Key Takeaways:
Ouster reported Q2 revenue of $54.6 million, up 56% and above the $51.55 million consensus, as sensor shipments topped 17,000 units.
"The results reinforce our confidence in the long-term financial model, supported by continued operating leverage and strong customer demand," CFO Ken Gianella said.
GAAP gross margin expanded to 49% from 45% a year earlier, though a one-time refund in cost of goods sold added roughly 1,000 basis points. Adjusted EBITDA loss narrowed to $4.5 million from $5.5 million. Product revenue rose 51% to $52.8 million, the 14th straight quarter of growth, with industrial and smart infrastructure customers the largest contributors.
Shares fell 8.42% after hours to $41.74 as the $0.27 per-share loss missed the $0.12 adjusted estimate. The company guided Q3 revenue of $54.5 million to $57.5 million, implying roughly flat sequential growth as Rev8 production ramps through the quarter.
Revenue and margins
The lidar and camera maker shipped more than 9,000 lidar sensors and 8,000 camera sensors in the quarter, a record. Royalty revenue climbed to $1.9 million from $34,000 a year earlier. GAAP operating expenses rose 10% to $47 million, driven by the full-quarter inclusion of Stereolabs, the Rev8 launch and investment in its Physical AI software portfolio.
Ouster ended June with $263 million in cash, restricted cash and short-term investments, up from $211 million at the end of 2025, supported by $98 million of net proceeds from an at-the-market stock offering. A subsequent common stock offering closed July 6 added about $191 million, leaving roughly 72 million shares outstanding and no debt. Weighted-average diluted shares rose 21% year over year to 66 million.
Rev8 ramp and guidance
CEO Angus Pacala called Rev8, the world's first native color lidar, the most important product release in Ouster's history, citing multiple million-dollar-plus orders from a heavy-machinery maker, an autonomous-agriculture developer and a top autonomous-vehicle provider. The company expanded its manufacturing partnership with Benchmark to capacity exceeding 100,000 units a year.
Management expects Rev8 volumes to ramp through and into the latter part of Q3, with full-year revenue expectations unchanged. The company said it does not expect to need additional capital to fund its current operating plan.
The Q3 midpoint of $56 million implies about 2.5% sequential growth, a slowdown from the 12% sequential gain in Q2. Investors will watch whether Ouster can convert its margin gains into improved operating cash flow, which more than tripled to $20 million in first-half usage, and manage inventory that climbed 33% from year-end to $31.4 million.
This article is for informational purposes only and does not constitute investment advice.
