Record revenue and gross margins, achieving 12th straight quarter of product revenue growth
Record quarterly lidar shipments of 8,100 units; 2025 shipments exceed 25,000
SAN FRANCISCO--(BUSINESS WIRE)--March 02, 2026--
Ouster, Inc. (Nasdaq: OUST) ("Ouster" or the "Company"), a leader in sensing and perception for Physical AI, announced today financial results for the three months and year ended December 31, 2025.
"2025 was a year of exceptional execution for Ouster. Our strong revenue growth and gross margin performance are a testament to our disciplined focus as we pioneer the technologies driving the secular shift towards Physical AI, delivering record results," said Ouster CEO Angus Pacala. "As we look forward, the strength of our digital lidar business, combined with the acquisition of Stereolabs, positions Ouster as the foundational sensing and perception platform for Physical AI. We are uniquely equipped to accelerate customer development of solutions that sense, think, act, and learn in the physical world."
Fourth Quarter 2025 Highlights:
-- $62 million in revenue, up 107% year over year and 57% sequentially;
includes royalties of approximately $21 million, primarily one-time and
related to long-term IP license contracts
-- Product revenue was $41 million, up 36% year over year and 4%
sequentially
-- Shipped more than 8,100 lidar sensors for revenue
-- GAAP gross margin of 60%, up 1600bps year over year and up 1800bps
sequentially
-- GAAP net income of $4 million, an improvement of $28 million year over
year and up $26 million sequentially
-- Non-GAAP gross margin1 of 62%, up 1,800bps year over year and up
1,500bps sequentially; the favorable impact of royalties was
approximately 1,900bps
-- Adjusted EBITDA1 of $11 million, up $20 million both year over year and
sequentially
-- Cash, cash equivalents, restricted cash, and short-term investments of
$211 million as of December 31, 2025
Full Year 2025 Highlights:
-- $169 million of revenue, up 52% compared with 2024; includes royalties
for approximately $23 million, primarily one-time and related to
long-term IP license contracts
-- Product revenue was $147 million, up 32% year over year
-- Shipped more than 25,000 lidar sensors for revenue
-- GAAP gross margin of 49%, up 1300bps compared with 2024
-- GAAP net loss of $60 million, an improvement of $37 million year over
year
-- Non-GAAP gross margin1 of 54%, up 1,200bps compared with 2024; the
favorable impact of royalties was approximately 700bps
-- Adjusted EBITDA1 loss of $12 million, an improvement of $29 million
compared with 2024
-- Bookings of $177 million, representing a product book-to-bill of 1.2x
___________________________
(1) Adjusted EBITDA 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.
Revenue
Ouster delivered fourth quarter revenue of $62 million, an increase of 107% year over year and 57% sequentially. The results include royalties of approximately $21 million that were primarily one-time and related to long-term IP license contracts. Product revenue was $41 million, up 36% year over year and 4% sequentially primarily driven by customers in the industrial and robotics verticals, for use cases in warehouse automation, robotaxi, and mapping. The Company shipped over 8,100 sensors for revenue, a new quarterly record.
Gross Margin
GAAP gross margin was 60%, compared with 44% in the fourth quarter of 2024 and 42% in the third quarter of 2025. Volume growth and operating efficiencies, along with royalties, lifted profitability year over year. Non-GAAP gross margin was 62%, compared with 44% in the fourth quarter of 2024 and 47% in the third quarter of 2025. Revenue from royalties accounted for approximately 19 points of gross margin in the fourth quarter of 2025. Non-GAAP gross margin excludes the impact of stock-based compensation expenses, and certain other items outside of ordinary operations.
First Quarter 2026 Outlook:
For the first quarter of 2026, Ouster expects to achieve $45 to $48 million in total revenue. This includes approximately 7 weeks of Stereolabs operations.
Ouster remains laser focused on maintaining its path to profitability and expects the Stereolabs acquisition to be accretive to that path. Taking into consideration Stereolabs' 2025 results, Ouster remains confident in its long-term financial framework of annual revenue growth of 30% to 50%, GAAP gross margins of 35% to 40% and well controlled GAAP operating expense growth, which is estimated at 5-8% from its 2025 levels. This framework excludes the revenue and gross margin impact of royalties of approximately $23 million in 2025, which were primarily one time.
Upcoming Investor Events
Ouster management will participate in the following upcoming investor events:
-- Cantor Global Technology & Industrial Growth Conference -- March 10 -- 38th Annual ROTH Conference -- March 24
Conference Call Information
Ouster will host a conference call and live webcast for analysts and investors at 5:00 p.m. ET today, March 2, 2026 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/yvxarmrm. 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 leader in sensing and perception for Physical AI across industrial, robotics, automotive, and smart infrastructure. With a unified platform of high-performance digital lidar, cameras, AI compute, sensor fusion and perception software, and AI models, Ouster delivers solutions that improve quality of life in the physical world. Headquartered in San Francisco, CA, Ouster has a global presence serving thousands of customers 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, the impact of our recent acquisition of Stereolabs, 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, successfully integrate or achieve the anticipated benefits of new acquisitions or investments, including the Stereolabs acquisition; 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, as will be updated in the Company's Annual Report on Form 10-K for the year ended December 31, 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 (recovery), 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 (recovery), amortization of acquired intangibles, depreciation expenses, 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 STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(unaudited)
(in thousands, except share and per share data)
Three Months Three Months Three Months
Ended Ended Ended
December September December Year Ended
31, 30, 31, December 31,
------------ ------------ ------------ ----------------------------
2025 2025 2024 2025 2024
------------ ------------ ------------ ------------ --------------
Revenue
Product revenue $ 40,971 $ 39,487 $ 30,092 $ 146,578 $ 111,101
Royalties 21,207 38 -- 22,806 --
---------- ---------- ---------- ---------- ----------
Total revenue 62,178 39,525 30,092 169,384 111,101
Cost of revenue 24,726 22,866 16,909 85,948 70,641
---------- ---------- ---------- ---------- ----------
Gross profit 37,452 16,659 13,183 83,436 40,460
Operating expenses:
Research and
development 15,261 17,777 14,719 65,170 58,084
Sales and
marketing 6,782 7,441 7,045 27,624 27,852
General and
administrative 14,505 15,692 17,017 64,641 58,701
---------- ---------- ---------- ---------- ----------
Total operating
expenses 36,548 40,910 38,781 157,435 144,637
---------- ---------- ---------- ---------- ----------
Income (loss) from
operations 904 (24,251) (25,598) (73,999) (104,177)
Other income
(expense):
Interest income 2,746 2,414 1,795 9,485 8,846
Interest expense -- -- -- -- (1,823)
Other income
(expense), net 749 176 386 1,202 646
---------- ---------- ---------- ---------- ----------
Total other income
(expense), net 3,495 2,590 2,181 10,687 7,669
---------- ---------- ---------- ---------- ----------
Income (loss)
before income
taxes 4,399 (21,661) (23,417) (63,312) (96,508)
Provision for
(benefit from)
income tax 414 72 320 (2,935) 537
---------- ---------- ---------- ---------- ----------
Net income (loss) $ 3,985 $ (21,733) $ (23,737) $ (60,377) $ (97,045)
========== ========== ========== ========== ==========
Other comprehensive
income (loss)
Changes in
unrealized gain
(loss) on
available for
sale
securities (2) 109 (180) 83 (386)
Foreign currency
translation
adjustments 42 (45) (679) 478 (809)
---------- ---------- ---------- ---------- ----------
Total comprehensive
income (loss) $ 4,025 $ (21,669) $ (24,596) $ (59,816) $ (98,240)
Net income (loss)
per common share:
Basic $ 0.07 $ (0.37) $ (0.48) $ (1.07) $ (2.08)
========== ========== ========== ========== ==========
Diluted $ 0.06 $ (0.37) $ (0.48) $ (1.07) $ (2.08)
========== ========== ========== ========== ==========
Weighted-average
shares used in
computing net
income (loss) per
share:
Basic 60,468,355 57,976,375 49,958,448 56,334,911 46,584,479
Diluted 64,733,573 57,976,375 49,958,448 56,334,911 46,584,479
OUSTER, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(in thousands)
December 31,
--------------------------
2025 2024
----------- -------------
Assets
Current assets:
Cash and cash equivalents $ 67,413 $ 45,542
Restricted cash, current 1,467 722
Short-term investments 141,172 126,480
Accounts receivable, net 27,753 17,941
Inventory 23,566 16,417
Prepaid expenses and other current
assets 17,517 12,750
--------- ---------
Total current assets 278,888 219,852
Property and equipment, net 31,891 10,164
Operating lease, right-of-use assets 13,452 14,308
Unbilled receivable, non-current portion 8,560 10,133
Intangible assets, net 13,316 17,830
Restricted cash, non-current 1,100 1,835
Other non-current assets 2,309 2,026
--------- ---------
Total assets $ 349,516 $ 276,148
========= =========
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 19,984 $ 6,288
Accrued and other current liabilities 26,200 30,591
Contract liabilities, current 20,705 34,351
Operating lease liability, current
portion 4,142 7,196
--------- ---------
Total current liabilities 71,031 78,426
Operating lease liability, non-current
portion 12,938 13,054
Debt -- --
Contract liabilities, non-current
portion 3,106 2,538
Other non-current liabilities 703 1,219
--------- ---------
Total liabilities 87,778 95,237
--------- ---------
Stockholders' equity:
Common stock 48 47
Additional paid-in capital 1,235,580 1,094,938
Accumulated deficit (973,448) (913,071)
Accumulated other comprehensive
(loss) income (442) (1,003)
--------- ---------
Total stockholders' equity 261,738 180,911
--------- ---------
Total liabilities and stockholders'
equity $ 349,516 $ 276,148
========= =========
OUSTER, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(in thousands)
For the Years ended December 31,
------------------------------------------
2025 2024
--------------------- -------------------
CASH FLOWS FROM OPERATING
ACTIVITIES
Net loss $ (60,377) $ (97,045)
Adjustments to reconcile
net loss to net cash used
in operating activities:
Depreciation and
amortization 7,781 9,836
Loss on write-off and
disposal of property
and equipment 113 401
Stock-based compensation 40,824 40,459
Reduction of revenue
related to stock
warrant issued to
customer 2,623 892
Amortization of
right-of-use asset 5,108 4,904
Non-cash interest income (214) (619)
Accretion or
amortization on
short-term investments (3,239) (5,095)
Change in fair value of
warrant liabilities (126) (103)
(Recovery) provision for
inventory write-down (373) 2,080
Provision (recovery of)
for doubtful accounts (8) (587)
Realized gain on sale of
investments (12) (275)
Changes in operating
assets and
liabilities:
Accounts receivable (8,017) (1,724)
Inventory (6,775) 4,735
Prepaid expenses and
other assets (3,569) 21,317
Accounts payable 13,202 2,476
Accrued and other
liabilities (5,865) (28,059)
Contract liabilities (14,299) 19,036
Operating lease
liability (6,733) (6,323)
------------- ------------
Net cash used in operating
activities (39,956) (33,694)
------------- ------------
CASH FLOWS FROM INVESTING
ACTIVITIES
Proceeds from sale of
property & equipment -- 668
Purchases of property and
equipment (24,893) (3,756)
Purchase of short-term
investments (149,613) (144,573)
Proceeds from sales and
maturities of short-term
investments 138,255 162,313
------------- ------------
Net cash provided by (used in)
investing activities (36,251) 14,652
------------- ------------
CASH FLOWS FROM FINANCING
ACTIVITIES
Proceeds from exercise of
stock options 83 205
Proceeds from ESPP purchase 1,955 1,703
Payments received
(remitted) to fund
employees tax obligation
for vested RSUs 410 --
Repayments of borrowings -- (43,975)
Proceeds from the issuance
of common stock under
at-the-market offering,
net of commissions and
fees 95,583 57,806
At-the-market offering
costs for the issuance of
common stock (421) (346)
------------- ------------
Net cash provided by financing
activities 97,610 15,393
------------- ------------
Effect of exchange rates on
cash and cash equivalents 478 (886)
------------- ------------
Net increase (decrease) in
cash, cash equivalents and
restricted cash 21,881 (4,535)
Cash, cash equivalents and
restricted cash at beginning
of year 48,099 52,634
------------- ------------
Cash, cash equivalents and
restricted cash at end of
year $ 69,980 $ 48,099
============= ============
OUSTER, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(unaudited)
(in thousands)
Three Months
Ended
Three Months Ended September Year Ended
December 31, 30, December 31,
------------------------- ------------ --------------------------
2025 2024 2025 2025 2024
----------- ------------ ------------ ------------ ------------
GAAP net income
(loss) $ 3,985 $(23,737) $(21,733) $(60,377) $(97,045)
Interest (income)
expense, net (2,746) (1,795) (2,414) (9,485) (7,023)
Other (income)
expense, net (749) (386) (176) (1,202) (646)
Stock-based
compensation
expense(1) 7,271 8,841 11,829 40,824 40,459
Provision for
income tax
expense
(benefit) 414 320 72 (2,935) 537
Excess and
obsolete
expenses
(recovery) -- (1,431) -- -- (859)
Amortization of
acquired
intangibles(2) 1,134 1,342 1,134 4,514 6,516
Depreciation
expenses(2) 941 651 919 3,267 3,230
Litigation
expenses(3) 358 6,494 652 13,037 13,647
Gain on lease
termination and
other items -- -- -- (65) (627)
------ ------- ------- ------- -------
Adjusted EBITDA $10,608 $ (9,701) $ (9,716) $(12,421) $(41,811)
====== ======= ======= ======= =======
(1) Includes stock-based compensation expense as follows:
Three Months
Ended
Three Months Ended September Year Ended
December 31, 30, December 31,
------------------------- ------------ --------------------------
2025 2024 2025 2025 2024
----------- ------------ ------------ ------------ ------------
Cost of revenue $ 901 $ 1,140 $ 1,618 $ 5,455 $ 4,608
Research and
development 2,829 4,181 5,583 19,020 18,260
Sales and
marketing 854 1,147 1,285 4,978 5,347
General and
administrative 2,687 2,373 3,343 11,371 12,244
------ ------- ------- ------- -------
Total
stock-based
compensation $ 7,271 $ 8,841 $ 11,829 $ 40,824 $ 40,459
====== ======= ======= ======= =======
(2) Includes depreciation and amortization expense as follows:
Three Months
Ended
Three Months Ended September Year Ended
December 31, 30, December 31,
------------------------- ------------ --------------------------
2025 2024 2025 2025 2024
----------- ------------ ------------ ------------ ------------
Cost of revenue $ 1,027 $ 915 $ 1,086 $ 3,979 $ 3,985
Research and
development 808 626 718 2,846 2,642
Sales and
marketing 163 201 177 686 948
General and
administrative 77 251 72 271 2,171
------ ------- ------- ------- -------
Total
depreciation
and
amortization
expense $ 2,075 $ 1,993 $ 2,053 $ 7,782 $ 9,746
====== ======= ======= ======= =======
(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
Three Months Ended September Year Ended
December 31, 30, December 31,
------------------------- ------------ --------------------------
2025 2024 2025 2025 2024
----------- ------------ ------------ ------------ ------------
Gross profit on
GAAP basis $37,452 $ 13,183 $ 16,659 $ 83,436 $ 40,460
Stock-based
compensation
expense 901 1,140 1,618 5,455 4,608
Amortization of
acquired
intangible
assets 467 467 467 1,852 1,768
Excess and
obsolete
expenses
(recovery) -- (1,431) -- -- (859)
------ ------- ------- ------- -------
Gross profit on
non-GAAP basis $38,820 $ 13,359 $ 18,744 $ 90,743 $ 45,977
====== ======= ======= ======= =======
Gross margin on
GAAP basis 60% 44% 42% 49% 36%
Gross margin on
non-GAAP basis 62% 44% 47% 54% 41%
View source version on businesswire.com: https://www.businesswire.com/news/home/20260302613164/en/
CONTACT: For Investors
investors@ouster.io
For Media
press@ouster.io
(END) Dow Jones Newswires
March 02, 2026 16:10 ET (21:10 GMT)