Ouster (NASDAQ:OUST) Announces Earnings Results, Misses Expectations By $0.12 EPS

Ouster (NASDAQ:OUST) issued its quarterly earnings data on Tuesday. The company reported ($0.20) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.08) by ($0.12), FiscalAI reports. Ouster had a negative return on equity of 17.49% and a negative net margin of 26.02%. The business had revenue of $59.33 million for the quarter, compared to analysts’ expectations of $56.30 million.

Here are the key takeaways from Ouster’s conference call:

• Record third-quarter performance: Revenue reached $59 million, up approximately 50% year over year, with more than 27,000 sensors shipped. Adjusted EBITDA loss improved to $3 million from $8 million a year earlier.
• Strong Rev8 demand is driving capacity investments. Management reported thousands of Rev8 lidar sensors in backlog and expects production to scale from hundreds of units in Q3 to thousands in Q4 and tens of thousands by the end of 2027; Benchmark capacity is expected to exceed 100,000 annual lidar units by the end of 2027.
• Stereolabs delivered a breakout quarter, shipping more than 20,000 cameras after more than doubling production sequentially. Ouster said demand is accelerating across robotics, including manipulation, humanoids, drones, and mobile industrial applications.
• Physical AI software and infrastructure wins are expanding. Gemini can now fuse up to 100 lidar sensors on one server, while BlueCity secured several multimillion-dollar contracts, including an expansion covering 100 additional intersections.
• Fourth-quarter revenue guidance is $61 million to $64 million, including roughly $3 million in royalties, implying about 48% full-year 2026 growth excluding royalties. The company ended the quarter with approximately $421 million in cash and said it does not expect to need additional capital, while continuing to invest heavily in inventory, manufacturing capacity, product development, and Stereolabs integration.

Ouster Stock Performance

Shares of OUST opened at $28.98 on Wednesday. The stock has a market capitalization of $2.09 billion, a P/E ratio of -33.70 and a beta of 3.47. Ouster has a 1 year low of $16.40 and a 1 year high of $63.79. The company’s fifty day moving average is $35.56 and its two-hundred day moving average is $32.43.

Insider Buying and Selling

In other news, General Counsel Megan Chung sold 11,484 shares of Ouster stock in a transaction dated Monday, September 14th. The shares were sold at an average price of $33.96, for a total value of $389,996.64. Following the sale, the general counsel owned 189,291 shares of the company’s stock, valued at $6,428,322.36. The trade was a 5.72% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CTO Mark Frichtl sold 18,778 shares of the business’s stock in a transaction dated Monday, September 14th. The stock was sold at an average price of $33.96, for a total transaction of $637,700.88. Following the transaction, the chief technology officer owned 318,987 shares in the company, valued at approximately $10,832,798.52. This trade represents a 5.56% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 141,651 shares of company stock worth $5,305,817. 5.72% of the stock is currently owned by insiders.

Wall Street Analysts Forecast Growth

OUST has been the subject of a number of research reports. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Ouster in a report on Wednesday, August 12th. Oppenheimer reissued an “outperform” rating on shares of Ouster in a report on Wednesday. Rosenblatt Securities restated a “buy” rating and issued a $53.00 price target on shares of Ouster in a research report on Wednesday. Citigroup restated an “outperform” rating on shares of Ouster in a research report on Tuesday, July 21st. Finally, Northland Securities set a $60.00 price objective on Ouster and gave the company an “outperform” rating in a research note on Tuesday, July 21st. Seven analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $56.67.

More Ouster News

Here are the key news stories impacting Ouster this week:

• Positive Sentiment: Analyst upgrade: Cantor Fitzgerald raised Ouster from “neutral” to “overweight,” potentially supporting investor confidence. Cantor Fitzgerald rating information
• Positive Sentiment: Revenue and shipments grew: Q3 revenue was $59.33 million, above the $56.30 million analyst estimate and up about 50% year over year; Ouster also reported more than 27,000 sensor shipments, a record. A report cited gross margin rising to 49%. Ouster Q3 results Revenue and shipment report
• Positive Sentiment: Forward outlook: Ouster expects Q4 revenue of $61 million to $64 million and plans to scale REV8 production toward annual capacity of 100,000 units by the end of 2027. Q4 outlook and REV8 capacity plans
• Negative Sentiment: Loss per share missed one consensus estimate: Ouster reported a Q3 loss of $0.20 per share, compared with an estimate of a $0.08 loss, despite beating revenue expectations. Ouster earnings report
• Negative Sentiment: Recent price weakness: One report noted OUST had fallen 34% in a month, reflecting recent investor pressure and potentially adding volatility. Analysis of Ouster’s recent decline

Ouster Company Profile

Ouster, Inc is a technology company that develops and manufactures digital lidar sensors and related software. Its lidar systems use laser light to detect and measure surrounding objects, supporting applications that require real-time perception, mapping, and automation.

The company’s products are designed for customers in the automotive, industrial automation, robotics, infrastructure, mapping, security, and smart-city markets. Ouster provides lidar sensors for uses such as autonomous and assisted driving, warehouse and industrial operations, traffic monitoring, asset inspection, and other machine-perception applications.