Ouster (OUST) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue grew 26% year-over-year to $33 million, with gross margin improving to 41% and over 4,700 sensors shipped, driven by higher ASPs, increased volumes, and patent royalties.

• Ended the quarter with $171 million in cash and equivalents, no debt, and a strong balance sheet, supporting multi-million dollar deals across all four verticals.

• Net loss narrowed to $22 million from $24 million year-over-year, with operating expenses up 12% due to higher R&D and litigation costs.

• Expanded software-attached business, highlighted by major contracts in Europe and the U.S., and launched next-generation silicon and enhanced software functionality.

• Announced appointment of a new CFO, Ken Gianella, effective May 19th.

Financial highlights

• Q1 2025 revenue reached $33 million, up 26% year-over-year, with industrial and automotive as leading contributors.

• GAAP gross margin improved to 41% from 29% year-over-year, aided by $1.5–$2 million in patent royalty revenue.

• Non-GAAP gross margin rose to 46% from 36% year-over-year.

• Operating expenses increased to $37.3 million, up 12% year-over-year, mainly due to R&D and litigation.

• Net loss per share improved to $(0.42) from $(0.55) year-over-year.

Outlook and guidance

• Q2 2025 revenue guidance is $32 million to $35 million, excluding material patent royalty revenue.

• Long-term targets include 30%-50% annual revenue growth, 35%-40% gross margin, and operating expenses at or below Q3 2023 levels.

• Focus remains on expanding software-attached sales, product innovation, and supporting customers moving into commercial production.