Imagine a world where machines see and understand their surroundings with unmatched precision—this is the reality Ouster, Inc. is crafting through its cutting-edge lidar technology. As a prominent player in the Hardware, Equipment & Parts sector, Ouster’s innovative sensors empower vehicles, robots, and infrastructure with 3D vision capabilities. Known for its commitment to quality and efficiency, the company has a reputation that resonates within the tech industry. The pressing question now is whether Ouster’s robust fundamentals can sustain its current market valuation amidst the evolving landscape.
Table of contents
Company Description
Ouster, Inc. is a pioneering technology company specializing in the design and manufacture of high-resolution digital lidar sensors and enabling software, which provide 3D vision capabilities for machinery, vehicles, robots, and fixed infrastructure. Founded in 2020 and headquartered in San Francisco, CA, Ouster operates primarily in the United States, positioning itself as a leader in the Hardware, Equipment & Parts industry. Its diverse product offerings include the OS scanning sensor and the DF solid-state flash sensor, catering to a range of applications. With a focus on innovation and efficiency, Ouster plays a crucial role in advancing autonomous technology and shaping the future of perception systems.
Fundamental Analysis
In this section, I will analyze Ouster, Inc.’s income statement, financial ratios, and dividend payout policy to gauge its financial health and investment potential.
Income Statement
The following table presents the Income Statement for Ouster, Inc. over the last five fiscal years, highlighting key financial metrics that are crucial for assessing the company’s performance.
| Metric | 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 analyzed period, Ouster, Inc. has shown a significant increase in Revenue, growing from 19M in 2020 to 111.1M in 2024. However, the company continues to report substantial Net Income losses, with the most recent year showing a loss of 97M, although this marks an improvement compared to the previous year’s 374.1M loss. The Gross Profit margin has shown variability, reflecting fluctuations in operational efficiency. In 2024, the reduced Operating Expenses positively impacted margins, suggesting enhanced cost management efforts. Despite these improvements, the negative EBITDA indicates ongoing challenges that investors should monitor carefully.
Financial Ratios
Below is a summary of the key financial ratios for Ouster, Inc. (OUST) over the years.
| Ratios | 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 | 2.93 | 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) based on its 2024 financial ratios reveals several areas of concern. The liquidity ratios, such as the current ratio of 2.80 and the quick ratio of 2.59, indicate a strong liquidity position, suggesting the company can cover its short-term obligations. However, the solvency ratio of -0.86 is alarming, reflecting significant financial distress. Profitability metrics are troubling, with a net profit margin of -87.35%, indicating substantial losses. Efficiency ratios also paint a bleak picture, as the receivables turnover of 4.87 and inventory turnover of 4.30 suggest inefficiencies in asset management. The coverage ratios highlight a lack of ability to meet debt obligations, with interest and debt service coverage ratios both negative. Overall, while liquidity appears reasonable, the company’s profitability and solvency raise red flags for potential investors.
Evolution of Financial Ratios
Over the past five years, Ouster’s financial ratios have shown a concerning downward trend. Liquidity ratios have decreased from a high of 9.38 in 2021 to 2.80 in 2024, while profitability ratios have consistently remained negative, indicating worsening financial health and operational challenges.
Distribution Policy
Ouster, Inc. does not pay dividends, reflecting its high-growth phase and focus on reinvesting capital to scale operations. The company has consistently reported negative net income, underscoring its need for capital to support research and development and strategic acquisitions. Although Ouster engages in share buybacks, the lack of dividends raises questions about sustainable value creation for shareholders. Overall, the current distribution strategy may hinder long-term value unless profitability improves significantly.
Sector Analysis
Ouster, Inc. operates in the Hardware, Equipment & Parts industry, specializing in high-resolution digital lidar sensors for various applications, positioning itself against competitors through innovative technology and unique product offerings.
Strategic Positioning
Ouster, Inc. operates in the competitive landscape of high-resolution digital lidar sensors, capturing a significant market share with its innovative product offerings. The company’s flagship products, the OS scanning sensor and DF solid-state flash sensor, position it well against competitors, yet the market remains pressured by rapid technological advancements and emerging players. With a beta of 2.993, Ouster exhibits high volatility, suggesting that investors should exercise caution. As the demand for 3D vision technology expands across various industries, Ouster must navigate competitive pressures and potential technological disruptions effectively.
Revenue by Segment
The following chart illustrates Ouster, Inc.’s revenue distribution by segment for the fiscal year 2024, highlighting key performance areas.
In fiscal year 2024, Ouster’s revenue from the reportable segment reached 111.1M, showing a significant focus on this area. Comparing to previous years, the most notable trend is the transition from varied segment contributions to a more concentrated revenue stream from the primary reportable segment. This marks a shift from 30.1M in 2022 and 33.6M in 2021, indicating a strategic pivot. However, with such concentration, there are potential margin risks and vulnerabilities tied to market fluctuations.
Key Products
Ouster, Inc. specializes in high-resolution digital lidar sensors and enabling software, offering innovative solutions for various industries. Below is a table summarizing their key products:
| Product | Description |
|---|---|
| OS | A high-performance scanning sensor that provides 3D vision for autonomous vehicles, robotics, and infrastructure monitoring. |
| DF | A true solid-state flash sensor designed for applications requiring robust, high-resolution imaging in diverse environments. |
| Ouster Cloud | A comprehensive software platform that enables users to manage, visualize, and analyze lidar data efficiently. |
| Ouster SDK | A software development kit that allows developers to integrate Ouster’s sensors into their applications, enhancing customization and functionality. |
Main Competitors
In the competitive landscape of the technology sector, particularly in hardware and equipment, several companies are vying for market leadership alongside Ouster, Inc.
| Company | Market Cap |
|---|---|
| Bel Fuse Inc. | 2.09B |
| Pagaya Technologies Ltd. | 1.90B |
| EVERTEC, Inc. | 1.89B |
| Ivanhoe Electric Inc. | 1.89B |
| Progress Software Corporation | 1.88B |
| DoubleVerify Holdings, Inc. | 1.82B |
| Jamf Holding Corp. | 1.73B |
| Benchmark Electronics, Inc. | 1.69B |
| Rogers Corporation | 1.56B |
| Ouster, Inc. | 1.49B |
The main competitors in this sector are focused on various aspects of technology and hardware solutions, with a notable presence in the North American market. As an investor, it’s crucial to analyze these companies’ strategies and performances to make informed decisions.
Competitive Advantages
Ouster, Inc. holds significant competitive advantages in the rapidly evolving lidar sensor market. Its innovative technologies, such as the OS scanning sensor and the DF solid-state flash sensor, position the company as a leader in high-resolution 3D vision solutions for various applications, including autonomous vehicles and robotics. With a robust pipeline of future products and potential expansion into new markets, Ouster is well-positioned to capitalize on increasing demand for advanced sensing technologies. The company’s strategic focus on software integration further enhances its growth prospects, creating opportunities for long-term value creation.
SWOT Analysis
The following SWOT analysis provides a clear overview of Ouster, Inc.’s strengths, weaknesses, opportunities, and threats, which can inform investment decisions.
Strengths
- Innovative technology
- Strong market presence
- Experienced leadership
Weaknesses
- High beta volatility
- Limited product diversification
- No dividend payments
Opportunities
- Growing demand for lidar technology
- Expansion into new markets
- Strategic partnerships
Threats
- Intense competition
- Regulatory challenges
- Economic downturns
Overall, Ouster, Inc. demonstrates significant strengths and opportunities that can drive growth, yet it faces notable weaknesses and threats that require careful consideration. This balanced view is essential for developing a sound investment strategy.
Stock Analysis
Over the past year, Ouster, Inc. (OUST) has experienced significant price movements, culminating in a notable bullish trend despite recent fluctuations. The stock has shown substantial trading dynamics, which I will explore further.
Trend Analysis
Analyzing OUST’s stock performance over the past year reveals an impressive percentage change of +273.76%. This substantial increase indicates a bullish trend for the stock. However, it’s important to note that in the recent period from September 21, 2025, to December 7, 2025, the stock has declined by -28.51%, reflecting a trend slope of -0.93 and suggesting a deceleration in momentum. During the year, the stock reached a high of 35.8 and a low of 4.82, underscoring notable volatility with a standard deviation of 8.48.
Volume Analysis
In examining the trading volumes over the last three months, OUST has seen a total volume of approximately 914M, with 521M attributed to buyers and 385M to sellers. The activity appears to be buyer-driven, with a buyer percentage of 57.02%, and volume trends indicate an increasing pattern. However, in the more recent period, buyer volume slightly decreased to 78.7M against seller volume of 85.8M, resulting in a buyer dominance percentage of 47.86%, suggesting a neutral sentiment among investors. This evolving dynamic indicates a mixed outlook for market participation.
Analyst Opinions
Recent analyst recommendations for Ouster, Inc. (OUST) indicate a cautious outlook, with a consensus rating of “sell.” Analysts highlight concerns over the company’s weak financial metrics, reflected in a C- rating from FMP. Key issues include low scores in discounted cash flow, return on equity, and return on assets, which suggest inefficiencies in generating profits. Given these factors, I advise potential investors to approach OUST with caution, considering the consensus sentiment among analysts.
Stock Grades
Ouster, Inc. (OUST) has recently received several notable stock ratings from recognized grading companies, indicating a generally 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 |
| Rosenblatt | maintain | Buy | 2025-11-05 |
| WestPark Capital | 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 |
| WestPark Capital | maintain | Hold | 2025-03-21 |
| Cantor Fitzgerald | maintain | Overweight | 2025-03-21 |
The overall trend indicates a shift towards more favorable ratings, particularly with multiple upgrades to “Overweight” and “Buy” from Cantor Fitzgerald and WestPark Capital. This suggests growing confidence in Ouster, Inc.’s future performance, although investors should remain cautious and consider the volatility indicated by the previous downgrades.
Target Prices
The consensus among analysts for Ouster, Inc. (OUST) indicates a promising outlook.
| Target High | Target Low | Consensus |
|---|---|---|
| 39 | 33 | 36.67 |
Overall, analysts expect OUST to perform within a range between 33 and 39, with a consensus target price of approximately 36.67.
Consumer Opinions
Consumer sentiment towards Ouster, Inc. has been notably mixed, reflecting both enthusiasm for its technology and concerns regarding its performance.
| Positive Reviews | Negative Reviews |
|---|---|
| “Innovative lidar technology that stands out.” | “Customer support needs significant improvement.” |
| “Great potential for growth in autonomous vehicles.” | “Pricing is not competitive compared to others.” |
| “User-friendly products that are easy to integrate.” | “Delivery times often exceed expectations.” |
Overall, consumer feedback points to a strong appreciation for Ouster’s innovative technology and growth potential. However, concerns about customer support and pricing competitiveness are recurring weaknesses that need addressing.
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 Competition | Intense competition from established lidar manufacturers | High | High |
| Technology Changes | Rapid advancements in lidar technology could render products obsolete | Medium | High |
| Regulatory Environment | Changes in regulations affecting autonomous vehicle development | Medium | Medium |
| Supply Chain Disruptions | Dependence on specific suppliers for critical components | High | Medium |
| Economic Downturn | Economic fluctuations impacting customer budgets | Medium | High |
In my assessment, market competition and supply chain disruptions are the most likely risks, both presenting significant challenges for Ouster’s growth and stability.
Should You Buy Ouster, Inc.?
Ouster, Inc. (OUST) has reported a significant decline in profitability, with a net income of -97M and an EBITDA of -166M for 2024. The company is currently destroying value, as its return on invested capital (ROIC) is -51.12%, which is substantially lower than the weighted average cost of capital (WACC) at 17.69%. Ouster is managing its debt effectively, maintaining a total debt of 20.25M against total equity of 1.15B, which results in a low debt-to-equity ratio of 0.017. The company’s overall rating is C-, indicating weak fundamentals and a need for improvement.
Favorable signals
In my analysis of Ouster, Inc. (OUST), I found several favorable elements. The company has demonstrated a remarkable revenue growth of 33.41%, along with a gross margin of 36.42%. Additionally, there is an impressive gross profit growth of 318.1% and an EBIT growth of 74.01%. The interest expense stands at a favorable 1.64%. Furthermore, the current ratio is solid at 2.8, indicating healthy liquidity.
Unfavorable signals
Despite these positive aspects, there are notable unfavorable elements. The net margin is significantly negative at -87.35%, which raises concerns about profitability. Additionally, the company has a negative return on equity of -53.64% and a return on invested capital of -51.12%, indicating value destruction. The interest coverage ratio is also unfavorable at -51.94%, and the price-to-book ratio is at 3.15, suggesting potential overvaluation.
Conclusion
Considering the favorable income statement evaluation against the overall unfavorable ratios, it could be interpreted that Ouster, Inc. might present challenges for long-term investors. The recent trend indicates more sellers than buyers, which may suggest waiting for buyers to return before making any decisions.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- Ouster, Inc. (OUST): A Bull Case Theory – Yahoo Finance UK (Dec 05, 2025)
- Ouster’s Path To Profitability: A Compelling Opportunity For Growth-Focused Investors – Seeking Alpha (Nov 14, 2025)
- Ouster (NYSE:OUST) Shares Gap Up – Still a Buy? – MarketBeat (Dec 03, 2025)
- Ouster, Inc.’s (NASDAQ:OUST) high institutional ownership speaks for itself as stock continues to impress, up 12% over last week – simplywall.st (Nov 28, 2025)
- Having Loser AI Stocks Like Ouster Inc. (OUST) In Your Portfolio is … Good? – 24/7 Wall St. (Nov 25, 2025)
For more information about Ouster, Inc., please visit the official website: ouster.com
