Outset Medical Shares Sink 47% After Q3 Miss And Lowered Full-Year Outlook

(RTTNews) - Outset Medical, Inc. (OM) plunged 47.06% to $6.39, down $5.68, after reporting weaker-than-expected third-quarter 2025 results and cutting its full-year guidance.

The medical technology firm posted revenue of $29.4 million, a modest 3 percent year-over-year increase, but below analyst expectations due to slower system placements and deferred hospital capital spending.

The company reported a net loss of $32.7 million, or $0.66 per share, compared to a loss of $27.8 million, or $0.57 per share, a year earlier. Gross margin was 10.8 percent, down from 12.3 percent in the prior-year period, reflecting higher manufacturing and logistics costs.

Outset revised its 2025 revenue outlook to $115-$120 million, down from its prior forecast of $122-$126 million, citing slower adoption of its Tablo Hemodialysis System and hospital budget constraints. The company expects gross margins to remain pressured through early 2026 as it manages production scaling and cost structure.

CEO Leslie Trigg said Outset remains committed to its long-term growth strategy but acknowledged "near-term headwinds" in hospital purchasing trends.

On the day of the announcement, OM experienced unusually heavy trading volume as investors reacted to the disappointing results and guidance cut. The stock's 52-week range is $5.20 - $12.50.