Ouster, Inc. (OUST) - Q2 2026 10-Q Summary
Business Context and Reporting Period
This report covers the quarterly period ended June 30, 2026. Ouster, Inc. is a leader in sensing and perception for Physical AI, offering digital lidar, cameras, AI compute, and perception software. A significant event during the period was the acquisition of Stereolabs SAS on February 4, 2026, which expanded the company's portfolio to include industrial-grade ZED cameras and AI vision software. The company operates as a single reportable segment.
Key Financial Metrics
| Metric | Q2 2026 | Q2 2025 | YTD 2026 | YTD 2025 |
|---|---|---|---|---|
| Total Revenue | $54.6 million | $35.0 million | $103.2 million | $67.7 million |
| Gross Profit | $26.7 million | $15.8 million | $47.5 million | $29.3 million |
| Gross Margin | 49% | 45% | 46% | 43% |
| Net Loss | $(18.1) million | $(20.6) million | $(35.6) million | $(42.6) million |
| Operating Cash Flow | $(20.0) million (YTD) | $(6.2) million (YTD) | — | — |
| Cash & Investments | $262.5 million | — | — | — |
Note: Cash and investments include $91.8 million in cash equivalents and $169.3 million in short-term investments as of June 30, 2026.
Material Changes vs. Prior Period
- Revenue Growth: Revenue increased 56% year-over-year in Q2 2026, driven by higher sensor volumes, the inclusion of Stereolabs revenue, and $1.9 million in patent royalties (compared to negligible royalties in Q2 2025).
- Margin Expansion: Gross margin improved to 49% from 45% in the prior year, aided by a $5.4 million benefit from IEEPA import duty refunds recognized in cost of revenue.
- Operating Expenses: Total operating expenses rose 10% to $46.7 million. R&D increased 13% and Sales & Marketing increased 32%, largely due to the Stereolabs acquisition and increased amortization of intangible assets. G&A remained relatively flat.
- Acquisition Impact: The Stereolabs acquisition added $38.5 million in goodwill and $23.4 million in intangible assets. Pro forma revenue for the six months ended June 30, 2026, would have been $105.2 million.
Guidance, Outlook, and Risks
- Liquidity: Management believes existing liquidity ($262.5 million) is sufficient for at least 12 months. The company completed a $100 million At-The-Market (ATM) offering in Q2 2026.
- Subsequent Event: On July 6, 2026, the company completed a follow-on equity offering, selling 3.6 million shares for net proceeds of approximately $191.9 million.
- Product Launch: Launched the Rev8 OS family of digital lidar sensors in May 2026, featuring native color lidar and the OS1 Max flagship sensor.
- Risks:
- Legal: Ongoing patent disputes with Hesai Group; a final arbitration decision in September 2025 required Hesai to pay royalties, but Inter Partes Review (IPR) proceedings regarding patent validity are ongoing.
- Supply Chain: Dependence on key suppliers (Benchmark, Fabrinet) and exposure to tariffs/trade policy changes.
- Profitability: The company continues to incur losses and negative operating cash flows, with an accumulated deficit of $1.0 billion.
Investor Verification Checklist
- Revenue Quality: Verify the sustainability of the $5.4 million IEEPA tariff refund benefit, which significantly boosted gross margins in Q2 2026.
- Acquisition Integration: Assess the progress of integrating Stereolabs and the realization of anticipated synergies in software and AI capabilities.
- Legal Exposure: Monitor the status of the Hesai patent litigation and IPR proceedings, as outcomes could impact future royalty revenue or IP validity.
- Cash Burn: Review the trajectory of operating cash flow burn ($20 million in H1 2026) against the newly raised capital ($191.9 million in July 2026) to determine runway.
- Customer Concentration: Note that Customer E accounted for 32% of Q2 2026 revenue; verify the stability of this key relationship.