Ouster Announces Results for Third Quarter 2025

About this update from Ouster, Inc.

Strong performance on record shipments of over 7,200 sensors Achieves eleventh 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 September 30, 2025 . Third Quarter 2025 Highlights: $39.5 million in revenue, up 41% year over year and 13% sequentially; GAAP gross margin of 42%, up 400bps year over year and down 300bps sequentially; Net loss of $22 million , an improvement of $4 million year over year and down $1 million sequentially; Non-GAAP gross margin1 of 47%, up 300bps year over year and down 400bps sequentially; Adjusted EBITDA1 loss of $10 million , flat year over year and a decline of $4 million sequentially; Cash, cash equivalents, restricted cash, and short-term investments of $247 million as of September 30, 2025 . “Our outstanding third quarter results were driven by shipments of a record 7,200 sensors, including significant deployments in smart infrastructure. We delivered Physical AI solutions powered by digital lidar to support our customers' efforts to increase operating efficiency and improve safety,” said Ouster CEO Angus Pacala . “We remain focused on developing our next generation of products, driving more software-attached sales, and progressing on our path to profitability.” Revenue Ouster delivered quarterly revenue of $39.5 million , an increase of 41% year over year and 13% sequentially. Demand was primarily driven by customers in the smart infrastructure, robotics, and industrial verticals, for use cases in yard logistics, retail analytics, warehouse automation, last mile delivery, and mapping. The Company shipped over 7,200 sensors for revenue, a new quarterly record. Gross Margin GAAP gross margin was 42%, compared with 38% in the third quarter of 2024 and 45% in the second quarter of 2025. Continued positive improvements and efficiencies in operations lifted profitability year over year. Non-GAAP gross margin increased to 47%, compared with 45% in the third quarter of 2024 and 52% in the second quarter of 2025. 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. Fourth Quarter 2025 Outlook For the fourth quarter of 2025, Ouster expects to achieve $39.5 million to $42.5 million in revenue. Upcoming Investor Events Ouster management will participate in the following upcoming investor events: Northland Growth Conference – December 16, 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, November 4, 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/dbktre6z . 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, development of and 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 September 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 (income) expense, 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, gain on lease termination and other items. 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) September 30 ,2025 December 31 ,2024 Assets Current assets: Cash and cash equivalents $ 87,126 $ 45,542 Restricted cash, current 805 722 Short-term investments 157,392 126,480 Accounts receivable, net 24,781 17,941 Inventory 16,513 16,417 Prepaid expenses and other current assets 18,631 12,750 Total current assets 305,248 219,852 Property and equipment, net 12,864 10,164 Operating lease right-of-use assets 11,182 14,308 Unbilled receivable, non-current portion 6,103 10,133 Intangible assets, net 14,450 17,830 Restricted cash, non-current 1,835 1,835 Other non-current assets 2,090 2,026 Total assets $ 353,772 $ 276,148 Liabilities and stockholders’ equity Current liabilities: Accounts payable $ 16,370 $ 6,288 Accrued and other current liabilities 40,742 30,591 Contract liabilities, current 29,189 34,351 Operating lease liability, current portion 7,488 7,196 Total current liabilities 93,789 78,426 Operating lease liability, non-current portion 8,411 13,054 Contract liabilities, non-current portion 3,326 2,538 Other non-current liabilities 804 1,219 Total liabilities 106,330 95,237 Commitments and contingencies Stockholders’ equity: Common stock 48 47 Additional paid-in capital 1,225,309 1,094,938 Accumulated deficit (977,433 ) (913,071 ) Accumulated other comprehensive (loss) income (482 ) (1,003 ) Total stockholders’ equity 247,442 180,911 Total liabilities and stockholders’ equity $ 353,772 $ 276,148 OUSTER, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (unaudited) (in thousands, except share and per share data) Three Months Ended September 30 , Three Months Ended June 30 , Nine Months Ended September 30 , 2025 2024 2025 2025 2024 Revenue $ 39,525 $ 28,075 $ 35,049 $ 107,206 $ 81,009 Cost of product 22,866 17,321 19,207 61,222 53,732 Gross profit 16,659 10,754 15,842 45,984 27,277 Operating expenses: Research and development 17,777 15,127 17,147 49,909 43,365 Sales and marketing 7,441 7,197 6,978 20,842 20,807 General and administrative 15,692 15,938 18,539 50,136 41,684 Total operating expenses 40,910 38,262 42,664 120,887 105,856 Loss from operations (24,251 ) (27,508 ) (26,822 ) (74,903 ) (78,579 ) Other income (expense): Interest income 2,414 2,149 2,620 6,739 7,051 Interest expense — (342 ) — — (1,823 ) Other income, net 176 74 (26 ) 453 260 Total other income, net 2,590 1,881 2,594 7,192 5,488 Loss before income taxes (21,661 ) (25,627 ) (24,228 ) (67,711 ) (73,091 ) Provision for (benefit from) income taxes 72 (37 ) (3,616 ) (3,349 ) 217 Net loss $ (21,733 ) $ (25,590 ) $ (20,612 ) $ (64,362 ) $ (73,308 ) Other comprehensive income (loss) Changes in unrealized gain (loss) on available-for-sale securities 109 298 (70 ) $ 85 $ (206 ) Foreign currency translation adjustments (45 ) 335 401 436 (130 ) Total comprehensive loss $ (21,669 ) $ (24,957 ) $ (20,281 ) $ (63,841 ) $ (73,644 ) Net loss per common share, basic and diluted $ (0.37 ) $ (0.54 ) $ (0.38 ) $ (1.17 ) $ (1.62 ) Weighted-average shares used to compute basic and diluted net loss per share 57,976,375 47,684,363 54,466,143 54,997,009 45,287,763 OUSTER, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (in thousands) September 30 , 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES Net loss $ (64,362 ) $ (73,308 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 5,707 7,843 Loss on write-off and disposal of property and equipment and right-of-use asset impairment 106 468 Gain on lease termination (65 ) — Stock-based compensation 33,553 31,618 Reduction of revenue related to stock warrant issued to customer 2,054 861 Amortization of right-of-use asset 3,868 3,606 Accretion or amortization on short-term investments (2,400 ) (4,239 ) Change in fair value of warrant liabilities (8 ) (191 ) (Recovery) provision for inventory write-down (551 ) 756 Provision (recovery) of doubtful accounts 120 (894 ) Realized gain on available for sale securities (4 ) (275 ) Changes in operating assets and liabilities: Accounts receivable (2,930 ) 412 Inventory 455 3,851 Prepaid expenses and other assets (5,943 ) 22,499 Accounts payable 9,216 2,338 Accrued and other liabilities 6,056 (29,466 ) Contract liabilities (4,374 ) 7,625 Operating lease liability (5,028 ) (4,637 ) Net cash used in operating activities (24,530 ) (31,133 ) CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of property and equipment — 668 Purchases of property and equipment (3,143 ) (2,307 ) Purchase of short-term investments (118,424 ) (85,585 ) Proceeds from sales of short-term investments 90,000 122,082 Net cash (used in) provided by investing activities (31,567 ) 34,858 CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from ESPP purchase 980 781 Proceeds from exercise of stock options 83 170 Payments received (remitted) to fund employees tax obligation for vested RSUs 2,440 — Repayment of borrowings — (43,975 ) Proceeds from the issuance of common stock under at-the-market offering, net of commissions and fees 94,057 33,792 At-the-market offering costs for the issuance of common stock (232 ) (202 ) Net cash provided by (used in) financing activities 97,328 (9,434 ) Effect of exchange rates on cash and cash equivalents 436 (206 ) Net increase (decrease) in cash, cash equivalents and restricted cash 41,667 (5,915 ) Cash, cash equivalents and restricted cash at beginning of period 48,099 52,634 Cash, cash equivalents and restricted cash at end of period $ 89,766 $ 46,719 OUSTER, INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (unaudited) (in thousands) Three Months Ended September 30 , Three Months Ended June 30 , Nine Months Ended September 30 , 2025 2024 2025 2025 2024 GAAP net loss $ (21,733 ) $ (25,590 ) $ (20,612 ) $ (64,362 ) $ (73,308 ) Interest income, net (2,414 ) (1,807 ) (2,620 ) (6,739 ) (5,228 ) Other (income) expense, net (176 ) (74 ) 26 (453 ) (260 ) Stock-based compensation expense(1) 11,829 11,519 13,226 33,553 31,618 Provision for (benefit from) income taxes 72 (37 ) (3,616 ) (3,349 ) 217 Excess and obsolete expenses and loss on firm purchase commitments — — — — 572 Amortization of acquired intangibles(2) 1,134 1,759 1,127 3,380 5,174 Depreciation expense(2) 919 687 732 2,326 2,579 Litigation expenses(3) 652 4,221 6,234 12,680 7,153 Gain on lease termination — — — (65 ) — Other items — (513 ) — — (627 ) Adjusted EBITDA $ (9,716 ) $ (9,835 ) $ (5,503 ) $ (23,029 ) $ (32,110 ) (1) Includes stock-based compensation expense as follows: Three Months Ended September 30 , Three Months Ended June 30 , Nine Months Ended September 30 , 2025 2024 2025 2025 2024 Cost of revenue 1,618 1,345 1,799 $ 4,553 $ 3,468 Research and development 5,583 5,241 6,303 16,191 14,079 Sales and marketing 1,285 1,308 1,733 4,124 4,200 General and administrative 3,343 3,625 3,391 8,685 9,871 Total stock-based compensation $ 11,829 $ 11,519 $ 13,226 $ 33,553 $ 31,618 (2) Includes depreciation and amortization expense as follows: Three Months Ended September 30 , Three Months Ended June 30 , Nine Months Ended September 30 , 2025 2024 2025 2025 2024 Cost of revenue $ 1,086 $ 971 $ 942 $ 2,952 $ 3,070 Research and development 718 634 678 2,038 2,016 Sales and marketing 177 250 174 523 747 General and administrative 72 591 65 194 1,920 Total depreciation and amortization expense $ 2,053 $ 2,446 $ 1,859 $ 5,707 $ 7,753 (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 September 30 , Three Months Ended June 30 , Nine Months Ended September 30 , 2025 2024 2025 2025 2024 Gross profit on GAAP basis $ 16,659 $ 10,754 $ 15,842 $ 45,984 $ 27,277 Stock-based compensation 1,618 1,345 1,799 4,553 3,468 Amortization of acquired intangible assets 467 467 461 1,385 1,302 Excess and obsolete expenses and loss on firm purchase commitments — — — — 572 Gross profit on non-GAAP basis $ 18,744 $ 12,566 $ 18,102 $ 51,922 $ 32,619 Gross margin on GAAP basis 42 % 38 % 45 % 43 % 34 % Gross margin on non-GAAP basis 47 % 45 % 52 % 48 % 40 % View source version on businesswire.com : https://www.businesswire.com/news/home/20251104669278/en/ For Investors [email protected] For Media [email protected] Source: Ouster, Inc.

View stock analysis, news, and events for Ouster, Inc.