Outset Medical Accelerates Year-Over-Year Revenue Growth

The Tip Desk · November 11, 2026 · 2 min read

Third-quarter revenue was $33.6 million, up 14% from a year earlier, as console sales rose 26% and the company reiterated $125 million to $130 million of 2026 revenue.

Outset Medical, Inc. (OM), a medical technology company selling the Tablo hemodialysis system, reported third-quarter revenue of $33.6 million, up 14% from $29.4 million a year earlier.

Year-over-year growth accelerated from 1% in the second quarter, when revenue was $31.6 million. Sequential growth slowed to 6% from 14% in that prior period.

Chair and Chief Executive Officer Leslie Trigg said third-quarter results showed continued progress against strategic priorities and sales execution across capital and recurring revenue, and that customer satisfaction and retention were expanding Tablo adoption among existing customers and fueling new insourced dialysis partnerships with health systems.

Console revenue was $10.5 million, up 26% from a year earlier and 10% sequentially. Recurring revenue from Tablo consumables and services was $23.1 million, up 10% from $21.1 million a year earlier and 4% from $22.1 million in the second quarter.

Product revenue was $23.7 million, up 15% from $20.6 million a year earlier. Service and other revenue was $9.9 million, up 12% from $8.9 million.

Gross profit was $13.7 million. GAAP gross margin was 40.7%, up 130 basis points from 39.4% a year earlier. Non-GAAP gross margin was 40.8%. The GAAP rate was down from 42.0% in the second quarter.

Product gross margin was 44.2%, down from 45.7% a year earlier. Service and other gross margin was 32.4%, up from 24.8%.

Operating expenses were $25.9 million, down 5% from $27.4 million a year earlier. Sales and marketing expense was $11.7 million, down from $13.6 million. Research and development expense was $5.9 million. General and administrative expense was $8.3 million. Excluding stock-based compensation and litigation charges, non-GAAP operating expenses were $24.2 million.

GAAP net loss was $14.7 million, or $0.78 a share, compared with a $17.8 million loss, or $1.00 a share, a year earlier. Non-GAAP net loss was $12.9 million, or $0.68 a share, compared with $12.4 million, or $0.69 a share.

Net cash used in the quarter was $10.3 million. Cash, cash equivalents, short-term investments and restricted cash totaled $140.7 million at September 30, 2026, down from $151.0 million at June 30.

Outset reiterated 2026 revenue guidance of $125 million to $130 million and said it continues to expect non-GAAP gross margin in the low-40% to mid-40% range for the full year.

The company said Tablo is FDA-cleared for use from hospital to home and is trusted by more than 1,000 U.S. healthcare facilities.