Outset Medical, Inc. reported a net loss of $127.9 million for the year ended December 31, 2024, compared to a net loss of $172.8 million in 2023. Total revenue for 2024 was $113.7 million, a 13% decrease from $130.4 million in 2023. This decrease was primarily driven by a 22% decline in product revenue, offset partially by a 22% increase in service and other revenue. The decrease in product revenue resulted from lower console sales, although consumable revenue increased due to growth in the installed console base.
The company's gross profit increased by 33% to $38.6 million in 2024, while the gross margin improved by 11.7 percentage points to 33.9%, primarily due to a higher mix of higher-margin consumables and service revenue. Operating expenses decreased by 24% to $151.9 million in 2024, reflecting cost reduction initiatives implemented throughout the year, including workforce reductions. These initiatives targeted research and development (down 33%), sales and marketing (down 27%), and general and administrative expenses (down 4%).
In July 2023, Outset received a warning letter from the FDA citing concerns about website content promoting off-label use of Tablo and the marketing of TabloCart with Prefiltration. The company addressed these issues, resulting in the FDA's closure of the matter in February 2025. The distribution of TabloCart with Prefiltration was paused pending FDA clearance, which was received in May 2024. The company also implemented four workforce reductions during 2023 and 2024 to align investments with strategic priorities. As of December 31, 2024, Outset employed 354 full-time employees.
Outset's financial performance was impacted by macroeconomic factors, including rising interest rates and cautious capital spending by customers, which lengthened sales cycles and delayed installations. The company also noted ongoing challenges related to staffing shortages and increased costs faced by its customers. The company's cash position as of December 31, 2024, was $162.0 million, and it secured a new credit facility in January 2025 providing up to $125 million in term loans. The company stated that its existing resources are expected to meet its anticipated needs for at least the next 12 months. The company's outlook anticipates continued investment in research and development, expansion in the home dialysis market, and efforts to improve gross margins and achieve profitability.
About Outset Medical, Inc.
About 10-K Filings
A 10-K form is a comprehensive annual report that public companies in the United States must file with the SEC, providing a detailed overview of the company's financial condition, performance, and business strategies.
Key points about the 10-K:
- Frequency: Filed annually, typically within 60 to 90 days after the end of the company's fiscal year.
-
Content: It includes:
- Detailed financial statements audited by an independent accounting firm
- Management's Discussion and Analysis (MD&A) of financial condition and results
- Description of the company's business, properties, and legal proceedings
- Risk factors and market risks
- Executive compensation and corporate governance information
- Importance: Considered the most comprehensive and important document a public company files with the SEC.
- Length: Often exceeds 100 pages due to its extensive and detailed nature.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.