Ouster, Inc. — Form 10-Q Summary
Reporting period: Three and nine months ended September 30, 2026. Amounts below are in U.S. dollars; financial statement amounts are generally in millions unless noted.
Business context and reporting period
Ouster sells digital lidar sensors, cameras, AI compute and related software for industrial, robotics, automotive and smart-infrastructure applications. It operates as one reportable segment. The February 4, 2026 acquisition of Stereolabs expanded its camera, AI compute and perception-software offerings. The results include Stereolabs after acquisition, so comparisons with 2025 are not fully like-for-like.
Financial performance
| Metric | Q3 2026 | Q3 2025 | Nine months 2026 | Nine months 2025 |
|---|---|---|---|---|
| Revenue | $59.3 | $39.5 | $162.5 | $107.2 |
| Gross profit | $25.3 | $16.7 | $72.8 | $46.0 |
| Gross margin | 43% | 42% | 45% | 43% |
| Operating expenses | $44.5 | $40.9 | $131.3 | $120.9 |
| Operating loss | $(19.3) | $(24.3) | $(58.5) | $(74.9) |
| Net loss | $(14.2) | $(21.7) | $(49.7) | $(64.4) |
| Basic and diluted loss per share | $(0.20) | $(0.37) | $(0.75) | $(1.17) |
- Q3 revenue grew 50%; nine-month revenue grew 52%. Product revenue was $56.0 million in Q3 and $157.0 million for nine months. Royalties were $3.3 million and $5.5 million, respectively.
- Management attributed revenue growth to higher customer shipment volumes and Stereolabs revenue, partly offset by lower average selling prices. Q3 revenue included a $3.3 million patent royalty; Customer E accounted for 15% of Q3 revenue and 25% of nine-month revenue.
- Q3 operating expenses rose 9%, including higher sales and marketing costs associated with Stereolabs and the Rev8 product launch. Nine-month operating expenses rose 9%; R&D was $54.0 million, sales and marketing $26.7 million, and general and administrative $50.6 million.
- Net loss improved year over year in both periods. Interest income was $4.2 million in Q3 and $8.6 million year to date, aided by higher average investment balances. The prior-year nine-month tax benefit included resolution of an IRS examination; the 2026 nine-month tax benefit was not significant.
Cash, liquidity and capital
- At September 30, 2026, cash and cash equivalents were $88.9 million, short-term investments $330.9 million, and restricted cash $1.4 million. Together these totaled $421.2 million. Total current assets were $523.6 million and current liabilities $73.5 million.
- Ouster had no debt outstanding. Total liabilities were $92.4 million, including lease liabilities, contract liabilities and a $4.1 million deferred tax liability.
- Cash used in operations was $49.4 million for the first nine months, versus $24.5 million in 2025. Investing activities used $226.2 million, including purchases of short-term investments and $27.5 million for Stereolabs, net of cash acquired. Financing provided $295.9 million.
- Financing included approximately $98.0 million net proceeds from the 2026 ATM program and $191.8 million net proceeds from a July public offering. The ATM program was complete by September 30. Shares outstanding were 73.0 million as of October 30, 2026, up from 60.9 million at December 31, 2025.
- Management expects existing liquidity to fund operations for at least 12 months from the financial statements’ issuance date, while anticipating continued operating losses and negative operating cash flow for the foreseeable future. The company states that further capital may be needed and may pursue equity or debt financing.
Material changes, outlook and risks
- Stereolabs was acquired for $32.4 million cash and common stock valued at $22.8 million, subject to specified employee service conditions. The acquisition added $38.5 million of goodwill and $23.4 million of identifiable intangible assets at acquisition. Integration costs and acquired-asset amortization affect expenses.
- Cost of revenue included a $5.4 million benefit from accepted IEEPA tariff-refund claims; the company reported receiving the refund plus interest. Nine-month 2025 cost of revenue included a $1.7 million employee-retention-credit benefit.
- Ouster launched its Rev8 OS lidar family in May 2026 and said its Chronos chip is undergoing in-house testing. It is also developing solid-state digital flash sensors. The filing provides no quantified revenue, margin or earnings guidance.
- Management expects ongoing quarterly variability from customer commercialization timelines, shipment volumes, product mix and pricing. It cites continued downward ASP pressure, possible tariff and trade-policy effects on costs and demand, and reliance on limited or single-source suppliers, including Benchmark and Fabrinet.
- Other disclosed risks include customer and supplier concentration, inventory and supply-chain exposure, acquisition integration and realization of expected benefits, international operations, and continued substantial R&D investment. One supplier represented 25% of Q3 purchases and 52% of accounts payable at quarter-end.
- Non-cancelable purchase commitments were approximately $26.4 million with contract manufacturers and $23.8 million with other vendors. The filing describes ongoing patent-related proceedings involving Hesai; an appeal concerning one patent decision was awaiting a December 8, 2026 hearing. Management reported no material changes to previously disclosed risk factors.
- After quarter-end, the board adopted an executive change-in-control and severance plan on October 29, 2026. The filing also states disclosure controls were effective as of September 30, 2026.
Important facts for investors to verify
- Whether revenue growth and customer shipment volumes continue, and how much growth reflects Stereolabs versus legacy products, royalties or changes in pricing.
- Whether gross-margin improvement is repeatable after the $5.4 million tariff refund and amid pricing pressure, inventory charges and changing product mix.
- Operating cash use, liquidity runway and potential need for additional financing, including dilution following the 2026 equity issuances and remaining potential share issuance under warrants and equity awards.
- Stereolabs integration progress, performance against expected strategic benefits, and the assumptions underlying acquired goodwill and intangible assets.
- Exposure to tariff changes, supplier concentration, customer concentration, purchase commitments and the outcome of the ongoing Hesai-related patent matters.