Ouster Announces Results for Third Quarter 2025

Strong performance on record shipments of over 7,200 sensors

Achieves eleventh straight quarter of revenue growth

Ouster, Inc. (Nasdaq: OUST) (“Ouster” or the “Company”), a global leader in high-performance lidar sensors and intelligent software solutions that bring Physical AI to life across the automotive, industrial, robotics, and smart infrastructure sectors, announced today financial results for the three months ended September 30, 2025.

Third Quarter 2025 Highlights:

  • $39.5 million in revenue, up 41% year over year and 13% sequentially;
  • GAAP gross margin of 42%, up 400bps year over year and down 300bps sequentially;
  • Net loss of $22 million, an improvement of $4 million year over year and down $1 million sequentially;
  • Non-GAAP gross margin1 of 47%, up 300bps year over year and down 400bps sequentially;
  • Adjusted EBITDA1 loss of $10 million, flat year over year and a decline of $4 million sequentially;
  • Cash, cash equivalents, restricted cash, and short-term investments of $247 million as of September 30, 2025.

“Our outstanding third quarter results were driven by shipments of a record 7,200 sensors, including significant deployments in smart infrastructure. We delivered Physical AI solutions powered by digital lidar to support our customers' efforts to increase operating efficiency and improve safety,” said Ouster CEO Angus Pacala. “We remain focused on developing our next generation of products, driving more software-attached sales, and progressing on our path to profitability.”

Revenue

Ouster delivered quarterly revenue of $39.5 million, an increase of 41% year over year and 13% sequentially. Demand was primarily driven by customers in the smart infrastructure, robotics, and industrial verticals, for use cases in yard logistics, retail analytics, warehouse automation, last mile delivery, and mapping. The Company shipped over 7,200 sensors for revenue, a new quarterly record.

Gross Margin

GAAP gross margin was 42%, compared with 38% in the third quarter of 2024 and 45% in the second quarter of 2025. Continued positive improvements and efficiencies in operations lifted profitability year over year. Non-GAAP gross margin increased to 47%, compared with 45% in the third quarter of 2024 and 52% in the second quarter of 2025. Non-GAAP gross margin excludes the impact of stock-based compensation expenses and certain other items outside of ordinary operations.

____________________

1 Adjusted EBITDA loss 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.

Fourth Quarter 2025 Outlook

For the fourth quarter of 2025, Ouster expects to achieve $39.5 million to $42.5 million in revenue.

Upcoming Investor Events

Ouster management will participate in the following upcoming investor events:

  • Northland Growth Conference – December 16, 2025 (Virtual)

Conference Call Information

Ouster will host a conference call and live webcast for analysts and investors at 5:00 p.m. ET today, November 4, 2025 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/dbktre6z. 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 global leader in high-performance lidar sensors and intelligent software solutions that bring Physical AI to life across the automotive, industrial, robotics, and smart infrastructure sectors. Ouster’s technology delivers performance, reliability, and affordability to accelerate the adoption of autonomous systems at scale and drive meaningful improvements in safety, efficiency, and sustainability. Ouster is headquartered in San Francisco, CA, 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, progress against our priorities, 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 or achieve the anticipated benefits of new acquisitions or investments; 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, and updated by the Company’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 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 and losses on firm purchase commitments, 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 and loss on firm purchase commitments, amortization of acquired intangibles, depreciation expense, 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 BALANCE SHEETS
(unaudited)
(in thousands)
September 30,

2025
December 31,

2024
Assets
Current assets:
Cash and cash equivalents

$

87,126

 

$

45,542

 

Restricted cash, current

 

805

 

 

722

 

Short-term investments

 

157,392

 

 

126,480

 

Accounts receivable, net

 

24,781

 

 

17,941

 

Inventory

 

16,513

 

 

16,417

 

Prepaid expenses and other current assets

 

18,631

 

 

12,750

 

Total current assets

 

305,248

 

 

219,852

 

Property and equipment, net

 

12,864

 

 

10,164

 

Operating lease right-of-use assets

 

11,182

 

 

14,308

 

Unbilled receivable, non-current portion

 

6,103

 

 

10,133

 

Intangible assets, net

 

14,450

 

 

17,830

 

Restricted cash, non-current

 

1,835

 

 

1,835

 

Other non-current assets

 

2,090

 

 

2,026

 

Total assets

$

353,772

 

$

276,148

 

Liabilities and stockholders’ equity
Current liabilities:
Accounts payable

$

16,370

 

$

6,288

 

Accrued and other current liabilities

 

40,742

 

 

30,591

 

Contract liabilities, current

 

29,189

 

 

34,351

 

Operating lease liability, current portion

 

7,488

 

 

7,196

 

Total current liabilities

 

93,789

 

 

78,426

 

Operating lease liability, non-current portion

 

8,411

 

 

13,054

 

Contract liabilities, non-current portion

 

3,326

 

 

2,538

 

Other non-current liabilities

 

804

 

 

1,219

 

Total liabilities

 

106,330

 

 

95,237

 

Commitments and contingencies
Stockholders’ equity:
Common stock

 

48

 

 

47

 

Additional paid-in capital

 

1,225,309

 

 

1,094,938

 

Accumulated deficit

 

(977,433

)

 

(913,071

)

Accumulated other comprehensive (loss) income

 

(482

)

 

(1,003

)

Total stockholders’ equity

 

247,442

 

 

180,911

 

Total liabilities and stockholders’ equity

$

353,772

 

$

276,148

 

OUSTER, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(unaudited)
(in thousands, except share and per share data)
 

Three Months Ended September 30,

Three Months

Ended June 30,

Nine Months Ended September 30,

 

2025

 

 

2024

 

 

2025

 

 

2025

 

 

2024

 

Revenue

$

39,525

 

$

28,075

 

$

35,049

 

$

107,206

 

$

81,009

 

Cost of product

 

22,866

 

 

17,321

 

 

19,207

 

 

61,222

 

 

53,732

 

Gross profit

 

16,659

 

 

10,754

 

 

15,842

 

 

45,984

 

 

27,277

 

Operating expenses:
Research and development

 

17,777

 

 

15,127

 

 

17,147

 

 

49,909

 

 

43,365

 

Sales and marketing

 

7,441

 

 

7,197

 

 

6,978

 

 

20,842

 

 

20,807

 

General and administrative

 

15,692

 

 

15,938

 

 

18,539

 

 

50,136

 

 

41,684

 

Total operating expenses

 

40,910

 

 

38,262

 

 

42,664

 

 

120,887

 

 

105,856

 

Loss from operations

 

(24,251

)

 

(27,508

)

 

(26,822

)

 

(74,903

)

 

(78,579

)

Other income (expense):
Interest income

 

2,414

 

 

2,149

 

 

2,620

 

 

6,739

 

 

7,051

 

Interest expense

 

 

 

(342

)

 

 

 

 

 

(1,823

)

Other income, net

 

176

 

 

74

 

 

(26

)

 

453

 

 

260

 

Total other income, net

 

2,590

 

 

1,881

 

 

2,594

 

 

7,192

 

 

5,488

 

Loss before income taxes

 

(21,661

)

 

(25,627

)

 

(24,228

)

 

(67,711

)

 

(73,091

)

Provision for (benefit from) income taxes

 

72

 

 

(37

)

 

(3,616

)

 

(3,349

)

 

217

 

Net loss

$

(21,733

)

$

(25,590

)

$

(20,612

)

$

(64,362

)

$

(73,308

)

Other comprehensive income (loss)
Changes in unrealized gain (loss) on available-for-sale securities

 

109

 

 

298

 

 

(70

)

$

85

 

$

(206

)

Foreign currency translation adjustments

 

(45

)

 

335

 

 

401

 

 

436

 

 

(130

)

Total comprehensive loss

$

(21,669

)

$

(24,957

)

$

(20,281

)

$

(63,841

)

$

(73,644

)

Net loss per common share, basic and diluted

$

(0.37

)

$

(0.54

)

$

(0.38

)

$

(1.17

)

$

(1.62

)

Weighted-average shares used to compute basic and diluted net loss per share

 

57,976,375

 

 

47,684,363

 

 

54,466,143

 

 

54,997,009

 

 

45,287,763

 

 
OUSTER, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(in thousands)
 

September 30,

 

2025

 

 

2024

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

Net loss

$

(64,362

)

$

(73,308

)

Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization

 

5,707

 

 

7,843

 

Loss on write-off and disposal of property and equipment and right-of-use asset impairment

 

106

 

 

468

 

Gain on lease termination

 

(65

)

 

 

Stock-based compensation

 

33,553

 

 

31,618

 

Reduction of revenue related to stock warrant issued to customer

 

2,054

 

 

861

 

Amortization of right-of-use asset

 

3,868

 

 

3,606

 

Accretion or amortization on short-term investments

 

(2,400

)

 

(4,239

)

Change in fair value of warrant liabilities

 

(8

)

 

(191

)

(Recovery) provision for inventory write-down

 

(551

)

 

756

 

Provision (recovery) of doubtful accounts

 

120

 

 

(894

)

Realized gain on available for sale securities

 

(4

)

 

(275

)

Changes in operating assets and liabilities:
Accounts receivable

 

(2,930

)

 

412

 

Inventory

 

455

 

 

3,851

 

Prepaid expenses and other assets

 

(5,943

)

 

22,499

 

Accounts payable

 

9,216

 

 

2,338

 

Accrued and other liabilities

 

6,056

 

 

(29,466

)

Contract liabilities

 

(4,374

)

 

7,625

 

Operating lease liability

 

(5,028

)

 

(4,637

)

Net cash used in operating activities

 

(24,530

)

 

(31,133

)

CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of property and equipment

 

 

 

668

 

Purchases of property and equipment

 

(3,143

)

 

(2,307

)

Purchase of short-term investments

 

(118,424

)

 

(85,585

)

Proceeds from sales of short-term investments

 

90,000

 

 

122,082

 

Net cash (used in) provided by investing activities

 

(31,567

)

 

34,858

 

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from ESPP purchase

 

980

 

 

781

 

Proceeds from exercise of stock options

 

83

 

 

170

 

Payments received (remitted) to fund employees tax obligation for vested RSUs

 

2,440

 

 

 

Repayment of borrowings

 

 

 

(43,975

)

Proceeds from the issuance of common stock under at-the-market offering, net of commissions and fees

 

94,057

 

 

33,792

 

At-the-market offering costs for the issuance of common stock

 

(232

)

 

(202

)

Net cash provided by (used in) financing activities

 

97,328

 

 

(9,434

)

Effect of exchange rates on cash and cash equivalents

 

436

 

 

(206

)

Net increase (decrease) in cash, cash equivalents and restricted cash

 

41,667

 

 

(5,915

)

Cash, cash equivalents and restricted cash at beginning of period

 

48,099

 

 

52,634

 

Cash, cash equivalents and restricted cash at end of period

$

89,766

 

$

46,719

 

 
OUSTER, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(unaudited)
(in thousands)
 

Three Months Ended

September 30,

Three Months Ended

June 30,

Nine Months Ended

September 30,

 

2025

 

 

2024

 

 

2025

 

 

2025

 

 

2024

 

GAAP net loss

$

(21,733

)

$

(25,590

)

$

(20,612

)

$

(64,362

)

$

(73,308

)

Interest income, net

 

(2,414

)

 

(1,807

)

 

(2,620

)

 

(6,739

)

 

(5,228

)

Other (income) expense, net

 

(176

)

 

(74

)

 

26

 

 

(453

)

 

(260

)

Stock-based compensation expense(1)

 

11,829

 

 

11,519

 

 

13,226

 

 

33,553

 

 

31,618

 

Provision for (benefit from) income taxes

 

72

 

 

(37

)

 

(3,616

)

 

(3,349

)

 

217

 

Excess and obsolete expenses and loss on firm purchase commitments

 

 

 

 

 

 

 

 

 

572

 

Amortization of acquired intangibles(2)

 

1,134

 

 

1,759

 

 

1,127

 

 

3,380

 

 

5,174

 

Depreciation expense(2)

 

919

 

 

687

 

 

732

 

 

2,326

 

 

2,579

 

Litigation expenses(3)

 

652

 

 

4,221

 

 

6,234

 

 

12,680

 

 

7,153

 

Gain on lease termination

 

 

 

 

 

 

 

(65

)

 

 

Other items

 

 

 

(513

)

 

 

 

 

 

(627

)

Adjusted EBITDA

$

(9,716

)

$

(9,835

)

$

(5,503

)

$

(23,029

)

$

(32,110

)

 
(1) Includes stock-based compensation expense as follows:

Three Months Ended

September 30,

Three Months Ended

June 30,

Nine Months Ended

September 30,

 

2025

 

 

2024

 

 

2025

 

 

2025

 

 

2024

 

Cost of revenue

 

1,618

 

 

1,345

 

 

1,799

 

$

4,553

 

$

3,468

 

Research and development

 

5,583

 

 

5,241

 

 

6,303

 

 

16,191

 

 

14,079

 

Sales and marketing

 

1,285

 

 

1,308

 

 

1,733

 

 

4,124

 

 

4,200

 

General and administrative

 

3,343

 

 

3,625

 

 

3,391

 

 

8,685

 

 

9,871

 

Total stock-based compensation

$

11,829

 

$

11,519

 

$

13,226

 

$

33,553

 

$

31,618

 

 
(2) Includes depreciation and amortization expense as follows:

Three Months Ended

September 30,

Three Months Ended

June 30,

Nine Months Ended

September 30,

 

2025

 

 

2024

 

 

2025

 

 

2025

 

 

2024

 

Cost of revenue

$

1,086

 

$

971

 

$

942

 

$

2,952

 

$

3,070

 

Research and development

 

718

 

 

634

 

 

678

 

 

2,038

 

 

2,016

 

Sales and marketing

 

177

 

 

250

 

 

174

 

 

523

 

 

747

 

General and administrative

 

72

 

 

591

 

 

65

 

 

194

 

 

1,920

 

Total depreciation and amortization expense

$

2,053

 

$

2,446

 

$

1,859

 

$

5,707

 

$

7,753

 

 
(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

September 30,

Three Months Ended

June 30,

Nine Months Ended

September 30,

 

2025

 

 

2024

 

 

2025

 

 

2025

 

 

2024

 

Gross profit on GAAP basis

$

16,659

 

$

10,754

 

$

15,842

 

$

45,984

 

$

27,277

 

Stock-based compensation

 

1,618

 

 

1,345

 

 

1,799

 

 

4,553

 

 

3,468

 

Amortization of acquired intangible assets

 

467

 

 

467

 

 

461

 

 

1,385

 

 

1,302

 

Excess and obsolete expenses and loss on firm purchase commitments

 

 

 

 

 

 

 

 

 

572

 

Gross profit on non-GAAP basis

$

18,744

 

$

12,566

 

$

18,102

 

$

51,922

 

$

32,619

 

 
Gross margin on GAAP basis

 

42

%

 

38

%

 

45

%

 

43

%

 

34

%

Gross margin on non-GAAP basis

 

47

%

 

45

%

 

52

%

 

48

%

 

40

%

 

 

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