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    OUST
    Earnings call· Jun 2026(Q2 FY26)

    Ouster Q2 FY26 earnings call OUST

    Aug 6, 2026 Source

    Executive summary

    Ouster Q2 FY26 — Record Revenue and Strong Rev8 Adoption

    Ouster delivered a record second quarter, driven by robust demand in industrial and smart infrastructure verticals and strong initial adoption of its new Rev8 lidar and ZED X Nano camera products. The company significantly strengthened its balance sheet through capital raises, providing strategic flexibility and funding for its growth objectives. Management emphasized the expanding market for physical AI solutions and the company's end-to-end perception platform, while navigating increased operating expenses and one-time gross margin benefits.

    Highlights

    5

    • Achieved record Q2 revenue of $55 million, representing a 56% increase year-over-year.

    • Shipped over 17,000 sensors, including over 9,000 lidar and over 8,000 camera sensors, marking a new quarterly record.

    • Adjusted EBITDA improved by $1 million year-over-year, reaching negative $4 million.

    • Secured significant capital raises, ending the quarter with $263 million in cash and investments and an additional $191 million net proceeds in early Q3.

    • Launched Rev8 with native color lidar and ZED X Nano, driving strong customer adoption and million-dollar-plus orders.

    Concerns

    3

    • GAAP gross margin of 49% included a 1,000 basis point positive impact from a one-time refund, which is not expected to reoccur.

    • GAAP operating expenses increased by 10% year-over-year to $47 million due to acquisitions and new product introductions.

    • Adjusted EBITDA remained negative at $4 million for the quarter.

    Guidance & targets

    4
    CategoryTargetConfidence
    Total Revenue
    $54.5 million to $57.5 million
    high materiality
    High
    Full-year Royalty Revenue
    around $5 million
    medium materiality
    High
    Full-year Total Revenue
    unchanged
    high materiality
    High
    Operating Expenses
    5% to 8% higher year-over-year
    medium materiality
    High

    Operational metrics

    17
    Total Revenue
    $55 millionup 56% YoY
    Q2 FY26

    Record quarterly revenue.

    Sensors Shipped
    over 17,000
    Q2 FY26

    New quarterly record for sensor shipments.

    Royalty Revenue
    $1.9 million
    Q2 FY26
    Royalty Revenue
    $2.2 million
    H1 FY26
    GAAP Gross Margin
    49%up from 45% in Q2 FY25
    Q2 FY26

    Gross margin was positively impacted by a one-time refund, not expected to reoccur.

    Normalized Gross Margin
    high-30s
    Q2 FY26

    Excluding one-time benefits, the normalized gross margin would have been in the high-30s.

    GAAP Operating Expenses
    $47 millionup 10% YoY
    Q2 FY26

    Increase primarily due to Stereolabs integration, new product introductions (Rev8, ZED X Nano), and investments in physical AI solutions.

    Adjusted EBITDA
    negative $4 millionimprovement of $1 million from Q2 FY25
    Q2 FY26
    Cash and investments balance
    $263 million
    Q2 FY26

    Includes $98 million raised in Q2 through ATM program.

    Capital Raised
    $98 million
    Q2 FY26

    Strengthened balance sheet.

    Net Proceeds from Common Stock Offering
    $191 million
    Q3 FY26

    Further strengthened cash position at the beginning of Q3 FY26.

    Shares Outstanding
    approximately 72 million
    Q3 FY26
    Lidar Unit Volume Growth
    70%YoY
    Q2 FY26

    Indicates strong demand for lidar products.

    BlueCity and Gemini Revenue Contribution
    about 15%
    beginning of FY26

    Expected to grow as a larger portion of revenue in the years to come.

    Rev8 Production Capacity
    exceeds 100,000 units per year
    future

    Manufacturing capacity established to support Rev8 production.

    Signalized Intersections
    300,000
    current

    Represents the total addressable market for smart infrastructure solutions.

    BlueCity Deployed Intersections
    hundreds, rapidly moving to thousands
    current

    Still a very small fraction of the total market.

    Industry KPIs

    3
    MetricValueDetails
    Design wins product cycle rampsmultiple million-dollar-plus ordersUSD
    Order visibility backlog policyhealthy backlog
    Capacity expansion internal sourcingexceeds 100,000 units per yearunits

    Orderbook & backlog

    1
    BackloghealthyQ2 FY26

    Maintained for lidar and Stereolabs camera business to uphold lead time obligations and shipment schedules.

    Product announcements

    3
    ProductTypeDetails
    Rev8launch
    ZED X Nanolaunch
    Gemini and BlueCity software solutionsupdate

    Deals & partnerships

    6
    StereolabsAcquisition of stereo camera and monocular camera product company.

    Q2 FY26 was the first full quarter with Stereolabs under Ouster's umbrella. The acquisition expanded Ouster's reach into industrial and robotics markets, particularly with the ZED X Nano launch.

    NVIDIADeepened partnership to bring Rev8 to NVIDIA DRIVE and Jetson platforms.

    Dedicated NVIDIA toolkits support direct data ingestion and drivers for Jetson Orin and Thor, providing a production-ready ecosystem for customers.

    BenchmarkExpanded partnership to support Rev8 manufacturing.

    Established manufacturing capacity exceeding 100,000 units per year for Rev8.

    ARGUS InterceptionStrategic agreement to expand footprint in the defense industry.

    Aimed at leveraging Ouster's technology in defense applications.

    FieldAICollaboration to leverage Rev8 for next-generation robotic autonomy.

    Focus on markets like construction, mining, and security.

    Utah Department of TransportationSignificant order for Rev8 sensors for lidar deployment.

    Largest lidar deployment to date for UDOT, covering several hundred intersections across the state.

    Risks & headwinds

    3
    Reliance on one-time gross margin benefitsPast quarters, not expected to reoccur

    1,000 bps positive impact in Q2 FY26; 500 bps positive impact in Q2 FY25

    Mitigation: Focus on long-term cost-downs and higher-margin software solutions.

    Rising operating expensesCurrent and near-term (Q3 expected 5-8% higher YoY)

    $47 million in Q2 FY26, up 10% YoY

    Mitigation: Closely monitoring operating expenses; investments are strategic for expanding addressable market and long-term profitability.

    Balancing revenue recognition with backlog and lead time obligationsOngoing

    Implied potential for higher revenue if backlog was sacrificed

    Mitigation: Maintaining inventory and a healthy backlog; guiding to realistic shipment capabilities.

    What to watch in Q3 FY26

    4

    Rev8 Production Ramp

    by the end of the quarter
    Currentminor prototype sales in Q2 FY26
    Targetproduction volumes

    Why it matters

    Successful ramp of Rev8 is crucial for meeting demand from significant orders and driving future revenue growth.

    We are actively scaling our Rev8 production lines and anticipate reaching production volumes by the end of the quarter.

    Q&A highlights

    6

    Analyst asked for order of magnitude or quantification of Rev8 bookings and backlog for future revenue ramp.

    Management stated strong reception to Rev8 with significant wins and million-dollar-plus orders, but did not provide exact bookings numbers for the full year. They emphasized Rev8 will fuel the core business for the next 5 years.

    “So we -- it's been 1 quarter with Rev8 out being sold, and we've already racked up very significant wins with Fortune 500 companies, millions of dollars worth of orders.”

    asked by Colin Rusch · answered by Charles Pacala

    2 min read5 chapters

    Detailed Narrative

    01

    Rev8 and ZED X Nano Product Momentum

    The launch of Rev8, featuring native color lidar, is described as the most important product release in Ouster's history, setting a new industry benchmark for 3D spatial perception. Customer feedback has been "electric," leading to multiple million-dollar-plus orders from major manufacturers and autonomous vehicle providers. The ZED X Nano, a wrist-mount stereo vision camera, also saw its most successful launch in Stereolabs' history, expanding reach into industrial and robotics markets.

    02

    Strategic Partnerships and Ecosystem Integration

    Ouster deepened its partnership with NVIDIA, bringing Rev8 to the NVIDIA DRIVE and Jetson platforms with dedicated toolkits for direct data ingestion. This collaboration provides customers with a production-ready ecosystem critical for physical AI challenges. The company also achieved Build America Buy America compliance for Rev8 and BlueCity, making them eligible for U.S. government-funded infrastructure projects.

    03

    Expansion in Smart Infrastructure

    The BlueCity traffic management solution continues to scale with major deployments in New Jersey and Georgia for the 2026 FIFA World Cup, covering 42 highway locations and 30 intersections. These deployments will provide high-fidelity traffic monitoring and real-time safety alerts. The Utah Department of Transportation also placed a significant order for Rev8 sensors, covering several hundred intersections, leveraging the advanced detection capabilities of the OS1 Max.

    04

    Robotics and Industrial Market Growth

    Ouster sensors are enhancing safety and productivity for autonomous operations in complex environments, with customers like AIM Intelligent Machines retrofitting heavy machinery. The Stereolabs acquisition has significantly boosted Ouster's presence in the humanoid and robotic manipulation market, with strong demand for their stereo camera products. Cross-selling opportunities between lidar and camera customers are emerging organically.

    05

    Operational Scaling and Financial Strength

    The company is actively scaling Rev8 production lines, anticipating reaching production volumes by the end of Q3 FY26, with manufacturing capacity exceeding 100,000 units per year through its partnership with Benchmark. Ouster also bolstered its balance sheet with $98 million raised in Q2 FY26 via an ATM program and an additional $191 million in net proceeds from a common stock offering in early Q3 FY26, providing full funding for its current business plan and strategic flexibility.

    AI-generated summary of the company’s earnings call. Not investment advice.