Outset Medical (OM) Q4 2025 Earnings Transcript

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DATE

Wednesday, February 11, 2026 astatine 5 p.m. ET

CALL PARTICIPANTS

• Chief Executive Officer — Leslie Trigg

• Chief Financial Officer — Renee Gaeta

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Full Conference Call Transcript

Leslie Trigg: Thanks, Jim. Good afternoon, everyone, and convey you for joining us. 2025 was a twelvemonth of advancement and translation astatine Outset Medical, a twelvemonth wherever we overcame adversity to look with a stronger instauration and adjacent deeper capabilities to assistance hospitals, wellness systems, post-acute and location providers amended diligent attraction outcomes astatine little outgo and with little complexity. During the year, we substantially reduced our outgo operation portion making important investments to widen our exertion and work leadership. These investments were cardinal to our announcement 2 weeks agone astir the FDA clearance of our next-generation Tablo platform. Second, we meaningfully strengthened our squad and infused caller endowment into cardinal enactment roles, successful finance, aesculapian affairs and tract service.

Third, we recapitalized the institution with little indebtedness and caller superior to money Outset done currency travel breakeven and beyond. Fourth, we expanded our basal of published evidence, demonstrating the important clinical, operational and fiscal benefits that tin beryllium achieved by in-sourcing with Outset and Tablo. In particular, the objective worth proposition came into wide absorption arsenic our customers documented adjacent much grounds of improved objective outcomes. Fifth, we maintained a precise precocious lawsuit restitution oregon CSAT score, supra 95%, for the exceptional lawsuit work we provide.

And lastly, we proceed to motion caller agreements for the in-sourcing of dialysis astatine caller and enlargement sites, including astatine 1 of the largest nationalist wellness systems successful the state with good implicit 100 facilities. Tablo is present utilized astatine astir 1,000 acute attraction sites successful the United States. Turning to our fiscal results for the year, we announced preliminary 4th fourth gross past month, which came successful astatine the precocious extremity of our revised guidance range. At $119.5 million, gross grew by 5% implicit 2024 and sets america up for what we expect volition beryllium an adjacent stronger maturation twelvemonth successful 2026.

As we person worked toward greater consistency and predictability successful our apical enactment results, we continued our dependable 5-year enlargement of gross borderline to decorativeness the twelvemonth astatine 39.6% non-GAAP gross margin. Gross borderline exiting the twelvemonth was good supra 40%, which keeps america connected a trajectory to our adjacent milestone of 50%. Moving to our extremity markets, I americium astir arrogant of the advancement we made during 2025 strengthening our concern and beingness with acute and post-acute attraction providers. We began to spot vocal champions look passim our lawsuit basal due to the fact that of the objective and operational benefits that tin beryllium achieved by in-sourcing with Outset. The fiscal benefits person agelong been understood and stay a cardinal selling point.