Ouster, Inc (OUST) Stock Forecast & Price Target

Ouster Inc demonstrated significant financial growth in its recent 3QF25 results, achieving a revenue of $39.5 million which reflects a 41% year-over-year increase and a positive quarterly growth of 13%. The company also reported a notable improvement in non-GAAP gross margin, which rose to 47%, an increase of 300 basis points year-over-year, attributed to enhanced scale and product mix. With a strong balance sheet showing $247 million in cash and investments, alongside robust sensorshipments rising 82% year-over-year, Ouster's operational efficiency and focus on margin expansion indicate a positive trajectory for the company.

Ouster Inc faces a negative outlook primarily due to concerns regarding its gross margins, which, despite exceeding expectations in the first half of FY25, remain uncertain compared to management's guidance. The company reported an EBITDA loss of $10 million, indicating that operational costs, particularly in research and development for future products, are substantially high, potentially hindering profitability. Additionally, delays in the series production of Ouster's LiDAR technology or subpar performance relative to competitors could significantly impact revenue growth, compounded by an unfavorable macroeconomic climate for companies that have entered the market through SPAC transactions.