Ouster, Inc (OUST) Stock Forecast & Price Target

Ouster Inc. demonstrated a robust financial performance in 3QF25, reporting a revenue of $39.5 million, which reflects a 41% year-over-year increase and surpasses previous consensus estimates. The company's non-GAAP gross margin improved to 47%, marking a significant 300 basis point year-over-year enhancement attributable to optimized scale and product mix. Additionally, Ouster's strong balance sheet, featuring $247 million in cash and short-term investments, supports its operational efficiency initiatives and long-term profitability goals, further underpinning a positive outlook for the company.

Ouster Inc.'s negative outlook is primarily shaped by concerns surrounding its ability to achieve consistent gross margins, as management guidance indicates uncertainty around maintaining levels above 35-40%. Despite a flat year-over-year EBITDA loss of $10 million, the company's significant investment in R&D raises questions about the sustainability of financial performance without a clear path to revenue growth, particularly if there are delays in its LiDAR production. Furthermore, unfavorable macroeconomic conditions and the challenging equity market environment for SPAC-listed companies could hinder Ouster’s financial recovery and market potential.