Ouster Q2 Earnings Surpass Expectations on Sensor Growth

OUST Product Sales Maintain Strong Momentum

Product revenues totaled $52.76 million, which increased 50.7% from $35.02 million in the year-ago quarter. Industrial was the largest revenue contributor, followed by smart infrastructure, with demand spanning warehouse automation, yard logistics, port automation, mining and intelligent transportation.

Royalty revenues were $1.86 million compared with $34,000 a year earlier. Lidar accounted for roughly 53% of total sensor shipments, with more than 9,000 lidar units and over 8,000 camera sensors shipped during the quarter.

Ouster Expands Rev8 and Stereolabs Traction

The Rev8 launch contributed to commercial momentum across Ouster's markets. The company received multiple orders exceeding $1 million, including business from a major heavy-machinery manufacturer, an autonomous agriculture equipment developer and an autonomous vehicle provider.

Stereolabs also strengthened Ouster's position in robotics. The ZED X Nano recorded the strongest product launch in Stereolabs' history due to strong camera demand from robotics customers and emerging cross-selling opportunities between Ouster's lidar customers and Stereolabs' camera customer base.

OUST Margins Improve Despite Higher Spending

GAAP gross margin expanded to 49% from 45% in the prior-year quarter. Non-GAAP gross margin increased to 53% from 52%. However, a one-time refund included in cost of goods sold boosted the current-quarter GAAP gross margin by about 1,000 basis points. Research and development spending rose to $19.3 million, while sales and marketing increased to $9.2 million.

Operating expenses increased 9.5% year over year to $46.73 million. Higher spending reflected the full-quarter inclusion and integration of Stereolabs, Rev8 and ZED X Nano product introductions and investments in Physical AI solutions. Adjusted EBITDA loss narrowed to $4.45 million from $5.50 million a year earlier.

Ouster Broadens Smart Infrastructure Reach

Ouster continued expanding BlueCity deployments during the quarter. New Jersey deployed the platform across 42 highway locations around MetLife Stadium, while Georgia added installations at 30 intersections around the Atlanta area, including locations near Mercedes-Benz Stadium.

The company also secured an order for Utah's largest lidar deployment to date, covering several hundred intersections. Rev8-enabled BlueCity advanced detection provides multimodal detection and classification at distances of up to 500 feet, broadening the types of higher-speed roadways the platform can address.

OUST Balance Sheet Gains Additional Flexibility

As of June 30, 2026, Ouster has approximately $263 million in cash, cash equivalents, restricted cash and short-term investments, with no debt. The balance included roughly $98 million raised through the company's at-the-market equity program during the second quarter.

For the first six months of 2026, cash used in operating activities was $20.04 million compared with $6.19 million a year earlier. After quarter-end, Ouster completed another common-stock offering that generated approximately $191 million in net proceeds. The company does not expect to require additional capital to fund its current operating plan on the path to profitability.

Ouster Guides for Continued Q3 Growth

For the third quarter of 2026, Ouster expects revenues between $54.5 million and $57.5 million. The company expects Rev8 to ramp toward production volumes throughout the quarter, with the increase weighted toward the latter part of the period.

Ouster continues to expect roughly $5 million of royalty revenues for 2026, while third-quarter operating expenses are projected to increase 5-8% year over year as the company invests in production capacity and its sensing and perception portfolio. 

OUST currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Releases From Auto Space

General Motors Company GM reported second-quarter 2026 adjusted earnings of $3.57 per share, up 41.3% year over year. The figure beat the Zacks Consensus Estimate of $3.13 by 14.06%. Revenues increased 1.9% to $48.03 billion and surpassed the consensus estimate of $46.56 billion by 3.15%. Strong pricing, lower costs and disciplined incentives supported results. General Motors raised its full-year adjusted EBIT guidance to $14-$16 billion from $13.5-$15.5 billion. Adjusted earnings are now projected at $12-$14 per share, up from the prior range of $11.50-$13.50.

Tesla, Inc. TSLA reported second-quarter 2026 adjusted earnings of 33 cents per share, which declined 17.5% year over year. The figure missed the Zacks Consensus Estimate of 50 cents by 34%. Revenues advanced 25.5% to $28.24 billion and surpassed the consensus estimate of $25.81 billion by 9.41%. Tesla expects 2026 capital expenditures to exceed $25 billion and rise further over the next two to three years. 

Genuine Parts Company GPC reported second-quarter 2026 adjusted earnings of $2.15 per share, beating the Zacks Consensus Estimate of $2.10 by 2.38%. The bottom line increased 2.4% from $2.10 in the year-ago quarter. Revenues rose 6% year over year to $6.54 billion and surpassed the consensus estimate of $6.39 billion by 2.36%. Genuine Parts reaffirmed its 2026 adjusted earnings guidance of $7.50-$8 per share and total sales growth outlook of 3-5.5%. Genuine Parts ended June with $2.3 billion of liquidity, including $559 million in cash.

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