0001193125-26-051278
SEC filingOutset Medical, Inc. reported fiscal year 2025 revenue of $119.5 million, generating a gross profit of $46.8 million. Despite top-line generation, the company incurred significant operating losses, totaling $66.7 million from operations. The net loss for the fiscal year was substantial at $81.7 million, translating to a basic and diluted net loss per share of $5.00. Operating expenses remained elevated, with sales and marketing costs reaching $54.4 million and research and development expenses at $21.2 million. Financial positioning was impacted by a $7.7 million loss on the extinguishment of term loans and $14.0 million in interest expenses. Cash flow from operations was negative $46.3 million. The company strengthened its liquidity through the issuance of Series A convertible preferred stock, raising $161.5 million net, and securing $98.3 million in new term loans, while maintaining a total asset base of $264.5 million and stockholders' equity of $127.0 million.
For the fiscal year ended December 31, 2025, Outset Medical, Inc. reported total revenue of $119.5 million against a cost of revenue of $72.7 million, resulting in a gross profit of $46.8 million. The company faced substantial operational headwinds, reporting a loss from operations of $66.7 million. This operating loss was driven primarily by significant investments in sales and marketing ($54.4 million) and general and administrative expenses ($37.9 million). The bottom line was further impacted by non-operating items, specifically a $14.0 million interest expense and a $7.7 million loss on the extinguishment of term loans, culminating in a net loss of $81.7 million or $5.00 per share.
The XBRL financial data provided discloses total revenue of $119.5 million for the fiscal year 2025. The filing does not explicitly provide a comparative breakdown of product versus service revenue or detailed geographic segmentation within the provided data fields. Consequently, specific growth drivers by segment or region cannot be quantified from the available source text. Revenue generation is supported by the company's operational activities, but the lack of granular segment data limits a detailed decomposition of the top-line figures.
Outset Medical's gross margin for the fiscal year stood at approximately 39.2%, calculated from the $46.8 million gross profit on $119.5 million revenue. However, high operating expenses significantly eroded profitability. The operating margin was deeply negative at -55.8%. Total operating expenses of $113.5 million exceeded gross profit by a wide margin. Sales and marketing alone represented 45.5% of total revenue, indicating an aggressive and costly go-to-market strategy that is currently outpacing revenue generation.
The company's liquidity position reflects both operational burn and strategic financing. Net cash used in operating activities was $46.3 million. After accounting for $798K in capital expenditures, the estimated free cash flow was approximately -$47.1 million. On the balance sheet, total assets were $264.5 million, supported by $35.0 million in cash and $133.9 million in short-term investments. Total liabilities reached $137.5 million, including $96.2 million in term loans. Stockholders' equity was reported at $127.0 million, bolstered by significant paid-in capital.
While specific management guidance figures are not detailed in the provided text, the financial statements indicate strategic financial restructuring. The company secured $161.5 million in net proceeds from Series A convertible preferred stock and $98.3 million from new term loans, while repaying $205.0 million in existing debt. These moves suggest a focus on strengthening the capital structure and extending the runway to support continued operations and commercial expansion despite current profitability challenges.