Ouster Inc. (NASDAQ:OUST) stock rose in Wednesday’s premarket trading after the company reported better-than-expected third-quarter results.
Revenue reached $59.33 million, beating Wall Street’s estimate of $56.27 million, according to Benzinga Pro.
Revenue rose 50% year over year and 9% sequentially. Product revenue increased 42% from a year earlier to approximately $56 million, driven by industrial and robotics demand.
The company reported a loss of 20 cents per share, narrower than the expected loss of 24 cents.
Ouster Sensor Shipments Surge As Robotics Demand Grows
Ouster shipped more than 27,000 sensors, including over 7,000 LiDAR units and approximately 20,000 cameras. The quarter marked its 15th consecutive period of product revenue growth.
Industrial markets generated the most revenue, followed by robotics. Royalty revenue totaled approximately $3 million.
Stereo Labs also reported record shipments of more than 20,000 cameras. Production more than doubled from the previous quarter.
Demand remained strong across robotics, humanoids, warehouse automation, defense, construction and mapping.
Management highlighted surging demand for humanoid robots, autonomous drones and other physical AI applications. Ouster expects these emerging markets to drive long-term demand for its LiDAR sensors and cameras as robotics adoption accelerates.
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Narrows Losses, Holds $421 Million in Cash
GAAP gross margin reached 43%, up from 42% a year earlier but down from 49% in the previous quarter. The sequential decline mainly reflected a one-time $5 million tariff refund received in the second quarter.
Adjusted EBITDA loss narrowed 60% year over year to $3 million.
Ouster ended September with approximately $421 million in cash, cash equivalents, restricted cash and short-term investments. The balance included proceeds from its July stock offering.
Management said its cash reserves can fund expansion and support its path toward profitability without additional capital.
Ouster Targets 100,000-Unit Capacity As Rev8 Gains Traction
Ouster said its Rev8 native-color LiDAR attracted hundreds of customers and secured a backlog of thousands of units.
Deliveries should increase in the fourth quarter and accelerate through 2027.
Through its Benchmark partnership, Ouster aims to exceed 100,000 units in annual production capacity by the end of 2027.
The company also highlighted its NVIDIA collaboration and plans to pursue defense certifications for Rev8.
Forecasts Strong Fourth-Quarter Growth
Ouster expects fourth-quarter revenue of $61 million to $64 million, compared with the analyst consensus of $62.03 million.
At the midpoint, the forecast implies approximately 48% year-over-year growth, excluding royalties.
Management expects demand for LiDAR, cameras and physical AI products to support further expansion.
OUST Price Action: Ouster shares were up 13.87% at $33.00 during premarket trading on Wednesday, according to Benzinga Pro data.
Photo via Shutterstock
