Record revenue and gross margins, achieving 12th straight quarter of product revenue growth

Record quarterly lidar shipments of 8,100 units; 2025 shipments exceed 25,000

Ouster, Inc. (NASDAQ:OUST) ("Ouster" or the "Company"), a leader in sensing and perception for Physical AI, announced today financial results for the three months and year ended December 31, 2025.

"2025 was a year of exceptional execution for Ouster. Our strong revenue growth and gross margin performance are a testament to our disciplined focus as we pioneer the technologies driving the secular shift towards Physical AI, delivering record results," said Ouster CEO Angus Pacala. "As we look forward, the strength of our digital lidar business, combined with the acquisition of Stereolabs, positions Ouster as the foundational sensing and perception platform for Physical AI. We are uniquely equipped to accelerate customer development of solutions that sense, think, act, and learn in the physical world."

Fourth Quarter 2025 Highlights:

$62 million in revenue, up 107% year over year and 57% sequentially; includes royalties of approximately $21 million, primarily one-time and related to long-term IP license contracts
Product revenue was $41 million, up 36% year over year and 4% sequentially
Shipped more than 8,100 lidar sensors for revenue
GAAP gross margin of 60%, up 1600bps year over year and up 1800bps sequentially
GAAP net income of $4 million, an improvement of $28 million year over year and up $26 million sequentially
Non-GAAP gross margin¹ of 62%, up 1,800bps year over year and up 1,500bps sequentially; the favorable impact of royalties was approximately 1,900bps
Adjusted EBITDA¹ of $11 million, up $20 million both year over year and sequentially
Cash, cash equivalents, restricted cash, and short-term investments of $211 million as of December 31, 2025

Full Year 2025 Highlights:

$169 million of revenue, up 52% compared with 2024; includes royalties for approximately $23 million, primarily one-time and related to long-term IP license contracts
Product revenue was $147 million, up 32% year over year
Shipped more than 25,000 lidar sensors for revenue
GAAP gross margin of 49%, up 1300bps compared with 2024
GAAP net loss of $60 million, an improvement of $37 million year over year
Non-GAAP gross margin¹ of 54%, up 1,200bps compared with 2024; the favorable impact of royalties was approximately 700bps
Adjusted EBITDA¹ loss of $12 million, an improvement of $29 million compared with 2024
Bookings of $177 million, representing a product book-to-bill of 1.2x

___________________________

¹Adjusted EBITDA and non-GAAP gross margin are non-GAAP financial measures. See Non-GAAP Financial Measures for additional information and reconciliations of these measures to their respective most directly comparable financial measures calculated in accordance with U.S. GAAP.

Revenue

Ouster delivered fourth quarter revenue of $62 million, an increase of 107% year over year and 57% sequentially. The results include royalties of approximately $21 million that were primarily one-time and related to long-term IP license contracts. Product revenue was $41 million, up 36% year over year and 4% sequentially primarily driven by customers in the industrial and robotics verticals, for use cases in warehouse automation, robotaxi, and mapping. The Company shipped over 8,100 sensors for revenue, a new quarterly record.

Gross Margin

GAAP gross margin was 60%, compared with 44% in the fourth quarter of 2024 and 42% in the third quarter of 2025. Volume growth and operating efficiencies, along with royalties, lifted profitability year over year. Non-GAAP gross margin was 62%, compared with 44% in the fourth quarter of 2024 and 47% in the third quarter of 2025. Revenue from royalties accounted for approximately 19 points of gross margin in the fourth quarter of 2025. Non-GAAP gross margin excludes the impact of stock-based compensation expenses, and certain other items outside of ordinary operations.

First Quarter 2026 Outlook:

For the first quarter of 2026, Ouster expects to achieve $45 to $48 million in total revenue. This includes approximately 7 weeks of Stereolabs operations.

Ouster remains laser focused on maintaining its path to profitability and expects the Stereolabs acquisition to be accretive to that path. Taking into consideration Stereolabs' 2025 results, Ouster remains confident in its long-term financial framework of annual revenue growth of 30% to 50%, GAAP gross margins of 35% to 40% and well controlled GAAP operating expense growth, which is estimated at 5-8% from its 2025 levels. This framework excludes the revenue and gross margin impact of royalties of approximately $23 million in 2025, which were primarily one time.

Upcoming Investor Events

Ouster management will participate in the following upcoming investor events:

Cantor Global Technology & Industrial Growth Conference – March 10
38th Annual ROTH Conference – March 24

Conference Call Information

Ouster will host a conference call and live webcast for analysts and investors at 5:00 p.m. ET today, March 2, 2026 to discuss its financial results and business outlook.

Interested parties may listen to a live webcast of the conference call. Registration for the webcast can be completed by visiting the following website: https://edge.media-server.com/mmc/p/yvxarmrm. The webcast will be available for replay for at least 30 days after the conference call on Ouster's investor website at https://investors.ouster.com/.

About Ouster

Ouster (NASDAQ:OUST) is a leader in sensing and perception for Physical AI across industrial, robotics, automotive, and smart infrastructure. With a unified platform of high-performance digital lidar, cameras, AI compute, sensor fusion and perception software, and AI models, Ouster delivers solutions that improve quality of life in the physical world. Headquartered in San Francisco, CA, Ouster has a global presence serving thousands of customers with offices in the Americas, Europe, and Asia-Pacific. For more information about our products, visit www.ouster.com, contact our sales team, or connect with us on X or LinkedIn.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are based upon current plans, estimates and expectations of management that are subject to various risks and uncertainties that could cause actual results to differ materially from such statements. The inclusion of forward-looking statements should not be regarded as a representation that such plans, estimates and expectations will be achieved. Words such as "anticipate," "expect," "project," "intend," "believe," "may," "will," "should," "plan," "could," "continue," "target," "contemplate," "estimate," "forecast," "guidance," "predict," "possible," "potential," "pursue," "likely," and the negative of these terms and similar expressions are intended to identify forward-looking statements, though not all forward-looking statements use these words or expressions. All statements, other than statements of historical fact, including statements regarding our future financial results and financial condition, our strategy, our market positioning, development of and demand for our products, the impact of our recent acquisition of Stereolabs, and future investor conference attendance, are forward-looking statements, all constitute forward-looking statements. All forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those that we expected, including, but not limited to, risks related to Ouster's limited operating history and history of losses; the substantial research and development costs needed to develop and commercialize new products; Ouster's limited sales history and the ability to maintain confidence in the Company's long-term business prospect among customers in target markets; fluctuations in its operating results; its ability to maintain competitive average selling prices, high sales volumes and reduce product costs; competition in Ouster's industry; the negotiating power and product standards of its customers; the adoption of its products and the growth of the lidar market generally; product quality and liability risks; Ouster's future capital needs and ability to secure additional capital on favorable terms or at all; market acceptance of lidar and Ouster's forecasts for market growth; Ouster's ability to manage growth, including growing the sales and marketing organization; risks related to international operations, including international manufacturing; cancellation or postponement of contracts or unsuccessful implementations; the Company's ability to manage its inventory; credit risk of customers; Ouster's ability to use tax attributes; Ouster's dependence on key third party suppliers, in particular Benchmark Electronics, Inc., Fabrinet, and other suppliers; supply chain constraints and challenges; conditions in the industries the Company targets or the global economy; Ouster's ability to recruit and retain key personnel; its ability to complete, successfully integrate or achieve the anticipated benefits of new acquisitions or investments, including the Stereolabs acquisition; changes to trade policy, tariffs, and import/export regulations may have a material adverse effect on Ouster's business, financial condition and results of operations; risks related to the use of AI tools by us and others; Ouster's ability to adequately protect and enforce its intellectual property rights; legal and regulatory risks; risks related to operating as a public company; and other important factors discussed in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, as will be updated in the Company's Annual Report on Form 10-K for the year ended December 31, 2025, once filed, and as may be further updated from time to time in the Company's other filings with the SEC. Readers are urged to consider these factors carefully and in the totality of the circumstances when evaluating these forward-looking statements, and not to place undue reliance on any of them. Any such forward-looking statements represent management's reasonable estimates and beliefs as of the date of this press release. While Ouster may elect to update such forward-looking statements at some point in the future, it disclaims any obligation to do so, other than as may be required by law, even if subsequent events cause its views to change.

In addition, see information below concerning non-GAAP financial measures.

Non-GAAP Financial Measures

In addition to its results determined in accordance with generally accepted accounting principles in the United States ("GAAP"), Ouster believes the non‑GAAP measures of Non-GAAP Gross Profit, Non-GAAP Gross Margin and Adjusted EBITDA are useful in evaluating its operating performance. Ouster calculates Non-GAAP Gross Profit as gross profit (loss) excluding amortization of acquired intangibles, certain excess and obsolete expenses (recovery), and stock-based compensation expense. Non-GAAP Gross Margin is calculated as Non-GAAP Gross Profit divided by revenues. Adjusted EBITDA is calculated as net loss excluding interest expense (income), net, other (income) expense, net, stock-based compensation expense, provision for (benefit from) income taxes, certain excess and obsolete expenses (recovery), amortization of acquired intangibles, depreciation expenses, certain litigation expenses, gain on lease termination and other items. Ouster believes that Non-GAAP Gross Profit, Non-GAAP Gross Margin, and Adjusted EBITDA may be helpful to investors because it provides consistency and comparability with past financial performance and may be helpful in comparison with other companies, some of which use similar non‑GAAP information to supplement their GAAP results. Adjusted EBITDA is also used by the Board and management as a performance metric for compensation purposes. The non-GAAP financial information is presented for supplemental informational purposes only, and should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from similarly titled non‑GAAP measures used by other companies. Reconciliation tables of the most comparable GAAP financial measures to the non-GAAP financial measures are included at the end of this press release.

OUSTER, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(unaudited)
(in thousands, except share and per share data)

	Three Months Ended December 31,			Three Months Ended September 30,			Three Months Ended December 31,			Year Ended December 31,
	2025			2025			2024			2025			2024
Revenue
Product revenue	$	40,971		$	39,487		$	30,092		$	146,578		$	111,101
Royalties		21,207			38			—			22,806			—
Total revenue		62,178			39,525			30,092			169,384			111,101
Cost of revenue		24,726			22,866			16,909			85,948			70,641
Gross profit		37,452			16,659			13,183			83,436			40,460
Operating expenses:
Research and development		15,261			17,777			14,719			65,170			58,084
Sales and marketing		6,782			7,441			7,045			27,624			27,852
General and administrative		14,505			15,692			17,017			64,641			58,701
Total operating expenses		36,548			40,910			38,781			157,435			144,637
Income (loss) from operations		904			(24,251	)		(25,598	)		(73,999	)		(104,177	)
Other income (expense):
Interest income		2,746			2,414			1,795			9,485			8,846
Interest expense		—			—			—			—			(1,823	)
Other income (expense), net		749			176			386			1,202			646
Total other income (expense), net		3,495			2,590			2,181			10,687			7,669
Income (loss) before income taxes		4,399			(21,661	)		(23,417	)		(63,312	)		(96,508	)
Provision for (benefit from) income tax		414			72			320			(2,935	)		537
Net income (loss)	$	3,985		$	(21,733	)	$	(23,737	)	$	(60,377	)	$	(97,045	)
Other comprehensive income (loss)
Changes in unrealized gain (loss) on available for sale securities		(2	)		109			(180	)		83			(386	)
Foreign currency translation adjustments		42			(45	)		(679	)		478			(809	)
Total comprehensive income (loss)	$	4,025		$	(21,669	)	$	(24,596	)	$	(59,816	)	$	(98,240	)
Net income (loss) per common share:
Basic	$	0.07		$	(0.37	)	$	(0.48	)	$	(1.07	)	$	(2.08	)
Diluted	$	0.06		$	(0.37	)	$	(0.48	)	$	(1.07	)	$	(2.08	)

Weighted-average shares used in computing net income (loss) per share:
Basic		60,468,355			57,976,375			49,958,448			56,334,911			46,584,479
Diluted		64,733,573			57,976,375			49,958,448			56,334,911			46,584,479

OUSTER, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(in thousands)
	December 31,
	2025			2024
Assets
Current assets:
Cash and cash equivalents	$	67,413		$	45,542
Restricted cash, current		1,467			722
Short-term investments		141,172			126,480
Accounts receivable, net		27,753			17,941
Inventory		23,566			16,417
Prepaid expenses and other current assets		17,517			12,750
Total current assets		278,888			219,852
Property and equipment, net		31,891			10,164
Operating lease, right-of-use assets		13,452			14,308
Unbilled receivable, non-current portion		8,560			10,133
Intangible assets, net		13,316			17,830
Restricted cash, non-current		1,100			1,835
Other non-current assets		2,309			2,026
Total assets	$	349,516		$	276,148
Liabilities and stockholders' equity
Current liabilities:
Accounts payable	$	19,984		$	6,288
Accrued and other current liabilities		26,200			30,591
Contract liabilities, current		20,705			34,351
Operating lease liability, current portion		4,142			7,196
Total current liabilities		71,031			78,426
Operating lease liability, non-current portion		12,938			13,054
Debt		—			—
Contract liabilities, non-current portion		3,106			2,538
Other non-current liabilities		703			1,219
Total liabilities		87,778			95,237
Stockholders' equity:
Common stock		48			47
Additional paid-in capital		1,235,580			1,094,938
Accumulated deficit		(973,448	)		(913,071	)
Accumulated other comprehensive (loss) income		(442	)		(1,003	)
Total stockholders' equity		261,738			180,911
Total liabilities and stockholders' equity	$	349,516		$	276,148

OUSTER, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(in thousands)

	For the Years ended December 31,
	2025			2024
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(60,377	)	$	(97,045	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		7,781			9,836
Loss on write-off and disposal of property and equipment		113			401
Stock-based compensation		40,824			40,459
Reduction of revenue related to stock warrant issued to customer		2,623			892
Amortization of right-of-use asset		5,108			4,904
Non-cash interest income		(214	)		(619	)
Accretion or amortization on short-term investments		(3,239	)		(5,095	)
Change in fair value of warrant liabilities		(126	)		(103	)
(Recovery) provision for inventory write-down		(373	)		2,080
Provision (recovery of) for doubtful accounts		(8	)		(587	)
Realized gain on sale of investments		(12	)		(275	)
Changes in operating assets and liabilities:
Accounts receivable		(8,017	)		(1,724	)
Inventory		(6,775	)		4,735
Prepaid expenses and other assets		(3,569	)		21,317
Accounts payable		13,202			2,476
Accrued and other liabilities		(5,865	)		(28,059	)
Contract liabilities		(14,299	)		19,036
Operating lease liability		(6,733	)		(6,323	)
Net cash used in operating activities		(39,956	)		(33,694	)
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of property & equipment		—			668
Purchases of property and equipment		(24,893	)		(3,756	)
Purchase of short-term investments		(149,613	)		(144,573	)
Proceeds from sales and maturities of short-term investments		138,255			162,313
Net cash provided by (used in) investing activities		(36,251	)		14,652
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from exercise of stock options		83			205
Proceeds from ESPP purchase		1,955			1,703
Payments received (remitted) to fund employees tax obligation for vested RSUs		410			—
Repayments of borrowings		—			(43,975	)
Proceeds from the issuance of common stock under at-the-market offering, net of commissions and fees		95,583			57,806
At-the-market offering costs for the issuance of common stock		(421	)		(346	)
Net cash provided by financing activities		97,610			15,393
Effect of exchange rates on cash and cash equivalents		478			(886	)
Net increase (decrease) in cash, cash equivalents and restricted cash		21,881			(4,535	)
Cash, cash equivalents and restricted cash at beginning of year		48,099			52,634
Cash, cash equivalents and restricted cash at end of year	$	69,980		$	48,099

OUSTER, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(unaudited)
(in thousands)

	Three Months Ended December 31,						Three Months Ended September 30,			Year Ended December 31,
	2025			2024			2025			2025			2024
GAAP net income (loss)	$	3,985		$	(23,737	)	$	(21,733	)	$	(60,377	)	$	(97,045	)
Interest (income) expense, net		(2,746	)		(1,795	)		(2,414	)		(9,485	)		(7,023	)
Other (income) expense, net		(749	)		(386	)		(176	)		(1,202	)		(646	)
Stock-based compensation expense⁽¹⁾		7,271			8,841			11,829			40,824			40,459
Provision for income tax expense (benefit)		414			320			72			(2,935	)		537
Excess and obsolete expenses (recovery)		—			(1,431	)		—			—			(859	)
Amortization of acquired intangibles⁽²⁾		1,134			1,342			1,134			4,514			6,516
Depreciation expenses⁽²⁾		941			651			919			3,267			3,230
Litigation expenses⁽³⁾		358			6,494			652			13,037			13,647
Gain on lease termination and other items		—			—			—			(65	)		(627	)
Adjusted EBITDA	$	10,608		$	(9,701	)	$	(9,716	)	$	(12,421	)	$	(41,811	)

⁽¹⁾Includes stock-based compensation expense as follows:
	Three Months Ended December 31,						Three Months Ended September 30,			Year Ended December 31,
	2025			2024			2025			2025			2024
Cost of revenue	$	901		$	1,140		$	1,618		$	5,455		$	4,608
Research and development		2,829			4,181			5,583			19,020			18,260
Sales and marketing		854			1,147			1,285			4,978			5,347
General and administrative		2,687			2,373			3,343			11,371			12,244
Total stock-based compensation	$	7,271		$	8,841		$	11,829		$	40,824		$	40,459

⁽²⁾Includes depreciation and amortization expense as follows:

	Three Months Ended December 31,						Three Months Ended September 30,			Year Ended December 31,
	2025			2024			2025			2025			2024
Cost of revenue	$	1,027		$	915		$	1,086		$	3,979		$	3,985
Research and development		808			626			718			2,846			2,642
Sales and marketing		163			201			177			686			948
General and administrative		77			251			72			271			2,171
Total depreciation and amortization expense	$	2,075		$	1,993		$	2,053		$	7,782		$	9,746

⁽³⁾Represents litigation costs consisting primarily of legal fees and the estimated and actual costs to resolve the outstanding litigation cases offset by the estimated amounts recoverable and recovered under insurance, indemnity and contribution agreements for such costs.

	Three Months Ended December 31,						Three Months Ended September 30,			Year Ended December 31,
	2025			2024			2025			2025			2024
Gross profit on GAAP basis	$	37,452		$	13,183		$	16,659		$	83,436		$	40,460
Stock-based compensation expense		901			1,140			1,618			5,455			4,608
Amortization of acquired intangible assets		467			467			467			1,852			1,768
Excess and obsolete expenses (recovery)		—			(1,431	)		—			—			(859	)
Gross profit on non-GAAP basis	$	38,820		$	13,359		$	18,744		$	90,743		$	45,977


Gross margin on GAAP basis		60	%		44	%		42	%		49	%		36	%
Gross margin on non-GAAP basis		62	%		44	%		47	%		54	%		41	%

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Ouster Announces Results for Fourth Quarter and Full Year 2025