Outset Medical Inc. Common Stock (OM)

FairStock Score: 51/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Looking at Outset Medical through a value lens, I see a small medical-device maker with a promising-sounding product but no durable record of profitability. In fiscal 2025, the year ended 2025-12-31, revenue was $119.5 million and net income was -$81.7 million, or diluted EPS -$5.37. That was an improvement from fiscal 2024's -$128.0 million loss and fiscal 2023's -$172.8 million loss, but the company still burned $38.9 million of free cash flow over the trailing twelve months, a yield of -50.9% against its $76.3 million market cap. In the latest filed quarter, fiscal Q2 2026 ended 2026-06-30, revenue was $31.6 million and net income was -$18.0 million, a -56.85% margin. This is not a business earning its cost of capital; ROE is -59.17% and ROCE is -15.54%, with debt-to-equity of 1.08. The Piotroski score is 3/9 and Altman Z-score is -5.84, signs of financial fragility. On the positive side, price-to-book is 0.79, so at the 2026-10-13 close of $4.06 the market values the equity below stated book value. But book value is only useful if assets are productive and liabilities are manageable. Revenue growth is negative at -6.35%, and the company has lost money each of the last four years, so Lynch-style classification is none. A medical device with recurring consumables could have a moat if adoption and use scale, but the figures show scale is not yet producing profit. I would want to see sustained revenue growth, narrower cash burn, and a path to positive free cash flow before calling this cheap rather than speculative.

In plain English: Outset Medical makes a compact hemodialysis machine and related supplies. The business is still losing money and uses more cash than it brings in, with debt that is larger than its equity. At $4.06 a share, the stock trades below its accounting book value, but because there are no profits, it is hard to call the price cheap or expensive based on the company's earnings.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer