CEO Angus Pacala . “We continue to make progress against each of our top priorities: advancing the development of our product portfolio, scaling our software-attached business, and executing towards profitability. We are well positioned for continued growth as we see customers successfully moving from prototype testing and into commercial production. Our story is just getting started, and we have the team, customers, and strategy to be a leader in Physical AI.” Revenue Ouster delivered quarterly revenue of $35 million , an increase of 30% year over year and 7% sequentially. Demand was primarily driven by customers in the industrial and automotive verticals for use cases in warehouse automation, yard logistics, and robotaxis. The Company shipped over 5,500 sensors for revenue, a new quarterly record. The Company continues to work closely with customers to mitigate any disruptions resulting from the unpredictable geopolitical and macroeconomic environment. Gross Margin GAAP gross margin of 45%, an increase of 1100 basis points compared to 34% in the second quarter of 2024 and 400 basis points compared to 41% in the first quarter of 2025. Gross margin benefitted from higher revenues, product mix, and a favorable employment tax refund. Non-GAAP gross margin increased to 52%, an improvement of approximately 1200 basis points year over year and 500 basis points sequentially. Non-GAAP gross margin excludes the impact of stock-based compensation expenses and certain other items outside of ordinary operations. ____________________ 1 Adjusted EBITDA loss and non-GAAP gross margin are non-GAAP financial measures. See Non-GAAP Financial Measures for additional information and reconciliations of these measures to their respective most directly comparable financial measures calculated in accordance with U.S. GAAP. Third Quarter 2025 Outlook For the third quarter of 2025, Ouster expects to achieve $35 million to $38 million in revenue. Upcoming Investor Events Ouster management will participate in the following upcoming investor events: Oppenheimer 28th Annual Technology, Internet & Communications Conference – August 12, 2025 (Virtual) J.P. Morgan 2025 Auto Conference – August 13, 2025 ( New York City ) Rosenblatt 5th Annual Technology Summit – August 18, 2025 (Virtual) Conference Call Information Ouster will host a conference call and live webcast for analysts and investors at 5:00 p.m. ET today, August 7, 2025 to discuss its financial results and business outlook. Interested parties may listen to a live webcast of the conference call. Registration for the webcast can be completed by visiting the following website: https://edge.media-server.com/mmc/p/uy3vijgo/ . The webcast will be available for replay for at least 30 days after the conference call on Ouster’s investor website at https://investors.ouster.com/ . About Ouster Ouster (Nasdaq: OUST) is a global leader in high-performance lidar sensors and intelligent software solutions that bring Physical AI to life across the automotive, industrial, robotics, and smart infrastructure sectors. Ouster’s technology delivers performance, reliability, and affordability to accelerate the adoption of autonomous systems at scale and drive meaningful improvements in safety, efficiency and sustainability. Ouster is headquartered in San Francisco, CA , with offices in the Americas , Europe , and Asia-Pacific . For more information about our products, visit www.ouster.com , contact our sales team , or connect with us on X or LinkedIn . Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are based upon current plans, estimates and expectations of management that are subject to various risks and uncertainties that could cause actual results to differ materially from such statements. The inclusion of forward-looking statements should not be regarded as a representation that such plans, estimates and expectations will be achieved. Words such as “anticipate,” “expect,” “project,” “intend,” “believe,” “may,” “will,” “should,” “plan,” “could,” “continue,” “target,” “contemplate,” “estimate,” “forecast,” “guidance,” “predict,” “possible,” “potential,” “pursue,” “likely,” and the negative of these terms and similar expressions are intended to identify forward-looking statements, though not all forward-looking statements use these words or expressions. All statements, other than statements of historical fact, including statements regarding our future financial results and financial condition, our strategy, our market positioning, demand for our products, progress against our priorities, and future investor conference attendance, are forward-looking statements, all constitute forward-looking statements. All forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those that we expected, including, but not limited to, risks related to Ouster’s limited operating history and history of losses; the substantial research and development costs needed to develop and commercialize new products; Ouster’s limited sales history and the ability to maintain confidence in the Company’s long-term business prospect among customers in target markets; fluctuations in its operating results; its ability to maintain competitive average selling prices, high sales volumes and reduce product costs; competition in Ouster’s industry; the negotiating power and product standards of its customers; the adoption of its products and the growth of the lidar market generally; product quality and liability risks; Ouster’s future capital needs and ability to secure additional capital on favorable terms or at all; market acceptance of lidar and Ouster’s forecasts for market growth; Ouster’s ability to manage growth, including growing the sales and marketing organization; risks related to international operations, including international manufacturing; cancellation or postponement of contracts or unsuccessful implementations; the Company’s ability to manage its inventory; credit risk of customers; Ouster’s ability to use tax attributes; Ouster’s dependence on key third party suppliers, in particular Benchmark Electronics, Inc., Fabrinet, and other suppliers; supply chain constraints and challenges; conditions in the industries the Company targets or the global economy; Ouster’s ability to recruit and retain key personnel; its ability to complete or achieve the anticipated benefits of new acquisitions or investments; changes to trade policy, tariffs, and import/export regulations may have a material adverse effect on Ouster’s business, financial condition and results of operations; risks related to the use of AI tools by us and others; Ouster’s ability to adequately protect and enforce its intellectual property rights; legal and regulatory risks; risks related to operating as a public company; and other important factors discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 , and updated by the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2025 , once filed, and as may be further updated from time to time in the Company’s other filings with the SEC . Readers are urged to consider these factors carefully and in the totality of the circumstances when evaluating these forward-looking statements, and not to place undue reliance on any of them. Any such forward-looking statements represent management’s reasonable estimates and beliefs as of the date of this press release. While Ouster may elect to update such forward-looking statements at some point in the future, it disclaims any obligation to do so, other than as may be required by law, even if subsequent events cause its views to change. In addition, see information below concerning non-GAAP financial measures. Non-GAAP Financial Measures In addition to its results determined in accordance with generally accepted accounting principles in the United States (“GAAP”), Ouster believes the non‑GAAP measures of Non-GAAP Gross Profit, Non-GAAP Gross Margin and Adjusted EBITDA are useful in evaluating its operating performance. Ouster calculates Non-GAAP Gross Profit as gross profit (loss) excluding amortization of acquired intangibles, certain excess and obsolete expenses and losses on firm purchase commitments, and stock-based compensation expense. Non-GAAP Gross Margin is calculated as Non-GAAP Gross Profit divided by revenues. Adjusted EBITDA is calculated as net loss excluding interest expense (income), net, other expense (income), net, stock-based compensation expense, provision for (benefit from) income taxes, certain excess and obsolete expenses and loss on firm purchase commitments, amortization of acquired intangibles, depreciation expense, certain litigation expenses and gain on lease termination. Ouster believes that Non-GAAP Gross Profit, Non-GAAP Gross Margin, and Adjusted EBITDA may be helpful to investors because it provides consistency and comparability with past financial performance and may be helpful in comparison with other companies, some of which use similar non‑GAAP information to supplement their GAAP results. Adjusted EBITDA is also used by the Board and management as a performance metric for compensation purposes. The non-GAAP financial information is presented for supplemental informational purposes only, and should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from similarly titled non‑GAAP measures used by other companies. Reconciliation tables of the most comparable GAAP financial measures to the non-GAAP financial measures are included at the end of this press release. OUSTER, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (in thousands) June 30 ,2025 December 31 ,2024 Assets Current assets: Cash and cash equivalents $ 76,120 $ 45,542 Restricted cash, current 732 722 Short-term investments 150,385 126,480 Accounts receivable, net 15,383 17,941 Inventory 13,903 16,417 Prepaid expenses and other current assets 16,666 12,750 Total current assets 273,189 219,852 Property and equipment, net 10,856 10,164 Operating lease right-of-use assets 12,541 14,308 Unbilled receivable, non-current portion 6,083 10,133 Intangible assets, net 15,583 17,830 Restricted cash, non-current 1,835 1,835 Other non-current assets 1,753 2,026 Total assets $ 321,840 $ 276,148 Liabilities and stockholders’ equity Current liabilities: Accounts payable $ 12,840 $ 6,288 Accrued and other current liabilities 36,342 30,591 Contract liabilities, current 29,464 34,351 Operating lease liability, current portion 7,438 7,196 Total current liabilities 86,084 78,426 Operating lease liability, non-current portion 10,216 13,054 Contract liabilities, non-current portion 3,588 2,538 Other non-current liabilities 919 1,219 Total liabilities 100,807 95,237 Commitments and contingencies Stockholders’ equity: Common stock 47 47 Additional paid-in capital 1,177,232 1,094,938 Accumulated deficit (955,700 ) (913,071 ) Accumulated other comprehensive (loss) income (546 ) (1,003 ) Total stockholders’ equity 221,033 180,911 Total liabilities and stockholders’ equity $ 321,840 $ 276,148 OUSTER, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (unaudited) (in thousands, except share and per share data) Three Months Ended June 30 , Three Months Ended March 31 , Six Months Ended June 30 , 2025 2024 2025 2025 2024 Revenue $ 35,049 $ 26,990 $ 32,632 $ 67,681 $ 52,934 Cost of product 19,207 17,892 19,149 38,356 36,411 Gross profit 15,842 9,098 13,483 29,325 16,523 Operating expenses: Research and development 17,147 14,432 14,985 32,132 28,238 Sales and marketing 6,978 6,750 6,423 13,401 13,610 General and administrative 18,539 13,166 15,905 34,444 25,746 Total operating expenses 42,664 34,348 37,313 79,977 67,594 Loss from operations (26,822 ) (25,250 ) (23,830 ) (50,652 ) (51,071 ) Other income (expense): Interest income 2,620 2,251 1,705 4,325 4,902 Interest expense — (740 ) — — (1,481 ) Other income, net (26 ) (7 ) 303 277 186 Total other income, net 2,594 1,504 2,008 4,602 3,607 Loss before income taxes (24,228 ) (23,746 ) (21,822 ) (46,050 ) (47,464 ) Provision for (benefit from) income taxes (3,616 ) 123 195 (3,421 ) 254 Net loss $ (20,612 ) $ (23,869 ) $ (22,017 ) $ (42,629 ) $ (47,718 ) Other comprehensive income (loss) Changes in unrealized gain (loss) on available-for-sale securities (70 ) $ (45 ) $ 46 $ (24 ) (504 ) Foreign currency translation adjustments 401 $ (293 ) 80 481 (465 ) Total comprehensive loss $ (20,281 ) $ (24,207 ) $ (21,891 ) $ (42,172 ) $ (48,687 ) Net loss per common share, basic and diluted $ (0.38 ) $ (0.53 ) $ (0.42 ) $ (0.80 ) $ (1.08 ) Weighted-average shares used to compute basic and diluted net loss per share 54,466,143 44,737,769 52,488,199 53,482,635 44,077,383 OUSTER, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (in thousands) Six Months Ended June 30 , 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES Net loss $ (42,629 ) $ (47,718 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 3,654 5,397 Loss on write-off and disposal of property and equipment and right-of-use asset impairment 85 100 Gain on lease termination (65 ) — Stock-based compensation 21,724 20,099 Reduction of revenue related to stock warrant issued to customer 1,021 488 Amortization of right-of-use asset 2,509 2,391 Accretion or amortization on short-term investments (1,488 ) (2,933 ) Change in fair value of warrant liabilities 229 27 Inventory write down 465 742 Provision (recovery) of doubtful accounts 137 (241 ) Realized gain on available for sale securities (4 ) (275 ) Changes in operating assets and liabilities: Accounts receivable 6,471 3,915 Inventory 2,049 3,037 Prepaid expenses and other assets (3,640 ) 101 Accounts payable 6,425 958 Accrued and other liabilities 3,978 (9,830 ) Contract liabilities (3,836 ) (553 ) Operating lease liability (3,273 ) (3,071 ) Net cash used in operating activities (6,188 ) (27,366 ) CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of property and equipment — 502 Purchases of property and equipment (1,441 ) (1,741 ) Purchase of short-term investments (79,686 ) (49,720 ) Proceeds from sales of short-term investments 57,250 60,028 Net cash (used in) provided by investing activities (23,877 ) 9,069 CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from ESPP purchase 980 781 Proceeds from exercise of stock options 48 151 Payments received (remitted) to fund employees tax obligation for vested RSUs 357 — Proceeds from the issuance of common stock under at-the-market offering, net of commissions and fees 58,798 19,498 At-the-market offering costs for the issuance of common stock (10 ) (95 ) Net cash provided by financing activities 60,173 20,335 Effect of exchange rates on cash and cash equivalents 480 (467 ) Net increase in cash, cash equivalents and restricted cash 30,588 1,571 Cash, cash equivalents and restricted cash at beginning of period 48,099 52,634 Cash, cash equivalents and restricted cash at end of period $ 78,687 $ 54,205 OUSTER, INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (unaudited) (in thousands) Three Months Ended June 30 , Three Months Ended March 31 , Six Months Ended June 30 , 2025 2024 2025 2024 2025 2024 GAAP net loss $ (20,612 ) $ (23,869 ) $ (22,017 ) $ (23,849 ) $ (42,629 ) $ (47,718 ) Interest income, net (2,620 ) (1,511 ) (1,705 ) (1,910 ) (4,325 ) (3,421 ) Other income, net 26 7 (303 ) (193 ) (277 ) (186 ) Stock-based compensation expense(1) 13,226 10,695 8,498 9,404 21,724 20,099 Provision for (benefit from) income taxes (3,616 ) 123 195 131 (3,421 ) 254 Excess and obsolete expenses (recovery) and loss on firm purchase commitments — — — 572 — 572 Amortization of acquired intangibles(2) 1,127 1,661 1,120 1,754 2,247 3,415 Depreciation expense(2) 732 839 675 1,053 1,407 1,892 Litigation expenses(3) 6,234 1,636 5,793 1,296 12,027 2,932 Gain on lease termination — — (65 ) — (65 ) — Other items — (114 ) — — — (114 ) Adjusted EBITDA $ (5,503 ) $ (10,533 ) $ (7,809 ) $ (11,742 ) $ (13,312 ) $ (22,275 ) (1)Includes stock-based compensation expense as follows: Three Months Ended June 30 , Three Months Ended March 31 , Six Months Ended June 30 , 2025 2024 2025 2024 2025 2024 Cost of revenue 1,799 1,210 $ 1,137 $ 913 $ 2,935 $ 2,123 Research and development 6,303 4,650 4,305 4,188 10,608 8,838 Sales and marketing 1,733 1,492 1,106 1,400 2,839 2,892 General and administrative 3,391 3,343 1,950 2,903 5,342 6,246 Total stock-based compensation $ 13,226 $ 10,695 $ 8,498 $ 9,404 $ 21,724 $ 20,099 (2)Includes depreciation and amortization expense as follows: Three Months Ended June 30 , Three Months Ended March 31 , Six Months Ended June 30 , 2025 2024 2025 2024 2025 2024 Cost of revenue $ 942 $ 999 $ 924 $ 1,100 $ 1,866 $ 2,099 Research and development 678 670 642 712 1,320 1,382 Sales and marketing 174 249 172 248 346 497 General and administrative 65 582 57 747 122 1,329 Total depreciation and amortization expense $ 1,859 $ 2,500 $ 1,795 $ 2,807 $ 3,654 $ 5,307 (3)Represents litigation costs consisting primarily of legal fees and the estimated and actual costs to resolve the outstanding litigation cases offset by the estimated amounts recoverable and recovered under insurance, indemnity and contribution agreements for such costs. Three Months Ended June 30 , Three Months Ended March 31 , Six Months Ended June 30 , 2025 2024 2025 2024 2025 2024 Gross profit on GAAP basis $ 15,842 $ 9,098 $ 13,483 $ 7,425 $ 29,325 $ 16,523 Stock-based compensation 1,799 1,210 1,137 913 2,935 2,123 Amortization of acquired intangible assets 461 371 457 464 918 835 Excess and obsolete expenses (recovery) and loss on firm purchase commitments — — — 572 — 572 Gross profit on non-GAAP basis $ 18,102 $ 10,679 $ 15,077 $ 9,374 $ 33,178 $ 20,053 Gross margin on GAAP basis 45 % 34 % 41 % 29 % 43 % 31 % Gross margin on non-GAAP basis 52 % 40 % 46 % 36 % 49 % 38 % View source version on businesswire.com : https://www.businesswire.com/news/home/20250807154647/en/ For Investors [email protected] For Media [email protected] Source: Ouster, Inc.

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