Outset Medical Accelerates Growth Momentum as Revenue Surges 14% Year-Over-Year in Q3 2026
The third quarter earnings call transcript for Outset Medical has revealed a strong performance from the company, with revenue reaching $33.6 million, up 14% year-over-year and 6% sequentially.
Chair and Chief Executive Officer Leslie Trigg expressed confidence in the company's ability to capture the significant opportunity ahead, citing solid progress against strategic priorities and foundational work strengthening the business.
The third quarter financial performance saw each revenue line item contribute to growth, with console revenue increasing by 26% year-over-year, driven by new and refreshed console sales. Recurring revenue also showed a strong increase, with EMR offering sales growing 23% year-over-year.
"We were particularly encouraged to see console revenue growth up 26% year-over-year, driven by new and refreshed console sales," said Leslie Trigg during the call.
The company's clinical excellence team was busy this quarter, implementing Tablo systems for new customers and existing customers expanding to new locations. Four of the top 10 U.S. health systems were among those that completed go-live implementations.
"Our teams continue to deliver well-oiled cross-functional execution," said Trigg, highlighting the company's ability to support hospitals as they transition from outsourcing to insourcing dialysis services.
The ongoing collaboration between Outset Medical and its customers is enabling the tracking of key performance indicators, which has led to strong customer advocacy. In a recent survey, Outset achieved an overall customer satisfaction score that exceeded all healthcare benchmarks.
"The results also shed light on what customers value most about Tablo," said Trigg, pointing out that customers scored high for timely dialysis, lower infrastructure burden and system costs, and simpler dialysis delivery through easier nurse training, mobility, and ease of use.
The company has also analyzed its customer retention rate over time, revealing a cumulative retention among parent customers that have purchased Tablo consoles is 96% since commercial launch. This result is attributed to the holistic customer experience delivered by Outset Medical across various functions.
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