Ouster — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue reached $59 million, representing a 50% year-over-year increase and a 9% sequential increase.
• Product revenue was $56 million, up 42% year-over-year and 6% sequentially.
• GAAP gross margin was 43%, essentially flat year-over-year but down 600 basis points sequentially (compared to 49% in Q2 2026).
• Non-GAAP gross margin was 47%, down 100 basis points year-over-year and down 700 basis points sequentially.
• GAAP net loss was $14 million, an improvement of $8 million year-over-year and $4 million sequentially.
• Adjusted EBITDA loss was $3 million, an improvement of $5 million year-over-year and $1 million sequentially.
• Cash, cash equivalents, restricted cash, and short-term investments totaled $421 million as of September 30, 2026.
• Inventory increased to $36.5 million from $23.6 million at the end of 2025.
• Accounts receivable increased to $39.3 million from $27.8 million at the end of 2025.

Guidance and Future Outlook:

• For the fourth quarter of 2026, Ouster expects total revenue between $61 million and $64 million.
• Management expects delivery cadence for the Rev8 product to accelerate into 2027.

Business Segments and Product Lines:

• Shipped more than 27,000 lidar and camera sensors for revenue; lidar units comprised approximately 27% of the total.
• Stereolabs cameras achieved a record quarter of shipments, driven by capacity investments to meet surging growth in the robotics sector.
• The Rev8, described as the world's first native color lidar, has seen decisive market reception with hundreds of customers choosing it for mission-critical applications.
• Revenue growth was primarily driven by customers in industrial and robotics verticals, including warehouse automation, defense, construction, mapping, and data collection.
• Ouster operates a unified platform comprising lidar, vision, compute, and software.

Market and Competitive Landscape:

• The company positions itself as a leader in sensing and perception for Physical AI across industrial, robotics, automotive, and smart infrastructure sectors.
• Management states that the world's most innovative companies are choosing Ouster for applications ranging from farms and distribution centers to last-mile delivery.
• The Rev8 is cited as an "undeniable competitive differentiator" and a "paradigm shift" in the market.

Risks and Challenges:

• Forward-looking statements highlight risks including limited operating history, history of losses, and substantial R&D costs.
• Challenges include the ability to maintain competitive average selling prices, high sales volumes, and reduced product costs.
• Risks involve dependence on key third-party suppliers, specifically Benchmark Electronics, Inc. and Fabrinet, and potential supply chain constraints.
• Potential risks include product quality, liability risks, inventory management, and credit risk of customers.
• The press release notes risks related to the integration of the Stereolabs acquisition and the ability to achieve anticipated benefits from new acquisitions.
• Risks also include international operations, trade policy changes, tariffs, and cybersecurity/data privacy concerns related to AI tools.

Management Commentary and Tone:

• CEO Angus Pacala described the quarter as "strong," noting the company's evolution into a comprehensive platform meeting global demands of Physical AI.
• Management expressed confidence in the market reception for Rev8 and the breakout performance of Stereolabs, stating the unified platform vision is "exactly what the market demands."
• The tone regarding customer demand for Rev8 was described as "robust" while ramping initial production.

Other Key Points:

• The company achieved its 15th straight quarter of growth.
• The Condensed Consolidated Statements of Cash Flows indicate an acquisition of Stereolabs, net of cash acquired, costing $27.5 million during the nine months ended September 30, 2026.
• Financing activities included proceeds of $191.9 million from an underwritten public offering and $98.0 million from an at-the-market offering during the nine months ended September 30, 2026.
• Upcoming investor events include the ROTH Technology Conference on November 18, 2026, and the Northland Growth Conference on December 16, 2026.
• A conference call and live webcast were scheduled for November 3, 2026, at 5:00 p.m. ET.