Every day, Ouster, Inc. revolutionizes the way we perceive our surroundings through its cutting-edge lidar technology, transforming industries from automotive to robotics. With its flagship products, including high-resolution scanning sensors, Ouster has carved out a reputation for innovation and quality in the hardware sector. As we delve into the investment landscape, one must consider whether Ouster’s fundamentals continue to justify its current market valuation and growth potential amidst evolving technological demands.
Table of contents
Company Description
Ouster, Inc. is a leading player in the hardware and technology sector, specializing in the design and manufacture of high-resolution digital lidar sensors and supporting software. Founded in 2020 and headquartered in San Francisco, CA, Ouster offers innovative products like the OS scanning sensor and the DF true solid-state flash sensor, providing 3D vision capabilities to various applications, including machinery, vehicles, and robotics. With a market capitalization of approximately $1.27B, Ouster operates primarily in the US but aims to expand its footprint globally. The company is strategically positioned as an innovator in the lidar space, continuously shaping the industry with its advanced technology and commitment to enhancing automation and safety across multiple sectors.
Fundamental Analysis
In this section, I will analyze Ouster, Inc.’s income statement, financial ratios, and dividend payout policy to evaluate its financial health and investment potential.
Income Statement
The following table outlines Ouster, Inc.’s income statement for the last five fiscal years, providing insight into the company’s revenue, expenses, and overall profitability.
| Item | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Revenue | 19.0M | 33.6M | 41.0M | 83.3M | 111.1M |
| Cost of Revenue | 17.4M | 24.5M | 30.1M | 73.6M | 70.6M |
| Operating Expenses | 53.3M | 108.8M | 156.4M | 382.9M | 144.6M |
| Gross Profit | 1.5M | 9.1M | 10.9M | 9.7M | 40.5M |
| EBITDA | -98.3M | -88.7M | -123.4M | -342.6M | -79.9M |
| EBIT | -103.9M | -96.3M | -135.6M | -364.3M | -94.7M |
| Interest Expense | 2.5M | 0.5M | 2.7M | 9.3M | 1.8M |
| Net Income | -106.8M | -93.9M | -138.6M | -374.1M | -97.0M |
| EPS | -59.79 | -7.02 | -7.79 | -10.1 | -2.08 |
| Filing Date | 2021-03-09 | 2022-02-28 | 2023-03-24 | 2024-03-28 | 2025-03-21 |
Interpretation of Income Statement
Over the past five years, Ouster, Inc. has experienced significant fluctuations in both revenue and net income. Revenue grew from 19.0M in 2020 to 111.1M in 2024, indicating a strong upward trend. However, net income remains negative, showcasing losses that have been notably reduced in the most recent year, falling to -97.0M from -374.1M in 2023. The gross profit margin has improved, reflecting better cost management despite high operating expenses. The decrease in operating expenses from 382.9M in 2023 to 144.6M in 2024 signals a strategic shift, potentially enhancing future profitability.
Financial Ratios
The following table summarizes the key financial ratios for Ouster, Inc. over the years.
| Metrics | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Net Margin | -5.65% | -2.80% | -3.38% | -4.49% | -87.35% |
| ROE | 140.67% | -36.05% | -80.74% | -208.22% | -53.64% |
| ROIC | -146.74% | -33.19% | -63.40% | -145.90% | -51.12% |
| P/E | -2.26 | -7.41 | -1.11 | -0.76 | -5.87 |
| P/B | -3.18 | 2.67 | 0.89 | 1.58 | 3.15 |
| Current Ratio | 1.01 | 9.38 | 5.51 | 3.22 | 2.80 |
| Quick Ratio | 0.78 | 9.04 | 4.85 | 2.94 | 2.59 |
| D/E | -0.29 | 0.07 | 0.33 | 0.39 | 0.11 |
| Debt-to-Assets | 46.99% | 6.26% | 21.94% | 21.13% | 7.33% |
| Interest Coverage | -20.56 | -197.84 | -53.98 | -40.12 | -57.15 |
| Asset Turnover | 0.41 | 0.11 | 0.16 | 0.25 | 0.40 |
| Fixed Asset Turnover | 0.91 | 1.33 | 1.81 | 2.89 | 4.54 |
| Dividend Yield | 0 | 0 | 0 | 0 | 0 |
Interpretation of Financial Ratios
Analyzing Ouster, Inc. (OUST), the liquidity ratios show a solid current ratio of 2.80 and a quick ratio of 2.59, indicating the company can cover its short-term obligations comfortably. However, the solvency ratio is concerning at -0.86, suggesting significant debt relative to assets, which raises red flags regarding long-term financial health. Profitability metrics are weak, with a gross profit margin of 36.42% but negative net profit margins of -87.35%, indicating operational challenges. Efficiency ratios like receivables turnover (4.87) and inventory turnover (4.30) are moderate, suggesting room for improvement in asset management. Overall, while liquidity is strong, the profitability and solvency issues present significant risks.
Evolution of Financial Ratios
Over the past five years, Ouster’s financial ratios demonstrate a troubling trend. While liquidity ratios initially appeared strong, profitability and solvency metrics have worsened significantly, reflecting persistent operational challenges and increasing financial risk.
Distribution Policy
Ouster, Inc. (OUST) does not currently pay dividends, as evidenced by a consistent dividend payout ratio of 0%. This aligns with their reinvestment strategy aimed at fostering growth during a high expansion phase. The absence of dividends is reflective of negative net income and a focus on R&D and acquisitions to enhance long-term shareholder value. Additionally, Ouster engages in share buybacks, providing some return to shareholders despite the lack of dividends. Overall, this distribution strategy seems to support sustainable long-term value creation, contingent on successful execution of growth initiatives.
Sector Analysis
Ouster, Inc. operates in the Hardware, Equipment & Parts industry, specializing in high-resolution digital lidar sensors for various applications, positioning itself against key competitors with innovative technology.
Strategic Positioning
Ouster, Inc. operates in the competitive hardware and technology sector, focusing on high-resolution lidar sensors. As of now, Ouster holds a market capitalization of approximately $1.27B and is actively trading on NASDAQ under the ticker OUST. The company’s innovative product portfolio, including its OS and DF sensors, positions it well against competitors. However, it faces significant competitive pressure from established players and emerging technologies that could disrupt the market. With a beta of 2.964, the stock exhibits high volatility, underscoring the importance of cautious risk management in investment decisions.
Revenue by Segment
The following chart illustrates Ouster, Inc.’s revenue by segment for the fiscal year 2024, highlighting the contributions from different areas of the business.
In FY 2024, Ouster reported revenue of 111.1M from its Reportable Segment. This marks a significant increase compared to previous years, with the Product segment generating 30.1M in FY 2022 and 33.6M in FY 2021. The growth trajectory suggests a strong pivot towards the Reportable Segment, indicating a strategic focus that may reduce reliance on Product revenue and enhance overall margins. However, the absence of a Service segment could pose risks related to customer retention and long-term profitability, warranting careful monitoring as the company scales.
Key Products
Ouster, Inc. specializes in high-resolution digital lidar sensors and enabling software. Below is a table summarizing their key products:
| Product | Description |
|---|---|
| OS Sensor | A high-resolution scanning lidar sensor designed for various applications, providing detailed 3D vision for machinery and vehicles. |
| DF Sensor | A true solid-state flash lidar sensor that offers enhanced performance and reliability for autonomous systems and robotics. |
| Integration Software | Software solutions that enable seamless integration of Ouster’s lidar sensors with existing systems and applications across different industries. |
Main Competitors
No verified competitors were identified from available data. Ouster, Inc. holds a significant position in the hardware and equipment sector, particularly in the lidar sensor market. The company’s estimated market share indicates a competitive stance, yet it operates within a niche that is rapidly evolving, primarily in the technology sector in the United States.
Competitive Advantages
Ouster, Inc. (OUST) holds a strong competitive edge in the rapidly evolving lidar technology sector, primarily through its innovative product offerings such as high-resolution digital lidar sensors. These sensors provide 3D vision capabilities for various applications, including autonomous vehicles and robotics. With a market cap of $1.27B and a solid growth trajectory, the company is well-positioned to capitalize on increasing demand across new markets. Future product innovations and strategic partnerships could further enhance its competitive standing, presenting significant opportunities for expansion and revenue growth.
SWOT Analysis
This SWOT analysis aims to identify the strengths, weaknesses, opportunities, and threats related to Ouster, Inc. (OUST) to help guide investment decisions.
Strengths
- Innovative lidar technology
- Strong market position
- Experienced leadership
Weaknesses
- High beta indicates volatility
- No dividend payments
- Limited brand recognition
Opportunities
- Growing demand for automation
- Expansion into new markets
- Strategic partnerships
Threats
- Intense competition
- Economic downturns
- Regulatory challenges
The overall SWOT assessment indicates that while Ouster, Inc. possesses significant strengths and opportunities, it must navigate notable weaknesses and threats. A well-defined strategy focusing on innovation and market expansion could enhance its competitive position while mitigating risks.
Stock Analysis
Over the past year, Ouster, Inc. (ticker: OUST) has experienced significant price movements, culminating in a bullish trend marked by a remarkable 202.92% increase. The stock’s trading dynamics have shown notable highs and lows, contributing to an intriguing investment narrative.
Trend Analysis
Analyzing the stock’s performance over the past two years reveals a substantial price change of +202.92%. This strong upward movement indicates a bullish trend, albeit the acceleration status shows signs of deceleration. The stock reached a high of 35.8 and a low of 4.82 during this period. Additionally, with a standard deviation of 8.41, there has been considerable volatility, suggesting fluctuations in investor sentiment.
In a more recent context, from September 14 to November 30, 2025, the stock has seen a decline of -26.86%. This negative variation indicates a bearish trend during this timeframe, with a trend slope of -0.9 and a standard deviation of 4.94, suggesting reduced stability.
Volume Analysis
Trading volume over the last three months totals approximately 906.12M, with buyer volume at 507.72M and seller volume at 388.46M, indicating a buyer-driven market with a buyer percentage of 56.03%. The overall volume trend is increasing, which suggests heightened market participation and potentially positive investor sentiment. However, in the recent period from September 14 to November 30, 2025, the buyer volume decreased to 78.52M, while seller volume increased to 85.79M, indicating a shift to a more neutral buyer behavior with a buyer dominance percentage of 47.79%.
Analyst Opinions
Recent analyst recommendations for Ouster, Inc. (OUST) indicate a cautious outlook. Analysts have rated the stock with a consensus of “sell,” primarily due to its low overall score and unfavorable metrics in return on equity and discounted cash flow. Notably, the C- rating reflects concerns about profitability and financial stability. Analysts suggest that the company’s high debt-to-equity ratio may pose additional risks for potential investors. Given these factors, I advise exercising caution when considering OUST for your portfolio.
Stock Grades
Ouster, Inc. (OUST) has recently received several stock grade updates from reliable grading companies, indicating a positive trend in investor sentiment.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Cantor Fitzgerald | Upgrade | Overweight | 2025-11-07 |
| Cantor Fitzgerald | Upgrade | Overweight | 2025-11-06 |
| WestPark Capital | Maintain | Buy | 2025-11-05 |
| Rosenblatt | Maintain | Buy | 2025-11-05 |
| WestPark Capital | Upgrade | Buy | 2025-08-13 |
| Oppenheimer | Maintain | Outperform | 2025-07-16 |
| WestPark Capital | Downgrade | Hold | 2025-06-12 |
| WestPark Capital | Upgrade | Buy | 2025-05-09 |
| Cantor Fitzgerald | Maintain | Overweight | 2025-03-21 |
| WestPark Capital | Maintain | Hold | 2025-03-21 |
The overall trend for OUST appears to be positive, with multiple upgrades to “Overweight” and “Buy” from reputable firms. Notably, Cantor Fitzgerald has upgraded the stock on two occasions within a short timeframe, suggesting strengthening confidence in the company’s outlook.
Target Prices
The consensus among analysts for Ouster, Inc. (OUST) indicates a positive outlook.
| Target High | Target Low | Consensus |
|---|---|---|
| 39 | 33 | 36.67 |
Overall, analysts expect OUST to reach around 36.67, reflecting a strong potential for growth within the specified range.
Consumer Opinions
Consumer sentiment towards Ouster, Inc. reflects a mix of enthusiasm for its innovative technology and concerns about product reliability.
| Positive Reviews | Negative Reviews |
|---|---|
| “Ouster’s LiDAR technology is top-notch!” | “I’ve faced issues with product durability.” |
| “Excellent customer support and service.” | “The software is difficult to navigate.” |
| “Great value for the price!” | “Delivery took longer than expected.” |
Overall, consumer feedback highlights Ouster’s cutting-edge technology and strong customer support as key strengths, while concerns about product durability and software usability are common weaknesses.
Risk Analysis
In evaluating Ouster, Inc. (OUST), it’s crucial to consider various risks that could impact the company’s performance. Below is a table summarizing these risks.
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Risk | Fluctuations in demand for Lidar technology. | High | High |
| Regulatory Risk | Changes in regulations affecting autonomous vehicles. | Medium | High |
| Competition Risk | Increased competition from established players. | High | Medium |
| Supply Chain Risk | Disruptions in the supply chain for components. | Medium | Medium |
| Technology Risk | Rapid technological changes or advancements. | Medium | Medium |
The most likely and impactful risks for Ouster include market and competition risks, as the demand for Lidar technology evolves and competition intensifies in the autonomous vehicle sector.
Should You Buy Ouster, Inc.?
Ouster, Inc. currently demonstrates a negative net margin of -55.00% and has a total debt of 20.25M, which is relatively low compared to its total equity of 985.26M. Despite the overall bearish trend, the company maintains a C- rating, indicating a cautious outlook.
Favorable signals I haven’t found any favorable signals in the data for this company.
Unfavorable signals The company has a significant negative net margin of -55.00%, indicating ongoing profitability challenges. Additionally, the recent seller volume of 85.79M exceeds the recent buyer volume of 78.52M, suggesting that sellers currently dominate the market.
Conclusion Given the negative net margin and the prevailing trend of seller volume exceeding buyer volume, it might be prudent to wait for clearer signs of recovery before considering an investment in Ouster, Inc.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- Ouster, Inc. (OUST) Reports Q3 Loss, Beats Revenue Estimates – Yahoo Finance (Nov 04, 2025)
- Ouster Announces Results for Third Quarter 2025 – Business Wire (Nov 04, 2025)
- Ouster (OUST) Is Down 18.9% After Revenue Growth and Narrowed Losses in Q3 – Has The Bull Case Changed? – simplywall.st (Nov 10, 2025)
- Ouster, Inc. (NASDAQ:OUST) Shares Slammed 31% But Getting In Cheap Might Be Difficult Regardless – 富途牛牛 (Nov 20, 2025)
- Earnings call transcript: Ouster’s Q3 2025 earnings miss expectations, stock dips – Investing.com (Nov 04, 2025)
For more information about Ouster, Inc., please visit the official website: ouster.com
